Port Adelaide $2 Mill in debt

[george_on_the_outer 7,002]

2M loss for 2014

1.6M Loss for 2013

2M loss for 2012

Net assets in 2013 $5m, so reduce that by $2M in 2014 to net assets of $3M.

They are still " in the black" but with losses continuing to mount especially after the move to Adelaide oval was supposed to improve their financial position by $4M p.a., then

their future is not too bright.

However both Adelaide and Port's AFL licences are held by the SANFL, who does bleed them both dry.......and they can bail them out if needed as well.

[DeeSpencer 23,197]

40,000 average crowd and 50,000 members (or close enough to). If they aren't turning a profit it's not because of long term viability, it's because the SANFL are bleeding them dry.

[Sir Why You Little 34,612]

40,000 average crowd and 50,000 members (or close enough to). If they aren't turning a profit it's not because of long term viability, it's because the SANFL are bleeding them dry.

Truckloads of $$$ walking away!!

[Nasher 33,103]

40,000 average crowd and 50,000 members (or close enough to). If they aren't turning a profit it's not because of long term viability, it's because the SANFL are bleeding them dry.

Is their annual report out yet? You could prove or disprove that pretty quickly if so.

If their financial losses are due to being hammered by their parent company, you wouldn't think that's all that big a deal considering the parent company could probably easily reverse the situation. Wouldn't think there's all that much for anyone to worry about so long as the SANFL is doing okay.

[Sambo06 222]

Both Crows and Port now own their own Liscence. Both Clubs paid Millions to take back ownership from the SANFL. This one off huge cost would be factored into any financials for the past year. Both Clubs are also re negotiating their AO terms with the SMA. They are asking for the same ( or similar) returns to the Clubs hiring out the MCG. Once these terms are negotiated, then we will see both Clubs return to profit. Keep in mind that Port are coming from a long way back and have accrued major debt over the last 5 or 6 years. They have struggled to sell their Corporate Facilities as well. Kochie and KT have done a tremendous job, but here is still some way to go.

[DemonFrog 1,347]

May be they can merge with Essendon as that would be another excellent business deal.

[binman 38,525]

May be they can merge with Essendon as that would be another excellent business deal.

Are you saying they need an injection of funds?

[old dee 22,930]

May be they can merge with Essendon as that would be another excellent business deal.

So you hate Port that much DF

[What 18,810]

if the Adelaide Oval stadium deal money isnt going to Port (or Adelaide) where is it going?

This stinks

[george_on_the_outer 7,002]

Both Crows and Port now own their own Liscence. Both Clubs paid Millions to take back ownership from the SANFL. This one off huge cost would be factored into any financials for the past year. Both Clubs are also re negotiating their AO terms with the SMA. They are asking for the same ( or similar) returns to the Clubs hiring out the MCG. Once these terms are negotiated, then we will see both Clubs return to profit. Keep in mind that Port are coming from a long way back and have accrued major debt over the last 5 or 6 years. They have struggled to sell their Corporate Facilities as well. Kochie and KT have done a tremendous job, but here is still some way to go.

You're right Sambo...I was working off the 2013 financials, and the licenses reverted to Port in March this year.

Given that situation now, they are in serious trouble, as the AFL/SANFL have thrown $3M a year for the past 3 years at them. WIth only $3M in assets they will almost certainly find themselves in the same situation they were in in 2009 and again in 2011.

From wiki:

During the 2009 pre-season Port Adelaide announced that they had requested an immediate seven-figure sum from the AFL in a bid to ease its financial crisis. Port Adelaide had accumulated a consolidated debt totaling $5.1 million and was unable to pay its players; they had lost $1.4 million the season before, a year in which they finished 13th, and had their average home crowds drop to little more than 23,000.^[25] However the financial assistance was denied by the league, with AFL chief executive Andrew Demetriou saying that they would have to undergo an intensive application process and work with the SANFL who own Port Adelaide's AFL licence.^[26] On 20 May, Port were handed $2.5 million in debt relief by the SANFL, and on 15 June were handed a $1 million grant by the AFL commission.^[27][28] By the end of the season the financial situation had reached the point where either the Port Adelaide Magpies (also suffering from crippling debt) or Port Adelaide could be forced to fold.

