AFL pulls through financial struggles
But loss near $ 100m
THE AFL has confirmed it has avoided a financial catastrophe from the coronavirus pandemic that halted the season.
The league feared a loss of almost $ 1 billion when the season was suspended back in March. However, the ability to get the season back up and running in hubs and then finishing with a grand final in Brisbane has greatly softened the financial blow for the league and the clubs.
AFL boss Gillon McLachlan said industry losses for 2020 would be “under $ 100 million.”
That is a loss of about 10 per cent of the initial dire prediction first forecast back in March. “I think the industry’s done an amazing job and I want to thank everyone who made a commitment to get us there,” McLachlan said.
“Staff, players, supporters, members keeping their memberships in, corporates, sponsors, broadcasters, everyone did their bit.
“The industry revenue was down substantially, but through the hard work of all those groups I mentioned we’re going to come out ( with) aggregate industry losses that’ll be under $ 100 million.
“That is certainly a long way from where we thought, and that’s across all clubs and the league.”
Geelong’s current financial situation is reflective of many of the clubs at present.
In May, Cats chief executive Brian Cook declared his club would ask the AFL for financial assistance after forecasting to be up to $ 10 million in debt by the year’s end.
The Cats – like the vast majority of clubs at the time – were braced for a huge financial hit on the back of a crowdless season. Although, last month Cook said his club was now expecting a “half- a- million- dollar loss to break- even.”
“That’s a lot better than what we were looking at seven months ago when we were told there would be no crowds, and we were looking at an $ 8 million to $ 10 million loss,” Cook told K Rock. “It’s kept on coming down because of the generosity of our supporters, and our sponsors, and our donors.
“We’re in pretty good territory now to put the club in reasonable shape to leverage off next year.”