Next Generation SECURING THE FUTURE OF AUSTRALIAN FOOTBALL

1 SECURING THE FUTURE OF AUSTRALIAN FOOTBALL

Securing the future of Australian Football A strong future for our game The AFL Commission and Administration spent more than eight months consulting By , Chairman, AFL Commission, and , Chief Executive Offi cer with clubs, players, state and territory football bodies, supporters and those developing the game at the grassroots. he next fi ve years is an exciting time for Australian Football. The record amount of available funding has given us the We wanted to ensure that we secured the future of Australian Football – Australia’s only The decisions we make in this period will impact on the opportunity to fulfi l all those principles — and the greatest Tstrength of our game for many generations. Getting our plans benefi ciaries will be the supporters of our game. indigenous game. Below are the major principles behind the review and the outcomes right is a challenge for all involved in our game, and an important After consideration of the guiding principles, the AFL Commission responsibility for the AFL Commission and Administration. that will follow. has determined a balanced and responsible set of policies to Since the AFL competition became national in 1987, it has achieve the following outcomes by 2011: developed from little more than a state-based competition with • We will provide the greatest investment into our game in the extra teams in and Queensland, into a dominant history of Australian Football. sport, an institution able to gather broadcasting rights of $780 Principles • We will secure the future of our 16-club competition. Outcomes million ($690 million in cash) and a total resource of more than $1.4 billion during the fi ve-year period defi ned by this plan. • We will fund and support our clubs to assist them to be competitive on and off the fi eld. In deciding the distribution strategy for Next Generation After consideration of the guiding principles, the AFL This massive, and unprecedented infusion of funds, and the — Securing the Future of Australian Football — the AFL Commission has determined a balanced and responsible opportunities it presents, has come about because of the strength • We will establish a strong Australian Football base in south- Commission was guided by the following principles: set of policies to achieve the following outcomes: of our game, and its remarkable relationship with our supporters. east Queensland and Greater Sydney. • To administer our game to ensure it remains the • We will provide the greatest investment into our game It is to develop this strength and to nurture this relationship that • We will provide for our players at every phase of their careers, most exciting in Australian sport. in the history of Australian Football. forms the basis of our plan for the future — for the Next Generation. including a substantial package of benefi ts on retirement. • To build a stronger relationship with our supporters by • We will secure the future of our 16-club competition. We have built our plan around the following principles: • We will provide record game development funding of $208 million to increase participation — to a target of 700,000 providing the best sports entertainment experience. • We will fund and support our clubs to assist them to • To administer our game to ensure it remains the most exciting • To continue to expand the national footprint of be competitive on and off the fi eld. in Australian sport. participants — including more than $100 million for the development of Australian football in NSW and Queensland. our game. • We will establish a strong Australian Football base in • To build a stronger relationship with our supporters by • To secure the future of our 16-club competition. south-east Queensland and Greater Sydney. providing the best sports entertainment experience. • We will collaborate to fund stadium redevelopment, and facilities at all levels of our game. • To make sure our clubs are fi nancially secure and • We will provide for our players at every phase of their • To continue to expand the national footprint of our game. • We will build a cash reserve — $82 million — as a Future competitive — on and off the fi eld. careers, including a substantial package of benefi ts • To secure the future of our 16-club competition. on retirement. Fund providing security against the unforeseen, and to allow • To provide the best possible benefi ts for AFL players. • To make sure our clubs are fi nancially secure and competitive for investment in new commercial opportunities. • To drive the next generation of elite athletes to • We will provide record game development funding — on and off the fi eld. of $208 million to increase participation — to a • We will freeze general admission prices for our supporters for the choose our game ahead of any competition. • To provide the best possible benefi ts for AFL players. target of 700,000 participants — including more 2007 Toyota AFL premiership season and the 2007 NAB Cup. • To grow our existing and passionate supporter base than $100 million for the development of Australian • To drive the next generation of elite athletes to choose our and our grassroots and community competitions. We commend this plan to you, understanding that its success game ahead of any competition. Football in NSW and Queensland. depends on a caring collaboration between all parts of the AFL • To provide more opportunities for participation • We will collaborate to fund stadium redevelopment, • To grow our existing and passionate supporter base and our family — supporters, clubs, players, administrators, state and • To develop new markets to continue our and facilities at all levels of our game. grassroots and community competitions. community affi liates and our 60,000 dedicated volunteers — and strong growth. • We will build a cash reserve — $82 million — as a • To provide more opportunities for participation. constant vigilance, to ensure that we manage change, and • To provide the best facilities to enhance the Future Fund providing security against the unforeseen, • To develop new markets to continue our strong growth. recognise opportunity. Australian Football experience. and to allow for investment in new commercial • To provide the best facilities to enhance the Australian • To retain our position as a community leader. opportunities. Ron Evans, Chairman, AFL Commission Football experience. • To plan and provide for the future economic strength • We will freeze general admission prices for our • To retain our position as a community leader. of Australian Football. supporters for the 2007 Toyota AFL premiership • To plan and provide for the future economic strength of season and the 2007 NAB Cup. Andrew Demetriou, Chief Executive Offi cer, AFL Australian Football.

