In its fifth year in the AFL competition, Port Adelaide has won its first trophy by thrashing Brisbane Lions by 85 points in the Ansett Australia Cup Grand Final in Adelaide.

Port Adelaide clinched its first AFL trophy - the Ansett Cup - with a paralysing second-quarter onslaught against Brisbane in a stunningly one-sided grand final at Football Park on a cold Saturday night.
The Power piled on 8.2 (50) to nil to grab a matchwinning 50-point lead at half-time after the scores had been locked at 1.3 (9) each at the end of a tough opening quarter.
Port, with Adam Kingsley rebounding repeatedly from defence, and winning the Michael Tuck Medal, surged further ahead in the second half for a crushing 85-point win - 17.9 (111) to 3.8 (26).
The triumph in the AFL’s pre-season tournament was the South Australian club’s first premiership since entering the competition in 1997.
The partisan crowd of 35,304 gave Port players a standing ovation as they strode off the ground for the long break, sensing they were about to create history - their club’s first premiership in the first VFL/AFL grand final played outside Victoria.
Brisbane had a setback before the match when captain Michael Voss could not take his place in the team because of a calf injury.
Port looked to also be handicapped early when wingman Fabian Francis was carried off on a stretcher after being collected on the head by a dubious bump by Jonathan Brown. It set the tone for a fiercely contested first term.
Nick Stevens’ cool snap from the right forward pocket gave Port its second goal just over a minute into the second quarter. Four minutes later, the floodgates burst open as Stuart Dew sank three long goals within three minutes. It was a brilliant, inspirational cameo by the solidly built left-footer, who, at only 21, is one of the longest and most accurate kicks in the AFL, as his hapless opponent Chris Scott would testify. It was a horror night for Scott, who was reported by field umpire Darren Goldspink for striking Chad Cornes.
After Dew’s demolition job, Francis came back on - to a thunderous reception - and promptly kicked two goals in two minutes, and Brent Guerra and Dew, again, kicked a goal to leave Port in a charge at 9.5 to 1.3 at half-time. In fact, Port kicked 16 goals to two after quarter time.
Dew’s four goals were complemented by three majors to Cornes, whose agility at full-forward was a constant threat to the Lions. Cornes’ younger brother Kane also bagged two goals for Port.
Brisbane’s only avenue to goal was through powerful forward Daniel Bradshaw, who kicked two of side’s miserly three goal total.
The Lions relied heavily on the efforts of acting captain Darryl White but were outgunned by a Port side that reaped the rewards of a rampant midfield led by onballers Adam Kingsley, Peter Burgoyne and Josh Francou.

Details:
PORT ADELAIDE 1.3 9.5 15.6 17.9 (111)
BRISBANE LIONS 1.3 1.3 3.6 3.8 (26)
Goals: Port Adelaide: S Dew 4, C Cornes 3, K Cornes 2, F Francis 2, C Ackland, P Burgoyne, J Francou, B Guerra, B Montgomery, N Stevens. Brisbane: D Bradshaw 2, L Power.
Best: Port Adelaide: A Kingsley, S Dew, P Burgoyne, J Francou, N Stevens, M Primus. Brisbane: D Bradshaw, D White, M Pike.
Injuries: Nil
Reports: Chris Scott (Brisbane) reported by field umpire Goldspink for striking Chad Cornes (Port Adelaide) during the final quarter.
Umpires: D Goldspink, B Sheehan, G Dore.
Official crowd: 35,304 at Football Park.
Michael Tuck Medallist: Adam Kingsley (Port Adelaide)

The AFL will be pleased to know that total attendance for the 2001 Ansett Cup series reached 398,309, 72,537 or 22 per cent higher from last year.

