MEDIA WATCH:THAT SINKING FEELING

[Demonland 71,131]

by Whispering Jack

According to Wikipedia, the free on-line encyclopedia, ABC TV’s programme Media Watch is "viewed by some as a watchdog of the Australian media, that investigates and exposes media bias and breaches of journalistic ethics and standards."

On what we've seen in the past week or so, we desperately need a media watchdog to monitor some of the information (or should I say misinformation) being fed to unsuspecting consumers of news on matters football and in particular on some of the things that are being written and said about the Melbourne Football Club. The impression given that the Demons are sinking faster than the Titanic is not just wild exaggeration but mischievous sensationalism at its lowest level.

Don't get me wrong. I'm not suggesting that we shoot the messenger but we do need to examine some of the things that have been published about the state of the Demons and to expose where errors of fact have been made and why some of the opinions being expressed out there in the media are simply wrong and without any basis in logic or fact. We need a Media Watch to expose some of the untruthful and damaging comments being passed on about the club including the disgraceful statements made to the effect that Melbourne is the next "Fitzroy" - a claim levelled in the past year at both Carlton and the Kangaroos. Now, it's our turn.

There has been a need for a media watchdog since the days when man received his news on papyrus but as the information revolution has expanded so the scope for breaches of journalistic standards continues to grow exponentially. There is so much pressure on reporters to get THE story of the day and there are so many reporters who are driven by agendas instead of reporting THE truth that we are seeing more and more examples of the public, wittingly or unwittingly, being fed false and misleading information in all matters of news from war reporting, to finance, social events and yes … even in sport.

What's really worrying is that the misinformation often comes from trusted sources such as established newspapers and experienced journalists. The famous newsagency Reuters, one of the main agencies for news on the international stage developed a reputation for dispensing the news honestly for over a hundred years but has recently been beset by criticism for presenting biased news reporting and even publishing doctored photographs of war scenes. Then, in August last year, it was forced to admit that footage it released purportedly showing Russian submersibles on the seabed of the North Pole actually came from the movie Titanic. The mistake was picked up by a 13 year old Finnish schoolboy who contacted a local newspaper to tell them the images looked identical to those used in the movie and, as a result, the story and Reuters' reputation along with it, sank faster than the Titanic.

So it pays for reporters to check and recheck their facts before they go to press yet in these days of a media hungry to be the first with a sensational story, that isn't always the case. This applies particularly to the world of sport where competition is tough especially when it comes to our own game of football and the latest victim of that media hunger is the Melbourne Football Club.

A club in transition, thirsting for success, and doing it tough is an easy target and, with a few notable exceptions like this one, the sporting media vultures who feasted during the summer months on the supposedly decaying carcass of the Kangaroos, have now turned their attention elsewhere and are circling delightedly around their new prey – the Demons. The club's poor pre-season practice match form and that resounding 104 thumping at the hands of Hawthorn in the opening round just made the club easy meat for lazy journalists looking for a sensationalist story. Still, this doesn't relieve them of the responsibility of reporting with honesty as otherwise, their own reputations will sink like the Titanic - especially when their errors are so obvious that even a 13 year-old could expose them!.

Today is the start of the Melbourne Football Club's fight back against this nonsense. The best way to respond to the vultures is of course, on the field with a Demonlike performance against the Western Bulldogs but, since the blame for the club's current woes has been attached to its off field leadership and administration, the first response should rightfully come from the top. And so it will - during the Pre Match at today's Presidents Lunch and a subsequent press conference by club President Paul Gardner. The following document, "The Melbourne Football Club - Fact or Fiction" has been distributed to all MFC staff members and will be distributed to the press today after the President's address. The Demons are fighting back off the field and that should set the stage for the players to join the party.

MELBOURNE FOOTBALL CLUB - FACT OR FICTION

FINANCES

FICTION - The Club has no money

FACT

• The Club has recorded four consecutive years of profit and has reduced debt by over 50% from $5.5m to $2.7m since 2004.
• The Club recorded aggregate losses of $8.52 million between 1999-2003 (Ave $1.42million/annum).
• The Club has invested profits from recent years into both debt reduction and football department spending (increased by $500k in 2007 and again in 2008).
• The Club has increased non-AFL sourced revenue by 35% in last 4 years (Vic Club average 29%).
• The Clubs annual revenue is approximately $29 million/annum or $552k/week lower than the highest revenue Club (Collingwood). Over time this seriously compromises the ability of Melbourne to be competitive.
• The financial result for 2007 ($96K profit) was adversely impacted by player injuries ($400K), reduced match related revenue ($550K) and gaming performance ($500k).
• The Board considered this result to be unacceptable and took appropriate steps.

