What does the ONE PAFC proposal seek to achieve?
The Port Adelaide situation is unique in Australian football, as since 1997 there have been two Port Adelaide Football Clubs sharing the brand, history and heritage of PAFC but running as separate - and often competing - businesses.
The One Port Adelaide proposal aims to remove this division and recreate one strong, united and financially sustainable Port Adelaide Football Club, a secure future for the Port Adelaide Magpies, and a financially stronger SANFL - all of which are critical to the ongoing prosperity of football in South Australia.
How does the proposal work?
Under conditions imposed when Port Adelaide entered the AFL in the mid-90s, cooperation between the Power and Magpies was strictly prohibited, with the two ‘Port Adelaide’ clubs required to operate as entirely separate entities.
Under the One Club initiative, the commercial, administrative and financial operations of the Port Adelaide Football Club and the Port Adelaide Magpies Football Club will be combined, and run as One Club, under a single, united Port Adelaide Football Club board.
The united Port Adelaide Football Club will field teams in two competitions - the Power in the AFL and the Magpies in the SANFL (including League, Reserves, U18s, U16s and Zone Development Squads).
The Power will continue to wear its popular new ‘back in black’ jumper, while the Magpies will continue to be called the ‘Magpies’ and wear the traditional ‘prison bar’ jumper.
Importantly, however, the club’s AFL and SANFL football operations will be run independently of each other (see below).
Will the Magpies be a Reserves team for the Power?
The Magpies will not operate as a Reserves side for the Power. Power players would continue to play for their aligned SANFL Club.
Will the Magpies or Power gain any football advantage?
The Magpies operations would have a total expense cap imposed, in addition to the salary cap (the Magpies would have the same salary cap as all other SANFL clubs). The total expense cap, to be audited by the SANFL, would be commensurate with the average expenditure of other League clubs. It would be adjusted with changes to club grants and salary cap and reviewed annually and set by the Commission.
The Magpies would continue to train on the western side of Alberton Oval and have no greater access to the club’s AFL facilities and coaches than any other SANFL club. The Power would have no greater access to Magpies juniors through the AFL drafting system than any other club.
Put simply, this is a financial and commercial merger which, while it would have significant financial benefits for Port Adelaide, would deliver no direct football advantage to either the Power or Magpies teams on the field in their respective competitions.
What are the financial benefits of the One PAFC initiative?
Financial projections tested independently by the AFL and SANFL show the ‘One Club’ initiative would create a positive net cash impact of between $1.4 million and $1.9 million for the united Port Adelaide Football Club entity in 2011, and each year after.
The financial benefits come from bringing together the Port Adelaide football community and the complementary assets held by each club.
The three key factors that underpin the financial returns of the One Club model are:
- A united membership, sponsorship and commercial base, with ability to expand on existing support, attract new support, and activate latent support (there have been significant corporate commitments and support for the united entity)
- An upgraded Prince of Wales Hotel with significantly improved returns, using funds brought by the Port Adelaide Football Club’s Key Gifts program
- The ability to undertake a cohesive and aggressive fundraising campaign, similar to the Melbourne Football Club’s ‘debt demolition’ in recent years.
The One Club initiative would also allow Port Adelaide to resolve the brand identity problems which have plagued the ‘two Port Adelaide Football Clubs’ model.
This would help Port Adelaide to improve its financial position, as well as returning more to South Australian football.
What has changed since February?
A number of important things have changed since a merger was initially proposed by the two Port Adelaide clubs last February:
- The SANFL, Port Adelaide Football Club and Port Adelaide Magpies have worked together closely on this proposal and there is now a much more robust business case that underpins the model.
- There has been a significant increase in external corporate commitment and support for the united entity.
- There is also a much clearer understanding among the stakeholders of the business case and the benefits it would deliver for Port Adelaide and for South Australian football in general.
When those factors are combined, they present a compelling case for the change.
Does this merger require any further financial assistance from the SANFL?
No. There is no financial assistance required from the SANFL. This merger would create additional net revenue for the Port Adelaide Football Club; it is a Port Adelaide solution to Port Adelaide problems.
What would happen to the boards of both clubs?
The One PAFC initiative is supported by the boards of both football clubs.
Under the proposal there would be two legal entities - the Port Adelaide Football Club and its SANFL division, the Port Adelaide Magpies Football Club - which would be overseen by one common board with ultimate responsibility for both.
One current Magpies board member would be appointed to the Port Adelaide Football Club board, while a new Management Committee would be appointed to oversee the club’s SANFL operation.
Neither club would have the right to appoint an SANFL League Director. Instead, a Magpies-appointed representative would attend League Directors’ meetings by invitation. The current Magpies CEO would participate in CEOs’ meetings as the Magpies Operations Manager.
The Operations Manager would be entitled to communicate a Club position in the same manner as all other SANFL Clubs for the purposes of decision-making by the SA Football Commission.
What would happen to the employees of both clubs?
There would be no redundancies as a result of the initiative.
What will happen to the Magpies as we know them? (Guernsey? Nickname? Zone?)
The Port Adelaide Football Club would retain the ‘Magpies’ brand in the SANFL, playing as the Port Adelaide Magpies and wearing the traditional black-and-white ‘prison bar’ guernsey.
Moreover, the SANFL division of the club would operate as a traditional SANFL club - with League, Reserves, U18 and U16 sides; a Port Adelaide Zone (including the West Coast of SA); and underage Development Squads.
What will happen to the Prince of Wales Hotel?
The Prince of Wales Hotel would be upgraded significantly in the first year of the One Port Adelaide initiative, dramatically improving the revenues generated from this asset.
What will happen to The Port Club at Alberton Oval?
Over time, the Port Club at Alberton would be developed into a multi-use community hub and incorporate a Port Adelaide Football Club Museum. Relocation of gaming machines from the Port Club to an alternative venue would occur, but is not expected until around 2013.
What does it mean for my membership?
As both clubs are already in the process of sending membership renewals for 2011, there would be no change for members this year, although ‘bridging packages’ will be available for people who want to combine offers from both clubs.
The clubs are also exploring the development of a special ‘ONE PAFC’ pack which would include a range of benefits to celebrate the reunification of the Port Adelaide Football Club, should it be approved.
From 2012, members will all be members of the united Port Adelaide Football Club, but will have the ability to choose either AFL-access or SANFL-access memberships - or both.
What happens now?
The SANFL League Directors plan to meet on Monday, November 15, to formally vote on the proposal. Should the vote be in favour of the One PAFC merger, both Port Adelaide and the Port Adelaide Magpies would hold separate meetings the next day to make the appropriate changes to their Constitution to allow the merger to go ahead.
