By NOEL MURPHY
IT might have three recent premierships under its belt, record members and a massive $70 million taxpayer-funded expansion but the Geelong Football Club is crying poor to the AFL as it faces down a $500,000 loss this year.
A $1.1 million turnaround on its initial forecast for a $600,000 profit, the Cats’ ill fortunes are being blamed on downsized membership packages and the AFL’s controversial equalisation tax.
The Cats face a $300,000 equalisation tax bill this year and a $400,000 slug next year but have applied to the AFL for relief.
The club is understood to have lodged a formal submission to the AFL for finance relief as it faces its second loss in as many years.
While changes to membership packages sold to fans is a serious part of the Cat’s woes the AFL equalisation tax is rearing its head as a key bone of contention.
The Cats have been unhappy with the equalisation tax, although relatively quiet compared to mid-level teams who have protested loudly about the AFL’s new cash cow.
Cats president Colin Carter was labelled a hypocrite by Collingwood’s Eddie Maguire after complaining about the tax.
“The philosophy is wrong,” Mr Carter said.
“What we are doing is just screwing the middle class while the rich are able to get their affairs in order which is what happens in real life.”
More recently, Cats chief Brian Cook highlighted a raft of financial challenges at Catland as the club grapples with a lack of revenue forcing it to slow down its football department spending.
The Independent also revealed last month that 12 Cats players with long-term injuries of at least two months were costing the club around $2.5 million out of a $9 million payroll, when Mr Cook addressed a business breakfast.
Mr Cook was overseas and did not return Independent requests for comment.
Requests for comment from the club’s acting CEO Rosie King, chief financial officer Sue Clark and board chairman were azlso rejected by media manager Kevin Diggerson.
Mr Diggerson said “the gist” of the story was correct but requested a delay on commenting until Mr Cook’s return.
COMMENT:
WHY would Geelong Football Club talk with other media outlet but not the Geelong Independent about its financial difficulties?
The club’s media machine this week pulled the shutters on queries from the Independent after reports suggested its fiscal standing was more than $1 million out of whack. What was meant to be a $600,000 profit this year has been revised down to an anticipated $500,000 loss.
The Independent asked Cats CEO Brian Cook about the problems – which appear related to poor member package sales but the club seems keen to lay at least some of its problems at the feet of the AFL’s equalisation tax.
He didn’t reply. He was overseas. But he did talk with other another Geelong media outlet with which the club has sponsorship arrangements.
Cats media manager Kevin Diggerson shut down Independent attempts to elicit some idea of the Cats financial status for its Geelong audience – rejecting requests for comment from anyone at the club until Mr Cook returned from overseas.
When the Independent asked the Cats media manager for comment from the club’s acting CEO Rosie King, its chief financial officer Sue Clark or its board chairman Colin Carter, Mr Diggerson not only failed to provide anything – he failed to even respond.
For a club that has enjoyed great success on the back of its Geelong public, a club which has enjoyed extraordinary publically-funded largesse from Geelong ratepayers and taxpayers – the latest in the form of a $70 million expansion – to ignore legitimate requests for comment, let alone information of its affairs, is not good enough.
Geelong’s Cats community deserves greater respect from club administrators – not insulting indifference — especially at a time when those administrators are seeking greater support from the public.
— Noel Murphy