‘The greatest 2 benefi ciaries will be the supporters of our game…’ SECURING THE FUTURE OF AUSTRALIAN FOOTBALL SECURING THE FUTURE OF AUSTRALIAN FOOTBALL

Putting the plan in action Summary of AFL Financial The Australian Managing the AFL AFL Clubs & Players Strategy 2007–2011 Football Community Competition

AFL CLubs The AFL has previously Our strategy is to grow the $334 million, or 24% of total We have allocated a record allocated $12.5 million from game at all levels, across available funds, has been $650 million, or 46% of total the Facility Development all communities, to make allocated to manage and to grow available funds to secure Reserve to assist various Australian Football the game our competition. the future of our clubs, and Victorian-based clubs to of choice for players, and This funding covers the cost ��������������� ���������� provide the best opportunities build new training and for supporters. of running the AFL competition, for our players. This represents administration facilities. With To that end, a record and also includes marketing and a funding increase of 50% on State and Local Government investment of $208 million or promotion of the game, travel for 2002-2006 allocations. support, this funding has 15 per cent of total available our teams, the cost of generating helped secure new facilities ������������� The $650 million is funds will be spent in game revenue, and administration and ��������������� allocated as follows: The 16 worth $80 million for Victorian development, in football’s finance costs. ���� clubs. AFL clubs will share in a base heartland and in new In 2007, the AFL has frozen �� distribution over five years of AFL Players markets. More than $100 general admission and basic more than $449 million (or The AFL funding assists million has been allocated club membership prices for the $28.1 million per club), plus clubs to provide adequate to accelerate the growth of Toyota AFL Premiership season, an additional $96 million ($1.2 rewards for their players, Australian Football in NSW and for entry to the NAB Cup. million per club per year), and under the Collective Bargaining and Queensland. the most disadvantaged clubs Agreement, with players This total investment — an Facilities ����� will gain increased support receiving a total package increase of 60 per cent on Development ��� through Annual Special including Total Player 2002-2006 figures — will Distributions. The ASDs, Payments of $793.5 million ����� accelerate the development $65 million, or 5% of total Strategic Partnership Funding in the next five years. ��� of our game in schools, available funds, has been and Facilities Developments 100 per cent of the TPP clubs and NAB AFL Auskick allocated to improve facilities will total $36 million over increases will be funded by centres throughout Australia. at AFL venues and at a state five years, and prizemoney, the AFL. Additional resources will and community level. signage and membership enhance our programs for This also allows for an This will be allocated as ����� support will be $69 million Indigenous, Multicultural, increase in the minimum follows: $12.5 million for the �� over five years. Female, Recreational and payment for rookies, in development of community In 2007, minimum International segments. We 2007, of 16.5 per cent, and facilities, $28 million at the distributions will range have a target of 700,000 ����� a minimum of four MCG, AAMI Stadium, Skilled from $9.7 million to the participants by 2011, an ��� rookies per club, from 2007. Stadium and Telstra Stadium. Kangaroos, and $9.1 million increase on current numbers The increased rookie list and $24.5 million on new ���������� to the , of 25 per cent. ����� provides further opportunities facilities as required. through to $6.2 million to ����������� �� for young players. The AFL will also increase its clubs including the West funding of Talent Identification AFL Players' Association Coast Eagles, Collingwood, Programs and maintain its Grants to the AFLPA have AFL Future Fund Adelaide, Fremantle and the push to make Australian increased from $38 million in . Football the first choice of 2002-2006 to $59 million. �������������� elite athletes. We have allocated $82 million This grant will allow the ������������������ ������������ The AFL will expand its to further strengthen our AFLPA to administer its support for the 60,000-plus future, protect our game from ������������������ organisation, and also to fund volunteers whose passion unforeseen circumstances, and medical insurance costs, and community volunteer to invest into long-term assets, post-career needs of players, spirit has nurtured the providing capital growth, and and a hardship fund to growth of the game. cashflow. provide for former players.