and again:

In May 2011 the SANFL sought to take control of Port Adelaide to ensure the club remains competitive. Despite the SANFL underwriting $5 million of Port's debt in 2010, the takeover failed when the SANFL was unable to get a line of credit to cover Port Adelaide's future debts. On 1 June it was announced that the AFL would underwrite $1.25 million in debt to protect its $1.25 billion television rights. AFL Chief executive Andrew Demetriou, offered $9 million over the next three years to help the club, ahead of the move to the Adelaide Oval, which resulted in the resignation of the Chief Executive, Mark Haysman, who was replaced by Keith Thomas, and three board members. The AFL gave the money to the SANFL with strict conditions that they give Port Adelaide three million dollars a year, for three years.

[Sideshow Bob 2,163]

The sooner it becomes a money pool from all football related income and split evenly between the clubs tbbe better. That way the AFL can do what they want in terms of maximising revenue without the worry of losing on a GWS vs st Kilda played at 4.40 on mothers day game. They clubs can then gain funds on sponsership and membership and whatever else. It is national competition that could not generate the required funds without all the clubs playing their part. Leave blockbusters being blockbusters, it seems the only rational way with the inequality if draws, fixturing etc.

[Pates 9,537]

The Adelaide Oval is a sensational venue but unless they can find a way of making it financially viable for both clubs it's pointless playing games there. The crowd figures both clubs were getting were brilliant, I don't think I saw one single game that wasn't at least 80% full, so there is no excuse for them not being allowed to make a tidy profit from almost every home game.

This is exactly why Geelong will forever be the strongest financially, they own the ground and make a massive profit on every single game there. And it's only going to get better as they upgrade Simmonds Stadium.

[Sir Why You Little 34,612]

Yes. Geelong with the "Clean" Stadium own the lot

Seats Food & Beverages Corporate Boxes & the gate.

Unless the AFL can negotiate a general deal for all clubs not all will survive.

[Demon trucker 1,776]

Most clubs have bad stadium deals, gold coast has a bad deal according to Eddie everywhere, west coast and Fremantle have good deal's, the MCG give a good return, the MCC also give the dees a million a year, that's one thing we can be grateful to CS, going back to being a sporting section of the MCC

[Sir Why You Little 34,612]

Most clubs have bad stadium deals, gold coast has a bad deal according to Eddie everywhere, west coast and Fremantle have good deal's, the MCG give a good return, the MCC also give the dees a million a year, that's one thing we can be grateful to CS, going back to being a sporting section of the MCC

Yes they do. I am just amazed how bad the Adelaide Oval deal is considering everyone has witnessed what a disgrace the Docklands has been.

Adelaide oval was seen as the saviour for both clubs.

Pure spin obviously.

[praha 10,293]

Doesn't say much for Kochies business expertise.

Eh? As far as branding and expansion goes, Port has taken great strides both on and off the field. The club has $2 million debt, but 50,000+ members and a great team that's enjoyable to watch. The club is commercially attractive and that's what Kochie has turned them into. You sound bitter.

[DemonFrog 1,347]

So you hate Port that much DF

Its the deal of the century. Fire sale everything must go!

[Sir Why You Little 34,612]

Its the deal of the century. Fire sale everything must go!

hahahaha!!

Get Frank Walker out the front..

[DemonFrog 1,347]

Are you saying they need an injection of funds?

Cash crops and secret labs would help their cash flow.

If this does not work for some strange reason then they just need to employ the comedy act of Hird and Little.

[Sambo06 222]

You're right Sambo...I was working off the 2013 financials, and the licenses reverted to Port in March this year.

Given that situation now, they are in serious trouble, as the AFL/SANFL have thrown $3M a year for the past 3 years at them. WIth only $3M in assets they will almost certainly find themselves in the same situation they were in in 2009 and again in 2011.