To other news:
Kangaroos’ appeal against Harvey’s suspension dismissed
North Melbourne has failed in its appeal against a two-match suspension imposed on midfielder Brent Harvey.
Harvey was suspended for two matches after being found guilty of interfering with an umpire during last Friday week’s Ansett Cup semi-final against Port Adelaide at Football Park.
The appeals board took more than 20 minutes to deliberate on its judgement and, going on the tone of the terse ruling of appeals board chairman Peter O’Callaghan, QC, it could have discussed increasing the penalty. “He (Harvey) deliberately made contact with the umpire so his team could get a free kick - the tribunal found this inappropriate and we add it was inexcusable,” O’Callaghan said. “We’re far from convinced the penalty of two weeks is excessive and in these circumstances the appeal is dismissed.”
The board also refunded the A$10,000 bond the Kangaroos had to submit with the appeal.
Harvey, who was not called on to give evidence at the hearing, and football manager Geoff Walsh left the hearing without comment.
The Kangaroos did not argue against the guilty verdict, accepting contact was made, but tried to have the penalty reduced because Harvey's action was not aggressive.
Harvey told the AFL Tribunal on Tuesday night that he was merely trying to alert umpire Shane McInerney to teammate Leigh Colbert being held by two Port Adelaide players behind the play. The All-Australian rover said his action was “instinctive” and not borne out of aggression or frustration.
But chairman Brian Collis, QC, said Harvey’s action was inappropriate and distracted the umpire from performing his duties. “It has to be clear to every player that plays the game of Australian Rules football that instinctively he must not make contact with an umpire,” Collis said. “We accept that no harm was intended, but we find his action was inappropriate and unnecessary in the circumstances.”
Under AFL rules, players cannot contact umpires, regardless of whether the contact is intentional, negligent or reckless.
Harvey, 22, who pleaded not guilty, is the third Roo player to be suspended during the Ansett Cup series, all for charges relating to interfering with officials.
David King received a two-match suspension for contacting Collingwood runner Peter Harrington, and Anthony Stevens was outed for one match for interfering with the Magpies’ doctor Paul Blackman. Harvey and King will miss the opening-round clash against Essendon on March 30.
Port Adelaide’s Michael Wilson was cleared of the charge of using abusive language because he was not properly told that he had been charged.

AFL battling to save O’Connor
The AFL has waged a desperate bid to save its embattled commissioner Terry O’Connor, calling an extraordinary meeting of the 16 club presidents on the morning of next week’s annual general meeting and lobbying individual clubs not to vote for former Adelaide Crows president Bob Hammond.

AFL chairman Ron Evans has spoken in recent weeks with the majority of the club presidents in a bid to save the Perth-based Queen’s counsel (barrister), while O’Connor himself has written a detailed letter to the presidents and the AFL commissioners claiming to have been the victim of a smear campaign.
At least one club believed to have supported Hammond at the recent presidents’ summit at the Australian Club in Melbourne - Collingwood - is now considering voting for O’Connor. Magpies president Eddie McGuire met O’Connor last week and put several grievances to the commissioner, including Collingwood’s current legal dispute with its former caterers Delaware North (which by the way is now the caterer at the RMIT university where I am studying), which it believes the league should at least partially fund. Collingwood has indicated to the AFL that the club would not look favorably on increased Colonial Stadium fixtures until a settlement with Delaware North is reached.
With the next few days looming as a number-crunching battle for the AFL, chairman Evans is expected to address the presidents on the morning of next Thursday’s AGM.
Evans has targeted Essendon chairman Graeme McMahon in a bid to reassure the presidents that the AFL has taken on board the clubs’ protest against the commission and would react more promptly and effectively to future grievances. The AFL chairman is believed to have asked McMahon to outline specific areas of concern.
As well as writing to the clubs, O’Connor last week also personally visited or telephoned the majority of the Victorian club presidents.
A commissioner since standing down as chairman of West Coast in 1993, he is up for re-election along with Bill Kelty, but has not yet re-nominated.
Hammond’s potential candidature has been common knowledge among most of the Victorian clubs since last year's finals series. Carlton president John Elliott first told Evans in December that O'Connor did not have the numbers to survive and that message was re-iterated in late January.
Pushing O’Connor’s influential legal role on the commission and his help in securing the phenomenal News Corporation media deal, the AFL commissioners are believed to be staggered at a potential protest vote. Conversely, the Victorian presidents have been astounded at the fervor with which the commission has fought to save O’Connor.
In his letter to the clubs, O’Connor accused Elliott of spreading misinformation. He said that Elliott claimed on radio that two commissioners had agreed it was time for O’Connor to go.
O’Connor also denied he was anti-Victorian, defended accusations of non-accessibility to the clubs and defended his key role in developing football in New South Wales.
O’Connor, however, did concede that he was part of the commission team that in 1993 produced a five-year plan indicating that the optimum number of clubs in Victoria should be eight, and he now supports the 16-team competition.
It also now appears unclear whether Hammond, who chaired Adelaide for its first 10 years and presided over the club’s two premierships, has been guaranteed his former club’s vote in next week’s secret ballot, which requires a simple majority. Hammond’s predicted smooth departure from Adelaide was marred by a board reshuffle in which the outgoing chairman’s preferred successor Ross Dillon finished up resigning from the board.
Adelaide’s new chairman Bob Campbell attended the presidents’ meeting three weeks ago but abstained from voting. Geelong, Sydney, Brisbane, West Coast and Fremantle are supporting O’Connor. Carlton, Essendon, North Melbourne, Hawthorn, Richmond, the Western Bulldogs, St Kilda and Melbourne have indicated they will stick with Hammond.
Adelaide has released a short media statement, which said:
“The Adelaide Football Club advises that it has distanced itself from any protest message that a group of Clubs, including Carlton, Hawthorn and Melbourne, have sent to the AFL Commission in its campaign to remove Commissioner, Terry O’Connor.
The Adelaide Football Club also advises of its support for the nomination of Bob Hammond to the AFL Commission.
With South Australia being a major football state, the Club has always held the view that if a qualified South Australian were to nominate for the AFL Commission, the Club would offer its support.”

