The Australian has today revealed that the Sydney Swans are in dire need of a cash injection to cover anticipated revenue shortfalls this season.

Greg Denham reports that fierce competition from this year's rugby union World Cup, start-up costs of playing matches at Telstra Stadium last year, and mismanagement have been blamed for Sydney's financial plight.

The Swans have found themselves in their extremely dangerous financial position despite cutting costs by $4 million over the past eight months. Sydney have cut $2 million from their football department since last season, with a further $2 million lopped from operating costs across the board, including a reduction in administrative staff.

The Swans' request for funds will be put before the AFL Commission which will decide how the payment will be made. AFL chief executive officer Wayne Jackson said last night: "We are very sympathetic to their position. We have worked diligently with the club through all their financial information. We are satisfied with their numbers and their projections and their co-operation with our financial team."

The Swans have gone from the AFL's biggest spenders to between 13th and 16th in clubs' spending order. The Sydney board is believed to be shocked by an overall revenue drop of $5 million since 1998, despite significant increases in AFL dividends.

Late last season the Swans board invited the AFL's corporate doctors - John Kelly and Olaf O'Duill - to audit the club's books after it was discovered at late notice budgets were well short of being met. It is believed the auditors' confidential report back to the AFL was scathing in its findings with regards to the Swans' management of accounts.

http://www.foxsports.news.com.au/sto...-23211,00.html

Patrick Smith expresses the opinion that Richard Colless, as chairman and director, cannot walk away from the fact that the club have been badly run. In fairness, he does not attempt to.

The club are seeking a new chief executive. Kelvin Templeton left at the end of last year and replacement Colin Seery indicated recently he was looking elsewhere for new challenges. Already the club has received offers of interest from overseas and locally. Colless said the club were undecided whether to advertise. But the new CEO would have to have a strong commercial background. Colless said the successful applicant would need to be able to lead the Swans both as a club and a business.

What must concern Colless deeply is that his board did not see this coming. There were no warning signs until late last year. Then it simply got worse by the month. Now, two Swans directors are working full-time on the club administration. Andrew Ireland is the new head of football, Paul Roos is the coach, a chief executive is to be announced and therefore the commercialisation position remains vacant and the recruiting department is under review. The board will be revitalised with three positions vacant at year's end. Ron Barassi has stepped down as have Graeme Pash and John Yates. It is another rebirth of the Swans.

http://www.theaustralian.news.com.a...5E12270,00.html

In a statement on the Swans' website, Richard Colless said that the Swans position has been greatly impacted by the significant and unexpected result from last year, which effectively absorbed any reserves the Club had built up in the previous 5 years.

The profits generated in recent years have been invested in the infrastructure such as player facilities, open-air boxes etc and the investment in securing the Olympic stadium as an AFL venue. These costs have been necessary in order to be able to compete long term with the leading clubs in the AFL. This combined with the extent of the unexpected loss last year has put pressure on short-term liquidity.

Contrary to what was suggested in The Australian and other media outlets, the Swans have not asked the AFL for a specific amount of money, although the Club has been talking to them regularly about the operating results.

"I cannot say it any plainer than this. Our club has operated for 130 unbroken seasons and against the backdrop of the history of the club, what we are going through at the moment is difficult but manageable. The future of the Club is not in doubt," Colless said. "Not only will we survive, but I have never felt more confident about the club's future."

http://sydneyswans.com.au/default.as...rticleid=96583

The AFL's website reports that Colless confirmed club membership was just over twenty thousand ? down slightly on last year ? but said it had little bearing on their current financial woes.

"It?s basically in the area of corporate (support) and we have been finding it now for the last twelve months but it has picked up in the last three months."

"It is organisations saying we are not going to support you this year because we made a decision to participate in the World Rugby Cup, or we are going to cut back on our support."

http://afl.com.au/default.asp?pg=new...rticleid=96456

The Sydney Morning Herald reports that NSW Premier Bob Carr ruled out funding the financially-embattled Sydney Swans. Mr Carr today said his government would not come to the aid of NSW's only AFL side.

"No, it's not our role (to provide money)," Mr Carr told reporters in Jindabyne, where the NSW cabinet is meeting.

http://www.smh.com.au/articles/2003/...406173667.html

The ABC reports that the Adelaide Crows would support the use of the AFL's special financial assistance fund to bail out the Swans. Crows chief executive Steven Trigg says Sydney is one of the toughest markets for the game and it is vital the club survives.

"If the mechanisms that are in place to check that everything is healthy, and in regard to some planning for forward management of that situation is in place, then the AFL can provide some funds to bail them out," he said. "So if that's the way Sydney need to go, then I'm sure the AFL would support them in that process."

Richmond Football Club president Clinton Casey says he would also endorse a request for a cash bailout. Casey says Sydney is an important part of the league and the AFL should do everything it can to help it survive.

"Provided the $2 million is spent with the view that it's not going to be repeated, they've got a business plan in place that is going to see them be a sustainable business, then it'll be a good investment for the AFL," he said.

http://www.abc.net.au/sport/content/s871194.htm

The AFL's website also revealed that the Swans have a new mystery financial backer following reports the club?s immediate future was in jeopardy.

Richard Colless was delighted with offers of financial support his club received in the wake of the report in Tuesday?s Australian newspaper which described the club?s immediate future as ?life-threatening?.

The Swans chairman said one of his colleagues received a phone call on Tuesday from a ?non-AFL aligned but very substantial Australian businessman who committed $250,000 to the Swans for this year?.

"We don't class it as revenue, it's a below the line figure,? he said of the new $250,000 revenue boost. The explanation was simply `I think the Swans are a critical part of the fabric of this town' so we'll gratefully accept that."

http://sydneyswans.com.au/default.as...rticleid=96591