AFL provides Carlton with Assistant Package
Quote:
The AFL today announced a $2m financial assistance package to aid the Carlton Football Club in its bid to turn around the club's financial position.
The package, approved by the AFL Commission this week, includes the provision of a $1.5m interest-free loan as well as a $500,000 grant from the Annual Special Distribution funding.
The Carlton Board advised the AFL today that it would accept the support arrangements and the conditions set out by the AFL.
AFL CEO Andrew Demetriou said it was important for the competition that the AFL had 16 vibrant, healthy clubs that could compete on and off the field.
“Carlton is a great club, a great brand and an integral member of the AFL. The quicker the Blues can turn around the club's finances and return to a stronger on-field and off-field position, the greater the benefits for all AFL clubs,” Mr Demetriou said.
He said the current Board had reduced the club's debt from some $12 million to less than $7 million since taking office but the club was facing a critical cash flow shortage at the end of this month and needed immediate assistance.
Mr Demetriou praised the leadership of Carlton and said the AFL was very supportive of the club's direction under new Carlton president Graham Smorgon and his board and would continue to work closely with the Blues' leadership team led by Mr Smorgon and CEO Michael Malouf.
As part of the AFL-approved financial package:
* Carlton will be provided with $1.5m immediately as part of an interest-free loan which will be required to be paid back by October 31, 2008. The term of the loan may be reduced subject to the AFL Commission's financial distribution strategy for 2007-11 which is yet to be determined.
* A $500,000 grant to pay for the maintenance of MC Labour Park which is used as an AFL training venue and also by the AFL umpires, the TAC Cup competition and the under-18s championships.
Mr Demetriou said the Commission had also agreed to provide external advisers to work with Carlton to accelerate the turnaround of its financial situation.
“We have worked closely with Carlton and with Graham Smorgon and his team to identify where we can help them address their short-term needs and achieve their longer-term vision,” Mr Demetriou said.
“Obviously the club needs an immediate financial injection but we are also prepared to provide whatever ongoing external specialist resources are required to help Carlton develop an effective strategy to turn the club around and keep it on the path to financial security.”
The provision of the AFL assistance is subject to a number of conditions including:
* AFL Commissioner Mike Fitzpatrick will be an independent observer at Carlton board meetings to make his financial and corporate management expertise available to the Board. Mr Fitzpatrick, who was the Managing Director & founder of Hastings Funds Management Limited and has extensive board and financial experience, is expected to attend Board meetings for at least three months.
* Provision of specialist AFL-appointed external resources to work with the Carlton administration to develop an effective turnaround strategy.
* Preparation of a detailed annual Business Plan which clearly shows how the Club will improve its financial position and set it on the path to a sustainable future.
* Preparation of a budget showing significant financial improvement over the previous year.
* Provision of monthly financial statements to the AFL and a monthly meeting with AFL executives to ensure the budget and business plans are being achieved.
* Working with the AFL and other relevant parties to determine the best use of the MC Labour Park facility for the AFL industry.
Mr Demetriou said the AFL had had ongoing discussions with Carlton and there was never any doubt that the AFL would assist the club as it had other clubs facing tough times.
“The only question was really in working together to find the most effective way to help Carlton. This package recognises the need for short-term financial assistance but also the need to provide resources to assist the Board and management of the club through the longer process of developing and implementing a strategy to financially secure the club for the years to come.”
The package, approved by the AFL Commission this week, includes the provision of a $1.5m interest-free loan as well as a $500,000 grant from the Annual Special Distribution funding.
The Carlton Board advised the AFL today that it would accept the support arrangements and the conditions set out by the AFL.
AFL CEO Andrew Demetriou said it was important for the competition that the AFL had 16 vibrant, healthy clubs that could compete on and off the field.
“Carlton is a great club, a great brand and an integral member of the AFL. The quicker the Blues can turn around the club's finances and return to a stronger on-field and off-field position, the greater the benefits for all AFL clubs,” Mr Demetriou said.
He said the current Board had reduced the club's debt from some $12 million to less than $7 million since taking office but the club was facing a critical cash flow shortage at the end of this month and needed immediate assistance.
Mr Demetriou praised the leadership of Carlton and said the AFL was very supportive of the club's direction under new Carlton president Graham Smorgon and his board and would continue to work closely with the Blues' leadership team led by Mr Smorgon and CEO Michael Malouf.
As part of the AFL-approved financial package:
* Carlton will be provided with $1.5m immediately as part of an interest-free loan which will be required to be paid back by October 31, 2008. The term of the loan may be reduced subject to the AFL Commission's financial distribution strategy for 2007-11 which is yet to be determined.
* A $500,000 grant to pay for the maintenance of MC Labour Park which is used as an AFL training venue and also by the AFL umpires, the TAC Cup competition and the under-18s championships.
Mr Demetriou said the Commission had also agreed to provide external advisers to work with Carlton to accelerate the turnaround of its financial situation.
“We have worked closely with Carlton and with Graham Smorgon and his team to identify where we can help them address their short-term needs and achieve their longer-term vision,” Mr Demetriou said.
“Obviously the club needs an immediate financial injection but we are also prepared to provide whatever ongoing external specialist resources are required to help Carlton develop an effective strategy to turn the club around and keep it on the path to financial security.”
The provision of the AFL assistance is subject to a number of conditions including:
* AFL Commissioner Mike Fitzpatrick will be an independent observer at Carlton board meetings to make his financial and corporate management expertise available to the Board. Mr Fitzpatrick, who was the Managing Director & founder of Hastings Funds Management Limited and has extensive board and financial experience, is expected to attend Board meetings for at least three months.
* Provision of specialist AFL-appointed external resources to work with the Carlton administration to develop an effective turnaround strategy.
* Preparation of a detailed annual Business Plan which clearly shows how the Club will improve its financial position and set it on the path to a sustainable future.
* Preparation of a budget showing significant financial improvement over the previous year.
* Provision of monthly financial statements to the AFL and a monthly meeting with AFL executives to ensure the budget and business plans are being achieved.
* Working with the AFL and other relevant parties to determine the best use of the MC Labour Park facility for the AFL industry.
Mr Demetriou said the AFL had had ongoing discussions with Carlton and there was never any doubt that the AFL would assist the club as it had other clubs facing tough times.
“The only question was really in working together to find the most effective way to help Carlton. This package recognises the need for short-term financial assistance but also the need to provide resources to assist the Board and management of the club through the longer process of developing and implementing a strategy to financially secure the club for the years to come.”
It says we are due to repay the loan component of this package at the end of the month. IIRC we had already returned this money
If our projections for a healthy profit this year include this obligation then we have done very well
Does anyone know where this is at?
And how about some of spew’s comments? Enough to literally induce vomiting!
