The dollars that can save Crows and Power from COVID-19 financial abyss
Major sponsors have pledged to stand between the Adelaide and Port Adelaide football clubs and COVID-19 financial ruin.
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Key multi-national backers are standing between the state’s AFL clubs and a COVID-19 financial crevasse as local sponsors battle to stay in the game.
Principal partner OPTUS and major sponsor Toyota pour millions into Adelaide’s coffers but face scant return from season 2020. The AFL hopes 17 rounds can be played but is preparing for a one in 100-year wipe-out which could send struggling clubs insolvent.
While sponsors would be within rights to walk from contracts principal OPTUS will stick by Adelaide in a dramatic boost after the club this week shed 80 per cent of staff in line with AFL cost cutting.
“Together, we will weather the uncertain times and come back collectively stronger,” Optus Head of Marketing Mel Hopkins told The Advertiser.
Adelaide’s statutory profit decreased from $1.5 million in 2018 to $238,473 in 2019 following substantial football department pay-outs. Every dollar counts in a post COVID-19 world.
Crows chief Andrew Fagan on Wednesday confirmed the gravity of “extreme cost cutting measures” from administration to coaching staff.
“Unfortunately, it has led to a lot of difficult and heartbreaking conversations with our dedicated staff and coaches who work so tirelessly day-to-day to ensure the Club is the best it can be,” said Fagan.
“The AFL has always been a demanding and brutal industry but none more so than now, with nearly 80 per cent of our workforce stood down, and it means we will be operating with a skeleton staffing structure until games are played.”
OPTUS is in the second of a lucrative four-year Crows deal which saw it replace Toyota as back of guernsey sponsor. The Singapore-based telecommunications giant’s commitment is crucial to the club’s grassroots and community program funding.
“Optus stands by all Australians during this unprecedented time and that includes our sporting partners. Optus remains committed to all existing partners, including the Australian Olympic and Paralympic teams, Optus Stadium, the Adelaide Crows and the West Australian Football Commission,” said Hopkins.
Four-decade sponsor Toyota will hold discussions with Fagan to nut out a value proposition that accounts for this year’s season suspension.
Toyota stressed it would take a long-term view in relation to its Crows sponsorship. The car company’s current deal with Adelaide continues until 2023
“Toyota Australia is continuing to work with its sponsorship partners the AFL and Adelaide Crows to support them and the sport of football in the most appropriate ways during this difficult time,” said a Toyota spokesperson.
“We have a long history of promoting footy – from the elite level to the grassroots community clubs that are the lifeblood of this great game.”
Port Adelaide says its major sponsors GFG and MG have guaranteed to hold firm with the club despite the AFL season cancellation. Global brand Red Bull even signed on as partner last week.
However, the Coronavirus pandemic is devastating every aspect of society. Adelaide and Port understand smaller backers must secure their financial models before finalising ongoing sponsorship arrangements.
It’s understood Crows platinum partner Foodland is still processing the impact COVID-19 will have on its local operations and arrangements with the Crows. Balfours’ position in regards to its AFL club sponsorships is not clear.
Flight Centre in January renewed a five-year agreement but has closed around 100 branches due to the COVID-19 impact on travel.
The RAA will work with its sporting partners to ‘deliver the best outcomes’.
“The RAA is keen to continue supporting South Australia’s AFL clubs during this evolving situation,’’ said an RAA spokesman.
Clubs are destined to offer sponsor credits in the future and reward loyalty in a climate where revenue from ticket sales, merchandise, membership and hospitality will dry up without games.
“We are working with each of our 50 partners to try and ensure they stay and they have been fantastic,” said Fagan.
“You are working through all your partners to see what additional value might we need or what has to change next year or the years after. Some of these issues could be significant.”
Originally published as The dollars that can save Crows and Power from COVID-19 financial abyss