THE NOTION that big-spending clubs are more likely to achieve on-field success has long been debunked as a myth in footy circles – but now there’s figures to back it up.
Results published in the AFL’s 2007 Club Financial Review Survey showed that of the eight teams which spent the most money on their football departments over the past five seasons, only two of those clubs (Essendon and Adelaide) have failed to make a grand final.
Significantly, four of the eight top spending clubs (Sydney, Brisbane, West Coast and Port Adelaide) each participated in two grand finals each over the period, while even the Crows – despite not making it to a decider – still made the eight in every year except 2004, including back-to-back top-two regular season finishes.
AFL Chief Executive Andrew Demetriou said the figures indicated the importance of investing profits back into football departments.
“There’s a five year trend there which I think is telling a story,” Demetriou said.
“I think what the figures show is that the clubs willing to spend more on their football departments are more likely to play in finals.
“(The) challenge for all our clubs is to work out ways to increase their football spending so that they can compete with the other clubs.”
However, Demetriou said all teams were becoming increasingly aware of the trend, with many already taking steps to increase their spending.
“There’s no doubt clubs are already onto it,” he said.
“They are recognising that if they want to give themselves the best shot (they need to invest).
“St Kilda [ranked 12th in spending] have already identified they need to be spending more on their football department ... to get themselves into the top eight of that group, to give themselves more of a chance.”
Sydney has spent more than any other club on their football department, racking up an expenditure of $66.7 million (an average of $13.3 million per year), with Collingwood following closely, spending $66.5 million.
In stark contrast, North Melbourne spent just $50.1 million – around $3.3 million per year less than the top two clubs.
Ironically, the Kangaroos are one of only three clubs [alongside St Kilda and Fremantle, ranked 9th] from the bottom eight spenders to have made a top-four appearance since 2003.
The document also confirmed that 2007 was a strong one for nearly all of the 16 clubs, with total revenue growing by 15 per cent and only one club not posting a profit. Total club profitability also soared from $15 million to $27 million – the highest ever aggregate profit.
Despite the rising correlation emerging between spending and success, Demetriou said the AFL’s plan to introduce two new teams in the coming years would yield significant benefits for financially struggling teams.
“We think there’s a good story to tell about an expanded AFL competition, and we think there’s good news in it for all of our clubs,” he said.
“And particularly we think it’s good news for clubs which are not as strong financially as some of the other clubs.
“We want an 18-team competition, we don’t want any team not to be in the competition, and we’ll do all we can to demonstrate to the clubs in the next 6-8 months that there’s some really positive things to come out of an expanded competition.”