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The high cost of running a footy club

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Mr T.

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The high cost of running a footy club…
Football Life, May, 1973

There has been considerable comment on the financial side of football recently, but the average football follower probably couldn’t tell you how much it costs to run his favourite club. Perhaps he would be even staggered to learn it costs top clubs in the vicinity of $200,000.

A successful season brings added rewards, but it also means added weeks keeping their team in training and the expense rises accordingly.

Last year the total expenses of the first top clubs, who naturally fielded sides in the most number of games, were all around the $200,000 bracket.

Premiers Carlton revealed in their annual report, expenditure of $204,764.

Runners-up Richmond had expenditure of $194,925.84 but third club St Kilda had the higher figure of all - $243,432. It’s hard for club officials to give an exact average of what it cost to put a team on the field on one given Saturday, because there are a number of differing cost factors which make costs some weeks higher than others.

But if you average it out over the possible 26 or 27 games a top side may play, a figure of about $8,000 to get the side out to play on a Saturday afternoon would be a reasonable assumption.

Last year North Melbourne finished on the bottom of the ladder, and their expenditure for the year was $114,819.10, and according to North officials it was hard work to keep their expenses down to this figure.

They pruned expenses wherever possible and limited their spending – in other words they had an austerity campaign in an attempt to get the club back on a sounder financial footing. With the importation of new coaches and 10 year players from other clubs for the 1973 season, their expenditure this year will skyrocket much higher than last year’s amount. A major factor that worries clubs is that they have to rely heavily on success on the field to help them meet their expenses and remain successful.

The more games you win, the more you play and although the costs are extended the rewards that come in from finals appearances and from happy supporters are a much needed help – failure on the field doesn’t find this finance.

The concern amongst clubs is that costs are spiralling each year in the every day business of running a club, let alone taking in the factor of increased payments for players.

Officials at all clubs agree that over the last five years, the general costs of running a club have virtually doubled. Which means that each year they have to find more money than the previous year.

The introduction of the 10-year player rule, and the provision to put players under contract after seven consecutive years boosts the payout to players considerably.

Added to this, the overall payment to players will increase this season.

For instance, bottom side North spent $26,003 on payments to players and associated expenses last year. With Doug Wade, Barry Davis and John Rantall recruited as 10 year players, plus the advancement in experience of other players it will be considerably higher this year.

Second last, South Melbourne, who had a number of young players, paid out $18,598 for their senior players but when you add associated costs such as board and travelling expenses, sick, accident and lost time etc, the costs of the two bottom clubs were similar.

But then you skip through the list to premiers Carlton and you find their team maintenance payments were $43,441, and runners-up Richmond were even higher at $51,557.

And it is amazing how what used to be regarded as minor expense in things such as chemical and medical supplies can build-up to costly amounts.

Uniforms, playing and training materials, medical and physio charges, training staff, traveling expenses in country zones, after match entertainment, education expenses for young players, trophies all mount up.

Expenditure has become so high, that you may have noticed most clubs have been cutting out the annual end-of-the-season trip away, usually to Surfers Paradise.

Also in the payment for team maintenance there’s usually a pretty substantial amount for coaches, although with the demands of time called upon to be a coach in present day football a rise for coaches would be quite justified.

Administration costs are also high. Full time secretaries have been very important people in all clubs in modern day football.

To find men with the ability, know how and to work the hours demanded means to get a good secretary you naturally must pay him well.

Discussing the finance of running a club is virtually an unending story, which goes much deeper than the areas we’ve touched on.

But it should make it obvious to you, that running a league football club today is big business – and costly.

Footnote to story – this edition of Football Life (The official publication of the VFL) cost 40c.
 
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