AFL clubs, admin brace for sweeping pay cuts
Huge pay cuts will hit all parts of the AFL industry as early as next week, with some jobs on the line. But the league could have an unexpected financial saviour.
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Sweeping pay cuts and cost saving moves will be made at all 18 AFL clubs as early next week.
But a universal 20 per cent wages reduction offered by the league to the game’s 850 players will not be imposed on football industry staff.
Clubs will instead have freedom to make savings of millions of dollars in ways they see fit.
Almost all AFL industry employees will be impacted. Some club staff may be asked to reduce their working hours or in worst-case scenarios will be temporarily stood down.
Modelling for the industry-wide cuts was discussed in a telephone hook-up of club bosses and league chiefs on Friday.
The game’s 18 senior coaches have already volunteered a 20 per cent wages cut.
Players accept that they must also take pay cuts, but the AFL is yet to provide details to the AFL Players’ Association.
The AFL’s primary focus has been on staging Round 1 matches to guarantee the flow of revenues into the game.
The league is also yet to detail the extent of pay cuts to its own army of staff at AFL House, including its 12-person executive.
The size of AFL chief executive Gillon McLachlan’s salary is not publicly disclosed.
Clubs receive quarterly or monthly dividends from the AFL depending on their financial situation.
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Marvel Stadium — footy’s fully-owned private asset — has emerged as another potential financial saviour.
Selling or borrowing against the Docklands venue, once the crisis passes, could help cover an estimated $500 million in industry losses if the season is abandoned.
Top commercial real estate firm CBRE valued the Docklands site at $1.3 billion four years ago when Collingwood president Eddie McGuire was pushing for it to be demolished and replaced with a new footy stadium next door to the MCG in the Olympic Park precinct.
But senior CBRE director Mark Wizel told the Herald Sun its value was now more likely to be worth about $1 billion.
“In 2016 there was no end to the number of new developers wanting to acquire development sites for major projects — most from China, Singapore and Malaysia,” Wizel said.
“But I cannot think of one at present who could look at an outright cash purchase of something like Marvel at $1 billion-plus.
“I would say the best bet for the AFL would either be a joint venture process with an Australian listed developer with staged payments based on land being released.
“Another option would be that the AFL could masterplan the entire site, demolish the existing (stadium) and then effectively sell off ‘precinct’ sites to a range of developers across residential, retail, commercial office and social infrastructure.”
The Andrews Government recently committed $225 million of taxpayer funds for a redevelopment of the stadium.
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Premier Daniel Andrews revealed on Thursday he was in talks with the AFL about a proposed government-backed guaranteed loan.
Another potential issue for the AFL is chairman Richard Goyder’s position as chairman of Qantas, which stood down 20,000 workers on Thursday.
Repair jobs at both organisations will be considerable.