Who owns your AFL Club? Privatisation and the AFL

One of the more pervasive myths about AFL clubs has been the often commented twitter “fact” that the clubs are owned by the league. Here we take a deep dive into AFL club ownership. (Note this article is an updated version of the one on footyindustry.com).

While most of the league is now either operated from headquarters or member owned, there remains two clubs in semi private hands, West Coast Eagles and Fremantle Football Club. Both clubs are 100% owned by the West Australian Football Commission, with West Coast and Fremantle members not receiving even a single elected director (Fremantle changed in 2014 from two member elected directors back to WAFC appointments only)

There has been some history of private ownership and a number of attempts at private ownership through the years.

In 1985 the then VFL sold the Sydney Swans in 1985 to Geoffrey Edelsten for 6.3 million, although the full amount was never paid and by mid 1986, Edelston had stood down as club chairman. (although the company he set up to control the Swans, Powerplay, continued as owner) In May 1986, the Swans were formally taken over by the VFL, after the league bought some of the shares owned by Powerplay Ltd.

The VFL sold the club again in December 1988, this time to a consortium led by media personality Mike Willesee.The Swans were in dire trouble by 1992, and the AFL effectively bailed them out by refunding 1.9 million of the license fee, and redirecting it into the club.

This arrangement lasted until April 1993, when the AFL again was forced to take over the club and appointed Alan Schwab to turn the clubs fortunes around. The Swans remain under the control of an AFL appointed board (a position shared by newcomers GWS and Gold Coast, and now the Adelaide clubs).

*Australian Jewish Times, March 2, 1990*

In 1986, North Melbourne floated itself on the stock exchange – the only VFL club to do so, and one of two clubs in the AFL to have done so (the other being West Coast). This arrangement lasted until 2006 when it reverted to membership control.

In 1986, Indian Pacific Limited was floated to raise funds for the West Coast Eagles license – The float eventually raised $12.3 million. The WAFL solds its sublicense to Indian Pacific Limited for $5.6million, making a 1.6 million profit. IPL would later be taken over as a 100% subsidary of the Western Australian Football Commission after it ran into some financial trouble. It was revealed later that SAIL, a south african sporting company had tried to buy 49% of West Coast in the early 90s, an attempt which was ultimately rejected by the WAFC and West Coast.

With license negotiations having originally failed in South Australia, the league offered a 4 million dollar license in Brisbane which was taken up by actor Paul Cronin and his backers, including Christopher Skase. That fell through with the collapse of the Quintex Group in late 1989. The Bears were purchased in 1990 by Reuben Pelerman, who was unable to make much headway financially, and the club was given over to the the members to control in 1992, and in 1996 merged with the Fitzroy Football Club – the club is presently entirely member controlled.

In 1990, The Adelaide license was sold to the SANFL who controlled it until 2014 when it reverted to AFL board control for at least 15 years, it is due to be released in 2028 after it has paid the SANFL $11.326 million for its license.

In 1991, Carlton allegedly tried to take over North Melbourne as it sought to purchase 20-40% of the club using shares it was thought to have bought from Tricontinental. The idea was vehemently opposed by other clubs and was never seriously considered by the League.

In 1994, the Fremantle Football Club license was awarded to the Western Australian Football Commission, who have total control over the club and its board.

In 1996, the Port Adelaide Football Club license was awarded to the SANFL, who held it until March 2014.

The AFL has since 1992 been strongly opposed to private ownership of clubs and negotiated the release of the SA licenses from the SANFL during the Adelaide Oval negotations in 2013 and 2014. Adelaide’s AFL licence was released for $11.326 million, while Port Adelaide will pay $6.985 million over 15 years from 2014. The Crows constitution specifies an end date of October 30, 2028 and Port Adelaides constitution doesnt mention an end date at all.

In 2012, The AFL was believed to be canvassing the idea of buying the WA licenses from the WAFC. On August 28th, the West Australian and WA today reported that Andrew Demetriou had said the AFL could not order any change to the license structure of the WA clubs, despite the desire of both West Coast and Fremantle, as well as the AFL to remove the clubs from the shadow of the WAFC. He also said there was no specific time frame for it to happen.

Privatisation was put back on the AFL agenda in August 2021 following the Carter Report which examined the Tasmanian Governments own Taskforce Report that investigated having an AFL team placed in Tasmania. According to Eddie McGuire, Tasmanian Premier Gutwein was in no rush to have a team in Tasmania, but wants clarity from the AFL.

“He is open to discussion on private ownership, which wasn’t addressed in the Carter report, and can push the entry of a team from 2026 to 2030.”

While notionally independent bodies, the leagues approval is required however for boards appointed at Greater Western Sydney, Gold Coast, Sydney, Adelaide and Port Adelaide. For the two Sydney clubs and Gold Coast, the League is the sole voting member of all three organisations until such time as it deems the “transition” period to have ended. Adelaide alone has an end date for its AFL Voting Member – October 2028.

Tasmania

Under its constitution, prior to its first competitive season in the AFL, the only members are the AFL and the Tasmanian Government, who will jointly appoint the board of the Club before and after the club commences playing in the league, with the AFL having the larger number of directors, and the right to appoint the Chair and executive director.

AFL Privately owned clubs:

The West Coast Eagles, through Indian Pacific Limited are 100% owned by the Western Australian Football Commission.
Fremantle Football Club Limited are 100% owned by the Western Australian Football Commission.

AFL controlled clubs