AFL orders mass stand-downs of staff at clubs, league HQ

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https://static.ffx.io/images/$zoom_0...9a6c477ff46cdc

Up to 80 per cent of staff at the AFL and clubs have been stood down without pay as the league imposes austerity measures in the wake of the suspension and possible abandonment of the season due to the coronavirus.

An AFL source confirmed 80 per cent of staff at headquarters would be stood down until at least the end of May.

The source said league staff would be paid in full until Easter Monday and can then take any accrued leave before the stand down period commences. The 20 per cent of remaining staff would work on reduced hours on a case-by-case basis. Staff were told excecutives had not been excluded from being stood down.

The precise number of staff being stood down at clubs and how the clubs manage those staff may vary.

The league has effectively taken control of all clubs and ordered the measures as they renegotiate with banks to secure lines of credit to keep the competition operating.

Clubs have been told they will be given 30 days notice of a return to competition. Meaning a return from May 31 would require clubs to be informed by the end of April. It is highly unlikely that return to work date will be met and, if play does resume at all this season, it will not be for many months yet.

The AFL is in meetings with the AFL Players' Association about what it means for player contracts.

Players are paid after work is completed and are certain to be paid up until March 27, the end of the current pay period. What happens after that is uncertain, given no games will be played.

Players were left confused on Monday about their future.

Sources said Brisbane Lions players had been stood down without pay for now, although the club said this was not the case.

Gold Coast and GWS had already told staff they were being cut back to the bare minimum and further meetings were being held at all clubs throughout the day.

The moves come after the league's unprecedented decision to shut down because of the coronavirus crisis.

In a historic decision, the AFL have suspended competition due to coronavirus fears, as the NRL and Olympic Games remain in question.

Lions chief executive Greg Swann issued a letter to members and supporters on Monday, warning them of grim times to come.

"We will be implementing a series of significant measures that will shore up our finances and we will aim to be as transparent as possible as we move through the process. We will also provide members with more information as to how best to support the club through these trying times – because we do need your help," Swann said.

"There are many people who are impacted by the AFL’s decision, not least of which are our loyal and hard-working staff and players. Their wellbeing as we work through this is paramount and we will support them through whatever lies ahead.

"The way we behave as a community during this extraordinary world health crisis, will directly impact the severity of the outcome. We ask that, as the Brisbane Lions community, you all do your part to stop the spread of the virus, follow the government’s health advice and practice social distancing so that we can help flatten the curve and save lives.

"It’s not all doom and gloom, we will be encouraging our people to take this time to relax, to reset and to re-prioritise the things that are important. Without trivialising, this time does give us all a moment in what has become an increasingly noisy, busy world, to take stock and we hope you can all do the same as well."

Meanwhile, on Monday morning Port Adelaide announced that all their players and staff who went to Gold Coast for Saturday night's match with the Suns would need to be isolated in accordance with South Australian government protocols.

Up to 80% of staff industry wide have been stood down.

There are no words
Just awful

It puts the AFLPA and their arrogant 22 game full pay stance last week into sharp perspective

The AFLPA still don't get it...

Why the AFL is frustrated with its players over 50 per cent pay cut offer

The AFL is frustrated with its players. And at some stage soon, that frustration may turn to anger because they don’t understand this is the greatest challenge in the game’s history, reports Mark Robinson.

The AFL is not angry with the players, it is frustrated.

League boss Gillon McLachlan wants collaboration and he’s not getting it to his satisfaction.

The decision by the players on Monday night to offer a 50 per cent pay cut over the next two months flabbergasted headquarters.

That’s a single month’s wage.

Earlier on Monday, 80 per cent of AFL and club staff lost their employment which is more akin to living in the Great Depression.

And the players put up a month’s wage.

The AFL is frustrated because it believes players — not all, but some — have not yet accepted the future of the game, and several clubs, is perilous.

If the players said they would take a 50 per cent pay cut for the foreseeable future, then that would have been a major a step in the right direction.

It still might not be enough as clubs scramble to avoid slipping into the abyss.

The prevailing view at the AFL is the players are a week behind reality.

Some clubs could have been accused of having a similar attitude last week.

Effectively told by the AFL that “armageddon” was scaling their back fence, some clubs spoke of cutting costs, but more fat than the actual bone.

