We really couldn’t have wanted more from our summer campaign. Our coaches have defined the new Port Adelaide way, which thankfully sounds remarkably like the old Port Adelaide way! Our players have applied themselves to new methods of learning and grown as a result of it. Off field, a new confidence is emerging, and with it a greater sense of relevance and purpose.
No-one is getting carried away with our progress to date, and we fully understand that the real challenges begin on Easter Sunday. But there can be no denying that significant change has occurred at Port Adelaide, and we are better for it.
One topic that I have chosen to avoid in the past has been the issue of revenue and our overall financial state. My reluctance to share this information with you has been driven by two concerns:
Firstly, it’s often not great news and unfortunately our financial predicament has been used as a political football over the years, and far too often ended up in the media for all the wrong reasons.
Secondly, and perhaps most importantly, I fear that we have gone to the well of our supporters’ goodwill, way too often in the past. As a club we have been desperately trying to rid ourselves of the hand out mentality, a malaise that can become all- consuming if not aggressively challenged.
Our approach has been to try to earn your respect, together with that of our corporate partners, by improving our on-field performances, showing more care for our members and providing better business solutions for our partners. This mindset gives you a chance to break the shackles of mediocrity, to find better ways.
I am pleased to say, that we have made progress in these off-field areas as well. The securing of Renault as a major partner is a great example of what can be achieved on the national stage by this club - against the stifling odds of being the smaller club in a small market, in a code being questioned about its integrity, in a conservative economic climate.
Think for a moment of the bravery shown by Renault to step into this environment. It is breathtaking and to repay them we will spend every hour of our sponsorship thinking about ways to make this the most successful partnership in world sport.
At the same time, think about Bill Vis of V.I.P. Last year he stepped forward when no-one else would, and he is with us again this year. We salute you Bill. Your loyalty and passion will also be rewarded!
And there are many others. Ian Little from Envestra has been incredible, supporting The Power to End Hunger campaign, while significantly growing his company’s partnership profile at the club over the past two-three years.
SGIC, Australian Outdoor Living and CUB remain great friends of the club and we welcome the teams from Rivergum Homes, Radio Rentals, ISC, Bet 365 and many others.
Our community programs also enjoy wonderful relationships with iconic companies such as BHP Billiton, Santos, Adelaide Airport Ltd and Beach Energy.
The point is, we do a lot of very impressive work in generating revenue and relationships with our corporate partners. And our conversion of supporters into members is amongst the best in the entire AFL.
So why are we struggling to keep up financially?
Why is it that despite being the third lowest spending club in the league, we battle every year to break even?
Well, I had one of those rare moments of clarity last week which helped me make sense of it all, which I would like to share with you.
The Geelong Football Club has received a lot of positive acknowledgment for their success in recent years, but when you get to see their leaders perform up close, you start to understand where that success is originating from.
At the recent AFL conference to discuss “equalisation”, their impressive chairman Colin Carter and CEO Brian Cook set the tone for the meeting by encouraging the industry to stop referring to the smaller clubs as “under-performers”.
Their point was that our competition is not equal, never has been, and is in many ways being managed to ensure that it never will be - unless more is done to level the playing field!
Many of these inequities make it virtually impossible for clubs to compete financially, despite their very best endeavours.
Think about the at-times unprofitable Bulldogs, St Kilda, Brisbane and North Melbourne clubs over the past 10 years, all of whom have played in preliminary finals and in the case of St Kilda and Brisbane, Grand Finals. Think about Sydney who, having played in 14 of the past 17 finals series, admit they are only ever one poor year away from financial distress.
Yes, poor decisions hurt club performances, but these are clubs who have performed exceedingly well. At the height of its powers - just a decade ago - Port Adelaide was barely profitable. Highly successful, but always under financial strain. Why?
The reality is that there are structural factors, largely beyond a club’s direct control, that inhibit their progress. Non-AFL markets, small supporter bases, fixture inequalities, TV exposure and poor stadium deals are just a few that were mentioned at the conference.
Thankfully, the move to Adelaide Oval presents both Port Adelaide and Adelaide Football Clubs with an opportunity to improve their financial returns through a better stadium deal, and rightly so. That’s why it is imperative that we get this deal right from the outset, but more on that another time.
The lesson for clubs like Port Adelaide is that whilst their financial situation is very likely not entirely performance-related, they must work hard to maximise every opportunity they have to generate the revenue they need to compete. They must think differently, and creatively find ways to engage with their communities, in such a way that the relationship does not become burdensome for either party. It must be mutually satisfying and valuable.
The reality is that we need more of our supporters and members willing to actively engage with the club and to support it financially when they can.
But it’s got to be a two way street. It’s this sentiment that is shaping several of Port Adelaide’s revenue making initiatives this year. Throughout the season you will have the opportunity to engage with the club like never before through a number of innovations and special offers you will hear about soon. Whether it’s taking advantage of these opportunities or inviting your management team to receive a motivational master class from our senior coaching staff or by simply renewing your membership or choosing a Renault when you buy a new car. Engaging with your club, in a way that provides you with joy, pride and fulfilment is the key to our success.
Without it, our model won’t work - at AAMI or at Adelaide Oval. That’s our reality.
But it doesn’t have to be arduous. It has to be mutually beneficial.
We need you to do more than just watch the footy at home. Port Adelaide does not have that luxury. But we are prepared to earn it, and the Premiership Fund: Every Win Counts concept launched yesterday is the perfect example. We know our supporters demand success, and it drives us. Success in the AFL is a costly business as I have just explained. To keep up, we are asking you to contribute, at whatever level you feel comfortable with. But only if we win! No win = no contribution. We go back and work harder. And I guarantee you that every dollar contributed will go directly to the football program. I will personally keep you updated on the progress of the fund and the sort of things we will need to invest in if we are to continue our march back up the ladder.
So that’s how it sits. Port Adelaide needs its community to engage with it … we need its supporters to become members, to go to games and support its sponsors. In return, the club must accept its responsibility to put on a good show every week, and reward your loyalty and support of us by providing great interactive opportunities and experiences.
That’s a business model that can work, not matter what natural impediments are in our way … especially when we’re hell-bent on being the best in the business at it!
Ambitious? You bet! But as Kenny likes to say … we don’t set limits here at Port Adelaide!
I look forward to seeing you at the footy … hopefully driving a Renault and wearing a cap you’ve purchased from the merchandise store!
Here’s to a good start to the season on Sunday.
And just finally, make sure you get along to our first home game of the year in Round 2 against GWS. We’ll be honouring J-Mac and it will be a special night.
Cheers,
KT
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