A great outcome for clubs, players and supporters of Australian Football 5 SECURING THE FUTURE OF AUSTRALIAN FOOTBALL

AFL Clubs and Players Clubs Principles: To secure the future of the 16-club AFL competition; to make sure our clubs are financially secure and competitive — on and off the field.

OUTCOMES • The AFL will provide the biggest ever injection of funding to • The AFL will continue to make other payments to AFL clubs secure the future of our 16 AFL clubs. totalling $69 million over five years from AFL membership when members nominate the club they support and for • The AFL will allocate AFL clubs more than $650 million — the licensing, signage revenue and administration, travel, and most significant financial support strategy in the history of our other club agreements. game — during the next five years to provide each club with an opportunity to secure their future through improved profitability, • While all of the clubs will share in a base distribution and will elimination of debt, investment in their teams, improved receive the same amount to cover 100 per cent of the increase business operations and to build reserves for the future. in the Total Player Payments, the AFL will also provide more funding where it is needed most with the most disadvantaged • This will provide AFL clubs with a total base distribution of $28.1 clubs receiving increased support. million per club or $449 million over five years. It includes the AFL fully funding increases in Total Player Payments and is • In 2007, distributions to clubs will range from $9.7 million to inclusive of increases in AFL revenue through broadcasting, new the Kangaroos, $9.1 million to the Western Bulldogs to $6.2 media and sponsorship. million to clubs including the , Collingwood, Fremantle, Adelaide and the Brisbane Lions. • In addition to funding the increase in total player payments, the AFL Commission will also allocate an extra $1.2 million per club • The AFL will provide a pool of television contra advertising of $5 per annum, a total of $96 million over five years. million per year to clubs or $25 million over the five year life of the broadcasting agreement. • The Annual Special Distribution policy, established by the AFL Commission to support financially disadvantaged clubs, will • The AFL will continue the Strategic Partnership Fund ($5 million provide $6.2 million per year or $31 million over five years for over five years) for joint initiatives involving clubs which can clubs with long-term financial difficulties primarily due to issues provide industry-wide solutions and benefits (for example: including the small size of their supporter base and poor returns retention of members, fund-raising opportunities, IT systems). from their stadium agreements. • The AFL will provide financial and other support for clubs • The number of clubs receiving ASD funding will be expanded developing regional markets (eg. Gold Coast, Western Sydney, and will include the Kangaroos, Western Bulldogs, , Tasmania, ACT, Darwin). Richmond, Hawthorn, Port Adelaide, Richmond and Carlton. • The AFL will allocate $12.5 million from the Facility Development • The AFL will also fund the Total Player Payments Reserve to assist various Victorian-based clubs to build new cost of living allowance which recognises that Sydney has a training and administration facilities consistent with our objective genuine cost disadvantage relative to other clubs by being based of doing all we reasonably can to ensure that clubs have facilities in the capital city with Australia’s highest cost of living. for players and staff of a comparable quality. Through partnering with Federal, State and Local Government and club support, this • An additional $1 million per year in prizemoney and restructured funding will result in $80 million in improvements to amenities finals allowances will create a pool of $2.6 million in prizemoney for players, coaches, administration and local communities that per year for clubs finishing in the top eight. Of this amount, share those facilities. clubs will share $1.53 million and players $1.1 million per year. The NAB Cup pool will remain at $620,000.