On Monday, those same clubs slashed staff numbers.

It sounds clinical, but it wasn’t like that. Long-serving, dedicated, respected and proud people lost their jobs and many of them won’t get them back.

Football’s soul was tortured on Monday — and surrendered. It was a gut-wrenching afternoon. Meanwhile, the players are taking a stand. The AFL doesn’t want to read words such as “pay war” or “showdown”, because the players are part of the AFL family.

It wants them to understand the extremities of not only the football economics, but the wider personal toll.

Yes, clubs may fold and people will never work in football again, but also, people are going to die.

It’s understood McLachlan was seeking to have discussions with the AFLPA. He wants to stress people are making decisions by the hour to save football.

And that the players simply have to sacrifice more.

The major costs for clubs and the AFL is staff wages. There is about 850 players earning an average of $370,000 per year.

Depending on who you listen to, the loss of revenue this year is anywhere between $500 million and a $1 billion.

The offer of a 50 per cent pay cut until May 31, and then further discussions after that, doesn’t cut it, according to the AFL.

The fact is the events of this year will be felt for many years to cone.

It won’t be a situation of 2021 starting and everything is back to normal. Normal has disappeared, according to Hawks president Jeff Kennett.

Club lists will cut, footy department spend will be slashed and the salary cap will be condensed.

And the players, right now, have offered a month’s wages.

The AFL doesn’t want a war with its players, it wants understanding and collaboration. It wants players to accept the whole competition is fighting for survival.

It wants the players to help fight for survival.

As I said, the AFL is not angry with the players — yet.

The fact that they are aware there is frustration among the players — some understand the gravity of the situation and others don’t — gives them hope a resolution is near.

There are many stories already of players offering to take pay cuts to their clubs to save staff.

Many people probably aren't fans of Chris Scott but he has offered to go without any pay whilst the shutdown is on. I have to commend him for this gesture.

The players will need to come up with something vastly more substantial than that. These are exceptional times and millions of people in Australia have been impacted in a big way.
Would there be a reasonable argument to suggest it should be 50% reduction this year and 33% for next year. Even that might be light on

There is some speculation we will have just Bevo and King retained as coaches, one or two from the strength and conditioning team and a couple from the list management and recruiting teams
I would imagine the salary cap will be cut to 8M and the playing list pruned to 38 players for 2021

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Originally Posted by Axe Man

Many people probably aren't fans of Chris Scott but he has offered to go without any pay whilst the shutdown is on. I have to commend him for this gesture.

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Chris Scott has been a highly paid member of the system for a very long time and can afford it. He won the Rising Star in 1994 and has been gainfully employed ever since. The reality is for most AFL players they have an extremely short window and they should be fighting for as much as they can get.

50% is better than nothing, but it is still literally half of what you earn over a two month period. It's a substantial loss.

The narrative around the AFL and its clubs being placed in a perilous position should be seen as one of losing IP and skill over a short period of time, and not of one losing investment and impetus forever. The economy will bounce back after this pandemic, broadcasters will be lusting after the product and its audiences once the game is back on line.

I am genuinely shit scared that this pandemic is going to unnecessarily result in calls for the competition to be rationalised because there aren't enough dollars to go around to support 10 Victorian clubs. There literally is, just like there was six weeks ago, while I don't agree with the players and I don't like Patrick Dangerfield, the players have every right to negotiate hard here because they are the product the AFL is losing now, and they are the product that will bring the game back.

Quote:

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Originally Posted by jeemak

Chris Scott has been a highly paid member of the system for a very long time and can afford it. He won the Rising Star in 1994 and has been gainfully employed ever since. The reality is for most AFL players they have an extremely short window and they should be fighting for as much as they can get.

50% is better than nothing, but it is still literally half of what you earn over a two month period. It's a substantial loss.

The narrative around the AFL and its clubs being placed in a perilous position should be seen as one of losing IP and skill over a short period of time, and not of one losing investment and impetus forever. The economy will bounce back after this pandemic, broadcasters will be lusting after the product and its audiences once the game is back on line.

I am genuinely shit scared that this pandemic is going to unnecessarily result in calls for the competition to be rationalised because there aren't enough dollars to go around to support 10 Victorian clubs. There literally is, just like there was six weeks ago, while I don't agree with the players and I don't like Patrick Dangerfield, the players have every right to negotiate hard here because they are the product the AFL is losing now, and they are the product that will bring the game back.

