Key Highlights


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  • Key Highlights

    1. 1. Key Highlights 2006 Annual Report
    2. 2. Five strategic planks <ul><li>Financial viability </li></ul><ul><li>Competition and the game </li></ul><ul><li>Participation </li></ul><ul><li>Relationships </li></ul><ul><li>Efficiency and Collaboration </li></ul>
    3. 3. Financial viability <ul><li>Total AFL revenue record $215 million. Up 6 per cent </li></ul><ul><li>Operating surplus $140 million – up $10m or 8 per cent </li></ul><ul><li>$133 million in grants and distributions to clubs – up $9m or 7 per cent </li></ul><ul><li>Continued improved financial performance by clubs – 12 clubs profitable. Aggregate club profitability was $11.0 million – up $2.9 million </li></ul><ul><li>Next Generation strategy adopted by AFL Commission allocating $1.4 billion for 2007-2011 </li></ul><ul><li>Key media deals </li></ul><ul><ul><li>Secured five year television broadcasting agreement of $780 million. Cash component of $690 million – 70 per cent more than 2001. </li></ul></ul><ul><ul><li>$60 million five year new media agreement with Telstra – 200 per cent jump. </li></ul></ul><ul><ul><li>Secured 3 year radio rights deal of $8 milion – 240 per cent increase on previous agreement </li></ul></ul>
    4. 4. Competition and the game <ul><li>Games in all States, Territories </li></ul><ul><li>New five year CBA with players negotiated enabling the next Generation strategy to be finalised. </li></ul><ul><li>Record club membership of 519,126 (up 1.95 per cent.) . One in every 39 Australians is a member of an AFL club </li></ul><ul><li>Carrara secured as an AFL venue. Agreement with Kangaroos to play 10 premiership seasons games at Carrara from 2007-2009. </li></ul><ul><li>Changes to the Laws of the Game resulted in more continuous play. Less stoppages and less stop time. Contested marks stabilised after trending downwards. </li></ul><ul><li>Illicit Drug policy backed by Victorian Supreme Court as innovative, proactive policy </li></ul><ul><li>$2.1 million financial assistance package for Carlton approved by AFL Commission </li></ul>
    5. 5. Participation <ul><li>Total national participation 581,839. Up 7.8 per cent. Sixth successive year of growth. </li></ul><ul><li>NSW – participation up by 37 per cent. NSW primary school teams rose from 36 to 356 teams in 2006. </li></ul><ul><li>QLD – participation up by 11.5 per cent. 11 Queenslanders drafted. </li></ul><ul><li>Auskick up by 5.6 per cent to 147,371 at 2,491 centres. Transition from Auskick to club football up with 42 per cent rise in under 9 teams to 1171. </li></ul><ul><li>34,567 school visits reaching 1,286,232 children </li></ul><ul><li>Participation by women up 23 per cent to 11,795 participants. </li></ul><ul><li>AFL South Africa established with 3,000 registered participants in North West province </li></ul><ul><li>More than 61,000 volunteers. 2,618 football clubs fielding 11,673 competition teams </li></ul><ul><li>Multicultural program grows. 16,000 people from migrant communities attend AFL game for first time. </li></ul><ul><li>Sydney Scholarship program – more than 20 players signed. </li></ul>
    6. 6. Relationships <ul><li>Toyota AFL premiership season attendance of 6.204 million – second highest on record </li></ul><ul><li>2006 finals attendance of 532,178 – up by 11 per cent </li></ul><ul><li>Average of 3.94 million TV viewers each week of premiership season </li></ul><ul><li>Average unique Internet browsers per month of 1.51 million – up 27 per cent </li></ul><ul><li>Respect & Responsibility policy. Melanie Heenan appointed. </li></ul><ul><li>Commonwealth Games volunteer tickets. </li></ul><ul><li>Dreamtime at the G. Mildura match. Gladstone appeal </li></ul><ul><li>59 per cent of people nationally “have an interest” in AFL. 46 per cent of people nationally see the AFL as “community oriented” </li></ul>
    7. 7. Collaborative industry <ul><li>Annual Special Distribution, Facility Development Reserve, </li></ul><ul><li>$55m funding from Victorian and local Governments and AFL and clubs for training and admin developments for 10 Victorian clubs. </li></ul><ul><li>Further 21 facilities at country football and netball clubs approved, taking total to 76 projects with $4.5 million funding. </li></ul><ul><li>More conferences with CEOs, senior Execs of clubs to share info. </li></ul><ul><li>Shared services </li></ul><ul><ul><li>Membership for three clubs. </li></ul></ul><ul><ul><li>Payroll – 7 clubs, Accounting service – 2 AFL club, 3 State bodies </li></ul></ul><ul><li>Strategic Partnership Reserve. 10 projects to improve efficiency at clubs </li></ul><ul><li>HR Dept established following appointment of Jane Hollman. </li></ul><ul><li>Next Generation – 8 months of consultation. </li></ul>