Father-Son rule could be retained
Brisbane and Richmond have joined forces this week with a draft submission to retain the father-son rule in a revised format.
Clubs had until the end of the week to outline their submissions to the draft review working party, chaired by AFL football operations manager Andrew Demetriou.
Rather than abolish the father-son rule, as several clubs want because they feel it compromises the draft, Brisbane chief executive Andrew Ireland believes he has the makings of a fairer system.
Under current rules, clubs can recruit under the father-son rule by using a second-round national draft selection. However, both the Lions and the Tigers believe one of the drawbacks of this system is that it disadvantages lower-order clubs because a second-round selection could range anywhere from No.17 overall to No.32. Lower-order clubs thus have to use better selections to draft under the rule than higher-ranked clubs.
Ireland wants all clubs to be able to bid one of their draft selections for players eligible under the father-son rule, which would give a truer indication of the player’s worth. The father-son club should then be given the right to match the best bid by using its nearest selection in the same or following round to draft that player. So, depending on the perceived ability of a particular eligible father-son draftee, he may be taken anywhere in the draft, and not necessarily as a second-round choice.
The AFL would provide clubs with a list of eligible father-son draftees before the national draft. Clubs interested in drafting a player in this category would then make bids. If clubs rate a player with a higher draft position than the father-son club is prepared to offer, the player would automatically join the club that made the best unconditional bid. Bids by clubs must come from their original draft selections before pre-draft trading alters the pecking order.
Ireland added that a bidding process would also differentiate between an eligible father-son player who was a legitimate first or second-round selection, and one who should be a late draft selection.
Richmond chief executive Mark Brayshaw said he believed Brisbane’s submission to be a better system than what is presently on offer.
Under the Lions/Tigers submission, average father-son players may not need to be selected until late in the draft, but, on the other hand, clubs may be forced to give up a first-round selection for a quality player.
Ireland said the concept of his submission should also be extended to Sydney and Brisbane’s developing market rule, under which those two clubs can draft a player who lives within a 50-kilometre radius of those cities by using a second-round national selection.
Essendon coach Kevin Sheedy also threw his support behind the father-son rule, but said he believed clubs paid too high a price by surrendering a second-round draft pick to secure the sons of past players.
“I think that if you want to keep the fabric of footy in football, then you actually make it a last-round draft choice,” Sheedy said of the father-son rule.
He went further by suggesting the league also look at a rule that would unite brothers at one club.
“I definitely think the father-son, and possibly even a brother-brother, rule should be looked at,” said Sheedy. “But, once again, with a review it’s up to the clubs to put in all our ideas, pool them together, and come out with hopefully an agreeable sort of project where we can go down together.”

