Adelaide boss Andrew Fagan concedes club faces mass stand-downs of staff, but that it can survive COVID-19 crisis
Adelaide boss Andrew Fagan has revealed the gravity of COVID-19’s AFL impact and warned of the tough medicine in store for staff, players and fans for the club to survive.
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Adelaide chief executive Andrew Fagan concedes staff are feeling the full fury of the AFL’s season suspension as clubs weather a COVID-19 ‘crisis’ with more top-down pain to follow.
Cost cuts and sweeping lay-offs will dominate a bitter recess until at least May 31 as the industry confronts what chief executive Gillon McLachlan labels its “greatest threat in 100 years”.
A sobering 80 per cent of AFL and club employees will be stood down for at least two months after a government border shutdown halted the competition at Round 1.
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“We outlined the gravity of the issue and significant impact it will have on our staff, club and industry during this postponement as we look to return to health through 2021,” Fagan told The Advertiser.
“It will take some really tough decisions in all sorts of areas and some time.
“That won’t just be 2020, but years that follow.
“There will be significant stand-downs for the vast majority of people who work here.
“That will continue until we start playing footy again.”
Port Adelaide was meant to celebrate its 150th year in style but must battle to reach a 151st. Adelaide has a comparatively sound balance sheet, but isn’t immune to unprecedented economic depression caused by the COVID-19 pandemic.
Clubs without matches until June at the earliest and deprived of commercial income are drastically ‘restructuring operations’.
Collingwood president Eddie McGuire fears the industry might never recover to pre COVID-19 affluence.
Fagan revealed clubs were sharing intellectual property for the first time in a bid for survival.
“We get through it together and the collegiality that exists between all 18 clubs and the AFL is something that is quite remarkable,” he said.
“I have never shared so much information across topics that was previously off limits.
“It is going to take a lot of effort for all 18 clubs to play some games at the end of this year or actually front up in 2021.”
Players collect their next salary from March 27 before they take a month’s forced leave.
The players union is resigned to pay cuts.
Established, cashed-up stars can absorb a dip in income but young players with mortgages will be exposed to stress shared by millions of fans with everyday jobs.
The billion dollar AFL bubble has burst.
“Our players have been placed on leave,” Fagan confirmed.
“It is a crisis the game has to deal with.
“The players will have a maintenance program and return by the end of May.”
AFL casuals have been released and remaining staff scaled back to three or four day weeks, while AFL executives are taking 20 per cent pay cuts.
The best clubs can hope for is a 17-match condensed season that could creep into December. A doomsday scenario would involve total season abandonment.
“There are some really difficult conversations taking place which will continue,” Fagan said.
“With the game shut down there is the economic and financial impact and you have to make some really tough decisions on staff.”
Sponsors and members are sticking with Adelaide and not demanding refunds.
In the long term, sponsors will have no choice but to call on value to agreements.
“Their support has been amazing,” Fagan said.
Originally published as Adelaide boss Andrew Fagan concedes club faces mass stand-downs of staff, but that it can survive COVID-19 crisis