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Players Principles: To provide the best possible benefits for AFL players; to drive the next generation of elite athletes to choose our game.

OUTCOMES • The AFL will provide a fair reward for effort that attracts the best athletes to come to our game knowing they will be looked after during and after their careers.

• The AFL wants the best players from across the country to play in the AFL and has negotiated a five-year package that provides increased benefits, increased support for health and education and increased retirement and medical benefits for players when they reach the end of their careers.

• The new Total Player Payment arrangements recognise the impact the players make in the wider community where they spend almost 60,000 hours each year in promoting the development of the game and community work

• The new level of Total Player Payments and other associated benefits negotiated with the AFL Players’ Association in July this year, will provide players with more than $790 million in the next five years, including $59 million to the AFLPA.

• The AFL will fund 100 per cent of the increase in Total Player Payments through increased funding of the 16 clubs.

• Total Player Payments for AFL players will increase by 7.3% in 2007, 7% in 2008, 3.5% in 2009 and 3.3% in each of 2010 and 2011.

• The AFLPA will fund medical expenses for the players through the allocation of $1.16 million per year from the grant provided by the AFL.

• The post-career needs of players will be better serviced through an additional $1.4 million per year for the players’ retirement fund, taking it to a total of $35 million over five years.

• An average of $300,000 per year will be provided to players to promote the AFL new media network.

• Players will share in some $1.1 million in prizemoney provided by the AFL to clubs for finishing in the top eight, with the players in the winning premiership team to share $400,000.

• Players have also agreed to allocate some $1.1 million of their increase in Total Player Payments to provide a hardship fund for former players, creating a total fund of $1.36 million.

• If the AFL exceeds revenue forecasts, additional contributions can be made to the players’ retirement fund.

• Additional benefits for rookies and players in the early stages of their careers, including a 16 per cent increase in the minimum payment for a rookie in 2007.

• Clubs will be required to include on their list a minimum of four rookies per season, providing further opportunities for young players. 9 SECURING THE FUTURE OF AUSTRALIAN FOOTBALL

The Australian Football Community

Principles: To build a stronger relationship with our supporters at all levels; to continue to expand the national footprint of our game; to grow our existing supporter base; to develop new markets; to provide more opportunities to participate in our game.

• The AFL will provide the biggest ever funding package to • Promote and develop AFL Recreational football, women's support and accelerate the development of the game. football and implement a national Multicultural program to provide a fun, healthy physical option and reach sections of • The AFL will allocate a record $208 million to game development the community that are not yet engaged in our game. between 2007-2011 representing an increase of 60% on 2002- 2006. This investment has a target participation level of 700,000 • Upgrade and develop community facilities to link by 2011 — an increase of 25 per cent on 2006 forecasts. participation growth and deliver a quality environment that enhances the enjoyment of the game for players, officials • This funding will be split between National Programs, State and and spectators involved in metropolitan and country football. Territory Grants, and a fund to develop new markets. • Maximise the growth of the game in the traditional football • The AFL will work in partnership with State and Territory affiliates states while also investing more in NSW and Queensland across the country to support the work of community clubs, where much of the new growth is predicted to come from. AFL Auskick clinics and schools in metropolitan, regional and country centres. Already more than 2500 community clubs • The AFL will work in partnership with Federal, State and field more than 11,000 teams in competitions throughout Local Governments, schools and clubs to improve the quality metropolitan and regional Australia and 2450 AFL Auskick environments for those participating in our game. centres introduce Australian Football to more than 140,000 • The AFL will also increase its funding of Talent Identification children of primary school age and their parents and families. Programs and maintain its push to make Australian Football the • The $208 million in funding will be used to: first choice of elite athletes.

