Port tell league: we'll go broke without assistance

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Beaussie

Club Legend
Jul 26, 2001
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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? :eek:

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
 
Re: Port tell league: we'll go broke without handout

First up, every club has debt according to the summary of the 16 clubs' finances that appeared in the Herald-Sun a couple of months ago.

The news about Bianco isn't surprising either, unfortunately.
 

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Re: Port tell league: we'll go broke without handout

Its soccer's fault. If they set it up as meber based clubs. Bianco wouldnt of thrown all his money at adelaide united. And would have xxxxxxx amount of dollars to honour his sponsorship agreement.
 
Re: Port tell league: we'll go broke without handout

This means that of the non-Victorian clubs, only Freo, West Coast and the Crows are stand alone financially viable.

Makes the GC case shakier and shakier by the day.
 
Re: Port tell league: we'll go broke without handout

Important for Power to have a good year on the park this year if this is indeed the case. Good thing is that I reckon they will start winning again, was amazing how their support just died after they started losing games last year. I do hope they have lowered the attendance they need to make a profit at games, IIRC it was something like 30thousand which for them is way too much.
 
Re: Port tell league: we'll go broke without handout

This means that of the non-Victorian clubs, only Freo, West Coast and the Crows are stand alone financially viable.

Well to be fair, a lot of clubs would find themselves hitting the panic button if one of their major sponsors rang up on the eve of the season starting and said "ummm, about that $750,000 we owe you..."
 
Re: Port tell league: we'll go broke without handout

Well to be fair, a lot of clubs would find themselves hitting the panic button if one of their major sponsors rang up on the eve of the season starting and said "ummm, about that $750,000 we owe you..."

Oh yeah, I agree. I am most certainly NOT having a go at Port here. I reckon you guys will be OK in the medium term.

My larger point is that the AFL would be mad to start throwing money at even more expansion in the current environment.
 
Re: Port tell league: we'll go broke without handout

Oh yeah, I agree. I am most certainly NOT having a go at Port here. I reckon you guys will be OK in the medium term.

My larger point is that the AFL would be mad to start throwing money at even more expansion in the current environment.

Correct and I have been saying it for a while. The AFL has stupidly focussed on developing dead markets whilst it has totally ignored the fragile state of the game in South Australia, a traditional football stronghold. I believe Port will have a good season on-field but I do not expect our crowds to rise much on 2008 numbers. I feel the South Australian football public is tiring of the AFL brand, the constant rule changes, the over-exposure on foxtel and free-to-air TV and the fixture, and expect to see another fall in attendance figures for Crows games too.
 
Re: Port tell league: we'll go broke without handout

. I feel the South Australian football public is tiring of the AFL brand, the constant rule changes, the over-exposure on foxtel and free-to-air TV and the fixture, and expect to see another fall in attendance figures for Crows games too.

Interesting re: the different states views on the game.

Agree re: fixturing, free to air etc.
 
Re: Port tell league: we'll go broke without handout

Correct and I have been saying it for a while. The AFL has stupidly focussed on developing dead markets whilst it has totally ignored the fragile state of the game in South Australia, a traditional football stronghold. I believe Port will have a good season on-field but I do not expect our crowds to rise much on 2008 numbers. I feel the South Australian football public is tiring of the AFL brand, the constant rule changes, the over-exposure on foxtel and free-to-air TV and the fixture, and expect to see another fall in attendance figures for Crows games too.

Meanwhile SANFL crowds seem to be going up. Hmmm
 
Re: Port tell league: we'll go broke without handout

This means that of the non-Victorian clubs, only Freo, West Coast and the Crows are stand alone financially viable.

Makes the GC case shakier and shakier by the day.
There was even talk not too long ago in darker times over in the west about the WAFL been required to step in to support "the parlous state of AFL football in Western Australia". I can't recall if the clubs over there received any handouts though? They have always seemed to have good membership numbers.
 
Re: Port tell league: we'll go broke without handout

The Port development shows us the AFL must concentrate its money and effort on consolidating what it has, not hare brained expansion schemes.
 

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Re: Port tell league: we'll go broke without handout

this really highlights the unsustainable structure and 3rd party ground share arrangements of the AFL competition.

most viable football clubs/organisations around the world use the their home ground as a major revenue earner from all activities. the home ground is important for any team.