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The AFL should be looking at trimming back the 500 plus people working at HQ - permanently to save the dollars. (what the hell do 500 people do)

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Originally Posted by bornadog

The AFL should be looking at trimming back the 500 plus people working at HQ - permanently to save the dollars. (what the hell do 500 people do)

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I worked at a transport company for the best part of the time I have been a WOOF member that trimmed a huge amount of its multi-billion dollar revenue from the BUs as head office cost. Every time the BUs were placed under pressure the onus for rationalisation ws placed on them, which was fair enough, but that was never matched by head office rationalisation.

It is a horrible thing that AFL head office folks are losing their jobs or having their wages cut. But, they are not what or who delivers the product, the players and clubs do. The public needs to be steadfast in demanding this situation doesn't see rationalisation of the clubs to the extent we lose entities and never bring them back. It would be a completely criminal outcome.

As an old boss once said to me many years ago, "you can have 10% of something or 100% of nothing". The players can talk all they want about their 50% pay cut until May 31 but it is largely irrelevant. There is literally no product. And without a product, there is no TV rights revenue, no sponsorship revenue, no merchandise revenue, no gate receipts revenue, etc..

The market will ultimately decide what their pay cut will be, and I suspect it will be a lot more than 50% and it will go for a lot longer than May 31.

Quote:

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Originally Posted by Sedat

As an old boss once said to me many years ago, "you can have 10% of something or 100% of nothing". The players can talk all they want about their 50% pay cut until May 31 but it is largely irrelevant. There is literally no product. And without a product, there is no TV rights revenue, no sponsorship revenue, no merchandise revenue, no gate receipts revenue, etc..

The market will ultimately decide what their pay cut will be, and I suspect it will be a lot more than 50% and it will go for a lot longer than May 31.

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But they are the product. As are the clubs. Whether they're over shooting or otherwise I want the clubs and the players to come out of this clearly recognised as what delivers the value in this terribly compromised competition that the governing body believes it can ride rough shod over.

The early crowing of the AFL about the perilous nature of club viability is something we need to watch out for as a footy watching public, they will use this chance to make head office stronger and the clubs weaker if they get the chance.

https://www.sen.com.au/news/2020/03/...ay-cut-crisis/

Dangerfield proving that he and the footballers live in a complete bubble from the rest of the world. What 'clarity' is he after exactly? There is no clarity on just about anything in the world right now.

Dangerfield is utterly and hopelessly out of his depth.

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Originally Posted by Sedat

https://www.sen.com.au/news/2020/03/...ay-cut-crisis/

Dangerfield proving that he and the footballers live in a complete bubble from the rest of the world. What 'clarity' is he after exactly? There is no clarity on just about anything in the world right now.

Dangerfield is utterly and hopelessly out of his depth.

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He does make a valid point that they are the product that agreed to play last weekend when they were well within their rights to hold reservations about safety.

But.....yeah, it's clear the season will struggle to start again this year if the '6 months' narrative from Canberra runs true, so not sure what clarity the AFL can provide here. Best from a perceptions sake to save as many jobs (footballers included) and just get on board.

Quote:

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Originally Posted by jeemak

But they are the product. As are the clubs. Whether they're over shooting or otherwise I want the clubs and the players to come out of this clearly recognised as what delivers the value in this terribly compromised competition that the governing body believes it can ride rough shod over.

The early crowing of the AFL about the perilous nature of club viability is something we need to watch out for as a footy watching public, they will use this chance to make head office stronger and the clubs weaker if they get the chance.

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I agree 100% that the players and clubs are the product. But there is no product and most likely won't be any product for at least the next 6 months. He is asking for clarity on something that has absolutely no clarity whatsoever anywhere in the world. The greatest health minds in the world don't even have clarity on how long this will continue.

Quote:

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Originally Posted by Sedat

I agree 100% that the players and clubs are the product. But there is no product and most likely won't be any product for at least the next 6 months. He is asking for clarity on something that has absolutely no clarity whatsoever anywhere in the world. The greatest health minds in the world don't even have clarity on how long this will continue.