Demons’ A$1 million loss
Melbourne, last year’s losing grand finalist, is set to start the season with a loss of almost A$1 million, plunging them into the red before the season begins.
The cash-strapped Demons will write off losses from an investment in a pokies venue the northern Melbourne suburb of Fawkner that is likely to be mothballed due to the Victorian Government’s poker-machine cap and appears doomed.
At least A$850,000 has already been sunk into the proposed venue by the football club over the past four years. That money, which was to be offset by future profits from the venue, will be written off.
The club had forecast an annual profit of A$500,000 from the social club. That will have to be found elsewhere if the Demons are to survive.
“It will be very difficult to survive in a couple of years if we don’t have continued success on the field and find new revenue streams,” club chief executive John Anderson said.
The Demons’ only chance of a lifeline for the social club is for Tabcorp (which operates betting agencies and pokie venues across Victoria) to shift machines from other pokies clubs in the area and put them into the planned social club on the Hume Highway. “We will need satisfaction from Tabcorp within two weeks or we will have to prepare for the write off,” Anderson said.
Before this latest blow, the club had budgeted for a profit of up to A$150,000, in line with the A$150,000 they made last season. “If we have to write this off, we would be looking at a loss of A$750,000,” Anderson said.
With wealthy mining magnate president Joseph Gutnick set to make the final instalment of his A$3 million contribution to the club -- and his companies on rocky ground -- the club can not afford to rely on the white knight to bail it out again. They will be hoping Melbourne vice-president and Crown casino chief executive Ian Johnson may have some influence with Tabcorp to encourage it to shift machines from other clubs in the area.
Anderson said it was more important than ever for Melbourne fans to take out memberships to support the players on the field and the club off the field.

Gutnick reaffirms pledge to the Demons
Melbourne president Joseph Gutnick has reaffirmed his commitment to the Demons and said his funding of the club would extend beyond his current pledge of A$3 million, despite his financial woes.
“I’ve given A$2.7 million, I intend to pay the rest of that money and give more in my commitment to the Melbourne Football Club,” he told Channel Ten on Thursday.
Gutnick promised the club A$3 million soon after becoming president in 1996, and the last A$300,000 of that rescue package is due to be paid this year.
Gutnick’s Centaur Mining and Exploration company went into voluntary administration on Wednesday with debts of about A$500 million.
Demons chief executive John Anderson said Gutnick had the full support of the club. “I speak with Joseph each day and I have spoken with him today. He has reaffirmed his commitment to the club,” he said. “The directors of the club are all right behind him. He supported the football club in its hour of need and we can respond with a bit of moral support for him.”
Gutnick was re-elected club president last December for a further two-year term. While he is yet to make his final payment to the club, Anderson said it had been taken into Melbourne’s books for last year.
Gutnick has said he would review his commitment to Melbourne by the end of this year.

St Kilda’s cash flow boost
St Kilda’s cash flow has received a significant boost through the belated arrival of compensation for its Colonial Stadium troubles.
Club president Rod Butterss has confirmed that the Saints had finally received the compensation they had negotiated with the AFL and Stadium Operations Ltd, the Colonial Stadium operator, late last year.
While the money - believed to be a six-figure sum - was counted in the club’s result for the last financial year, its settlement two weeks ago has given the Saints a timely cash injection.
They are not the only club to receive compensation for the horrific first-year teething and organisational problems at the new stadium. Richmond received nearly A$200,000 for the money it lost last year as a result of stadium difficulties.
Butterss said the compensation “won’t make any difference” to the club’s bottom line this year since it had already been budgeted for in 2000, but it would assist in its day-to-day operations. He said the club was “satisfied” to have the money, although it would have liked it earlier.
Butterss said the AFL had been “very good in getting the settlement arranged”.
While the terms of the settlement are confidential, Butterss said the compensation was for several revenue streams, including corporate sales, signage and membership; the AFL had agreed to underwrite its membership income because of the closure of Waverley Park in 1999.
Since the Saints managed to finish a disastrous year narrowly in the black, the settlement was clearly the difference between a profit and loss last year.
Butterss said the club was in a position to meet its financial targets for 2001, with membership up 41 per cent compared with the same stage last year. The club was also “on target” in its ambitious goals for corporate sales and sponsorship.
He said the Saints had budgeted for a loss of about A$200,000 this year, but their target was a small profit. “A satisfactory position would be the target.”
In setting the financial targets, the club has taken into account its increased spending on its football operations. The Saints have spent heavily on players such as Fraser Gehrig and Aaron Hamill and to secure coach Malcolm Blight in a bid to transform its on-field fortunes.
Butterss said the club had spent A$200,000 on improving facilities at Moorabbin, but this had been specifically raised by the Saints Foundation for this purpose.
“We couldn’t really afford to operate an elite team out of those conditions,” he said, adding that the facilities were still beneath the desirable level. “At least we’ve gone from pretty poor to satisfactory at this stage.”

