SA FOOTBALL COMMISSION AND AFL AGREE TO TRANSFER OF CROWS AND POWER LICENCES

Published on: Mar 27 2014 | Author: admin |

The South Australian Football Commission has reached an agreement with the Adelaide and Port Adelaide football clubs – endorsed by the AFL – which will see the two AFL licences transferred to the clubs in return for payments totalling more than $18 million.

The South Australian Football Commission has reached an agreement with the Adelaide and Port Adelaide football clubs – endorsed by the AFL – which will see the two AFL licences transferred to the clubs in return for payments totalling more than $18 million.

The Commission has signed a Heads of Agreement document with the AFL that will see the licences and all associated conditions transferred to the two clubs, which will then be licensed directly to the AFL.

In return, the two clubs will pay the Commission annual Club Game Development grants totalling $18.311 million, concluding in 2028.

Adelaide will pay $11.326 million while Port Adelaide will pay $6.985 million in grants between 2013 and 2028.

The final agreements of the 13 deeds negotiated have been signed today by the relevant parties at Adelaide Oval.

In addition, the Heads of Agreement outlines that:

  • The AFL have confirmed that the SANFL will continue to manage Game Development in South Australia, and to that end provide the SANFL with annual AFL Game Development Grants over the same period, a figure which would total approximately $29 million with CPI ($1.4 million in 2013); and
  • The AFL has committed to continue to provide appropriate annual AFL Talent Development Fees to the SANFL, a figure which would total approximately $16 million at existing levels (average of $1.0 million per year); and
  • That the SANFL will continue to be managed by an independent commission.

The transfer of the AFL licences was approved by the SANFL League Directors. Amendments to the constitutions of both clubs have also been undertaken to finalise the process.

John Olsen, Chairman of the South Australian Football Commission, described the agreement as “an extremely strong outcome” for the SANFL, its member clubs and the wider South Australian football community.

“This combined agreement will deliver a total of approximately $63 million over the next 15 years,” Mr Olsen said.

“Having negotiated the move to Adelaide Oval and the resultant $12 million revenue uplift between the two AFL clubs, and having put the League in a position to create a future fund for football through realising the value in our West Lakes precinct, the transfer of the AFL licences represents the resolution of another key part of the Commission’s long-term strategy.

“It is also worth noting that the move to Adelaide Oval will increase the League’s net assets from $28 million to in excess of $100 million following formal recognition of the value of the SANFL’s 80-year licence to use the venue.”

Mr Olsen said the two AFL licences had been “a great investment for football”.

“The licences have generated in excess of $180 million in stadium income and sub-licence fees since 1991. Of that, the SANFL has spent in excess of $30 million on junior development programs, $11 million on our talent programs, $19 million on the development of umpires for the code and another $19 million on the marketing of the sport itself. We have also passed a further $88 million to the SANFL clubs.

“Through the agreement we have reached with the AFL, the two clubs will achieve the independence they have been seeking while South Australian football will continue to benefit from the presence of the Adelaide and Port Adelaide football clubs for many years to come. This has been further strengthened by the entry of Adelaide and Port Adelaide teams in the SANFL competition.

“Importantly, the transfer of the licences immediately lowers the SANFL’s risk profile while also ensuring South Australian football’s position on the national stage remains protected.”