Tigers top AFL revenue ladder as Covid hits footy balance sheets
Richmond have been the strongest team on and off the field in the past year in the AFL, but Covid has many teams running losses. FULL TABLE
June 25, 2021
Richmond are winning on and off the field in the AFL. Picture: Getty Images
Covid cost AFL clubs tens of millions last year, with future disruptions set to disrupt balance sheets of even the strongest clubs in the competition.
Figures compiled by IBISWorld show that revenue for the 18 teams in the competition fell by 31.4 per cent last year to $762.7m as a hit to gate takings and associated revenue due to a Covid related lockdown hit the clubs hard.
The AFL clubs are still battling fixture changes and a cap on crowds during the current 2021 season, which is again having a marked effect on the balance sheet of many of the clubs in the competition after a tough 2020.
The AFL saw a 15 per cent decline in revenue in 2019-20, to $674.8m. “The AFL also reduced its total distribution to clubs by $83.8m, in an effort to mitigate losses,” said IBISWorld senior industry analyst Matthew Barry.
Defending premiers Richmond recently revealed it had set a new industry record in garnering more than 103,000 members, despite ongoing crowd restrictions in Melbourne.
“Our members continue to set the benchmark across the league, and we have seen more than ever in recent times that their ongoing support, passion and connection to Richmond knows no limits,” said Richmond chief executive Brendon Gale.
Despite the circumstances of the past two years, with football played outside Victoria and caps on crowds, Richmond has continued to thrive both on and off the field.
“Our people are our greatest strength, and it is thanks to them we have been able to maintain a healthy position across the difficulty and uncertainty of the last 16 months,” Mr Gale said.
But not all clubs are enjoying the relatively rude financial health of Richmond, with the GWS Giants recording the largest fiscal loss of almost $7.3m last year. Cross town rival Sydney Swans also made a loss of $6.1m last year.
The Brisbane Lions significantly outperformed other clubs in 2019-20, rising five spots to third on the revenue ladder. The Lions’ strong on-field performance drove growth in membership numbers in 2020.
Additionally, the Lions’ social club posted a strong financial performance relative to other clubs’ hospitality revenue, only declining by 15.2 per cent in 2019-20.
Notably, the West Coast Eagles have fallen from first place in 2019 to rank seventh on the revenue ladder in 2020, with a 56.5 per cent decline in revenue given crowd restrictions in Perth last year. The Eagles are usually the most profitable football club in Australia, and with crowds returning in Perth this year are expected to post stronger financial results.
The remaining four clubs in the top eight on the revenue ladder were Victorian clubs, which have all faced declines in membership, match day and hospitality revenue due to extended lockdown restrictions in Victoria.
AFL supporters remained loyal to their club, with membership numbers only falling by 6.1 per cent in the 2020 financial year. The federal government’s JobKeeper wage subsidy also aided clubs through the COVID-19 pandemic, helping clubs retain and pay existing employees.
Richmond have been the strongest team on and off the field in the past year in the AFL, but Covid has many teams running losses. FULL TABLE
June 25, 2021
Richmond are winning on and off the field in the AFL. Picture: Getty Images
Covid cost AFL clubs tens of millions last year, with future disruptions set to disrupt balance sheets of even the strongest clubs in the competition.
Figures compiled by IBISWorld show that revenue for the 18 teams in the competition fell by 31.4 per cent last year to $762.7m as a hit to gate takings and associated revenue due to a Covid related lockdown hit the clubs hard.
The AFL clubs are still battling fixture changes and a cap on crowds during the current 2021 season, which is again having a marked effect on the balance sheet of many of the clubs in the competition after a tough 2020.
The AFL saw a 15 per cent decline in revenue in 2019-20, to $674.8m. “The AFL also reduced its total distribution to clubs by $83.8m, in an effort to mitigate losses,” said IBISWorld senior industry analyst Matthew Barry.
Defending premiers Richmond recently revealed it had set a new industry record in garnering more than 103,000 members, despite ongoing crowd restrictions in Melbourne.
“Our members continue to set the benchmark across the league, and we have seen more than ever in recent times that their ongoing support, passion and connection to Richmond knows no limits,” said Richmond chief executive Brendon Gale.
Despite the circumstances of the past two years, with football played outside Victoria and caps on crowds, Richmond has continued to thrive both on and off the field.
“Our people are our greatest strength, and it is thanks to them we have been able to maintain a healthy position across the difficulty and uncertainty of the last 16 months,” Mr Gale said.
But not all clubs are enjoying the relatively rude financial health of Richmond, with the GWS Giants recording the largest fiscal loss of almost $7.3m last year. Cross town rival Sydney Swans also made a loss of $6.1m last year.
The Brisbane Lions significantly outperformed other clubs in 2019-20, rising five spots to third on the revenue ladder. The Lions’ strong on-field performance drove growth in membership numbers in 2020.
Additionally, the Lions’ social club posted a strong financial performance relative to other clubs’ hospitality revenue, only declining by 15.2 per cent in 2019-20.
Notably, the West Coast Eagles have fallen from first place in 2019 to rank seventh on the revenue ladder in 2020, with a 56.5 per cent decline in revenue given crowd restrictions in Perth last year. The Eagles are usually the most profitable football club in Australia, and with crowds returning in Perth this year are expected to post stronger financial results.
The remaining four clubs in the top eight on the revenue ladder were Victorian clubs, which have all faced declines in membership, match day and hospitality revenue due to extended lockdown restrictions in Victoria.
AFL supporters remained loyal to their club, with membership numbers only falling by 6.1 per cent in the 2020 financial year. The federal government’s JobKeeper wage subsidy also aided clubs through the COVID-19 pandemic, helping clubs retain and pay existing employees.
