Apparently they are $3.5 million in debt and have a sponsor who can't pay its contracted $750,000 for 2009. What the hell is going on down there at Alberton?
Port tell league: we'll go broke
Caroline Wilson | March 17, 2009
Port Adelaide have become the latest club to join the AFL's critical list following confirmation they have requested emergency assistance, via the competition's annual special distribution, for the first time.
In a development that could have dire implications for a western Sydney team - and the league's expansion plans in general - Port's new chief executive, Mark Haysman, last night told the Herald the club had requested an immediate seven-figure sum from the AFL in a bid to ease its financial crisis.
Haysman addressed the entire staff of Port Adelaide at Alberton late yesterday to update them on the gravity of the situation, which he said was now fully understood by the AFL and the club's licence-holder, the SANFL. The AFL commission is due to meet on Thursday and is expected to grant a licence to the new Gold Coast franchise.
The Power's cash-flow crisis has escalated in recent weeks with their co-major sponsor potentially unable to pay the club this year. And SANFL boss Leigh Whicker told the Herald shortly before last night's South Australian league annual general meeting that Port's licence-holder was working to ensure the club's viability was not placed at risk.
Whicker said: "We've recognised our responsibility as holders of the licence to work with Port Adelaide because they are a very proud club and we need to ensure that they can maintain their existence as a company limited with our guarantee and continue to run their business."
Not only has Port Adelaide's debt escalated to about $3.5 million but the Power's co-major sponsor, Bianco, has raised doubts about its ability to deliver its contracted $750,000 for 2009. The Adelaide-based building supplier is committed to the club until the end of 2010 but the AFL and SANFL are worried about its ability to deliver on the deal and it is not known whether the Port Adelaide players will wear the Bianco logo on their jumpers against Essendon in round one.
The club's other major sponsor, Vodaphone, has already announced it will either pull out or significantly reduce its commitment come the end of this year.
Port are the first non-Victorian club to officially request money through the ASD. North, Melbourne and the Western Bulldogs are all recipients of the fund, which will be reviewed at the end of 2009.
"The SANFL and the AFL now fully understand the gravity of our situation," Haysman said last night. "We have approached the AFL about financial assistance through the additional special distribution for 2009, '10 and '11 to help get us back on our feet as we work to rebuild the club.
"The AFL understands the size of our exposure. Our current model is not sustainable. We are fighting for sustainability. It is an uncomfortable situation."
Port Adelaide lost $1.4 million last season, a year in which the club finished 13th, turned over an unhealthy number of staff and had their average home crowds drop to little more than 23,000.
http://www.realfooty.com.au/news/ne...thout-a-handout/2009/03/16/1237054738203.html