Port Adelaide FC and football park are not a good fit. the ground is too big for the team for all but 1 or 2 of their 11 home matches each season......but the landlord (SANFL) takes into account the whole 51k capacity when determining their lease and thus the level at which the club can break even from attendances is too high for the club.

ground rationalisation will end up sending clubs to the wall.

my question is this........a) why didnt clubs purchase grounds off council during the 20th century, and maintain them to their specifications; b) in leiu of not purchasing grounds, why didnt clubs use their status as major tenants to pressure councils for substantial improvement works, or the club take on improvement works themselves. this foresight from clubs would not have led to the ground rationalisation situation the clubs find themselves in now. clubs would have control of their gameday activities, from ticket prices to ground advertising and a ground that can cater to their own supporters. instead clubs are copping the stake up their collective arses.

due to the inferior state of many grounds, the AFL did the wheelin and dealin for the clubs and forced them into ground share arrangements with 3rd parties own bigger capacity grounds than what is required for the tenant, and who have their own sponsorship commitments, hence poor deals. so now, the monies which nearly half the clubs collect at the gate for many games are now neglible. it's all well and good to have a 95k & 55k capacity stadium in melb, but most teams cant get anywhere near selling these out or making money out the arrangements.

it's too late for clubs to go home now...these grounds are now in a derelict state, or have been modified for public access use.......but giving up this important of assets for the ground rationalisation setup was an error IMO.
 
Re: Port tell league: we'll go broke without handout

Correct and I have been saying it for a while. The AFL has stupidly focussed on developing dead markets whilst it has totally ignored the fragile state of the game in South Australia, a traditional football stronghold. I believe Port will have a good season on-field but I do not expect our crowds to rise much on 2008 numbers. I feel the South Australian football public is tiring of the AFL brand, the constant rule changes, the over-exposure on foxtel and free-to-air TV and the fixture, and expect to see another fall in attendance figures for Crows games too.

Bit of an excuse mate ....Port fans need to eat into the Crows dominance of the SA market and get the fans of their arses and to the games.
 
Re: Port tell league: we'll go broke without handout

its time the afl babysat an interstate club instead of holding up unfinancial victorian clubs who put there hand up and then crow about what profit they make at the end of the year, what crap ! dont get me wrong we hate port but they deserve help every much as any club that has squeeled so far
 
Re: Port tell league: we'll go broke without handout

Well to be fair, a lot of clubs would find themselves hitting the panic button if one of their major sponsors rang up on the eve of the season starting and said "ummm, about that $750,000 we owe you..."
The exact same thing happened to us this year and Demetriou last week announced we're heading in the right direction.
 
Re: Port tell league: we'll go broke without handout

its time the afl babysat an interstate club instead of holding up unfinancial victorian clubs who put there hand up and then crow about what profit they make at the end of the year, what crap ! dont get me wrong we hate port but they deserve help every much as any club that has squeeled so far
Nothing wrong with us geting a hand out.
Half of the Vic clubs take the money and run and they didn't even have to pay 4 mill to join like we did.
 
Re: Port tell league: we'll go broke without handout

This story broke in The Age and, as of this morning, the story still doesn't appear in The Advertiser's web site.

Here endeth the Port moaning about not getting a fair deal from the local newspaper.
 
Re: Port tell league: we'll go broke without handout

Nothing wrong with us geting a hand out.
Half of the Vic clubs take the money and run and they didn't even have to pay 4 mill to join like we did.

welcome to 92.5% of the salary cap :thumbsu:
 
Re: Port tell league: we'll go broke without handout

If they need a handout give it to them, however questions need to be asked about whether a team like Port should have been given entry into the AFL and not a new franchise similiar to Adelaide, like what happened in WA. So far for the new franchises the WA model are miles ahead of everyone else.
What's done is done, but it's concerning that Port find themselves in this position after the recent success they've had.

I could refer to the irony of this happening after all the crap that clubs like mine received from port people on bigfooty over the CBF, hopefully this will reduce the trolls.
 
Re: Port tell league: we'll go broke without handout

Nothing wrong with us geting a hand out.
Half of the Vic clubs take the money and run and they didn't even have to pay 4 mill to join like we did.

No, but then many of those same clubs scrimped, scrounged and worked their arses off for over a 100 years to build this competition.

I think SLF said it best earlier. There are 3 clubs outside of Victoria that could be considered safe. That is not a great indication of the success of the AFL's plan for the competition.

On ground rationilisation it's fair to say the policy hasn't been a success. Probably a combination of factors including the fact that clubs simply couldn't afford to maintain the grounds they had at the times. There's probably a big lesson here for the clubs and the AFL that in future they need to maintain control of as much of there home revenues as possible. Teams need to have control of the stadium in which they play games as much as possible.
 
Re: Port tell league: we'll go broke without handout

I hate their guts, but sincerely hope they get through this (as I'm sure they will). :thumbsu:
 
Re: Port tell league: we'll go broke without handout

The exact same thing happened to us this year and Demetriou last week announced we're heading in the right direction.

No it didn't.

1) It happened last year
2) It was a minor sponsor (although still about $150,00 from memory, which admittedly aint great.)
 

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