• Deliver a more comprehensive schools program to capture • The AFL will expand its support and provide high quality the next generations of children seeking a fun, safe and programs and acknowledgement for the 60,000-plus volunteers healthy sporting activity. whose passion and community volunteer spirit has nurtured the growth of the game. • Provide more direct support for junior leagues and clubs as the nurseries for metropolitan and country football.

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Managing the AFL Competition

Principles: To administer our game to ensure it remains the most exciting in Australian sport; to build a stronger relationship with our supporters by providing the best sports entertainment experience; to provide the best facilities; to continue to expand the national footprint.

• The AFL will provide the biggest funding package in the history • The AFL will continue to expand the national footprint of the of the game to maintain Australian Football as the pre-eminent game across Australia. sporting competition in Australia and to drive it to new heights • The AFL wants to play games in south-east Queensland every of excellence. week of the season by 2015. To achieve this aim, significant • The AFL will ensure our supporters will share in the health of investment in marketing, promotion and fan development, the game by freezing general admission and the base club increased game development activity, establishing business and membership prices for the 2007 Toyota AFL premiership season government relationships and stadium re-development will be and freezing general admission entry to the 2007 NAB Cup. allocated to the Gold Coast region to increase participation and support. The Gold Coast will also benefit from the playing of up • The AFL will continue to recognise the importance of developing to 10 games by the Kangaroos at Carrara between 2007-2009. and enhancing the competition over the next five years through the allocation of $334 million to manage the game. • The AFL wants to play games in greater Sydney every week of the This includes administering, marketing and promotion of the season by 2015. To achieve this the AFL will invest in increased competition, travel and accommodation for our teams, increased game development activity and programs to attract people to investment in shared services, and the cost of staging the game. matches involving the Sydney Swans at Telstra Stadium. Competition management costs as a percentage of total revenue • The AFL wants to ensure the customer experience for AFL and have dropped from 28 per cent to 24 per cent when compared club members, supporters, participants and viewers of AFL with the period 2002-2006. continues to improve. • The AFL recognises that supporters care about the future of • The AFL’s television, radio and new media deals will provide their clubs and is committed to investing in the AFL clubs to supporters with a greater coverage on a national basis. secure for them a financially viable and stable future. • The AFL bears a responsibility as a community leader and will • Recognising that many of our supporters are also participants, continue its active role in reducing racial and religious vilification, we will invest in the development of the game to provide quality and promoting respect and responsibility in our football environments to maximise the experience. communities and continue to fight against illicit drugs in sport. • The AFL will continue to improve the customer experience and comfort of supporters attending AFL games by supporting the upgrade of facilities at Subiaco Oval in Perth, AAMI Stadium in Adelaide, the SCG and Carrara. Support has already been provided for the development of in Brisbane, Telstra Stadium in Sydney, Skilled Stadium in Geelong, the MCG and Telstra Dome in Melbourne, and Aurora Stadium in Launceston.

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Future fund

Principle: To plan and provide for the future economic strength of Australian Football.

• The AFL will underpin the financial future of the game by setting aside appropriate reserves to strengthen our future and provide security to deal with unforeseen economic circumstances.

• The AFL Commission will allocate a total of $82 million over the next five years to establish a Future Fund.

• One of the aims of the Future Fund is to strengthen the asset base of the competition and allow us to consider future investments to secure new revenue streams for the competition.

• An example of such an asset is Telstra Dome — set to revert to AFL ownership in 2025.

• The AFL is pursuing diligently the correct governance model to manage the Future Fund.

Facilities Development

Principle: To provide the best facilities to enhance the Australian Football experience.

• The AFL will commit $65 million to provide the best possible stadium experiences for supporters, elite training facilities for AFL players, and quality facilities for participants at community level.

• $12.5 million will be allocated to assist the development of community facilities in metropolitan and regional areas.

• $28 million will fund improvements at the MCG, AAMI Stadium, Skilled Stadium and Telstra Stadium.

• $24.5 million has been set aside to provide facilities improvements as required.

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