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This article sets out a few facts. Although I do not get involved with the Big Footy site I often read the posts . I am always amazed with the ignorance of the anti- Swans brigade , in particular , Collingwood supporters. Some of the Red and White team take up the good fight but are often beaten by weight of numbers of the opposition . This article details just how important a viable Swans outfit is for the AFL .
Sydney game pays off $3m debt
By Greg Denham
September 16, 2003
THE AFL's expected financial bonanza from Saturday night's preliminary final between Sydney and Brisbane will enable it to pay off an estimated $3 million commitment to Telstra Stadium.
After the 2000 Sydney Olympics, the AFL, in partnership with the Swans, entered into a $5m (plus interest) deal to play AFL matches at Homebush for 15 years starting in 2002.
The $5m lease was to be half paid by the AFL and half by the Swans.
With the AFL retaining all finals revenue and Saturday night's preliminary final headed for an 80,500 sell-out, it is set to reap a minimum $3m profit, effectively wiping out its $2.5m plus interest debt.
The Sydney Swans will still owe on their share of the lease arrangement and are paying an estimated $300,000 a year.
The AFL based its profit figure on an attendance of 75,000, but with more than 65,000 tickets already sold for Telstra Stadium's first final, a sell-out is likely.
The non-Melbourne AFL venue attendance record of 72,393 - established at Telstra Stadium just over three weeks ago in round 21 between Sydney and Collingwood - is expected to be smashed.
Industry sources yesterday confirmed the AFL would be able to play at Telstra Stadium for "pure profit" for at least the next five years.
The AFL entered into the lease under a "reconfiguration arrangement" once it was established the Olympic venue, used often for rugby league and rugby union, could be transformed into an AFL venue.
As part of that reconfiguration arrangement, the AFL contributed in 1999 an initial $1m up front to which the Swans were not required to contribute.
Telstra Stadium chief executive Ken Edwards said yesterday he was confident of a full house. "With the vibe in the city, if it doesn't sell out it will get close," Edwards said.
He paid tribute to the foresight of the AFL and the Swans six years ago in pushing for the ground to be reconfigured to cater for AFL matches close to Sydney's geographic centre, an area long targeted as a source of enormous growth for the game.
"They saw an opportunity to be involved in a growth market in Sydney and (AFL chief executive) Wayne Jackson and (Swans chairman) Richard Colless put their money where their mouth was," Edwards said.
Under the agreement, at least one AFL final each year will be played at Telsta Stadium should the Swans qualify for a home final.
When they defeated Port Adelaide in the first week of the finals, it meant they would host a preliminary final at Telstra Stadium. Had they lost to Port, the Swans would have hosted an elimination final last weekend against Essendon.
It will be the Swans' first home final since they lost to Adelaide in 1998 at the SCG before a crowd of 37,500.
Although the Swans will derive no direct financial benefit, the match has the capacity to earn them millions of dollars in spin-offs and ensure their long-term viability.
Jackson said yesterday it had the potential to enhance Sydney's future standing in membership and home attendances.
"The benefit to the Swans will be that more Sydney people, particularly in the western suburbs, are becoming more familiar with the AFL," Jackson said. "We are consistently getting new audiences."
He predicted the popularity of Telstra Stadium could lead to more than the three home-and-away games being played there after 2004.
Only three months ago Colless described the Swans' financial position as "genuinely life threatening", claiming they needed a minimum cash injection of $1.5m to trade beyond October.
Although the Swans have substantially increased revenue streams since, Colless said last week Sydney reserved the right to seek financial assistance from the AFL.
The league would hardly be in a position not to be sympathetic to a Sydney request for special assistance from the AFL's competitive balance fund - which will make $5m available annually to clubs - if they deliver more than $3m to the competition this weekend.
After anticipating another $1.5m loss two years running despite severe cost cutting, Sydney are heading for a vastly reduced deficit of about $400,000 following their on-field resurgence which has boosted attendances at home matches by 35 per cent this year.
They reaped close to $500,000 from their match against Collingwood last month at Telstra Stadium after budgeting for a profit of about $150,000.
Sydney's surge has also been a major factor in free-to-air television ratings improving on last year's first season under the new consortium broadcast arrangement.
