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Rare financial loss for AFL

Rare financial loss for AFL

02/17/2012 01:01:26 AM

The AFL recorded revenue and operating surplus records in 2011 but an overall loss of $23.6 million was the league's first in a decade and largely due to the costs of expanding the competition.

And while chief executive Andrew Demetriou's overall package was down $400,000 from the year before, he still earned $1.8m made up of a base salary of $1.4m and a $400,000 bonus, and he and the eight other members of the AFL executive received salary and bonuses of $5.08m.

Revenue was up two percent from the year before from $336m to $343m, the operating surplus rose from $230m to $234m and $159m went to the clubs, including $17m in annual assistance to the likes of Port Adelaide, North Melbourne and the Western Bulldogs.

But AFL Commission Chairman Mike Fitzpatrick attributed the overall loss to the expansion from 16 to 18 teams with the 2011 introduction of Gold Coast Suns and Greater Western Sydney's arrival this year.

This included $22m that was given to GWS to help them establish a presence in New South Wales, $10m of it to help redevelop Skoda Stadium, the old Sydney Showground.

"The AFL Commission is aiming to recoup the net loss during the next five years by generating profits of at least this amount," Fitzpatrick said.

Fitzpatrick said the AFL Commission is extremely delighted to have in 2011 signed new five-year TV broadcast agreements with Channel Seven and Fox Sports worth more than $1 billion, as well as a deal for the same period with Telstra for digital rights that came in at $153m.

"Our strategic focus on the long term future of Australian Football, coupled with co-operative and constructive working relationships with key stakeholders, has positioned the AFL strongly for the next five years and beyond," he added.

"Finalising new television and digital media rights agreements was a critical outcome in 2011 as it will provide supporters of the 18 AFL clubs in particular and the game in general with an unprecedented level of coverage across more platforms than ever before."

"These agreements will underpin the finances of the game from 2012-2016 and allowed the AFL Commission to adopt a financial strategy for 2011-2016 which includes allocating more than $1 billion to AFL clubs under new equalisation and revenue-sharing arrangements."

 
Photograph Copyright : Getty Images

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