Sturt to share in the proceeds of the Sale of Footy Park

The following transcript is an article on the SANFL website. Seems the league will be bailing out all their clubs over the coming years as a result of the pending sale of Football Park.

As  read the article it seems also that some clubs and Sturt, after their particularity intense effort to solve their own debt problems, may by in line for  grant that will assist in the redevelopment of Unley Oval.

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SANFL announces debt relief payments for clubs

SANFL clubs will share in additional game development payments over the next seven years under a commitment from the SA Football Commission to help clubs retire debt.

The eight SANFL clubs – Central District, Glenelg, North Adelaide, Norwood, South Adelaide, Sturt, West Adelaide and Woodville-West Torrens – will each receive an additional $2 million in game development payments between 2016 and 2022 inclusive.

The funds will become available to the SANFL for distribution to the clubs as part of the staged redevelopment of the AAMI Stadium precinct, with the first payment of $125,000 per club scheduled to happen in October 2016.

“The fact that the SANFL is moving into a position to be able to further assist clubs is obviously a good thing,” SA Commission Chairman John Olsen said.

“However, this should not be misinterpreted as largess to help the clubs run their businesses.

“The funding comes with a strict series of conditions to ensure the focus is on reducing debt and building savings.

“This is a once-off opportunity. We are realising the value of what is our biggest asset and we must therefore do so in a way that maximises the outcome. For many clubs, this will not be a panacea. They will need to continue to commit to debt and expenditure reduction to ensure they can all emerge stronger for the future.”

The SANFL clubs will receive staggered payments subject to conditions that include extinguishing any outstanding tax or employee superannuation commitments and reducing both secured and unsecured debt.

Only once a club has paid its outstanding debts can it commit any of the funds to savings, and it must do so by investing in such a way as to preserve the capital amount.

It can then – with the approval of the SA Football Commission – potentially use those investments as security against future borrowings.

“The redevelopment of our asset at West Lakes delivers some critically important short, medium and long-term benefits for South Australian football,” Mr Olsen said.

“In the first instance, the initial $10 million up-front payment from the developers enabled us to immediately pay off our debt with the AFL,” he said.

“Over the next seven years we will retire the League’s remaining debt and, with these additional payments, assist the SANFL clubs to significantly improve their viability.

“From 2022, we will then be able to commence contributions to a future fund for South Australian football which will further underpin its financial security.

“This is all part of a wider SANFL strategy to ensure football in this State is as strong as possible for generations to come.”

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