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Healthy Swans set to fly alone
By Greg Denham
February 05, 2004
SYDNEY appears certain to retain total independence by not requesting special financial assistance from the AFL.
Eight months ago chairman Richard Colless revealed to The Australian that the Swans needed an urgent cash injection of up to $2million from the league to trade on beyond 2003.
However, the club recently "passed" an AFL financial examination and appears certain not to join the Western Bulldogs, Kangaroos and soon Melbourne, on emergency funding.
While Sydney chief executive Myles Baron-Hay refused to comment yesterday on what is understood to be a vastly improved financial position, the AFL says it is happy with the club's progress after a recent audit by its financial team.
"Sydney is travelling reasonably well and we believe they've turned the corner," an AFL source said yesterday.
"We don't believe they are even close to being in a position to ask for help."
Colless revealed in June that the Swans were heading for a 2003 loss in the vicinity of $2m after a $1.7m deficit the previous year, despite severe cost cutting.
Sources within the AFL are optimistic Sydney will soon post a result anywhere between a break-even figure to a loss of about $400,000.
Independent accountants should soon complete their audit of Sydney's 2003 figures, with their report to be made public within a month.
Even as late as September, when the Swans' financial position had improved dramatically on the back of the club's new-found on-field success, Colless failed to rule out special funding from the AFL's $5m Competitive Balance Fund, saying it remained an option.
"While our financial position has obviously improved, we'll reserve our right on AFL assistance," Colless said.
Mid-season, Colless had described Sydney's financial plight as "genuinely life threatening".
The Swans' financial turnaround has been revenue generated with steep increases in home-match attendances at the SCG and Telstra Stadium.
Sydney reaped close to $500,000 from its round-21 home game against Collingwood last year at Telstra Stadium with a record attendance of 72,300.
Meanwhile, Melbourne chairman Paul Gardner predicted the Demons would satisfy every AFL commission criteria to become eligible for emergency funding.
The Demons will seek at least $1m in what Gardner described yesterday as "a cash flow issue which needs to be addressed immediately".
"The AFL wants to maintain competitive balance, and at the moment we're totally uncompetitive," Gardner said.
"We've taken legal advice and (the) opinions of auditors (is) that we are not insolvent, but we are under pressure to pay our bills."
It is believed the future of Demons chief executive Ray Ellis is uncertain.
The Melbourne board is expected to make a recommendation on its CEO next month after further studies of the club's diminished revenue streams.
Ellis joined Melbourne 13 months ago after consecutive losses of $1.8m and $1.7m, and produced a $2.2m loss last year.
Adelaide will continue with the same leadership group this season, with Mark Ricciuto staying on as captain, Ben Hart vice-captain and Andrew McLeod and Simon Goodwin as deputy vice-captains.
Healthy Swans set to fly alone
By Greg Denham
February 05, 2004
SYDNEY appears certain to retain total independence by not requesting special financial assistance from the AFL.
Eight months ago chairman Richard Colless revealed to The Australian that the Swans needed an urgent cash injection of up to $2million from the league to trade on beyond 2003.
However, the club recently "passed" an AFL financial examination and appears certain not to join the Western Bulldogs, Kangaroos and soon Melbourne, on emergency funding.
While Sydney chief executive Myles Baron-Hay refused to comment yesterday on what is understood to be a vastly improved financial position, the AFL says it is happy with the club's progress after a recent audit by its financial team.
"Sydney is travelling reasonably well and we believe they've turned the corner," an AFL source said yesterday.
"We don't believe they are even close to being in a position to ask for help."
Colless revealed in June that the Swans were heading for a 2003 loss in the vicinity of $2m after a $1.7m deficit the previous year, despite severe cost cutting.
Sources within the AFL are optimistic Sydney will soon post a result anywhere between a break-even figure to a loss of about $400,000.
Independent accountants should soon complete their audit of Sydney's 2003 figures, with their report to be made public within a month.
Even as late as September, when the Swans' financial position had improved dramatically on the back of the club's new-found on-field success, Colless failed to rule out special funding from the AFL's $5m Competitive Balance Fund, saying it remained an option.
"While our financial position has obviously improved, we'll reserve our right on AFL assistance," Colless said.
Mid-season, Colless had described Sydney's financial plight as "genuinely life threatening".
The Swans' financial turnaround has been revenue generated with steep increases in home-match attendances at the SCG and Telstra Stadium.
Sydney reaped close to $500,000 from its round-21 home game against Collingwood last year at Telstra Stadium with a record attendance of 72,300.
Meanwhile, Melbourne chairman Paul Gardner predicted the Demons would satisfy every AFL commission criteria to become eligible for emergency funding.
The Demons will seek at least $1m in what Gardner described yesterday as "a cash flow issue which needs to be addressed immediately".
"The AFL wants to maintain competitive balance, and at the moment we're totally uncompetitive," Gardner said.
"We've taken legal advice and (the) opinions of auditors (is) that we are not insolvent, but we are under pressure to pay our bills."
It is believed the future of Demons chief executive Ray Ellis is uncertain.
The Melbourne board is expected to make a recommendation on its CEO next month after further studies of the club's diminished revenue streams.
Ellis joined Melbourne 13 months ago after consecutive losses of $1.8m and $1.7m, and produced a $2.2m loss last year.
Adelaide will continue with the same leadership group this season, with Mark Ricciuto staying on as captain, Ben Hart vice-captain and Andrew McLeod and Simon Goodwin as deputy vice-captains.
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