AFL Commission Chairman Mike Fitzpatrick today said the AFL had focused primarily in the past year on implementing key elements of the Commission’s 2012-2016 strategic plan, which lays the foundations for the game during the next decade and beyond.
These elements included competition expansion, extending the reach of the game through enhanced broadcast coverage of matches, growth in participation, the establishment of AFL Media, the Club Future Fund, ongoing infrastructure development and integrity safeguards for the competition.
The AFL Commission has forwarded the game’s official financial figures, which will appear in the 2012 Annual Report, to the AFL Club Presidents in the lead-up to the AFL annual general meeting, to be held on Wednesday March 20.
Highlights of the AFL’s financial performance in 2012 included:
- Total AFL revenue increased by $82 million or 24 per cent to a record $425 million
- The operating surplus, before grants and distributions, was a record $296 million (from $234 million)
- The AFL provided total funding to AFL clubs of more than $200 million. This included the first year of distributions from the new Club Future Fund of $30.5 million of which some $15 million was distributed unequally to clubs
- In line with expanding the code’s national footprint, game development grants to State Football bodies increased by $6 million
- Greatest-ever funding distribution to game development programs
- Highest-ever distributions to players in wages
As a result of these distributions, the AFL recorded a net profit of $6.7 million and a net surplus of $8.4 million. The 2012 financial result incorporated the first year of new broadcast and digital media rights agreements for the period 2012 to 2016 year as well as the corresponding financial strategy for the same period.
“Each year throws up its challenges, many of which attract intense scrutiny and media coverage, but the AFL Commission was generally pleased with the progress achieved in 2012 on delivering our strategic goals and believes the game is in a healthy state,” Mr Fitzpatrick said.
“Significantly, 2012 saw the implementation of our landmark five-year broadcast rights agreements and the new Collective Bargaining Agreement (CBA) with players, along with the start of Free Agency. We also witnessed the debut season for the Greater Western Sydney Giants, which meant we had an 18-team AFL competition and nine games per round for the first time.”
Mr Fitzpatrick said that in another first, club members and supporters of the game were able to watch every match live on free to air, subscription or IP television and mobile devices as the new broadcast rights agreements began.
“The extent of coverage, supported by other programming which covered our game from every angle and then some, ensured that regardless of where people lived they could watch a game of their choice live and follow their club and players on multiple platforms between each round of the season, and this saw television audiences increase by 12 per cent,” Mr Fitzpatrick said.
“This level of exposure, along with radio and radio streams via the internet, is invaluable for the 18 clubs in particular and the game in general as illustrated by the fact that on average, a record 4.78 million people watched broadcasts of each round of the 2012 Toyota AFL Premiership Season on free to air and subscription television – the largest weekly audience for any sports competition in Australia.”
Mr Fitzpatrick said the coverage of Australian Football was also enhanced in 2012 by the establishment of the AFL’s own in-house digital media business, AFL Media, designed to supply the AFL and its clubs’ websites with compelling content whilst consolidating several existing operations including AFL Films, AFL Publishing and AFL Photographs licensed by the AFL into the one business unit.
“The merits of this key strategic move were underlined by the overwhelming initial response from the members and supporters of the AFL clubs in particular and the game in general which established AFL Media as the most popular digital sports media outlet in Australia in 2012, attracting 6.5 million visitors per month across the web, mobile and app platforms during the past year,” Mr Fitzpatrick said.
For the first time, the AFL competition’s national footprint included a premiership season match in every capital city and territory, with North Melbourne FC playing two home games in Hobart.
“Although attendances at AFL matches were down in 2012 when compared to the record levels of 2011, that outcome was consistent with our expectations linked to the fact that expansion clubs Gold Coast Suns and the GWS Giants were participating in 20 per cent of the total number of games,” Mr Fitzpatrick said.
“Playing premiership season matches in smaller capacity venues in Cairns, Canberra, Darwin, Hobart and Launceston may also have the effect of reducing overall crowds, but the AFL Commission is committed to providing an opportunity for as many people as possible to attend an AFL game.
“That principle is why we were pleased to support an initiative of the St Kilda FC to play an historic first premiership season game outside Australia in 2013 when the Club takes on reigning premiers the Sydney Swans in Wellington, New Zealand on Anzac Day.”
Mr Fitzpatrick said the AFL, through the work of the AFL Executive and the Commission, had achieved very good results in each of its key indicators on the health of the game for the 2012 year;
- Record domestic participation in Australian Football in 2012 of 844,779 from the previous mark of 791,178.
- Record membership (for the 12th consecutive year) of AFL clubs of 707,621 compared to 650,373 in 2011.
- Total AFL attendance across the NAB Cup, NAB Challenge, Toyota AFL Premiership season and the Toyota AFL finals series of 7,374,832 in 2012, slightly lower than 2011 due to the expansion clubs and more games being played in smaller venues across the country.
- Average attendance per game during the Toyota AFL Premiership Season of 31,509, which puts the AFL competition in the top four average attendances per game in world professional sport.
- The Toyota AFL Grand Final between Sydney and Hawthorn was the most-watched sporting event of the year, with an average national audience of 4.08 million people on the Seven Network.
Mr Fitzpatrick noted that competition ethics had also been a key focus for the AFL Commission in recent times.
“The success of our professional game has been built around the pillars of the salary cap and the draft. In the last year we have seen challenges to these pillars,” Mr Fitzpatrick said.
“Adelaide Football Club negotiated deals outside the draft rules with Kurt Tippett and his player agent, and an investigation was undertaken into so-called ‘tanking’ by the Melbourne Football Club in 2009. In both cases, penalties have been determined and accepted and the AFL will continue to pursue those who challenge the integrity of the competition.
“We accept that many fans and commentators may find fault with the processes and the outcomes. The AFL Commission will simply pursue those cases in the interests of the game, and will assign penalties which are based on the evidence put before us.”
As part of the financial figures, the Commission released the details of the executive packages for 2012.
Mr Fitzpatrick said the package for AFL CEO Andrew Demetriou, including superannuation, was $1.44 million. The CEO was also paid a performance bonus, based on achieving key performance indicators, for an overall total package of $1.88 million (up from $1.8 million in 2011). The AFL Executive team (eight) was paid salaries and bonuses totalling $4.5 million.
“The AFL’s executive salary packages reflect the fact the professional sports industry is highly competitive and complex, which makes it important to retain expert skills and experience. Our CEO and executive team deserve to be rewarded for their overall management of the game and for achieving key targets,” Mr Fitzpatrick said.
“The Commission acknowledges the executive team and also every AFL staff member across Australia for their hard work and achievements in 2012 as we position the game for continuing growth and for meeting future challenges.”
Click here to download the full 2012 Annual Report
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Patrick Keane
AFL Media Manager
