SANFL future unclear as league grapples with huge financial implications of coronavirus outbreak, with no end in sight
The SANFL was extremely well-placed financially before the coronavirus hit. Now, the league’s eight clubs face an uncertain, and changing, landscape, writes Warren Partland.
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Just 18 days ago, SANFL chief executive Jake Parkinson sat in his office with general manager commercial operations Neal Matotek and myself summarising the numbers in the financial report to be released that evening.
He’s a good bloke, Jake, and he has a genuine passion for the state league and all its stakeholders, even if there are differing opinions.
As we sat down, Jake jokingly noted his limited view of Adelaide Oval.
But as he spoke on and off the record, there was no denying his supreme positivity and enthusiasm for the view of the organisation, and the state league, in the future.
The league’s debt had been reduced to $2.8 million, its lowest position since 1992 and on track to be erased by 2021.
In 2013, the league and clubs had a combined debt of $55 million.
In fact, so optimistic was the league of the financial state of play, they had set the clubs a profit margin they must meet.
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It was not an outrageous figure, although a couple of clubs would have needed to be extremely diligent to adhere to the challenge.
But what that bottom dollars and cents line meant was the SANFL had complete faith in the direction of the clubs and their ability to deliver.
My opening paragraph in my story on the financial report mentioned new commission chairman Rob Kerin taking over the reins just a few days before with the league in top notch shape financially.
That was on March 10.
Two weeks later to the day, the SANFL was forced to lay off staff and stand down 50 workers.
Any remaining staff, including the executive, had to take a pay cut.
They were drastic measures for drastic times as the league became another casualty of the coronavirus sweeping the world.
In such a short period, the state league landscape had been dramatically altered, no doubt for a very, very long time.
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To achieve the desired financial results demanded by the league, the clubs would rely on the allocation of funds from the sale of Football Park.
The SANFL also profits from sporting events at Adelaide Oval.
And the redeveloped tavern at West Lakes.
There will be no football at Adelaide Oval until at least May 31.
There may be no action at Adelaide Oval this season.
The tavern has also closed following government shutdowns.
So, where is the income for the SANFL? Will it impact on the distribution to clubs?
Which begs the question, given the flow on effect to the eight clubs, where will their income be derived?
Glenn Elliott masterminded the financial recovery of firstly North Adelaide, and then Glenelg. They were basket cases and ready to receive last rights, and we are talking only four years ago for the Tigers.
He knows a thing or two about financial survival.
But the platform from which survival was built were gaming machines.
He describes the gaming industry and gaming income as the elephant in the room.
Even he says he can’t imagine how clubs will negotiate this crisis.
Before gaming became the saviour, when clubs did not have serious incomes, they relied on match day and sponsorship.
Those two components are still crucial.
However, sponsorship and crowd attendances have been eroded, especially since the AFL spread its tentacles into Adelaide with the birth of the Crows and Power.
That gaming revenue which clubs lean on heavily is also not as healthy.
It has been a challenging slog for the clubs.
Sturt, an extremely proud and highly successful identity for the state league, came within a bees nose hair of closing its doors in 2012.
That is only eight years ago.
The Doubles Blues management went above and beyond to ensure the club kept operating.
The question is, can the clubs do it again? Because they will need to.
There is more bloody hard work to be done, and ruthless decision-making to be made.
Will there be a tougher job in the state league than crunching the numbers at West Adelaide?
Mention cost cutting, and football departments are at the top of the list.
The Bloods are the only club not to have a full-time coach, although Gavin Colville probably works full-time hours.
How many clubs persist with full-time coaches will be interesting? Can they? Will there be fewer assistants? What is the fate of full time football managers?
Restructuring will become a common word.
Player payments will be in the spotlight and forget about the salary cap, lifted to $410,000 this year to accommodate the increase to four on the interchange bench.
Surely that will be slashed, meaning recruiting quality players will be a massive issue.
The league already lost a raft of stars this season, many headed to the country where there was still a good dollar on offer, as well as far less commitment.
The ever-increasing hours being devoted by state league players is another worrying concern and must be addressed.
Agree or not, state league players would be more committed than their counterparts on the national stage.
Most have full-time jobs outside football.
And if clubs slash and burn football departments, reduce player incentives and cut back their preparation, how will they compete with the Crows and Power reserves? They won’t.
That is a key reason for a growth in footy managements and more time commitment from the players.
Never before have the eight clubs been more united, and worked so closely with the SANFL. They must also be united in demanding changes to the rules hanging over the AFL clubs and their involvement in the state league.
That is another question though: Will there be Crows and Power reserves?
There is escalating speculation of AFL lists being reduced to 35 players as the clubs rebound from the financial hammering.
Could the system revert to pre-2014 when the Crows and Power players not required for the AFL were farmed out to the SANFL clubs?
AFL clubs hit by injury could simply call up a state league player, another thought being mentioned.
So many questions and as yet few answers.
Football in this state as we know it will change.