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TOPIC: Freo's Future

shane Freo's Future 3 years 11 months ago #43

shane
I'm still not sure why the AFLPA thinks top paid players can be earning $400k while not generating any revenue. There's a long way to go before the message gets through that the cash taps have stopped.
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The_Yeti, Bizkit, pollyanna, Walter the baker, Matebe, Raglan Matt said You Beaut

Freo66 Freo's Future 3 years 11 months ago #44

Freo66
All 18 teams will survive, they've come too far, invested too much coin into all of them and the TV rights will dictate that. As soon as you move to 16 or 14 teams, the broadcasters will say hands off.

If the AWfl did decide to reduce the games dramatically, channel eagle will be saying bar lees, we are not paying up.

Then don't discount 9 or 10 or a consortium swooping in and saying thank your mother for the rabbits.

9 have lost the cricket (bar the WC from memory, negotiated years back) and if they have no Rugba (see Peter V'landys, what's going on with that) then they will need remotes to change channel and they are flying in the ratings and would love nothing more then to put the knife into 7.

tvtonight.com.au/2020/03/monday-30-march-2020.html

4th in the ratings last night
9 Network 30.2
10 Network 22.2
ABC Network 21.1
7 Network 20.6, they are bleeding with no footy.

No consumers, no advertising, no channel.

Fun times ahead.
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Quasimodo Freo's Future 3 years 11 months ago #45

Quasimodo
Shows how many idiots watch Married at First Sight
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Davo, Down on down said You Beaut

Morgan Freo's Future 3 years 11 months ago #46

Morgan
So GIl has brushed off merger talk, while Caro re-ignites her long-running push to move North Melbourne.

So I guess it's pretty much business as usual.
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shane Freo's Future 3 years 11 months ago #47

shane
Just one important point is that the AFL didn't get a loan. They got a line of credit.

And those financial statements are for the league administration, separate from the clubs which generate in the region of half a billion a year, before tv rights are distributed (but that would be double dipping). The top few clubs have significant financial reserves to draw on as well, as well as non-football revenue streams.
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demo1 Freo's Future 3 years 11 months ago #48

demo1
I just would love to know in this current market how the AFL managed to get a $600m Line Of Credit approved and ready to go in a few days..
Its taken me 23 working days for one red bank to bother picking up my application.
How do you think the valuation went??
Imagine valuing a stadium - not exactly too many recent sales to compare to?
Bit of a declining market I would have thought...Is there a name change coming??
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shane Freo's Future 3 years 11 months ago #49

shane
The government vouched for them.
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Freo66 Freo's Future 3 years 11 months ago #50

Freo66
I could be wrong, but thought they purchased it 4 years ago for $ 200 mil and now valued at just over a $ Bil.

Plus they are generating income from "Marvel"
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TheColonel Freo's Future 3 years 11 months ago #51

TheColonel
It will change its name to "National Marvel" in recognition of how they survived this "crisis"
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The_Yeti Freo's Future 3 years 11 months ago #52

The_Yeti
Marvel?

You mean 'pay up or we'll send the Hulk around to visit your bank' kind of income generation?

It worked for John Gotti.
Egurls Suck!
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Morgan Freo's Future 3 years 11 months ago #53

Morgan
It’s an important distinction Shane, but you’d have to think a fair proportion of that credit would be utilised in the first year without any revenue (which would also explain why it will take two banks to provide it). Also, while I agree the clubs have their own equity, and should in their own and shared interest contribute to keeping the AFL afloat in the short term, I can easily see a situation where certain powerful clubs having ‘kept the league afloat’ start getting all Ayn Rand when they start to perceive (rightly or wrongly) the smaller clubs aren’t pulling their weight (which will be worse if they keep getting beaten by them and the soft cap figure is tiny).

Maybe the TV rights benefit of the 9th game will continue to outweigh the cost of propping teams 17 and 18 up, but that’s no longer a certainty.

Freo is probably above the fray in all of this, but if I was a member of GC17, North or St Kilda I think it would be reasonable to be nervous
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shane Freo's Future 3 years 11 months ago #54

shane
I wound't expect that. I would think that was their worst case calculation as of now.
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The_Yeti said You Beaut