TonyK
CibbuanoAFL rejects debt relief
June 13th 2008 02:07
AFL chief executive Andrew Demetriou has ruled out the possibility of the league wiping the debts of struggling Melbourne-based clubs
Several club presidents have expressed the view that the $15 million it would take to lift the likes of Melbourne, North Melbourne and the Western Bulldogs back into the black is nothing compared to the AFL's investment in plans to establish new teams on the Gold Coast and Western Sydney.
But Demetriou said the league is commited to a long-term plan that's already in place and that club's needed to manage themselves.
"After going through the broadcast rights we came up with the Next Generation strategy which was $1.4 billion to allocate across the clubs to … secure the future of the 16 club competition," Demetriou told Fairfax News Radio.
"That was signed-off by the 16 clubs and we provided a dividend on top of that of $6 million over five years for every club and all the clubs signed-off on the Special Annual Distribution packages which were $1.7 million to the Western Bulldogs and so on."
"Clubs were also told that if they wanted an advance on their $6 million, they could do that … and that's still available to North Melbourne, the Western Bulldogs and the Melbourne Football Club."
"It’s not good business practice to start paying debts off for three clubs … we've got other clubs who are working their absolute butts off and … why should they be penalised."
"Clubs have to start to manage themselves. We've got a process … and we shouldn’t change mid-course."
Several club presidents have expressed the view that the $15 million it would take to lift the likes of Melbourne, North Melbourne and the Western Bulldogs back into the black is nothing compared to the AFL's investment in plans to establish new teams on the Gold Coast and Western Sydney.
But Demetriou said the league is commited to a long-term plan that's already in place and that club's needed to manage themselves.
"After going through the broadcast rights we came up with the Next Generation strategy which was $1.4 billion to allocate across the clubs to … secure the future of the 16 club competition," Demetriou told Fairfax News Radio.
"That was signed-off by the 16 clubs and we provided a dividend on top of that of $6 million over five years for every club and all the clubs signed-off on the Special Annual Distribution packages which were $1.7 million to the Western Bulldogs and so on."
"Clubs were also told that if they wanted an advance on their $6 million, they could do that … and that's still available to North Melbourne, the Western Bulldogs and the Melbourne Football Club."
"It’s not good business practice to start paying debts off for three clubs … we've got other clubs who are working their absolute butts off and … why should they be penalised."
"Clubs have to start to manage themselves. We've got a process … and we shouldn’t change mid-course."
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