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Australian Football League Clubs Seeking Greater Share Of TV Deal Money

The fight for a greater share of the record A$2.5B ($1.8B) "broadcast rights spoils has begun," with Australian Football League clubs pushing for the league to follow the National Rugby League and "markedly increase the amount distributed to each club," according to John Stensholt of THE AGE. The NRL "clinched a deal with its teams" last year, which will see rugby league clubs receive 130% of the player salary cap annually in central grants. AFL clubs believe that adopting a similar approach -- covering the salary cap plus 20-25% is one idea that has been floated -- "will alleviate the financial pressure on them, especially those struggling under the burden of less generous stadium tenancy deals." AFL Finance, Corporate & Major Projects GM Ray Gunston has been "meeting with clubs to gauge opinion on what a new financial deal across the league could look like." Some clubs believe the AFL "may prefer holding back large amounts of money and instead dole out funds for particular projects, such as infrastructure improvements or major commercial plans." Also at stake is the future of the unpopular "luxury tax" levied on wealthier clubs such as Hawthorn and Collingwood, but which was also levied on clubs such as Geelong and Carlton, which made net losses in '15. Port Adelaide President David Koch said, "It is the biggest discussion point between the clubs and the AFL and there is a fundamental need to find a model that ensures the financial sustainability of the clubs." Collingwood CEO Gary Pert said that he "would prefer a model under which the more successful clubs were not taxed on the amount of revenues generated." He said, "The current model of redistributing revenue between the clubs only has the effect of taking the profitable clubs and putting them back into a debt situation, which is counter intuitive to the purpose of process" (THE AGE, 2/8).

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