AFL acts on unaccredited players’ agents
The AFL is set to crack down on player managers without official accreditation by cutting them from the system.
AFL chief executive Wayne Jackson said the league would enforce its laws against rebel managers from next month when accreditation of the AFL Player Agents Association is expected to come under the umbrella of the AFL Players Association.
Not only will rebel agents be outlawed - the AFL will refuse to register players whose contracts are negotiated by non-accredited agents - but AFLPA chief executive Rob Kerr is set to announce a strict new code of conduct for player managers.
More than 600 league players are managed by almost 90 agents, including 10 who are not accredited. Among those not registered is Melbourne-based Ron Joseph, a high-profile manager who represents more than 50 players, including Peter Bell, Fraser Gehrig and Leigh Colbert, who over the past 18 months have switched clubs in some of the most controversial trade deals on record.
Under the collective bargaining agreement (CBA) between the league and the players association, all agents should have been accredited by February last year, and clubs should not have negotiated with player managers who were not accredited.
However, enforcement of the agreement has not been acted on until now and heavy penalties can be expected to be discussed by the AFL Commission against clubs that deal with rebel agents.
Clubs can enter into new contract negotiations with only an accredited agent, the player, or the player’s legal guardian.
Jackson has fully supported the incorporation of agents into the players association, and believes it will enhance the professionalism of the AFL. “There is also enormous scope to improve the level of service and quality, collectively, of the players,” Jackson said.
The regulation of player managers will soon come under the administrative control of AFLPA executive director Peter Mann, the former North Melbourne and Fremantle player, who will head a six-man board of management.
Under the new system, agents will be accredited only after completing a detailed examination and disclosure of any previous criminal, fraud or bankrupt charges.
“The application process will be more rigorous than it was and we will require specific qualifications,” Kerr said. “We also want to know what sort of services they plan to provide players. If they are just going to be a contract negotiator, well and good, but if they are going to do tax planning, investment counselling, marketing etc, that should be tabled. We’re actually trying to nail down a bit more of what the agent's brief is.”
Kerr said the players association had the resources to educate and manage agents “in a manner appropriate for a group of people potentially managing A$83 million worth of football money”.
The new code of conduct will better regulate player managers, especially in their recruitment of new talent. Embargoes will be placed on contact periods for teenagers in the under-18 competition. Its aim is to prevent certain unscrupulous scouting practices, and the poaching of players.
Agents must now declare any conflict of interest, including where the agent directly or indirectly solicits or accepts money or anything of value from an AFL club, and not offer any money or goods to a player to lure him to sign with the agent. A disciplinary process will be put in place for any agent who contravenes the code of conduct, giving the AFLPA the power to revoke accreditation.
Ricky Nixon, head of leading player manager company Flying Start, says he has advocated the control of player agents by the players association since 1996. “It can only improve the welfare and general professionalism of players,” Nixon said. “We can’t afford to have players looked after by part-time managers who don’t know all the rules, don’t have a feel for the game and therefore not working in the best interest of the player.”
Joseph, who has refused to become an accredited agent, has adopted a “wait-and-see” attitude over the proposed changes and control of player managers. Joseph said he objected to the original accreditation scheme which had been structured by the agents.

