Footy team goldmine
Article from: 
JAMES BRESNEHAN
6 May 2008
A TASMANIAN team in the AFL would be an enormous boost for the state's economy, and already has the backing of Tasmania's peak business body.
The Tasmanian Chamber of Commerce and Industry's chief executive Damon Thomas said yesterday his organisation was right behind the drive for a Tasmanian AFL licence.
"We're positive, we're behind the push, provided it stacks up on a sustainable basis," Thomas said.
The State Government turbo-charged the drive by meeting with AFL boss Andrew Demetriou in Melbourne last month and last week accepting a set of criteria to form the structure for a formal licence proposal.
"We see it as a fabulous thing for Tassie," Thomas said. "It would provide national exposure for Tasmania -- something we need to prosper in any field, whether that be art, business or sport.
"It has large support within the community. The question is: Do the dollars follow the heart?"
The State Government will this week start constructing its formal proposal for a Tasmanian team.
The AFL last week provided Premier Paul Lennon with the criteria around which to build its case.
Item one was marked "Club Revenue" and demanded three levels of corporate sponsorship.
They are:
A naming-rights sponsor, $1 million to $2 million.
10 second-tier sponsors, which include jumper, ball and coaches' sponsors, of $250,000-plus.
100 business supporters of about $10,000 to $20,000.
Thomas said finding a million-dollar sponsor would not be an issue.
"The naming-rights sponsor would be a snip, not a problem," he said.
"Finding the second-tier sponsors is another issue.
"Once you go past companies like Incat and Federal Hotels, you'll find companies able to provide six-figure sums are not Tasmanian-controlled, so you can't simply say to them 'give us that amount of money'.
"But sponsoring the team would be good for a company, to be seen supporting something from here in a national competition.
"It's going to be an inspiring challenge."
And the TCCI's chief operations officer, Tony Jewson, said the perception that all of the team's money had to come from within Tasmania was wrong.
"To say it has all got to come out of Tassie is a very long bow to pull," Jewson said.
"You have only got to look at the profile of businesses sponsoring AFL teams now. Most of them are not state-based.
"They have a national or international flavour.
"Tasmania will be in the same boat.
"That's not to say Tasmanian businesses will not want to pick up on it.
"But we should not isolate ourselves by saying Tassie has got to come up with the lot.
"It's a national exposure opportunity.
"You might have a Rio Tinto mine in far North Western Australia say 'we want to sponsor a team in Tassie'."
Thomas said the sales pitch was critical.
"If indeed the Premier has got a fervent passion for it, we are going to need to have good salesman," he said.
"We will be competing against every other team looking for the same sponsorship dollar."
RUGBY league clubs have warned the AFL faces a "very difficult" time establishing a team in western Sydney, the heartland of rugby league.
The AFL is expected to plough as much as $10 million into western Sydney in the years ahead, with the introduction of a new team expected to go ahead in 2011. The AFL also contributed to the $20 million cost of a two-oval complex at Blacktown Olympic Park in western Sydney.
But Wests Tigers chief executive Steve Noyce said the region's No. 1 sporting passion was league.
"I know how hard the Sydney Swans have had to work to get to the position they are in," he said.
"It's not easy.
"I am not scared about the AFL coming."
In Tasmania, where the Mercury is running a campaign for an AFL team, AFL fans are numerous.
ANZ chief economist Saul Eslake, who has backed the push for a Tasmanian AFL team, said there were more people interested in AFL in Tasmania than in western Sydney and even Geelong.
"There would be no question about the enthusiasm in Tasmania for an AFL team," he said.
"You would have to wonder how much support there would be for an AFL team in western Sydney and the Gold Coast."
He said establishing the Sydney Swans and Brisbane Lions had cost millions of dollars.
"It took at least a dozen years for the Swans to become a viable team and it could take at least as long for a western Sydney team," Mr Eslake said.
Penrith Panthers chief executive Michael Leary said the league would do its best to combat the AFL's invasion of western Sydney, "a rugby league heartland".
"Put it this way: we will be, we are in the process of, actually putting another rugby league academy in the area which will shore up our resources to shore up our game," he said.
"It's a very strong rugby league area."
Mr Leary said establishing an AFL team in western Sydney would be "very difficult".
"It would be like me trying to start a rugby league side in Geelong," he said.
"That is something I would be very cautious of."
TASMANIA can meet the AFL's criteria to realise its dream of having a team in the national competition, Premier Paul Lennon says.
The State Government yesterday received a letter from AFL boss Andrew Demetriou outlining the eight criteria the state has to meet for it to join the AFL and make it a truly national competition.
