Approved by the SANFL last night, the off-field merger of the two clubs was embraced by Magpies Members in an historic vote tonight.
The move will reap major financial benefits for the united Port Adelaide club, ensure the Magpies’ future in the SANFL, and reunite the Port Adelaide football community.
Financial projections tested independently by the AFL and SANFL show the ‘One Port Adelaide’ initiative will 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 thereafter).
The move is part of a comprehensive business strategy being implemented by the Port Adelaide Football Club Board and management to improve the club’s financial position and further increase its return to South Australian football.
Other elements of that business strategy include:
- Increased corporate support through a new Business Ambassadors Group
- Relocation of gaming machines from the Port Club to more profitable location
- Changed uses of the Port Club space to become a revenue-generating community hub
- The club’s Northern Territory expansion
- The potential move to Adelaide Oval in 2014
Under the initiative, 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, Under 18 and Under 16 teams, and Zone Talent Squads).
The Magpies will continue to operate as a traditional SANFL club and not as a Reserves side for the Power, with Power-listed players still distributed throughout all SANFL clubs.
Reuniting the ‘two Port Adelaides’ has been a major goal of Power President Brett Duncanson and CEO Mark Haysman since they took charge of the club two years ago. They have worked side-by-side with Magpies President John Firth and Chairman Bruce McFarlane, as well as the SANFL and AFL, to develop the model approved tonight.
Under conditions imposed when Port Adelaide entered the AFL in the mid-90s cooperation between the Power and Magpies was restricted, with the two ‘Port Adelaide’ clubs required to operate as entirely separate entities.
Under the new model, the administrative and commercial operations of the two clubs will be combined, however the football operations will remain separate from each other and be run independently of each other.
There are three key factors that underpin the financial returns of the ‘One Port Adelaide’ model:
- A united Port Adelaide football community with membership, sponsorship and commercial benefits
- An upgraded Prince of Wales Hotel with significantly improved returns
- The ability to undertake a cohesive and aggressive fundraising campaign, similar to the Melbourne Football Club’s debt demolition in recent years.
“There is an element of administrative cost-sharing which will create small savings, but the key to the financial benefits is combining the complementary assets held by each club,” Duncanson said.
“These include our membership and sponsorship bases, as well as the Prince of Wales Hotel, which the Magpies bring to the table but which the Power has the ability to refinance and renovate to become a large revenue-generator.
“There are also new corporate backers in the wings who have pledged significant financial support if the One Port Adelaide initiative comes into effect - we will have more on that in the next couple of weeks - while the potential for a new ‘debt demolition’ fundraising style program is very exciting.”
Duncanson thanked SANFL Executive Commissioner Leigh Whicker, the SA Football Commission and the SANFL Clubs for their support.
“This is an historic decision and an historic day, and we are very grateful for the opportunity that has been delivered to us by the SANFL and its member clubs,” Duncanson said.
“In particular, the leadership of Leigh Whicker on this matter has been quite outstanding.
“We are also very grateful to Magpies Members about how they so enthusiastically embraced the opportunity to approve the reunification of our clubs as One Port Adelaide.”
Mr Whicker said the administrative merger between the Port Adelaide Football Club and the Port Adelaide Magpies Football Club would benefit both entities as well as the wider South Australian football community.
“The Directors agreed that the One Port Adelaide proposal would result in a financially stronger Port Adelaide Football Club, an underpinning of the Magpies’ future in the SANFL competition and a financially stronger SANFL,” Mr Whicker said.
“All of these results are critical for the ongoing prosperity of football in South Australia, for which the SANFL is responsible.
"The present Port Adelaide AFL licence will provide approximately $12 million in profits to the SANFL over the next three years alone. That is an amazing asset for South Australian football.
"The money generated by the licence is shared between the SANFL clubs to ensure our State League competition can remain the strongest in the nation. It also used to fund junior footy programs and provide young talent with the best possible opportunities."
Port Adelaide Magpies President John Firth said it was a momentous decision for the Port Adelaide football community.
“We have worked hard to develop this proposal with the Power and the SANFL over the past few months and we are really thankful to have it supported,” Firth said. “This is a great win for the Port Adelaide football community and it is terrific that our Members have endorsed it tonight.”
Power CEO Mark Haysman says the unification will also allow Port Adelaide to resolve the brand identity problems which have plagued the ‘two Port Adelaide Football Clubs’ model.
“Quite simply, we will now able to say:
- We are the Port Adelaide Football Club
- We were established in 1870
- We are One Club with teams in two competitions - the AFL and the SANFL
- We are the only authentic, traditional club to have entered a team into the AFL from outside of Victoria
- We have an envied history of success - with 36 SANFL premierships and 1 AFL premiership … and counting.
