Profits for Crows and Power with their Adelaide Oval move highlight why SMA should now feel benefit of independence too

For the Crows and Power to make profits while missing AFL finals proves the power of Adelaide Oval. Now the focus must turn to making the Oval’s bosses, the SMA, sounder financially.

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How the wheel has turned for the Crows and Port Adelaide and the AFL clubs’ former owner, the SANFL.

The Port Adelaide Football Club, once a financial basket case, has reported four consecutive profits. This gives credence to the Power’s new business model built with independence from the SANFL and the move to Adelaide Oval. Debt is concerning at Alberton, but the business is profitable again.

The Adelaide Football Club, the only AFL expansion team to never need a rescue package from AFL House, is expected to report another big profit at its annual meeting at Adelaide Oval on Thursday evening.

This is a significant result considering neither the Power nor Crows played AFL finals last season.

Moving to Adelaide Oval in 2014 has allowed Port Adelaide turnover revenue of $60 million a season — and be profitable for the past four AFL seasons despite not being a regular finalist. The focus is now on generating more money for the Oval’s manager, the Stadium Management Authority. Picture: Sarah Reed.

Not all of this financial success is built around the move from Football Park to Adelaide Oval in 2014. Indeed, independence from their SANFL masters — who were renowned for conservative rule on their AFL licences — has allowed the Crows and Power to expand their core businesses beyond football.

Adelaide has baseball, Esports and a grand media division. Port Adelaide has moved into the China market and expanded its community services.

Independence has been good for both SA-based AFL clubs.

The financial papers presented to the State Government by the Adelaide Oval Stadium Management Authority — that is a 50-50 partnership between the SANFL and SA Cricket Association — underline just how good business has been for the Crows and Power since moving to Adelaide Oval and gaining independence from the SANFL.

SANFL president and SMA board member John Olsen. Picture: Sarah Reed

The SMA papers reveal the Crows and Power left Football Park at the end of 2013 with total revenue bases of $35.3 million (Adelaide) and $41.5 million (Port Adelaide). Both AFL clubs are now turning over close to $60 million.

Not all of that $60 million is from Adelaide Oval or football, of course.

This is where SANFL president and SMA board member John Olsen might say, what is good for the AFL clubs should be good for his organisations.

Managing Adelaide Oval is becoming more difficult with growing costs, particularly with electricity with that bill jumping from $1.5 million in 2016 to $2.5m last year; and maintenance rising from $2m on opening in 2014 to $5.5m last year.

And there are the legislated taxes — for junior sport and a sinking fund to underwrite future development — that crash onto the SMA’s bottom line at Adelaide Oval.

There are only so many concerts, A-League games and special events the SMA can add to its program at the Oval without offending the AFL clubs about wear to the turf.

An aerial view of the 2015 Rolling Stones concert at Adelaide Oval. Picture Dylan Coker

So the move to build a 128-room hotel at the Oval — to generate new revenue for the SMA — is far from surprising, particularly when many world-class venues are adding accommodation options to generate 24/7 revenue.

Independence has been a blessing for the Crows and Power. In this light, there should remain independent SMA with the power to maximise the use of Adelaide Oval beyond its much-admired green playing field.

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