AFL boss' staggering admission about $965 million disaster

When the COVID-19 crisis hit earlier in the year, AFL bosses warned about the dire financial impact it would have on the game.

AFL chief executive Gillon McLachlan predicted that the code faced an astronomical financial hit of around $965 million when the national competition went into lockdown in March.

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Thanks in large part to Queensland's virus hubs, the game was able to significantly soften the financial blow by completing 17 rounds, as well as the finals series.

In July, Collingwood president Eddie McGuire described the relocation of Victorian teams to Queensland as "financial disaster" for the game, while remaining confident in its long-term future.

The AFL boss has revealed that the code did take a hefty hit financially, but nowhere near as bad as the $965 million initially expected.

“I think the industry’s done an amazing job, and I want to thank everyone who made a commitment to get us there,” McLachlan said.

“Staff, players, supporters, members keeping their memberships in, corporates, sponsors, broadcasters, everyone did their bit.

“The industry revenue was down substantially, but through the hard work of all those groups I mentioned we’re going to come out (with) aggregate industry losses that’ll be under $100 million.

“That is certainly a long way from where we thought, and that’s across all clubs and the league.”

AFLPA boss Paul Marsh revealed in October that Queensland premier Annastacia Palaszczuk's role in facilitating the hubs in her state, effectively saved the season.

“That was a moment of great unknown when the virus was closing in on Melbourne and everyone had to get out. NSW had numbers growing and we weren’t going to play in NSW,” Marsh told News Corp.

“Everything was relying on Queensland and thank god they came through.”

Purse strings to tighten in 2021

A new collective bargaining agreement has been put in place for the 2021 AFL season, with primary lists to be cut to 38 and player payments also reduced.

The variation for 2021 will see a reduction in Everything Paid to Players and the AFL Player's Association (EPP&A) of 10 per cent, which includes a decrease in the Total Player Payments and Additional Services Agreement Limits for 2021 of nine per cent.

But because list sizes will also be reduced, it means individual players who are retained will have their pay cut in the vicinity of 3.5 per cent instead of nine per cent.

The total player payments for each club will be $12.1 million for the 2021 season, and the Additional Services Agreement Limit will be $1.09 million.

Each club must have a minimum of 37 players and a maximum of 44 players on their list, taking in all categories.

The primary list must have no less than 36 players and no more than 38 players.

The maximum number of Category A rookies will be four, five, or six depending on the number of primary list players. The maximum sum across those two lists can't exceed 42.

Each club will be allowed a maximum of two category B rookies.

Funding for programs and services supporting players, including wellbeing, player development and the injury and hardship fund, remain unchanged.

Given the uncertainty of the impact COVID-19 will have on next season, the AFL and AFLPA have also agreed to a system for 2021 where players will share in the financial upside should actual industry football revenue exceed the AFL's current forecast.

They will also share in a reduced amount should total industry revenue be lower than the AFL forecasts.

Under the revised agreement, the AFL and AFLPA have also agreed to establish a working party to explore future revenue generation opportunities such as a revised fixture and revised rules regarding independent agreements and commercial restrictions for players.

"Our players have been fantastic in their approach to the game and while everyone across the industry has had to endure some pain, we recognise the importance of the players and the need to ensure we have a system that continues to attract and retain the best athletes in the land," AFL chief executive Gillon McLachlan said.

with AAP

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