Carlton has opted to receive AFL assistance as the COVID-19 financial crisis continues to devastate the league and its clubs.
The AFL secured a line of credit from the NAB and ANZ banks of up to $600 million in order to survive the lockout hardship, money that will be divided between themselves and their teams.
Clubs will have to repay money they take from the AFL and some teams have opted against taking a handout from league HQ, including Adelaide, Collingwood, West Coast, Hawthorn, Richmond and the Western Bulldogs.
Carlton president Mark Logiudice confirmed in an email to members on Monday that they will ask the AFL for assistance, a situation they would have avoided had the COVID-19 crisis hit 12 months from now.
“Firstly, as previously communicated, in the six months prior to COVID-19, we had paid off more than half our $6.4 million of historical debt,” Logiudice wrote.
“Our revised budget, forecast that the remaining $3 million debt was likely to be eliminated by the end of this season.
“This was to be largely driven by the significant increases in commercial partnerships and membership, with the club having already broken our all-time membership record prior to the season starting.
“The improved financial performance was also to be fuelled by the continued growth of Carlton IN Business and Carlton College of Sport.
“Had the COVID-19 situation occurred this time next year, it is highly likely we would have been in a position to be a “non-assisted” club, meaning we would not need to rely on any AFL financial support through this period.
“Unfortunately, that wasn’t to be, and as a result, the Board has elected to be an “assisted” club, which means we will have access to AFL financial support if and when we require it.
“Our cash flow modelling suggests we may need this support through the latter part of this year and into next year.
“Thereafter, we feel confident that we will be in a position to repay the AFL any money we may have used and once more turn our attention to clearing our remaining historical debt.”
The Blues president goes on to add that they will not be cutting funding to their AFL and AFLW programs, aside from what is mandated by the AFL and that they are aiming to be entirely debt free by 2023.
CEO Cain Liddle told members last week that the club remains completely committed to its AFLW program.