Melbourne, Collingwood, Richmond to reap rewards of AFL, MCG big money deal with state government

MCG tenant clubs are big winners under new state government funding, set to cash in on extra gate takings of up to $2 million a year under the AFL’s monster deal with the Andrews Government.

MCG tenant clubs will cash in on extra gate takings of up to $2 million a year under the AFL’s monster deal with the Andrews Government.

Richmond, Collingwood and Melbourne will be the big winners from the new arrangements with the Melbourne Cricket Ground.

Hawthorn also stands to make an extra $1 million a season but will receive less than the other three clubs because it only plays six home games a season at the home of football.

FUNDING: MEGA DEAL TO KEEP FOOTY AFFORDABLE

CASH: VICTORIA STADIUMS GET $500m FUNDING

DEAL: AFL TO IMPROVE MCG ACCESS FOR NON-VICS

Carlton and Essendon also play home games at the AFL’s mecca and will receive about an extra $200,000 per home game at the MCG.

The clubs’ current deals are variable depending on crowd sizes, but sources said the new agreement delivered a welcome increase as clubs look to wean off poker machines.

Club profits ramp up significantly for MCG games which attract more than 40,000 fans.

The crowd erupts after the 2017 Grand Final. Picture: Jason Edwards

In total, the decision to lock-in the AFL Grand Final at the MCG until the end of 2057 will unlock an extra $9 or $10 million a year to be shared between six clubs from next year.

The Melbourne Cricket Club has been in year-long talks with the AFL and the Government about the three-way deal to secure funding for Melbourne’s two premier sporting stadiums.

AFL chief executive Gillon McLachlan said the MCG deal “helps clubs make more money to secure their future”.

In other developments:

The new deal sinks a proposal to build a third boutique stadium in Melbourne.

The AFL pledged to maintain affordability for footy fans.

Hawthorn and Collingwood will benefit from MCG funding. Picture: Michael Klein

Women’s facilities will receive major upgrades at Ikon Park and Whitten Oval.

The Etihad Stadium redevelopment is expected to take about five years and will start in two years.

The capacity of Etihad Stadium is likely to be unaffected during works.

Club officials are expected to meet with Melbourne Cricket Club chiefs to thrash out the details of the new deal next week.

The money ensures clubs will directly benefit from the Andrews Government $225 million package to redevelop the MCG, Etihad Stadium, Ikon Park, Whitten Oval and GMHBA Stadium.

McLachlan said a direct “trade-off” for the increased commitment at the MCG was a better deal on gate takings for MCG tenant clubs.

“Extending the (MCG Grand Final) deal by 20 years gives them (MCC) the ability to plan their cash flows and redevelop their ground for Victorians and all sport lovers,” McLachlan said.

“They are going to increase the club distributions from next year, and I think that secures the future of tenant clubs there.

AFL CEO Gillon McLachlan.

“As part of the trade-off for the extra security the MCG get they give bigger share of the pie to the clubs somewhere between $9 million and $10 million in 2019.”

The extra funds will increase every year in line with inflation.

McLachlan said the Government money helps keep the game affordable for fans and lock-in ticket prices at current levels.

“These sorts of deals means that we have more money going into clubs, we recut the user agreements for all Victorian clubs and it means we can keep the game affordable,” he said.

“It’s still $5 for kids, free on Sundays and $25 minimum price for adults and we have kept that price and we are committed to keeping our game affordable.”

Debate has raged whether interstate venues should host the Grand Final but McLachlan said the sheer size of the MCG meant it was the preferred choice for the annual decider.

“We want to as many people to go to the Grand final as we can,” he said.

“We are lucky in this country to have a 100,000 seat venue that is loved by sports followers and we are lucky to have this as part of our game, it is part of our heritage.

“I think people understand when come to win a Grand Final you come to the MCG where we maximise capacity and put our game on the biggest stage.”