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Thread: Covid 19 and footy - season suspended

  1. #205
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    Quote Originally Posted by mcs View Post
    The game will recover. The AFL as an entity may not - but if it disappears, something will rise from the ashes to replace it.
    The article below on the AFL website sums up very succinctly what is happening right now in tens and possibly hundreds of thousands
    of businesses around the country.

    Leave without pay: Expansion clubs set to be hit hard

    The article highlights the expansion clubs but virtually all the clubs spend every dollar that comes in the door, and have very little in
    way of cash reserves. To pay the players and the club staff you have to have money in the bank. That money comes because you
    have a product to sell. As of yesterday the clubs don't. They are no different from the little business up the road that turns over $1M
    a year and makes $100K profit who no longer has a product to sell. Unless they have some "rainy day" money set aside and are
    prepared to pay their staff (who aren't actually doing any work) then they won't last long. Even when largess exists it only lasts
    for so long usually. Already the clubs are laying off staff, and if those staff don't have any leave entitlements then those staff are
    walking out the door with nothing. Just the same as is happening in businesses around the country right now. My guess is the AFL
    and the clubs will be taking out some almighty loans to try and stay afloat. Just like the government is, like businesses are, and
    like individuals are. And lenders confidence in getting repaid won't be very high at the moment.

  2. #206
    Quote Originally Posted by barry View Post
    Not quite sure what you mean by the game will recover.

    Lets play forward the idea that the AFL disolves due to bankruptcy. This will no doubt take a few clubs with it, with all us northern clubs very vunerable financially. And probably a few other clubs who are just at the wrong economic cycle to ride this out.
    What will the new Aussie rules league look like. What teams will compete in it ?

    Swans arent in a great position financially, even in a normal year:
    2019: The Sydney Swans have reported a net operating loss of $509,625 for the year ending October 31, 2019. Net assets were $2,201,819.
    Let's not forget the Swans are owned by the AFL. Hopefully our sole shareholder will keep us afloat longer than the member owned clubs that do not have a relatively strong shareholder.

    Sent from my Nexus 7 using Tapatalk

  3. #207
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    Queensland has closed it's borders, NSW-Vic is the only open border left.

    NRL's silly plan of moving all teams to Gladstone is now in disarray.

  4. #208
    Quote Originally Posted by 707 View Post
    Queensland has closed it's borders, NSW-Vic is the only open border left.

    NRL's silly plan of moving all teams to Gladstone is now in disarray.
    Can you supply a source for your info? I don't doubt you but I'd like to look at the detail. I just checked the Queensland Govt website - Latest updates — novel coronavirus (COVID-19) | Health and wellbeing | Queensland Government - and couldn't find what you are referring to. Thanks.
    All opinions are not equal. Some are a very great deal more robust, sophisticated, and well supported in logic and argument than others. -Douglas Adams, author (11 Mar 1952-2001)

  5. #209
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    Some laughs in the face of a crisis......Titus hits the mark again.

    The Monday Knee Jerk Reaction: AFL Round One - Titus O'Reily | Don’t have faith in yourself

    'The Bulldogs on the other hand didn't get the memo that you're meant to work at home.

    They turned on a performance that would have the Doggies fans glad of the shutdown.

    The Bulldogs’ structure was so shambolic that it made a Scott Morrison media briefing seem slick and well organised."


    "Essendon started fast because Fremantle aren’t very good, then Fremantle came back because Essendon aren’t very good, and Nat Fyfe got a nasty black eye.

    That’s basically all you need to know; we’ve learnt that life’s too short to spend much time focusing on an Essendon-Fremantle game."


    "The Saints were up by 31 points in the third quarter and the Roos had just one player left on the bench.

    ‘Well it’s impossible for St Kilda to lose from here’, I foolishly exclaimed at the TV.

    But St Kilda said ‘Sure it’s possible, we’ll show you.’

    And they did.

    They just basically lay down on the ground and closed their eyes. It was like a mindfulness exercise."


    "In what was easily worst halftime entertainment ever, Gillon McLachlan announced during this game that the league was shutting down, annoyingly after the West Coast-Melbourne game and not before."


    "The Swans also dominated up forward with Isaac Heeney booting four goals and making the Crows defenders look second rate all day.

    Watching him run around made me really realise how much I’m going to miss the footy."

    That last one actually hurts....this could have been the season that elevated Isaac into the 'superstar' realm.

  6. #210
    Senior Player dejavoodoo44's Avatar
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    Quote Originally Posted by stevoswan View Post
    Some laughs in the face of a crisis......Titus hits the mark again.

    The Monday Knee Jerk Reaction: AFL Round One - Titus O'Reily | Don’t have faith in yourself

    'The Bulldogs on the other hand didn't get the memo that you're meant to work at home.

    They turned on a performance that would have the Doggies fans glad of the shutdown.

    The Bulldogs’ structure was so shambolic that it made a Scott Morrison media briefing seem slick and well organised."


    "Essendon started fast because Fremantle aren’t very good, then Fremantle came back because Essendon aren’t very good, and Nat Fyfe got a nasty black eye.

