What are the main challenges facing the incoming AFL CEO?
GILLON McLachlan has taken the reins from Andrew Demetriou as the League's chief executive, and he has a number of challenges to confront. These are the big ones.
1. Declining crowds
Crowds are down around two per cent when compared to last season, with plenty of theories floating around as to why. The fact every game is now live on television is a big factor, but the cost of going to the footy is another. The move to variable ticket pricing has been poorly thought out and poorly explained, while the cost of food and drinks at AFL venues is an issue. McLachlan has pledged to address the cost issue. Making ticket pricing simpler would be a good start.
The fashion of the moment is to decry the game as a series of rolling mauls with too many players crowded around the ball and not enough long kicks to contests. It is worth noting that the match report in the long-gone Argus newspaper, written after Fitzroy beat Carlton in the 1904 Grand Final (that's right, 1904!), stated this: "The ball was so constantly at the Fitzroy end that the field edged up with it, all organisation was destroyed, the players made just a jumbled crowd, where ruckmen could not be distinguished from placemen. There was a period when if one had drawn a line from goal to goal and another across the centre he would have found 33 players jostling, smashing, bumping in one quarter of the ground and only three men outside it." So the game has always had times when the play has seemed ugly. McLachlan need not worry about radical rule changes. Winding back the interchange numbers should be enough to sort things out.
3. Equalisation
This is a massive challenge, both on the field and off it, with the gap between the rich and poor clubs growing in recent years. A working party is in place, with a cap on football department spending and a luxury tax on overall revenue two of several proposals. An agreement should be reached by the middle of the year, although McLachlan's renowned negotiating skills will be needed to thrash out the finer details.
The current agreement finishes in 2016, and there has been speculation that the next rights deal could run for as many as 10 years, with McLachlan aiming to have it stitched up by the end of 2015. Streaming games directly to televisions, rather than just to mobile phones and tablets as is the case now, could form part of the deal. Former News Ltd and Foxtel chief executive Kim Williams joined the AFL Commission in February to beef up the League's knowledge of the media industry.
5. A night Grand Final
When fronting the media after being announced as the new chief executive, McLachlan stated that his preference is for the Grand Final to remain in the daytime. But with the League trying to increase its revenue as part of the equalisation push, and a new TV rights deal looming, there is a strong likelihood that the Grand Final will be moved to a twilight or night slot in the not-too-distant future.
6. Securing the integrity of the game
Information sharing, gambling, illicit drugs and performance-enhancing drugs are all problem areas. The AFL has already beefed up its integrity department, and McLachlan will keep a close eye on developments in this area.
7. Growth of the expansion clubs
A key focus for McLachlan will be placing Greater Western Sydney and Gold Coast on a sound financial footing, rather than further expanding the competition. In fact, he has said that 18 clubs will probably be the right number for another decade.
8. The Sydney market
The National Rugby League, which tried to recruit McLachlan as its CEO in 2012, has a $1 billion broadcast agreement of its own. The NRL has also established an independent commission to govern the game, which includes Graeme Samuel, a former AFL commissioner. With its heartland in Sydney, the NRL anticipates rugby league being the highest participation sport in the country in five years, presenting a significant challenge for the AFL in NSW.
9. The Brisbane Lions
Membership and attendance numbers are down, the club lost $1.5 million last year and a group of key young players departed. The AFL has supported the club on its Springfield development and board composition for 2014, and financial assistance will continue. Like the recent expansion clubs, the AFL wants the Lions to succeed.
10. International exposure
New Zealand, where St Kilda has now hosted two home games, is the only international market where the AFL wants to play premiership season matches, according to McLachlan. The Saints will review their lucrative deal with the city of Wellington after their Anzac match next year, with prospect of upping their commitment to two games per season.
11. A presence in the Apple Isle
McLachlan raised a few eyebrows on a recent trip to Tasmania, the only traditional football state without its own team, when he stated that his preference was for one club to play up to eight matches per year in the state. After being announced as the new CEO, he revisited the topic. "My vision for Tasmania is we have a one-state approach that means the north and the south working together coming behind one team," McLachlan said. "Whether that is possible is a very challenging conversation, but what Tasmanians ultimately want is their own team, and that’s an aspiration. The challenges are there for everyone to see."
12. Purchasing Etihad Stadium
The AFL can buy Etihad Stadium for $1 on March 8, 2025, but an early purchase would allow deals with St Kilda, North Melbourne and the Western Bulldogs to be redrawn, giving them better match-day returns. McLachlan has said that the gap between what the stadium owners want and what the AFL is prepared to pay remains large, but there has been speculation that a 10-year TV rights deal might give the League enough cash to make a purchase.
13. Football on Good Friday
Never an option for Demetriou, it is highly likely that a game will be played on Good Friday in 2015, even if McLachlan keeps insisting it "is not a certainty". The big question is which clubs will be given the prized timeslot. North Melbourne, the Western Bulldogs, Carlton and Essendon have all been touted as taking part if a match is fixtured next year.
14. Developing and retaining off-field talent
Port Adelaide's struggle to replace Alan Richardson as director of coaching and St Kilda's long search for a CEO have shed light on a growing problem for clubs, and for the League in general. Developing quality administrators and coaches – and retaining them in the game – is an issue that clubs will increasingly face, and one that was flagged by Demetriou in his farewell media conference.
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