The AFL met with clubs in Melbourne on Monday after an 18 month consultation process, which included a club working group made up of chairmen, CEOs and members of the AFL executive.
The chairman of the AFL Commission Mike Fitzpatrick said the AFL will provide more than $1.1 billion in total funding to the 18 AFL clubs between 2012-16, an increase of $320 million on 2007-11.
Clubs will also benefit from a new $144 million club future fund, which will be invested in the specific needs of each club, indluding facilities, debt reduction, football departments, membership, sponsorship, fan development and digital media.
Mr Fitzpatrick said the strategy aimed to ensure a legacy of having 18 viable and competitive clubs in the AFL competition by 2016.
"This strategy is about developing our clubs while continuing to provide an incentive for pursuing excellence and growth on and off the field. It also recognises the vital importance of strong viable clubs in the future health and growth of our game across Australia," Mr Fitzpatrick said.
"It recognises that all parts of the industry have contributed to the success of the game and the increase in broadcast rights money and all deserve to receive a legacy."
AFL chief executive Andrew Demetriou said the strategy was important not only to the AFL, but also supporters.
"Supporters want strong financially viable clubs with first class facilities, more resources, strong membership and revenue bases, reduced debt and strong futures," he said.
"Most of all they want to know that their club is able to compete equally for premierships. This strategy aims to ensure that no matter which club you support, play for or work at, you have the opportunity to compete for the ultimate prize."
The total funding package of over $1.1 billion equates to 52 per cent of projected total available AFL funds for 2012-16.
It is based on the AFL’s proposal to the AFL Players' Association totalling $1.144 billion, the maximum amount of offer from the AFL.
Approximately 60 per cent of this funding is likely to be used for the base distribution, which will increase to fully fund the increase in Total Player Payments.
The club future fund will provide:
- A minimum EQUAL distribution of $3.25m to all clubs over 2012-16, totalling $58.5m.
- A further $48m will be distributed DISEQUALLY over 2012-14 and be invested into specific initiatives for a selected number of clubs. Apart from facility projects, these additional funding commitments are only made for 2012 to 2014.
- A further $37m has been budgeted to be invested over 2015 and 2016 in a DISEQUAL fashion but is not currently allocated to specific clubs. This allows the AFL to review the effectiveness of the investments made over 2012 to 2014 and the status of equalisation and financial health across the clubs to make the necessary investment decisions for 2015 and 2016
"In total, we expect approximately 40 per cent of the club future fund to be invested equally and 60 per cent disequally. We believe this provides the best opportunity to achieve 18 financially viable clubs," Mr Demetriou said.
The AFL Commission has approved the following packages:
| Club | Equal (2012-16) | Disequal (2012-14) | Total allocated (2012-16) |
|---|---|---|---|
| Western Bulldogs | 3.25m | 7.0m | 10.2m |
| North Melbourne | 3.25m | 7.0m | 10.2 |
| Melbourne | 3.25m | 5.8 | 9.1 |
| St Kilda | 3.25m | 5.7 | 8.9 |
| Richmond | 3.25m | 4.7 | 8.0 |
| Port Adelaide | 3.25m | 3.9 | 7.2 |
| Sydney Swans | 3.25m | 3.9 | 7.2 |
| Brisbane Lions | 3.25m | 3.9 | 7.2 |
| Essendon | 3.25m | 1.5 | 4.75 |
| Carlton | 3.25m | 1.0 | 4.25 |
| Collingwood | 3.25m | 1.0 | 4.25 |
| West Coast Eagles | 3.25m | 1.0 | 4.25 |
| Fremantle | 3.25m | 1.0 | 4.25 |
| Geelong Cats | 3.25m | 0.0 | 3.25 |
| Hawthorn | 3.25m | 0.0 | 3.25 |
| Adelaide | 3.25m | 0.0 | 3.25 |
| Gold Coast Suns | 3.25m | 0.0 | 3.25 |
| GWS Giants | 3.25m | 0.0 | 3.25 |
