Port Adelaide 2017

[MW]

They may have stayed behind by the looks of the result vs Sydney

[Trader]

Based on this article my understanding is there were a series of one off costs, but the "leveled out" cost of $4m to host the game is the reoccurring cost for future games.

That article also mentions over $6m in income, with that figure to jump to just under $10m with the signing of the new sponsor, which we understand to be MJK Holdings $1m a year for 3 years.

If correct, then you have the old politicians trick at work. Reporting expenditure on single year figures, and income over the life of agreements.

The other thing that I haven't seen taken into account is the sponsors that are getting bumped for the China income. IE: MJK are now the "collar sponsor" and the full $3m is applied to the income line of the china figures. But what was the previous Collar Sponsor paying? I assume that income is no longer coming in.

Don't get me wrong, I'm sure this is a profitable venture, the club simply wouldn't do it if it wasn't, but I don't think it is the cash cow people are trying to make it sound like, all be it yet anyway.
The benefit from this venture is getting the foot in the door to a massive market. If it takes off, the profits could be endless. That's a big if, and will take a lot of work to truly tap into and make sustainable. But if they are breaking even, and or making small profits, while having a potentially huge upside, I'm happy for them to take the gamble.

[Booney]

Good on them for having a go, however told for months that it was a 14k sell out, then only 10k turn up in a city with 120k expats?

Then again they have been open that this is purely about $$$$ so would still play the game with a few hundred there I suspect....Ill wait and judge when they announce their financials come year end, we keep hearing about the upside but very little about what this has costed. My suspicions will be "we made a $300k loss but spent $800k on the China experiment which will pay off for us further down the track.

Been widely publicized that the venture has cost around $4m

Published 3 days ago ( May 12 ) :

Port Adelaide will break even on Sunday’s match after working a $4 million budget to put on the match and to refurbish Jiangwan Stadium

http://www.heraldsun.com.au/sport/afl/t ... d4e8c50c27

Published May 7 :

It has already been a lot of work, and the costs associated with staging the game have levelled out at $4 million.

http://www.abc.net.au/news/2017-05-07/p ... ds/8502600

Published this morning :

The front row of the official box at Jiangwan Stadium was reserved for 17 special dignitaries from government — both Chinese and Australian with SA Premier Jay Weatherill and one of his ministers, Martin Hamilton-Smith — Chinese business and the AFL with AFL Commission chairman Richard Goyder and AFL chief executive Gillon McLachlan.

The prime seat was left for Shanghai billionaire, Guo Jie Gui, the real estate magnate who last year put $3 million on the table to have Port Adelaide bring an AFL premiership match to his home city.
______________________________________________________________________________________________________

Here's the bit you'll be interested in, Dutchy :

“But the game is just a small part of our ‘China Strategy’,” added Koch. The Power has signed 20 commercial partners, 12 in China, to bankroll an annual game in Shanghai that cost $4 million this time but will have no “start-up” costs in the future. This would allow Port Adelaide to collect as much as $2 million from any match next season.

http://www.goldcoastbulletin.com.au/spo ... 7bd819df6f



On May 13 Port announce MJK as a $1m per year for 3 year partner :

http://www.portadelaidefc.com.au/news/2 ... es-sponsor

[The Bedge]

The other thing that I haven't seen taken into account is the sponsors that are getting bumped for the China income. IE: MJK are now the "collar sponsor" and the full $3m is applied to the income line of the china figures. But what was the previous Collar Sponsor paying? I assume that income is no longer coming in.

Did they have a collar sponsor previously? I don't recall seeing one?

[Trader]

The other thing that I haven't seen taken into account is the sponsors that are getting bumped for the China income. IE: MJK are now the "collar sponsor" and the full $3m is applied to the income line of the china figures. But what was the previous Collar Sponsor paying? I assume that income is no longer coming in.

Did they have a collar sponsor previously? I don't recall seeing one?

Yup, Envestra, as seen here

[Booney]

The other thing that I haven't seen taken into account is the sponsors that are getting bumped for the China income. IE: MJK are now the "collar sponsor" and the full $3m is applied to the income line of the china figures. But what was the previous Collar Sponsor paying? I assume that income is no longer coming in.

Did they have a collar sponsor previously? I don't recall seeing one?

And Australian Gas Networks last year. I doubt to the tune of $1m per year.

[Jim05]

Congrats to Port, anything thing that stops any clubs having to have handouts is a good thing IMO.
I would suspect Port will need to cough up more than $500k for anyone to go over next year, probably $1m as a minimum

[Dutchy]

Good on them for having a go, however told for months that it was a 14k sell out, then only 10k turn up in a city with 120k expats?

Still more there than the North v Adelaide game in Hobart.

Still make over $300k per game in Hobart which has contributed to profits 7 of the last 8 years and nearly eradicating all debt.

Like I said in my post, crowd numbers and game development in China is not on a high priority list for Port or the AFL.

