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Coronavirus: AFL & MFC

Big Col
Big Col
in Melbourne Demons

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7 minutes ago, Demonland said:

 

very few businesses would carry sufficient reserves to go through a whole year without revenue. That being said the lack of any real reserves at the club level underscores how financially weak many of them are. This pandemic is an outlier event but there are many significant events that should have been included in any business disaster recovery plan.What would happen for instance if Channel 7 went broke and could only pay 50% of their media bill for the remainder of the season.We have also seen major sponsors go under etc etc

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    47 minutes ago, Diamond_Jim said:

    very few businesses would carry sufficient reserves to go through a whole year without revenue. That being said the lack of any real reserves at the club level underscores how financially weak many of them are. This pandemic is an outlier event but there are many significant events that should have been included in any business disaster recovery plan.What would happen for instance if Channel 7 went broke and could only pay 50% of their media bill for the remainder of the season.We have also seen major sponsors go under etc etc

    not unusual at all jim, you're just scaremongering. it's easy to postulate disaster scenarios (and there will be many because of cv19

    many (most) businesses run on a line of credit. if their revenue drops dramatically (cash flow) they are in deep doodoo.

    having said that the afl have been throwing money around like a drunken sailor for a long time whilst simultaneously screwing grass roots footy. i have little sympathy for their  excesses as an organization. unfortunately it hits the clubs and supporters heavily

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    34 minutes ago, daisycutter said:

    ot unusual at all jim, you're just scaremongering. it's easy to postulate disaster scenarios (and there will be many because of cv19

    many (most) businesses run on a line of credit. if their revenue drops dramatically (cash flow) they are in deep doodoo.

    Those businesses would also have stock on hand and debtors which cover the line of credit providing short term liquidity. The clubs have no liquid reserves to handle business risk even for a period of a few months.

    If you did a quick asset ratio test on most of them they would fail.

    Anyway the nature of the game is that each board will take financial risks in search of the elusive element of success. Not long ago now that Collingwood was technically insolvent.

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    1 hour ago, Diamond_Jim said:

    Those businesses would also have stock on hand and debtors which cover the line of credit providing short term liquidity. The clubs have no liquid reserves to handle business risk even for a period of a few months.

    If you did a quick asset ratio test on most of them they would fail.

    Anyway the nature of the game is that each board will take financial risks in search of the elusive element of success. Not long ago now that Collingwood was technically insolvent.

    It should be noted that all the clubs are membership based and not privately owned.  They are also not-for-profit organisations. 

    So having oodles of cash reserves is just not possible with the way the clubs are run. 

    The biggest issue is the guaranteed money paid to the players (albeit reduced down to 70% or thereabouts - overall)  If that wasn't a thing then the clubs could possibly remain dormant for quite a while.  Same for the NRL.

    In essense,  the clubs go into financial meltdown because the players are still getting paid (collectively,  huge amounts)

    And ongoing player contracts can or could be honoured ... thus creating more financial pressure.  Coaching contracts less so as that money isn't 'necessarily' guaranteed (apart from the head coach's?)

    As it stands,  the AFL has just borrowed about half a billion with 1 very big ongoing operating expense - player salary's.

    There's your real reason in a nutshell DJ.

    By the way,  the All England Lawn Tennis Club (Wimbledon) were insured against a pandemic-like event.

    Edited by Macca

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    My football philosophy for the last 30 odd years is to think the opposite of whatever Mick Malthouse says. Sure, he's coached a few teams to Premierships in that time, but I've been immensely happier ignoring his curmudgeonly commentary.

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    https://www.sen.com.au/news/2020/04/13/lifting-the-draft-age-to-19-a-no-brainer-beveridge/

    Western Bulldogs coach Luke Beveridge believes the AFL should use the COVID-19 situation to raise the draft age to 19.

    With underage pathways and leagues not running because of the virus and a situation where list sizes may be reduced, limiting the need for a draft in 2020, Beveridge believes it is time to pull the trigger.

     

    “It’s an absolute no-brainer (to lift the draft age). I mean, every other year as much as I’ve advocated for the draft age to be lifted, I was finding it hard to work out how you would actually do it,” he told SEN’s Whateley.

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    36 minutes ago, Demonland said:

     

    ...and we can use the canned laughter tracks from the sitcoms to laugh at Brian jokes.

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    Essendon knock back AFL assistance in bid to remain independent. 

    Dons knock back cash injection would've made a better headline. 

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    41 minutes ago, Demonland said:

     

    It's fascinating isn't it, who provides what expert information to the AFL to make the 'entertainment package' more subjectively palatable. I for one am a purist, and quite like the dull sounds of blokes running on turf, smacking into each other, whilst having a beer in one hand, and goanna oil in the other...

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    2 hours ago, Diamond_Jim said:

    https://www.sen.com.au/news/2020/04/13/lifting-the-draft-age-to-19-a-no-brainer-beveridge/

    Western Bulldogs coach Luke Beveridge believes the AFL should use the COVID-19 situation to raise the draft age to 19.

    With underage pathways and leagues not running because of the virus and a situation where list sizes may be reduced, limiting the need for a draft in 2020, Beveridge believes it is time to pull the trigger.

     

    “It’s an absolute no-brainer (to lift the draft age). I mean, every other year as much as I’ve advocated for the draft age to be lifted, I was finding it hard to work out how you would actually do it,” he told SEN’s Whateley.

    I'd go even further for 2020,  and only allow 2 rounds to be taken in a draft year,  where list numbers might be reduced.  3 draftees might be too many,  in a reduced List size.

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    2 hours ago, Diamond_Jim said:

    Virgin airlines a major sponsor of the AFL and a big media buyer on FTA coverage of AFL are investigating going into formal administration

    https://www.theguardian.com/business/2020/apr/14/virgin-australia-considers-going-into-administration-as-labor-calls-for-government-rescue

    Time for the FED Government to step up.

     We need two major airlines,  or we have to nationalise Qantas.   Either way.

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    48 minutes ago, rjay said:

    ...and we can use the canned laughter tracks from the sitcoms to laugh at Brian jokes.

    Is he back yet.?

    Roman Brian could have a different slant to it.?    It might be him in the stands, chasing the pigeons and seagulls.   ?

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    "I think most players would choose to play the game (midweek) rather than train."

    Damien Hardwick thinks the AFL could expand the fixture with more frequent games - permanently.

    Having been conditioned to watching football for ten months of the year I was surprised on moving here to find just how short an Australian football season actually was. A 34 game season, albeit with shorter quarters therefore sounds normal to me. Considering that all the Melbourne based clubs play out of two stadiums however I'd expect to see a lot more wear and tear on their playing surfaces. It may also make further expansion of the competition more problematic. Do you then go to a 36 or 38 game season or do we go back to a 34 game compromised draw? 

    Jeff Kennett would love it as he could then sell eight home games a season to Tasmania and still have nine more in Melbourne. Ditto for North, negating the need for a phoenix club down there. If Gold Coast also increase their presence in the top end there may be no need for expansion at all. 

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