On Wednesday night there will be a special meeting of Port Club members to vote on proposed changes to the Port Club’s constitution.
Members of the Port Adelaide Football Club (Power - AFL) and the Port Adelaide Magpies Football Club (Magpies - SANFL) living in Adelaide will have received formal notification of this special meeting in the mail as well as on this website (Magpies Back At Alberton) and the Magpies website. The following will provide some further background and answer some commonly asked questions.What is the Port Club?
The ‘Port Club’ is the trading name of the ‘Port Adelaide Football & Community Club’, the licensed club venue (bistro/bar/gaming) at Alberton Oval. Any profits from the Port Club’s operations are currently distributed under a formula set in the Port Club constitution (55% to the Power, 25% to the Magpies, with the remaining 20% retained by the Port Club to be spent at the Port Club Board’s discretion). To change this formula requires a vote of the Members of the Port Club. Profits from the Port Club have been negligible in recent years.
Who are the ‘Members’ of the ‘Port Club’?
Members of both football clubs (Power and Magpies) who reside in the Adelaide metropolitan area and are over 18 years of age are also Members of the Port Cub.
What is the vote for?
The Magpies have requested that the Power assume control of the Magpies’ 25% share of any future profits from the Port Club, in return for an upfront cash payment and a number of other benefits, outlined below. To make this change requires approval from the Members of the Port Club. The Magpies share has been independently valued and is exceeded by the Power offer.
Why did the Magpies approach the Power to do this and why is this a positive outcome for both football clubs?
1. The move provides the Magpies with a significant cash injection to assist them with their immediate urgent financial challenges, including substantially reducing their debt. This is very important to the Magpies short-term future
2. The arrangement also sees the Magpies administration offices and merchandise outlet relocated to Alberton Oval (inside the Port Club building) at favorable terms, saving considerable ongoing operating costs
3. It enables, by choice, the Magpies to focus their commercial efforts on the Prince of Wales Hotel and its gaming machines, which the Magpies Board regards as critical to the club’s long-term viability.
Why is this also good for the Power?
1. The move provides independent commercial flexibility to the Power regarding the Port Club venue
2. In particular the Power is exploring the potential of shifting the Port Club’s 40 gaming machines to an alternate, more profitable location as part of its sustainable business model. This could require capital investment and may be some years away, so for the short-to-medium term gaming will remain at the Port Club venue. This does not meet the Magpies’ critical immediate needs
3. As part of the above, the Power will also explore transforming the Port Club venue and the Alberton Oval precinct into a community hub, which might also include a football museum and other revenue-generating community facilities within the Port Club. Once again, this is a medium- to long-term prospect which fits the Power’s sustainable business strategy but which does not meet the Magpies’ critical immediate needs.
Where do the Boards of the two football clubs stand on this?
The Boards of both the Magpies and the Power fully support the proposed changes and recommend the support of their eligible Members to approve the proposed amendments to the Port Club constitution.
How can I vote?
Voting will take place at the Special Meeting, however if any members are unable to attend and wish to vote a Proxy Vote can now be registered but must be received by either football club no later than 6.30pm on Tuesday 8th June. Please contact the Power on 8447 4044 to obtain the necessary documentation for a proxy vote.
The Special Meeting will take place at 6.30pm on Wednesday 9 June 2010, upstairs at the Port Club venue.
