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SWANSBEST
21st March 2003, 05:56 AM
The clock ticking on Sydney's future

March 21, 2003
TIMING can be an enemy or a friend. The AFL called off its season launch planned for yesterday afternoon because it did not want to be seen celebrating when perhaps Australia had gone to war. It was prescient.

The NRL stripped points off the Canterbury Bulldogs for salary cap rorting only months before Carlton were found to be involved in all manner of illegal payments to players. Having just watched the NRL handle the Canterbury scandal, the AFL moved to change its rules so it too can deduct premiership points from rorting clubs. The AFL is not blind to its competitor's good points.

Timing can be cruel, too. Sydney had to replace their coach Rodney Eade last year, saw membership and attendances drop and the club finish 11th.

The Swans needed to regroup quickly to maintain the foothold they had managed to secure in the toughest sports market in the country.

It is hardly proving easy and the Swans are reeling. The Rugby World Cup is pulling membership and corporate sales away from the club. NSW will host 17 matches including the two semi-finals and final. Queensland will stage 12 matches but it is making little inroad into Brisbane's bottom line.

With consecutive AFL premierships and a third very much a possibility, sponsorship, corporate sales and membership are holding firm or growing.

Worse for Sydney is rugby league's resurgence, Gorden Tallis and Melbourne Storm coach Craig Bellamy notwithstanding. Bellamy told the Herald Sun newspaper on Wednesday that the fistic explosion by Tallis was proof the Bronco captain was returning to his peak. "Gorden's game is built on aggression," Bellamy said. Madness.

Storm's inability to capture any meaningful market share in Melbourne has their officials talking like schoolboys after a lunch-time brawl. At least the Swans chiefs have been able to keep their heads.

However, the impact of rugby's World Cup on top of a slow deterioration in all key performance indicators since Tony Lockett first retired has placed Sydney in a finely balanced position.

Chairman Richard Colless said yesterday the club would soon be seeking a meeting with the AFL to "basically share with them our position".

Colless said the Swans, which lost a million last year, are heading for another significant loss unless there is a meaningful injection of revenue. "We don't have the money to fund another loss," Colless said.

Help could be on the way. The AFL's chief executive Wayne Jackson said yesterday if the Swans could prove the World Cup was seriously damaging their ability to operate then the league would consider giving financial assistance to the club.

"Provided the Swans could prove the damage was significant and that it was due solely to the impact of the World Cup, then we would be sympathetic to their position," Jackson said. The AFL last gave financial relief to the Swans in 1998.

Colless said the club has already begun to cut costs, especially in the football department. This year the club will pay out only 103 per cent of the total player payments although it is allowed a salary bill of 115 per cent because of cost-of-living and retention allowances. Nick Davis, centre of a clearance battle with Collingwood, has moved to the Swans on less money than he received with the Magpies.

Colless did not attend the AFL's annual general meeting in Melbourne last night because it clashed with the Swans' jumper presentation.

One AFL official yesterday described the Swans' administration as suffering from "fatigue" as they fought to hold their position in Sydney as well as resist attacks from the powerful Victorian clubs.

Collingwood and Essendon were successful in having Sydney and Brisbane stripped of draft priority picks last season. The Victorian clubs are now fighting to have the northern clubs' salary cap concessions removed.

Brisbane are allowed to pay 10 per cent above the salary cap to help retain players recruited from traditional AFL states and Sydney can pay 15 per cent above the cap for player retention and cost-of-living factors.

The AFL told all 16 club chief executives yesterday the league was reconsidering the salary cap concessions to Brisbane and Sydney. "It is a work in progress," Jackson said. The league is expected to finalise its position within a month.

Sydney, critical to the AFL's $500 million broadcast deal, is running out of money. Ultimately the AFL and the other 15 clubs will decide if they are running out of time.
http://www.theaustralian.news.com.au/common/story_page/0,5744,6159889%255E12270,00.html

Reggi
21st March 2003, 07:05 AM
They posted 5 years of profits, maybe they spent to much, plus diminished expactations has membership sales down.

Cut backs will be necassary I guess

Bart
21st March 2003, 09:05 AM
Years of spending has really caught up.

Indeed much of this spending was on dveloping the game in Sydney through Teamswans and marketing activties. Unfortunately without the on-field success to go with this, many of these activities have proved to be futile.

There would be war in Melbourne if the Swans were to request and get special assistance, although proving a link with Rugby World Cup could be tenuous at best

Charlie
21st March 2003, 03:48 PM
It seems to insinuating that if we don't have big time success soon, the AFL will shut us down. That's absolute bull****.

NMWBloods
21st March 2003, 05:06 PM
I think the article is suggesting that if the Swans, again, run out of money then the AFL may have second thoughts about rescuing them. I don't think that is unreasonable. If the Swans can't survive this time then when will they?

Dpw
21st March 2003, 06:26 PM
Originally posted by NMWBloods
I think the article is suggesting that if the Swans, again, run out of money then the AFL may have second thoughts about rescuing them. I don't think that is unreasonable. If the Swans can't survive this time then when will they?


I agree, If the Swans are unable to stand on there own now how can we expect to be around in the future.

omnipotent
21st March 2003, 07:06 PM
If we get yet more financial assistance from the AFL we are proving we cannot stand on our two feet. We must resist it otherwise we are not a strong enough entity. We are already loathed by victorian clubs because of this. If they help us they have to help the bulldogs etc.

SWANSBEST
21st March 2003, 08:03 PM
North and the Bullogs have already been helped to the tune of a few million dollars recently. IMO the Swans are looking for the AFL TO COVER OR HELP with the costs of staging the games at Telstra Stadium. Last year the loss was $750,000 for the 3 games . Colless has eluded to this peviously. Patrick Smith is very much for a National competition so he may be doing the Swans bidding.

Swans have not received financial assistance since 1995 and I hope that they can work their way through any problems. Compared to the Dockers and others we are probably in a reasonable position. Membership numbers are crucial and will only increase with success on the field .
I can not see the AFL letting the club fall over as the TV rights deal is partly based on televising North of the border games.

The club has cut costs but I WONDER WHAT HAPPENED TO THE PROFITS OF RECENT YEARS. NO CONSOLIDATION OBVIOUSLY.
One thing I now feel strongly about is we do not need the distraction of elections for Board positions . Stability should be the key for some time with the AFL keeping an eye on activities

Xie Shan
21st March 2003, 09:13 PM
I WONDER WHAT HAPPENED TO THE PROFITS OF RECENT YEARS.

That's the one thing that worries me - one bad year shouldn't put a club in financial difficulty, especially after being fairly profitable -
after all the collapses of One Tel, HIH etc, I hope they haven't been 'cooking the books'.

If they really do need the money, the worry is that all the Victorian clubs will gang up on the Swans and kick up a fuss and the AFL could cave in - but then the AFL knows that they need to promote the game in NSW and QLD.

It was a pretty good article though - it summed up how the administration not only is having a hard enough time developing the game in Sydney, but has to defend itself from attacks from Melb clubs on top of that. It was pretty sympathetic to this, much more than typical Melb media.

Charlie
21st March 2003, 11:51 PM
I'd say what happened to the profits was the Basil Sellars Center.