According to the criteria, Tasmania's submission for a licence must deliver 111 sponsors, including a naming-rights sponsor, 10 second-tier sponsors and 100 business supporters – the same benchmarks set down for the Gold Coast.
Mr Lennon said it was achievable.
The AFL standard for naming-rights sponsorship starts at $1 million, while the going rate for second-tier sponsorships, which include jumper, ball and coaches' sponsors, is between $250,000 and $350,000.
"Now that we have an understanding of the points the AFL wants Tasmania to address, we can begin the serious work of developing our formal submission," Mr Lennon said yesterday.
"Tasmanian football fans can take heart from the fact there is nothing in Andrew Demetriou's letter that gives us reason to be anything but optimistic.
"We will address all the AFL's key points and we will lodge a strong submission that presents a compelling case for the inclusion of a Tasmanian team.
"The AFL has offered to co-operate with the Tasmanian Government to ensure all the criteria are met and we look forward to working with Andrew Demetriou and his team."
Following a campaign from the Mercury, and supported by past great players such as Alastair Lynch, Rodney Eade and Peter Hudson, media identity Tim Lane and ANZ chief economist Saul Eslake, Mr Lennon met Mr Demetriou in Melbourne on April 16 where the Premier officially announced Tasmania's push.
"Mr Demetriou has confirmed that the letter I presented to him at our meeting was tabled at the AFL Commission meeting on April 28," he said.
"At that meeting, the Commission reiterated that it looked forward to receiving Tasmania's submission."
Now the Government has the criteria, it can seek tenders for a professional submission.
Mr Lennon said he hoped to have the final submission lodged with the AFL before the grand final in September.
The eight criteria:
1. Club revenue: The average annual revenue for an AFL club is about $30 million. The ability to generate sufficient revenues to compete in the AFL via membership, corporate sponsorship including a naming-rights sponsor, 10 second-tier sponsors and 100 business supporters through a long-term sponsorship program should be key components of the submission.
2. Stadium return: The financial return from a stadium is critical to the financial performance of each AFL club. A new club would have to demonstrate that it has access to a clean stadium, meaning that all major revenue streams from a stadium are to the benefit of the club.
3. Other revenue: Sources are fundraising, merchandising and non-football ventures.
4. Net assets: The capacity to establish a positive net asset base.
5. Club membership: The average total membership of an AFL club in 2007 was 33,250. It has been indicated to the Gold Coast proposal group that developing prospects for a membership base with at least 20,000 engaged supporters and potential club members was an essential component of the Gold Coast bid.
6. Training and administration facilities: The capacity to deliver first-class training and administration facilities for an AFL club.
7. Branding: Development of a brand identity which reflects the Tasmanian community.
8. Structure: The ability to build a strong organisation on appropriate governance and business principles.
TASMANIA'S bid for an AFL licence has been stalled by the most important man in football -- Andrew Demetriou.
Two weeks after the State Government held a historic meeting with Demetriou in Melbourne to announce its intentions to formally apply for an AFL licence, Premier Paul Lennon is still waiting for the criteria to work by.
But in the meantime, the State Government is already hard at work on Tasmania's bid.
It has:
Established a project team in the Department of Economic Development to steer the proposal.
Commissioned a team to build a bid website so that football supporters can register their interest in a Tasmanian team. It will be launched soon.
Established a Melbourne-based submission team led by Peter Hudson, Tim Lane, Geoff Poulter and Ken Davis, which will muster support interstate.
Mr Lennon said yesterday the Government's proposal could not get into serious detail until it knew what benchmarks the AFL needed addressed by a licence application, and he wants to get the ball rolling.
"We are keen to get on with developing our submission to the AFL for the inclusion of a Tasmanian team," Mr Lennon said.
"I received an undertaking from Andrew Demetriou when I met him in Melbourne on April 16 that the AFL would report back to the Tasmanian Government with the criteria against which our submission would be judged.
"That information has not yet been received and I would hope to have it by the end of this week so the Government can get moving on building a thorough submission that deals with all the areas of key interest to the AFL.
"There is a lot of work to be done and I want to see it under way as soon as possible."
The AFL yesterday would not comment on the delay, saying only that the criteria were expected to be finished by today.
"The letter back to the Tasmanian Government is being completed this week," said AFL media manager Patrick Keane.
"Mr Lennon will certainly have it in his office by the end of the week."
It is understood the Premier insisted the criteria the Tasmanian bid would be assessed on be no tougher than those expected of the Gold Coast team, which were announced last week.
But Keane would not reveal such detail or a time-frame the Government needed to work within.
"We will issue all information to the Tasmanian Government so they see it first, and not detail it to the public before they see it," he said.