Waverley Park in dilapidated state
Melbourne’s Waverley Park, once a jewel in football’s crown, has been left to languish as a suburban eyesore. And the AFL has admitted Waverley Park is an eyesore.
Vandals have broken windows and scrawled graffiti on the walls of the disused stadium, while the AFL has sold the goal posts and some seating.
Heritage Victoria was to inspect the empty venue this week to see if the AFL has breached the conditions of its heritage listing, ordered last year for its social and historical significance. Breaches of the strict heritage registration carry a penalty of up to five years in jail.
Victoria’s heritage council chair Catherine Heggan confirmed there had been many calls and letters from residents concerned about the poor state of the former footy stadium. “Heritage Victoria will inspect the site this week to assess for itself the extent of any damage and the removal of items,” Ms Heggan said.
She said the site had some permit exemptions, particularly so general maintenance could be carried out. If the AFL is in breach it would be asked to rectify the problem before legal action was taken.
Ms Heggan said Heritage Victoria, the Government and Monash City Council (whose governing area includes the stadium) were yet to receive an application for the ground’s redevelopment.
A City of Monash spokesman said the council had always been concerned that the vacant ground would be left as an eyesore. “That’s why we opposed the listing in the first place,” the spokesman said.
AFL media manager Patrick Keane said a full-time caretaker had been employed to look after the site. “We still hope to sell it down the track,” Keane said.
The AFL, which contested the listing, wants to gain about A$85 million from the site. About A$30 million of it would go to Colonial Stadium, which the AFL will own in 25 years, and part of the proceeds would be divided among clubs.
Heritage Victoria and the AFL have a meeting next week to discuss the ground’s future. The AFL has held early talks with the Government and the council about what could be done with the site.
The Victorian Government has warned the AFL to do the right thing by the stadium’s heritage listing. “The State Government expects the AFL to play by the rules,” a government spokeswoman said. “They should be fully aware of their responsibilities under the heritage arrangements and be fulfilling them.”
AFL chief executive Wayne Jackson said the AFL was aware of its responsibilities to the site and the community but that it posed problems. “It is simply an impossibility to keep 220 acres of land, mostly of which is vacant car park, in the order that some people would like to see it,” he said. “Waverley clearly has to be sold. It should be developed in a heritage-sensitive way.”
Opposition planning and major projects spokesman Robert Clark said Labor had promised to keep AFL football at Waverley Park but had instead given Victorians a run-down, vandalised eyesore. “It is a lose-lose-lose outcome -- a loss for the fans who were promised AFL games would continue at Waverley, a loss for AFL fans generally who will end up bearing the cost of Waverley Park lying idle, and a loss for the local community who have this eyesore on their doorsteps,” he said.
“The Government must make up their minds now whether they are going to honour their promise or not. If they are, they must deliver and get Waverley reopened for AFL games. If not, they have to admit they have broken their promise, apologise to all the fans they misled, and sort out what is to be done with the site.”

AFL clubs eyeing Kiwi talent
New Zealand could become the next recruiting territory for AFL clubs. With three former Irish Gaelic footballers already on AFL lists, player agent Peter Jess believed the Kiwis could provide the next batch of young internationals.
Jess left for New Zealand on Thursday and visited the South Island in search of AFL hopefuls.
“I’ve got some contacts over there who I will be seeing and they have been looking for guys who are athletic and strong,” he said. “Most of them are currently playing rugby union and I am going just to see if they have got some genuine talent.” Jess said there was a lot of interest in Aussie Rules in New Zealand and he was keen to have a look at four or five young players who had been identified as having the attributes to try out for Australian football.
He said the Irish experiment had been successful and the push to recruit Kiwis had to be pursued.
“There are quite a few expatriates from Australia over there and quite a bit of football is played in New Zealand,” he said. “I think it is a market we should explore and we are primarily looking for athletes who have got ball skills and they might not necessarily be the best rugby players.”
Jess said New Zealand was obviously close to Australia and a cheaper option than other countries.
The Western Bulldogs and Melbourne recruited Irish players last year. The Bulldogs recruited Bernie Collins, while the Demons put Kevin Devine on their rookie list. Sydney’s Irish recruit Tadgh Kennelly is expected to push for senior selection this year.