FICTION - "Raise money or sink Auditor warns Dees" (Deborah Gough The Age 23 March)

FACT

• The Club Auditor has said nothing of the sort. Auditors Ernst and Young have issued the same qualified audit opinion referring to “inherent uncertainty regarding going concern” in every set of published accounts for the Melbourne Football Club since 2001. The qualification refers to the Club’s reliance on ongoing AFL funding and the Club’s net asset position. A similar qualification appears in the Audit opinion of three other Clubs (Carlton, St Kilda, North Melbourne) who also have negative net assets.

FICTION The Club is reliant on AFL Funding / Welfare / Life Support

FACT

• Under the current industry-funding model all 16 Clubs are reliant on AFL funding. Without this funding no Club would be viable.
• In 2007, 3 Clubs (Bulldogs, North Melbourne, Carlton) received more AFL funding than Melbourne. AFL Funding to Melbourne ($8.239 Million) was $32k more than AFL funding to Collingwood ($8.207) in 2007.
• The competitive balance fund (CBF) was abolished by the AFL some years ago and replaced by the Annual Special Distribution (ASD). Melbourne is one of ten Clubs to participate in the ASD in 2007.

MELBOURNE FOOTBALL CLUB - FACT OR FICTION

MEMBERSHIP / SUPPORTER BASE

FICTION - The Club has no members / fickle supporters

FACT

• The Club’s supporter base (214,000) is the smallest in the AFL. The Club’s membership (28,077 in 2007) is the 2nd smallest.
• The supporter demographic is ageing. Melbourne FC is seriously under represented in Auskick Club allegiance statistics.
• Dwindling / ageing supporter base is a legacy of 43 years of underachievement in football. The Club recognises this as a major strategic threat to the future strength of the Club.
• The Club has grown membership by 36% (20,647 to 28,077) between 2004-2007 (Vic Club average 9%).
• Melbourne has the highest conversion of supporters to paid up members of all AFL Clubs.
• 28% or 25,000 of the MCC’s 90,000 members support the Melbourne Football Club. 4000 of these take out membership of the football Club. The remainder notionally support the Melbourne Football Club through the Annual Grant (currently $500K) from the MCC to the MFC.
• Membership target 30K for 2008. As at 27 March, memberships sold are 22,870 (vs 2007 YTD 24,209 and budget 25,867).

MELBOURNE FOOTBALL CLUB - FACT OR FICTION

GOVERNANCE

FICTION - The Board is the second worst in the AFL / Board instability

FACT

• The Club has a history of bitter divisions and infighting including the merger debate (1996) and contested elections in 2001 and 2003.
• Since election of Paul Gardner as Chairman 4 years ago, the following has occurred:

* No contested elections

*Retirement and replacement of 8 (of 11) Directors through seamless and managed succession planning, maximising Board skill mix and providing fresh ideas.

*Appointment of past player Andrew Leoncelli and Businessman / MCC Member Peter Spargo in recent months has continued this process.

Appointment of 3 female Directors – leading the industry

Comprehensive constitutional reform ensuring best practice governance and compliance – 3 years in advance of AFL’s issuing governance guidelines to Clubs.

Robust performance management process for Directors and staff.

Cohesive and unified Board with no leaks.