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Agree. He is asking for something that just can't be provided at the moment. Nobody has clarity in the here and now. Nobody knows what is around the corner.

What's he actually asking for? From what I read he wants the AFL to be transparent about its current financial state and he wants to know what its plans are. Are we accepting the AFL doesn't know what its current financial state is, or hasn't at least modelled what its future state might be? If not, how could any stakeholder attempt to plan and adapt to the landscape?

Without knowing what the AFL has or hasn't shared with the AFLPA it's hard to judge.

Apart from playing, are the players pretty much going to have to be full time as if they would be during a preseason for the foreseeable future? If one of them comes back unfit will they get lambasted for it? Is what's being asked of them to take more than a 50% pay cut to continue doing their job and not stand down?

I don't know the answers to any of the above, and I don't think it's unreasonable to let this play out a bit further before we call shenanigans and get our brooms out.

It's pretty clear that unless the AFEL can get a massive line of credit from the banks courtesy of leveraging against the value of Marvel Stadium (and what a master-stroke it was to take ownership of that), there is no AFEL, no clubs and ultimately no players beyond the next few months. That's why this posturing is so pointless and frankly pathetic.

The AFLPA pushed hard for a percentage share of revenue in their last pay deal - they are hoisted on their own pettard now that there is effectively no revenue in a competition that has no content.

I was under the impression the players offered 50% during the shutdown, not just for 2 months. Makes much more sense now why it was rejected

I can understand players on base salary having reservations - especially in light of zero match payments.
Players who have had longer in the system surely have to see the situation for what it is.
Let's not pretend their earning potential suddenly dries up post football - teh opportunities for networking into the business world post-AFL are something many of us can only dream of.

Perhaps turning up to their respective clubs and seeing 80% of their staff gone will be the one thing that opens their eyes.

Here are some Financial Stats from here

THE AFL GROUP 2019 Profit & Loss ($ mill)	Millions
Revenue	$ 794.00
Operating Expenses	$ 330.00
Net Financing Income/(Expense)	$ 5.80
Operating Surplus	$ 458.20
Payments to Clubs	$ 314.60
Payments to AFLPA	$ 37.70
Game Development	$ 58.80
Ground Improvements	$ 11.90
AFL Foundation	$ 1.35
Facilities Development	$ 6.00
Net Profit/(Loss) before Transfers (to)/from Reserves	$ 27.90

2019 CLUB DISTRIBUTIONS Club	Total ($’000)
Adelaid	$ 13,611
Brisbane	$ 23,127
Carlton	$ 16,389
Collingwood	$ 15,114
Essendon	$ 15,034
Fremante	$ 13,789
Geelong	$ 13,965
Gold Coast	$ 27,796
GWS	$ 25,544
Hawthorn	$ 13,325
Melbourne	$ 18,092
North Melbourne	$ 18,752
Port Adelaide	$ 15,897
Richmond	$ 14,942
St Kilda	$ 22,242
Sydney	$ 14,635
West Coast	$ 12,655
Western Bulldogs	$ 19,698
Total	$ 314,607

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Originally Posted by GVGjr

Would there be a reasonable argument to suggest it should be 50% reduction this year and 33% for next year. Even that might be light on.

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My take on this is harsh - and I side with the players on pretty much every issue, but;

1/. They are not working. Further, there is no work.
2/. The 'no work' is not a result of mismanagement or poor administration.
3/. This is a unique situation.

Until they are playing again, they shouldn't be paid. Just like everyone else in Australia right now - like the 11 people who work for me for example - they should be paid a salary as long as they have annual leave...and after that, they need to join the line at CentreLink and claim the current government allowance related to end-of-employment.

It sucks, but they don't actually have jobs at the moment. It isn't like they are injured and can fulfill their obligations through member/sponsor/community engagement...it isn't possible to actually DO any of that. At all. Let me say it again. They don't have jobs. Contracts will not be valid. They are not fulfilling their contracts and are unable to do so...they should be getting on the front foot here and aligning themselves with the wider community.