    8. 8. SUMMARY OF AFL ‘NEXT GENERATION’ STRATEGY 2007-11 $650m 46% $82m 6% $59m 4% $208m 15% $334m 24% $65m 5% AFL Clubs AFLPA Grants Australian Football Community (Game Development) AFL Future Fund Managing the AFL Competition Facilities Development
    9. 9. THE FINANCIAL STRATEGY MUST DELIVER ON CORE OBJECTIVES: <ul><li>Secure the future of the 16 existing clubs </li></ul><ul><li>Fairly reward the players and enhance the attractiveness of an AFL playing career </li></ul><ul><li>Reinforce leadership position in Game Development and community activity – accelerate growth in NSW and QLD </li></ul><ul><li>Upgrade facilities at elite, state and grassroots levels </li></ul><ul><li>Improve the performance of the industry - capacity, efficiency, effectiveness </li></ul><ul><li>Improve the product -the game itself and the customer experience </li></ul><ul><li>Advance the economic strength of the industry through making investments for the future </li></ul>Clubs 1 AFLPA 2 Football Community 3 Facilities Development 4 Industry/ Game 5 Future Fund 6
    10. 10. Key features of Next Generation <ul><li>$650 million to secure the future of the 16-club competition. (Includes $449 million as a base distribution to clubs which covers all increases in TTP plus a bonus distribution of $96 million). </li></ul><ul><li>Record investment of $65m to collaborate in the improvement of facilities at AFL venues and also at State and community level. </li></ul><ul><li>Freeze on general admission prices for the 2007 Toyota AFL premiership season. </li></ul><ul><li>$793.5 million over the next five years for players. </li></ul><ul><li>$208 million to be spent developing the game. Biggest ever investment in game development. </li></ul><ul><li>$100m investment to accelerate growth in NSW and Queensland. </li></ul><ul><li>$82 million Future Fund reserve to strengthen football’s future. </li></ul><ul><li>$334 million to cover the costs of staging the game itself. </li></ul>
    11. 11. 1987-2006: 20 YEARS SINCE EXPANSION 2006 1987 Key Measure Over $1.8b spent on stadiums: Telstra Stadium, Telstra Dome, Subiaco, AAMI Stadium, MCG, Aurora Stadium, Gabba Whitten Oval, Victoria Park, WACA, Waverley Park, Moorabbin, Carrara Stadiums Every mainland capital city plus Launceston, Darwin, Canberra, Gold Coast, Cairns Perth, Melbourne, Gold Coast, Sydney Markets AFL Games Played In 6.2m 2.9m Premiership Season Crowds 519,000 71,000 Members 16 14 – Fitzroy, no Adelaide, Port Adelaide, Fremantle Clubs $96.6m $12.8m Annual Distribution to Clubs Toyota, NAB, Foster’s, Coca-Cola, Qantas, Telstra, Sony Sportsplay, Speedo Sponsors $220,000 $22,000 Players average wage $132.5m $15.2m Total distributions to players 579,000 350,000 Total participants 147,000 11,000 in Vickick Auskick $85.8m (TV, new media, radio) $5m (TV and radio) Media rights $215m $23.2m AFL revenue
    12. 12. Additional Financial Information
    13. 13. Director’s and Executive Officers’ Remuneration 3,896,264 2005 4,519,334 2006 Key Management Personnel 2,972,000 2005 3,400,000 2006 Executives 784,264 2005 959,334 2006 Directors Executive 140,000 2005 160,000 2006 Directors Non-executive Total ($)
    14. 14. AFL Revenue 2002 - 2006 <ul><li>Revenue grew by $11.5 million with the major areas of change being: </li></ul><ul><ul><li>Sponsorship & Broadcasting up $7 million </li></ul></ul><ul><ul><li>AFL Finals Series up $3 million </li></ul></ul><ul><ul><li>Consumer Products up $1 million </li></ul></ul>$’m 9% 6% 9% 7% % Increase
    15. 15. AFL Operating Surplus 2002 - 2006 <ul><li>Operating Profit grew by $9.7 million, up 7% on 2005 </li></ul>$’m 8% 7% 5% 4% % Increase
    16. 16. AFL Distributions 2002 - 2006 <ul><li>Total distributions of $132.5 million (an increase of $8.6 million) and includes: </li></ul><ul><ul><li>$96.6m in distributions to clubs </li></ul></ul><ul><ul><li>$8.7m in distributions to AFLPA </li></ul></ul><ul><ul><li>$21.5m in Game Development State Grants </li></ul></ul><ul><ul><li>$5.6m in Ground Improvement distributions </li></ul></ul>$’m 10% 7% 3% 9% % Increase
    17. 17. AFL Net Profit 2002 - 2006 <ul><li>The AFL’s net profit increased by $1.1 million to $7.6 million (versus a budget of $5.1 million). </li></ul><ul><ul><li>$3.6m was transferred to Facilities Development Reserve </li></ul></ul><ul><ul><li>$1.8m was transferred to Strategic Partnership Reserve </li></ul></ul><ul><ul><li>The remainder went to repay borrowings </li></ul></ul>$’m -32% 16% 105% -47% % Increase
    18. 18. AFL and Club’s Aggregate Profitability 2000-06 <ul><li>Industry profitability continued to grow, up $3.9m to $18.5m </li></ul><ul><ul><li>14 out of 16 clubs recorded a similar or improved result to 2005 </li></ul></ul>$’m * Note: net profit before contributions to State Football Associations and Redevelopment Specific Fundraising Revenue 27% -745% 245% 9% -3% 124% % Change