    That’s basically all you need to know; we’ve learnt that life’s too short to spend much time focusing on an Essendon-Fremantle game."


    "The Saints were up by 31 points in the third quarter and the Roos had just one player left on the bench.

    ‘Well it’s impossible for St Kilda to lose from here’, I foolishly exclaimed at the TV.

    But St Kilda said ‘Sure it’s possible, we’ll show you.’

    And they did.

    They just basically lay down on the ground and closed their eyes. It was like a mindfulness exercise."


    "In what was easily worst halftime entertainment ever, Gillon McLachlan announced during this game that the league was shutting down, annoyingly after the West Coast-Melbourne game and not before."


    "The Swans also dominated up forward with Isaac Heeney booting four goals and making the Crows defenders look second rate all day.

    Watching him run around made me really realise how much I’m going to miss the footy."

    That last one actually hurts....this could have been the season that elevated Isaac into the 'superstar' realm.
    Yes, perhaps Gil should have tried to lighten the mood, by booking Meatloaf for a few songs?

  7. #211
    Senior Player Swansongster's Avatar
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    Quote Originally Posted by barry View Post
    Not quite sure what you mean by the game will recover.

    Lets play forward the idea that the AFL disolves due to bankruptcy. This will no doubt take a few clubs with it, with all us northern clubs very vunerable financially. And probably a few other clubs who are just at the wrong economic cycle to ride this out.
    What will the new Aussie rules league look like. What teams will compete in it ?

    Swans arent in a great position financially, even in a normal year:
    2019: The Sydney Swans have reported a net operating loss of $509,625 for the year ending October 31, 2019. Net assets were $2,201,819.
    There was something very dark about Gil's mood in that announcement. This is a really serious situation for the AFL as an organisation.

    I don't profess to be an expert on corporate law but to my eye, the AFL is stuffed:
    * They have invested heavily in the game (GWS, Gold Coast, AFLW etc.) and probably don't have a huge cash reserve.
    * They would be contractually bound to a lot of expenditure and all their sources of revenue have disappeared (gate takings, selling product to broadcasters, sponsors, gambling companies etc.).
    * The AFL is insolvent and there are laws against organisations trading under such balance sheet inequity.
    * Maybe they are technically a Not For Profit? I don't know if that changes anything.

    They own Docklands Stadium and I think some other strategic real estate around the venue but that is not going to cover the bills. They also own one of the most recognised brands in the Australia and that has to be worth something?

    Maybe the organisation will be put under protection from creditors by statute somehow?

    The game will survive, no doubt. The people love it too much. But who will be the puppeteer when the rebound happens (which may be a long way away)?

  8. #212
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    This is a great read. An excellent and relevant perspective on the game in these changing times.

    From the Outer: It's a new season

  9. #213
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    Quote Originally Posted by Swansongster View Post
    * The AFL is insolvent and there are laws against organisations trading under such balance sheet inequity.
    * Maybe they are technically a Not For Profit? I don't know if that changes anything.
    The clubs are Not for Profit. Not sure about the AFL itself but I suspect it is. However, I doubt that absolves them from insolvency provisions.

    The clubs aren't necessarily insolvent yet. You can have negative net assets and still not be insolvent. Indeed, you can have positive net assets yet still be insolvent. The test is whether you believe you can pay your bills as and when they fall due. Clearly the organisation has taken major steps to reduce its payments in the immediate term, most obviously by standing down staff across the clubs and HQ. I imagine they are also trying to renegotiate payments due to other providers - eg the SCG Trust (and other stadium owners/operators for the competition more broadly). They will be trying to secure lines of credit, with payment dates way out into the future, at a time they can reasonably expect to have some income flows coming in again.

    The clubs aren't trading as normal. It's not like they are taking on new creditors who are unaware of the financial situation. They have taken, or are taking, steps to reduce their outgoings as far as they reasonably can.

    This is a very unusual set of circumstances (doh!) At this stage, it is somewhat reasonable to expect there is an end date (however far away that is), and that after that point, normal economic activity will be able to resume. Its not about deterioration in trading conditions of individual organisations for reasons specific to them. So, with lines of credit in place, and a defensible position that they will have some revenue coming in at a point in the not too distant future, boards may quite reasonably reach assessments that they will be able to pay creditors as and when they fall due.

    I read an article in the Australian a couple of days ago (sent to me by a close friend who is an insurance underwriter, currently grappling with D&O renewals in the current climate). Part of the government's support and rescue package provides some temporary relief for insolvency trading obligations, making it more difficult for creditors to start actions to wind up a company if it hasn't been paid what it is. This issue goes way beyond the sporting leagues. It is critical right across the corporate world, particularly amongst small and medium businesses. Any economic recovery will be very difficult if businesses have gone into liquidation in the meantime.

  10. #214
    Senior Player Swansongster's Avatar
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    Thanks for the insight Liz.

  11. #215
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    The lads are doing there bit.....

    Swans players share an important message

  12. #216
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    I see Carlton are no longer able to support the Northern Blues VFL club. If they sound familiar - it's where Alex Johnson ended up.

    Heartbreak as Carlton call sees VFL club with 138-year history go under

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