I get that people at the AFL and in clubs are bleeding...but so is the country. I get that they have obligations...but so has the country. Slightly off track, I have to say I am a bit surprised that the club hasn't been in touch to say all membership payments have been frozen - if you want to OPT IN to keep paying, then here is a weblink that will enable you to do so...I am not thrilled with the way they are handling it either...whether people want to cancel or put on hold or keep paying or whatever...the product they are selling has been taken away - you shouldn't be assuming everyone is just OK with continuing to pay - you should be assuming that they are NOT OK and asking for support from those who are able.

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Originally Posted by mjp

My take on this is harsh - and I side with the players on pretty much every issue, but;

1/. They are not working. Further, there is no work.
2/. The 'no work' is not a result of mismanagement or poor administration.
3/. This is a unique situation.

Until they are playing again, they shouldn't be paid. Just like everyone else in Australia right now - like the 11 people who work for me for example - they should be paid a salary as long as they have annual leave...and after that, they need to join the line at CentreLink and claim the current government allowance related to end-of-employment.

It sucks, but they don't actually have jobs at the moment. It isn't like they are injured and can fulfill their obligations through member/sponsor/community engagement...it isn't possible to actually DO any of that. At all. Let me say it again. They don't have jobs. Contracts will not be valid. They are not fulfilling their contracts and are unable to do so...they should be getting on the front foot here and aligning themselves with the wider community.

I get that people at the AFL and in clubs are bleeding...but so is the country. I get that they have obligations...but so has the country. Slightly off track, I have to say I am a bit surprised that the club hasn't been in touch to say all membership payments have been frozen - if you want to OPT IN to keep paying, then here is a weblink that will enable you to do so...I am not thrilled with the way they are handling it either...whether people want to cancel or put on hold or keep paying or whatever...the product they are selling has been taken away - you shouldn't be assuming everyone is just OK with continuing to pay - you should be assuming that they are NOT OK and asking for support from those who are able.

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If there was an applause emoji available on WOOF, I would utilise it.

Are the players still obligated to keep fit, injury free or recover from injury?

Quote:

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Originally Posted by mjp

My take on this is harsh - and I side with the players on pretty much every issue, but;

1/. They are not working. Further, there is no work.
2/. The 'no work' is not a result of mismanagement or poor administration.
3/. This is a unique situation.

Until they are playing again, they shouldn't be paid. Just like everyone else in Australia right now - like the 11 people who work for me for example - they should be paid a salary as long as they have annual leave...and after that, they need to join the line at CentreLink and claim the current government allowance related to end-of-employment.

It sucks, but they don't actually have jobs at the moment. It isn't like they are injured and can fulfill their obligations through member/sponsor/community engagement...it isn't possible to actually DO any of that. At all. Let me say it again. They don't have jobs. Contracts will not be valid. They are not fulfilling their contracts and are unable to do so...they should be getting on the front foot here and aligning themselves with the wider community.

I get that people at the AFL and in clubs are bleeding...but so is the country. I get that they have obligations...but so has the country. Slightly off track, I have to say I am a bit surprised that the club hasn't been in touch to say all membership payments have been frozen - if you want to OPT IN to keep paying, then here is a weblink that will enable you to do so...I am not thrilled with the way they are handling it either...whether people want to cancel or put on hold or keep paying or whatever...the product they are selling has been taken away - you shouldn't be assuming everyone is just OK with continuing to pay - you should be assuming that they are NOT OK and asking for support from those who are able.

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If their contracts aren't valid and they don't jobs, are they even Bulldogs players at the moment?

The players do need to wear the cost like everyone else.

For me I have staff and they continue to work, because we have a lot of work to complete, although we have minimised public contact and our client contact is currently mostly electronic.

We have to deal with Centrelink for clients and that is almost impossible to do with the continual crashing of the website.

We have also taken an enormous hit to our revenue and it probably means I need to go without any money personally for an extended period. The business will need to be debt funded.

The players do not realise how difficult the current financial situation is for ordinary people.

Quote:

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Originally Posted by Bulldog Joe

The players do need to wear the cost like everyone else.

For me I have staff and they continue to work, because we have a lot of work to complete, although we have minimised public contact and our client contact is currently mostly electronic.

We have to deal with Centrelink for clients and that is almost impossible to do with the continual crashing of the website.

We have also taken an enormous hit to our revenue and it probably means I need to go without any money personally for an extended period. The business will need to be debt funded.

The players do not realise how difficult the current financial situation is for ordinary people.

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All the best BJ.