am Bays wrote:IMO, The SANFL isnt going anywhere in a hurry, based on the financials behind the industry.
There are three good reasons why I say this:
1. The SANFL is bankrolled by the SMA and the associated SA Govt Act of Parliament that provides surety of income for both the SANFL and SACA (if you think Max was leaving footy park with out guarantees for the SANFL you were dead wrong - he played Foley on a break). As long as there are 40000 (on average) VFL franchise fans rocking up each week buying tickets and parking (part there of), food and drink the SANFL will be OK.
2. The fact the AFL is prepared to chuck in $500 000 a year to the SANFL for "development" money each year in lieu of having to fund a fully fledged reserves competition (SANFL were effectively brought off by the AFL to change the rules last season), means there is no AFL reserves competition coming any time soon. Not when there's AFLW comps to fund, clubs getting antsy on soft caps and a Tasmanian team that will need up to $30 Mill a year from the AFL to operate (like Gold Coast, GWS and Brisbane).
3. The fact that 6/8 SANFL clubs turnover $5Mill a year (inclusive of their licensed premises) means there are six relatively strong clubs. Unsure of South as I cant find their financials on their website. West is the undoubted concern.
Now I'm not that naïve to think everything is rosey and there are challenges like there always has been over the last 40 years. The competition will evolve over the next 10 years undoubtedly. Will a club potentially relocate, strong chance. Will the expenditure of clubs have to be rationalised undoubtedly but I'm confident I'll still be rocking up to Stratarama stadium or whatever the Bay oval will be called to watch the Bays in the SANFL for a long time yet.
Mostly yes.
The SMA was set up to provide financial sustainability for both the SANFL and SACA (the SACA had $90M in debt before this, whilst the SANFL had a significant asset in Football Park, albeit with a heavy debt burden because of you know who) to give full responsibility to operate (therefore costs) and receive all revenue from Adelaide Oval, but was predicated on certain average attendances as you have alluded to. Port’s attendance mark is lower than the Crows, so below 40K. The State Govt retained ownership of Adelaide Oval.
The football and cricket income stream was supposed to be supplemented by events such as concerts, but they have been few and far between.
The SMA were so concerned about attaining those required attendance figures that they decided to build the hotel to supplement revenue.
Yes, the financial rewards are good in good times, but as per this year, Port’s attendances have fallen below the required mark.
Even though the SMA is joint SANFL and SACA, footy does most of the heavy lifting when it comes to revenue.
So yes, you are correct about the funding model, but it requires constant management to keep it sustainable.
The issue for the longevity of the SANFL isn’t financial, it’s the sustainability of the clubs from both their individual financial and football performances. By that I mean that each club must be able to stand on their own financially (in addition to the financial sustainability of the League) as well as work their zones and attract enough talent to their clubs to be successful on-field.
We currently have West which is severely struggling on both counts, and South which is faring better but not at the level required. The debate on the continued inclusion of the AFL reserve teams excluded, the SANFL needs 8 strong clubs to prosper … it doesn’t have that now.
If West were to fold, then we’re down to 7 clubs + the AFL reserve teams. Whilst I agree that they’re not leaving anytime soon, if they did then the SANFL would find it difficult to be relevant with only 7 teams.
It just provides further challenges to manage … if we had the calibre of a Max Basheer at the helm then I’d feel more comfortable, but with the current management I’m not so sure.
The worst should have been past us, but unfortunately it’s a constant battle.
The AFL reserves teams massively complicates the situation, so it’s not easy. Despite what the happy clappers may believe, it severely undermines the integrity of the competition; there’s no possible way to ‘equalise’ these teams to the other 8 clubs … but that argument is best left to the dedicated thread.
Dunno, I’m just an idiot.
I’m only the administrator of the estate of dedja