From wiki:

During the 2009 pre-season Port Adelaide announced that they had requested an immediate seven-figure sum from the AFL in a bid to ease its financial crisis. Port Adelaide had accumulated a consolidated debt totaling $5.1 million and was unable to pay its players; they had lost $1.4 million the season before, a year in which they finished 13th, and had their average home crowds drop to little more than 23,000.^[25] However the financial assistance was denied by the league, with AFL chief executive Andrew Demetriou saying that they would have to undergo an intensive application process and work with the SANFL who own Port Adelaide's AFL licence.^[26] On 20 May, Port were handed $2.5 million in debt relief by the SANFL, and on 15 June were handed a $1 million grant by the AFL commission.^[27][28] By the end of the season the financial situation had reached the point where either the Port Adelaide Magpies (also suffering from crippling debt) or Port Adelaide could be forced to fold.

and again:

In May 2011 the SANFL sought to take control of Port Adelaide to ensure the club remains competitive. Despite the SANFL underwriting $5 million of Port's debt in 2010, the takeover failed when the SANFL was unable to get a line of credit to cover Port Adelaide's future debts. On 1 June it was announced that the AFL would underwrite $1.25 million in debt to protect its $1.25 billion television rights. AFL Chief executive Andrew Demetriou, offered $9 million over the next three years to help the club, ahead of the move to the Adelaide Oval, which resulted in the resignation of the Chief Executive, Mark Haysman, who was replaced by Keith Thomas, and three board members. The AFL gave the money to the SANFL with strict conditions that they give Port Adelaide three million dollars a year, for three years.

George, the 2 Clubs are still trying to sort out their ongoing deal. If they can get something similar to the Melbourne Based or Perth Based clubs, it will be a lay down miserere that financial security will follow. Port have been down trodden since their 2007 GF appearance. They have had their fair weather supporters jump on since the middle of 2013 once the Team started to look like winning. Before that, at Aami Stadium, Port supporters didn't like going there as they felt that Stadium belonged to the Crows. Tarps were used to cover thousands of empty seats. As it's been well documented, they no longer need the tarps. AO has been rocking, the Team firing and the Admin Staff are doing a great job in re engaging their supporter base. With the right deal at AO, they (and the Crows) will be very stable heading into the next 20 years or so. This is all reliant on both teams performing well (Not so much the Crows with highest average attendance in the League even though they had a poor year by their standards).

[Redleg 37,745]

Doesn't say much for Kochies business expertise.

What Dees fan wouldn't swap club positions?

[Demon trucker 1,776]

Port wanted to move to AO at any cost, if the dees done a similar deal everyone would be calling it incompetence, kochies is not as smart as people think he is, the AO could see a desperado from a mile away, this is what happens when you tell the seller you want the House, came hell or high water, when negotiating any business deal, you must always make the other party think you are willing to take it or leave it. If this happens again next year then port have wasted the 9 million the AFL gave them, this makes me angry when the dees were in heavy debt didn't see the AFL giving as 9 million.

Edited November 15, 2014 by not angry anymore

[Sir Why You Little 34,612]

Port wanted to move to AO at any cost, if the dees done a similar deal everyone would be calling it incompetence, kochies is not as smart as people think he is, the AO could see a desperado from a mile away, this is what happens when you tell the seller you want the House, came hell or high water, when negotiating any business deal, you must always make the other party think you are willing to take it or leave it. If this happens again next year then port have wasted the 9 million the AFL gave them, this makes me angry when the dees were in heavy debt didn't see the AFL giving as 9 million.

Spot on Angry.

I want to know who is cleaning up here.

AFL Club members (us) should not be paying for this considering the earning potential Port & The Crows have at this venue.

2014 is the best potential Port has had. One kick from a GF, full houses of happy spending supporters. If they are going to lose $2 Mill this year what hope have they got going forward??

[Goodvibes 3,596]

What Dees fan wouldn't swap club positions?

And live in Adelaide?

[Whispering_Jack 28,009]

May be they can merge with Essendon as that would be another excellent business deal.

Patrick Ryder would be doing cartwheels over the very thought.