THE AFL has taken a huge step towards securing its future after gaining approval for a bank loan.
Clubs have been told that the league has secured a line of credit - understood to be more than $500 million - to keep the game on life support.
That loan will compensate for the massive shortfall created by the absence of broadcast revenue and attendances while the competition is suspended.
The AFL yesterday wrote to clubs seeking the return of a signed document.
That document broadly asks clubs to abide by the financial instructions of the AFL and to refrain from any private commercial arrangements while the league grasps the financial olive branch.
Clubs are yet to be given a detailed description of what their financial pictures will look like.
League chiefs has been in discussions with the NAB, the AFL’s banker and corporate partner about seeking a loan.
Marvel Stadium – the AFL’s biggest asset - made that line of credit possible. The AFL bought the stadium in 2016, gaining management rights and freehold ownership of the Docklands venue.
The AFL Commission elected to buy out the owner’s share for a reported $200 million, rather than wait until 2025 when it was due to automatically acquire the stadium for $30.
It has proven to be masterstroke, not only in gaining a line of credit, but also in the most likely condensed staging of games to get through the 2020 season.