AFL future fund may not be enough to combat coronavirus impacts on clubs: Fagan
Crows chief Andrew Fagan says not even the AFL’s large future fund will be “anywhere close enough” to deal with the impacts of the coronavirus spread “if the worst case scenario” of the crisis hit the league and clubs.
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Adelaide chief Andrew Fagan says not even the AFL’s large future fund will be “any where close enough” to deal with the impacts of the coronavirus spread “if the worst case scenario” of the crisis hit the league and clubs.
AFL boss Gillon McLachlan has said the league will use its future fund to help clubs cover the financial damage of playing in crowd-less stadiums, which will be in place for Round 1 and for the “foreseeable future” because of concerns around the spread of coronavirus in Australia.
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This will mean the Crows’ Round 1 game against Sydney at Adelaide Oval, Matthew Nicks’ first competitive game as senior coach and captain Rory Sloane’s 200th game for the club, will be played without spectators.
In the AFL’s 2019 financials, the future fund is valued at $60 million, but Fagan said that might not even be enough to cover the financial damage if the worst case scenario for clubs and the league occurs.
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“When we talk about financial results for the AFL and clubs you try and be as strong as you can so you can sustain the hits when they come,” he told FIVEaa on Saturday.
“So the AFL has worked really hard over the last few years to create a reserve.
“But … and I don’t have the exact figure number with me it could be $70 million or $80 million, that (future fund) won’t be anywhere close enough to deal with this problem if the worse case scenario was to occur.
“That’s why this situation is so complex.
“You know that a large number of the clubs already rely on additional support from the AFL before they have any hit (financially).
“I don’t want to put numbers on this because it is too hard to guess at the moment but you have seen some of the numbers quoted from clubs saying what they might generate in a match-day from ticket sales and memberships and those numbers could be anywhere $1 million to $2.5 million.
“And you multiple that over five games or seven or nine and then multiply it among the 18 clubs and the AFL and sponsorship issues as well it becomes a serious issue really quickly.”
Fagan said this was why “calm heads” were required quickly as the situation unfolded.
The Crows have not lodged their 2019 financial results with ASIC but in their 2018 report the revenue the club reaped from season ticket sales, AFL memberships and corporate boxes and reserved seating equalled 23.38 million.
Fagan said the club would have to take some time to work out what the closed stadiums would mean for members, pleading with fans to be patient.
“We don’t know whether it will be one game will be locked out, whether that turns into four games whether the games are cancelled in their entirety and that presents a complex web of issues,” he said.
In a member update on the Crows website Fagan said as precautions a number of school coaching clinics that were scheduled have been postponed while the club’s Growing with Gratitude has also been put on hold.
“Access to our football department has been restricted with administration staff only entering the area for essential reasons, instead using technology to avoid face-to-face meetings,” he said.
Fagan and Crows president Rob Chapman took part in a CEO and president’s phone hook-up with the rest of the 17 AFL clubs to develop a response to the evolving situation.