I think Ktigers is not too far off the mark. From a simple viewpoint - what use to a club is a big profit really? Its not like its a company looking to pay out huge dividends to its shareholders.
Of course they want to break even and cover expenses - but in a time of equalisation taxes and everything else, there is some fairly significant incentive for clubs to actually minimise profits, by investing every spare dollar into additional equipment, high performance staff, etc etc.
After all, they are a bit like the banks - the AFL these days is not going to let clubs go broke (as they are reliant on them for the major part of their own revenue streams through tv rights), so there is plenty of incentive to push the envelope as far as they can - for ultimately, the success of a footy club is rarely going to be thought of in terms of profits, but is always going to be thought of in terms of Premierships.
Of course they want to break even and cover expenses - but in a time of equalisation taxes and everything else, there is some fairly significant incentive for clubs to actually minimise profits, by investing every spare dollar into additional equipment, high performance staff, etc etc.
After all, they are a bit like the banks - the AFL these days is not going to let clubs go broke (as they are reliant on them for the major part of their own revenue streams through tv rights), so there is plenty of incentive to push the envelope as far as they can - for ultimately, the success of a footy club is rarely going to be thought of in terms of profits, but is always going to be thought of in terms of Premierships.


Comment