Effective Finance Audit and Risk Committee

MELBOURNE FOOTBALL CLUB - FACT OR FICTION

TRAINING AND ADMINISTRATION FACILITIES – THE HOME

FICTION - Melbourne is homeless

FACT

• Melbourne has not had an exclusive 52-week training facility for 150 years of the Club’s existence.
• Prior to 1985 the Club has trained on the MCG in winter and an over in Swan Street in summer.
• In 1994 the then Club administration signed a long-term lease on Junction Oval. This decision condemned the Club to more than a decade of separation of football department from administration, substandard training / rehab / medical faculties and a training surface available only between April-September. This required the Club to access multiple suburban grounds for summer training.
• In 2004 the current Board entered into a memorandum of understanding to become an anchor tenant in the $268 million Melbourne rectangular stadium in the Melbourne Olympic Park precinct. Initially the Club was to occupy its new training /admin home in April 2008. Delays in the completion of the project (now estimated late 2009) have been caused by issues relating to other tenants and have been beyond the control of Melbourne FC.
• In addition to occupancy of the new MOPT home with state of the art administration, training and medical/rehab facilities, Melbourne has commenced discussions with the City of Casey regarding provision of a summer training base in Cranbourne giving the Club access to a new demographic in one of Australia’s fastest growing municipalities.
• Funding for the MOPT "Home" ($2.7 million total) has been secured by a combination of Club fundraising ($816k raised to date towards target of $1.8 million), State Government ($1 million grant announced 17 March) and AFL.
• Rather than depicting the Club as homeless, the correct position is that within 18 months the Club will take up occupancy in a state of the art training and administration base, located in the MCG/MOPT precinct for the first time in 150 years.

MELBOURNE FOOTBALL CLUB - FACT OR FICTION

FOOTBALL

FICTION - Melbourne has no credibility as a football team

FACT

• The Club has not won a Premiership since 1964. This 43 year Premiership drought is the 2nd longest in this competition. It explains the disillusionment and cynicism of many supporters which can only be exorcised by a Premiership win. Striving for a Premiership drives every action and decision taken by the Club and is at the heart of our football credibility.
• Since 1987, Melbourne has played in 12 finals series. This is bettered only by West Coast (17) and Essendon (13). In the same period, Collingwood and Carlton have seen finals action in 9 seasons, Richmond twice.
• Melbourne will continue to make changes in its Premiership quest. For season 2008, we have a new Senior Coach, two (of three) new Assistant Coaches, two new Development Coaches, a new Football Operations Manager (Chris Connolly) and a new Manager of Recruitment and List Management. There are 8 new additions to our Senior List and 11 introductions to the Club in our expanded list of 44.
• The Sandringham alliance is the industry "Gold Standard". It has served Melbourne well with development of young players, many of whom have played in Sandringham's four post-alignment VFL Premiership teams.

FICTION - The Football Department is under-resourced

FACT

• Training facilities are substandard; this will be rectified by the Casey Fields Project (planned to be available for the 2009 pre-season) and the MOPT home (available late 2009).
• Football department expenditure ($13 million in 2007) is midrange for the AFL (9th of 16).

FICTION - "Dees Cut Coaching Budget" (The Australian, 2 August 2007)

FACT

An additional $500k was added to the Football department in 2008. Following a further $500k additional investment in 2007. The additional funding was applied to the creation of additional Development Coaching positions (Kelly O'Donnell and Mark Williams), expansion of List Management and Recruiting network (Recruiting Officer based in Darwin) and leadership development through Leading Teams.

MELBOURNE FOOTBALL CLUB - FACT OR FICTION

MANAGEMENT

FICTION - The Club is poorly managed

FACT

Management of the Club improved significantly following Steve Harris' appointment in June 2004. This improvement will continue with the appointment of new CEO Paul MacNamee, one of Australia’s leading Sports Administrators.

Priority areas identified for Paul include staff morale/retention, stakeholder relations (especially AFL and MCC) and brand enhancement. Long term initiatives such as China and Team Melbourne remain as key items on the Club agenda.

Embracing broad community issues is a key to the Club’s brand strategy. Melbourne's pioneering of the memorable "Pink Lady" initiative established the Club as an industry leader.

FICTION - The Club’s relationship with the AFL is poor

FACT

The Club enjoys an excellent and supportive relationship with AFL Chairman Mike Fitzpatrick, the Commission, Andrew Demetriou and his executives.

The Club meets with the AFL monthly to review Club finances. These meetings have been conducted for the last 4 years and are a condition of ASD funding.

The Club and the AFL – in conjunction with the MCC – are collaborating on a new 5 year strategic plan for the Club, replacing the last plan which was comprehensively overhauled in 2004.

Notwithstanding the closeness of the relationship with the AFL, the Club operates as an autonomous entity – as much as any other Club – without outside "interference" in our affairs.