The 10 per cent increase in the overall AFL viewing audience is expected to boost the next broadcast rights deal to take effect from 2007.
The Australian
Sydney game pays off $3m debt
By Greg Denham
September 16, 2003
THE AFL's expected financial bonanza from Saturday night's preliminary final between Sydney and Brisbane will enable it to pay off an estimated $3 million commitment to Telstra Stadium.
After the 2000 Sydney Olympics, the AFL, in partnership with the Swans, entered into a $5m (plus interest) deal to play AFL matches at Homebush for 15 years starting in 2002.
The $5m lease was to be half paid by the AFL and half by the Swans.
With the AFL retaining all finals revenue and Saturday night's preliminary final headed for an 80,500 sell-out, it is set to reap a minimum $3m profit, effectively wiping out its $2.5m plus interest debt.
The Sydney Swans will still owe on their share of the lease arrangement and are paying an estimated $300,000 a year.
The AFL based its profit figure on an attendance of 75,000, but with more than 65,000 tickets already sold for Telstra Stadium's first final, a sell-out is likely.
The non-Melbourne AFL venue attendance record of 72,393 - established at Telstra Stadium just over three weeks ago in round 21 between Sydney and Collingwood - is expected to be smashed.
Industry sources yesterday confirmed the AFL would be able to play at Telstra Stadium for "pure profit" for at least the next five years.
The AFL entered into the lease under a "reconfiguration arrangement" once it was established the Olympic venue, used often for rugby league and rugby union, could be transformed into an AFL venue.
As part of that reconfiguration arrangement, the AFL contributed in 1999 an initial $1m up front to which the Swans were not required to contribute.
Telstra Stadium chief executive Ken Edwards said yesterday he was confident of a full house. "With the vibe in the city, if it doesn't sell out it will get close," Edwards said.
He paid tribute to the foresight of the AFL and the Swans six years ago in pushing for the ground to be reconfigured to cater for AFL matches close to Sydney's geographic centre, an area long targeted as a source of enormous growth for the game.
"They saw an opportunity to be involved in a growth market in Sydney and (AFL chief executive) Wayne Jackson and (Swans chairman) Richard Colless put their money where their mouth was," Edwards said.
Under the agreement, at least one AFL final each year will be played at Telsta Stadium should the Swans qualify for a home final.
When they defeated Port Adelaide in the first week of the finals, it meant they would host a preliminary final at Telstra Stadium. Had they lost to Port, the Swans would have hosted an elimination final last weekend against Essendon.
It will be the Swans' first home final since they lost to Adelaide in 1998 at the SCG before a crowd of 37,500.
Although the Swans will derive no direct financial benefit, the match has the capacity to earn them millions of dollars in spin-offs and ensure their long-term viability.
Jackson said yesterday it had the potential to enhance Sydney's future standing in membership and home attendances.
"The benefit to the Swans will be that more Sydney people, particularly in the western suburbs, are becoming more familiar with the AFL," Jackson said. "We are consistently getting new audiences."
He predicted the popularity of Telstra Stadium could lead to more than the three home-and-away games being played there after 2004.
Only three months ago Colless described the Swans' financial position as "genuinely life threatening", claiming they needed a minimum cash injection of $1.5m to trade beyond October.
Although the Swans have substantially increased revenue streams since, Colless said last week Sydney reserved the right to seek financial assistance from the AFL.
The league would hardly be in a position not to be sympathetic to a Sydney request for special assistance from the AFL's competitive balance fund - which will make $5m available annually to clubs - if they deliver more than $3m to the competition this weekend.
After anticipating another $1.5m loss two years running despite severe cost cutting, Sydney are heading for a vastly reduced deficit of about $400,000 following their on-field resurgence which has boosted attendances at home matches by 35 per cent this year.
They reaped close to $500,000 from their match against Collingwood last month at Telstra Stadium after budgeting for a profit of about $150,000.
Sydney's surge has also been a major factor in free-to-air television ratings improving on last year's first season under the new consortium broadcast arrangement.
The 10 per cent increase in the overall AFL viewing audience is expected to boost the next broadcast rights deal to take effect from 2007.
The Australian
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