Menu
Finance

New Broadcast Deal Helps AFL Post Financial Turnaround Of $31M, Debt Free By '16

The Australian Football League announced on Monday a "return to black figures last year" after a financial turnaround of A$30.3M ($31.5M), according to Greg Denham of THE AUSTRALIAN. The AFL recorded a net profit of A$6.7M in '12 "during the first year of its new broadcast and digital media rights agreements," which extend to the end of '16. Highlights of the AFL's financial performance in '12 include: Revenue increased by A$82M, up 24% to a record A$425M; Operating surplus, before grants and distributions, was a record A$296M, up from A$234M; Total funding to 18 clubs of more than A$200M, up from A$159M in '11. The league is "on track to be debt free" and to have A$100M in its Future Fund by the end of '16. AFL CEO Andrew Demetriou earned A$1.88M last year, "including a performance bonus and superannuation," which was up A$80,000 on his '11 package, but down on his salary package of A$2.2M in '10 (THE AUSTRALIAN, 3/19).

IN A 'HEALTHY STATE': In Melbourne, Jesse Hogan wrote, "The first year of the AFL's bumper broadcasting agreement insulated the league from a financial blow from lower attendances last season." The clear driver "was the proceeds of the AFL's broadcasting deal with Channel Seven, Foxtel and Telstra." That deal "accounted for just over half of the league's revenue," with sponsorship income rising 8.2% to A$159.7M. The "more traditional source of income, ticket and membership sales," fell 18.6% to A$8.63M -- just 2% of the AFL's overall income. AFL Chair Mike Fitzpatrick said that the AFL Commission was "generally pleased" with the AFL's financial performance in '12. Fitzpatrick: "We believe the game is in a healthy state." While the league spent A$11M on the creation of its in-house media division in '12 -- "just over double what it got back in revenue from that division -- it was not a great drain on its finances" because it managed to save about A$6M elsewhere (THE AGE, 3/19). Also in Melbourne, Jon Pierik wrote, "AFL players have labelled the disparity in spending between the power and smaller clubs as an 'emerging industrial issue,' revealing it will be dissected as part of a major review of player payments this year." AFLPA CEO Matt Finnis said players had "as much to lose as anybody" if the gap was not closed. Equalization is also set to be part of discussions next year at a mid-term review of the collective bargaining agreement," brokered last season but yet to be finalized (THE AGE, 3/19).

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Global/Issues/2013/03/19/Finance/AFL.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Global/Issues/2013/03/19/Finance/AFL.aspx

CLOSE