[Dutchy]

Here's the bit you'll be interested in, Dutchy :

“But the game is just a small part of our ‘China Strategy’,” added Koch. The Power has signed 20 commercial partners, 12 in China, to bankroll an annual game in Shanghai that cost $4 million this time but will have no “start-up” costs in the future. This would allow Port Adelaide to collect as much as $2 million from any match next season.

http://www.goldcoastbulletin.com.au/spo ... 7bd819df6f



On May 13 Port announce MJK as a $1m per year for 3 year partner :

http://www.portadelaidefc.com.au/news/2 ... es-sponsor

All great stuff but if it doesn't turn into a bottom line profit you can never reduce club debt, that is what needs to occur now. Hence Ill reserve my judgement until year end.

[Trader]

Congrats to Port, anything thing that stops any clubs having to have handouts is a good thing IMO.
I would suspect Port will need to cough up more than $500k for anyone to go over next year, probably $1m as a minimum

That 500k was partly because it was Gold Coast's home game we were buying wasn't it?

The only reason we couldn't use our own home game was due to the deal at Adelaide Oval requiring 11 games.
How long does that deal run for?
Once over, there is no reason why Port Couldn't play their home game in China, therefore not having to pay the away team anything.

Over the years Port has had to play a number of away games at alternative venues without payment:
Darwin 10 times
Launceston 8 times
Canberra 6 times
Alice Springs 3 times
Hobart once

Sure, those venues aren't the likes of another country, but there have been plenty of times we've been told to go to the unique venue, it wouldn't be unreasonable for us to do it to someone else once or twice.

[Jim05]

Congrats to Port, anything thing that stops any clubs having to have handouts is a good thing IMO.
I would suspect Port will need to cough up more than $500k for anyone to go over next year, probably $1m as a minimum

That 500k was partly because it was Gold Coast's home game we were buying wasn't it?

The only reason we couldn't use our own home game was due to the deal at Adelaide Oval requiring 11 games.
How long does that deal run for?
Once over, there is no reason why Port Couldn't play their home game in China, therefore not having to pay the away team anything.

Over the years Port has had to play a number of away games at alternative venues without payment:
Darwin 10 times
Launceston 8 times
Canberra 6 times
Alice Springs 3 times
Hobart once

Sure, those venues aren't the likes of another country, but there have been plenty of times we've been told to go to the unique venue, it wouldn't be unreasonable for us to do it to someone else once or twice.

Long term deal at AO, Port are locked into for years and no way they will be allowed out of it.
Someone will have to give up a home game again next year. The Suns are the obvious choice but Koch would be a lier if he invited them back so someone else would have to agree to a move. Can't see anyone doing it for less than $1m

[Dutchy]

What happens in no team wants to go to China? AFL make one go now? (ie GWS)

[Trader]

Long term deal at AO, Port are locked into for years and no way they will be allowed out of it.

With the state Govt and AFL both heavily involved I recon they'd pressure the SMA to sell a game.
If the SMA don't play ball, the AFL could turn around and give port (and crows if they really wanted) 10 home games against the worst crowd drawing teams in the worst time slots.

[Jim05]

What happens in no team wants to go to China? AFL make one go now? (ie GWS)

Possibly.
Could threaten to cut handouts to clubs. Would think Brisbane or Melbourne would be in the gun. GWS have a deal with Canberra so they would be safe

[Wedgie]

ground looked reasonable (although looked small)

I couldnt believe how massive it was!
Wider than Adelaide Oval and without the temp stands you could almost fit 2 Adelaide Ovals in it lengthways!

[Booney]

What happens in no team wants to go to China? AFL make one go now? (ie GWS)

It will be the Suns, the Giants or the Lions. Anyone who the AFL bankrolls will be told to get on a plane.

[Dutchy]

What happens in no team wants to go to China? AFL make one go now? (ie GWS)

It will be the Suns, the Giants or the Lions. Anyone who the AFL bankrolls will be told to get on a plane.

Yep, that's what I was getting at.

[Booney]

ground looked reasonable (although looked small)

I couldnt believe how massive it was!
Wider than Adelaide Oval and without the temp stands you could almost fit 2 Adelaide Ovals in it lengthways!

330m x 175m in total.

[Jim05]

What happens in no team wants to go to China? AFL make one go now? (ie GWS)

It will be the Suns, the Giants or the Lions. Anyone who the AFL bankrolls will be told to get on a plane.

But Koch said unequivocally that "wear their home guernsey and they won't be invited back"
Are you calling him a liar?
Suns have to be ruled out otherwise it's just another lie[emoji3]

[The Bedge]

It will be the Suns, the Giants or the Lions. Anyone who the AFL bankrolls will be told to get on a plane.

But Koch said unequivocally that "wear their home guernsey and they won't be invited back"
Are you calling him a liar?
Suns have to be ruled out otherwise it's just another lie[emoji3][/quote]
I'm sure the AFL will have more of a say in it than Koch lol