Year of 'sacrifices' sees AFL report $22.8 million loss

The AFL has announced an operating loss of $22.8 million loss for 2020, a 12 month period that it has called “a year of sacrifices”.

With the code’s year-on-year revenue falling by $119.1 million to $674.8 million, the AFL advised on its website that “while obviously concerning, the official outcome was nowhere as problematic as feared 11 months ago - when the AFL was forced to suspend indefinitely the 2020 season after just one round, prompting industry heavyweights to speculate on potential losses in the hundreds of millions of dollars.”

With clubs were told of the financial result on Tuesday afternoon, they will receive $231 million with $67 million apportioned to the running of the shorter men's season, including the establishment and season-long upkeep of club hubs in Queensland, South Australia and Perth.

In its income, the AFL clubs also took $14.3 million from the Victorian Government for the redevelopment of Marvel Stadium, which, when included in the results, took the statutory loss on the year down to $8.4 million.

Among other expenses in 2020, payments to AFL executives and commissioners was reduced by a third to $7.10 million in 2020, down from $10.57 million in 2019. $32 million went to game development, $19 million to the AFL Players Association and $14 million to the running of the AFLW competition.

Commenting on the results, AFL Commission Chairman, Richard Goyder explained “the year was tough financially but I want to thank the boards and staff of the 18 clubs, our players, umpires and our own AFL executive and team, led by Gillon McLachlan, for the work they did and the difficult decisions they took to ensure football continued around the country.”

"Everyone across our football community, from our players, coaches and staff members and our long-serving and committed broadcast and corporate partners all made the relevant sacrifices to put the health of the community first and then ensure we still had a game for the fans.

"Most of all, I want to thank our members and supporters for their passion and commitment to their clubs and everyone who watched the games and supported us collectively, in finding a way to complete the 2020 Toyota Premiership season."

The year saw the AFL cut its workforce by around 20% in a restructure prompted by the loss of income due to COVID-19. The job cuts and restructure came into effect last November, and included the departure of senior staff from the AFL’s executive team.

For the 2019 season, the AFL registered a $27.9 million profit.

The AFL also used $60 million in capital reserves in order to complete the season.