Colonial Stadium’s investors threaten legal action
Shareholders who took part in a A$150 million equity raising that helped finance the A$460 million Colonial Stadium are talking about legal action over the failure of their investment to generate expected returns.
Companies, investment groups and individuals who paid a minimum of A$500,000 to be shareholders in Colonial met at the beginning of this month to approve the final stage of a A$45 million lifeline for Colonial from Kerry Stokes’ Seven Network (as reported last week), and the prospect of legal action was raised at the meeting, according to investor sources.
The sources said they believed investors would not break ranks, but it is believed some small shareholders have expressed concern about projections that were made for Colonial when the private offer to invest was being compiled.
The holding company for the stadium investment, Stadium Operations Ltd, is believed to be also examining whether there is a case to launch legal action.
A report recently circulated to investors by SOL said the stadium could post a total loss of almost A$40 million this year, and was not expected to be financially self-supporting until 2004.
It blamed the project’s financial woes on a litany of problems, including lower-than-expected event bookings, heavier-than-expected pre-opening costs, and even the slow development of the Docklands precinct, which it says “resembles a construction site”.
All stadium investors are able to participate in the latest convertible note funding deal, which is priced initially at 40 cents, well down on a price of A$2 per stapled security paid by the original investors. But Seven will buy any and all convertible notes not picked up by the bruised shareholder group, and the network is expected to emerge with majority control of the project.
Many of the individual investors in SOL are linked to the accounting firm KPMG and the investment bank Merrill Lynch, which both helped construct the proposal. Baulderstone Hornibrook, which constructed the stadium, was also a key player in the development of the stadium concept.
Investors believed they would achieve a return of 22 per cent on their investment in Colonial, which was developed at a total cost of about A$450 million. But the stadium lost A$24 million in the year to June 30 last year after being rushed into service in time for the first game of the AFL season.
The confidential report circulated to shareholders ahead of the recent meeting to approve the convertible note funding deal said another A$25 million was needed to cover an expected “financial shortfall” at the stadium this calendar year. “The events schedule contained in the initial projections has not been matched by events held at the stadium,” according to the report.
The number of events was increasing, but “it will take some time before the stadium is utilised at levels that will make it self-funding”, the report said, adding that there was a particular deficiency of non-AFL events, non-winter events and concert events.
“Initial projections for the project had made assumptions concerning attendances at events that have not eventuated.” It said. “The market for non-sporting events that could be held at the stadium is smaller than was anticipated”.
It said the project had also been hurt by the slower-than-expected development of the Docklands project, on Melbourne’s western edge, where the stadium is located.
The Docklands vicinity “resembles a construction site rather than an entertainment area”, and proposed residential units in the Docklands precinct had not yet been built, depressing food and beverage revenue at the stadium. Parking and access to the stadium had also been affected by delays in the development of the Docklands area.
The report said Docklands was progressing slowly and a significant population increase in the area was “unlikely in the short to medium term”. (The Victorian Government estimates it will take 15 years for Docklands to be fully developed.)
The stadium is projected in the report to achieve a cash operating surplus of A$5.3 million this calendar year after booking revenue of A$28.6 million. But the potential cash surplus is expected to be swamped by debt charges of A$16.1 million and, after booking a paper charge of A$28.7 million for depreciation of the massive stadium, the project is expected to post a total loss of A$39.5 million.
Annual earnings before interest, tax and depreciation are expected to rise from A$5.3 million to A$20.8 million over the next three years, but heavy depreciation charges keep the total result in the red.

New probe on AFL investigator
Victoria Police are investigating an officer who is acting as a high-profile AFL investigator while on suspension from the force.
Sgt Rick Lewis was suspended late last year with full pay, pending a probe into allegations he sent pornographic e-mail on the police computer system.
It is against police regulations for a officer on suspension to work a second job.
The force had allowed Sgt Lewis to work as an AFL investigator and gave him time off. This permission was revoked once he was suspended.
Police command has launched an inquiry into Sgt Lewis’ role at the AFL, separate to the e-mail probe. The AFL does not pay Sgt Lewis a wage, but pays his expenses.
Sgt Lewis was on sick leave when he was suspended last year. He has told police he is too sick to answer questions about the e-mail allegations, but returned to the AFL last month.
Although police sources claim the alleged offensive e-mail material was “hard core”, Ethical Standards Department officers can not continue the probe while Sgt Lewis is sick.
It is understood high-ranking police are concerned that Sgt Lewis is working for the AFL while he is suspended on full pay from the police force. Assistant Commissioner Graeme McDonald is believed to have ordered an inquiry.
When an AFL spokesman, Patrick Keane, was asked whether Sgt Lewis received an honourarium of $40,000, he said: “It would not surprise me.” He later revised the figure and said Sgt Lewis received about a quarter of that amount. Neither Keane and Sgt Lewis would make further comment.
A covert operation last year led to an investigation into police sending pornographic and other offensive e-mails on police computers. Twelve officers, including Sgt Lewis, were suspended. Ten have appeared before a police disciplinary panel. No decision has been made. Sgt Lewis has not appeared before the panel.
A police spokesman, Kevin Loomes, would not comment on individual officers. But he said it was against police regulations to work a second job while suspended from the force.

Blues tax probe
Top AFL players of the ‘90s, including dual Brownlow medallist Greg Williams, face tax bills totalling hundreds of thousands of dollars. This follows a test-case judgment against former Carlton player Stephen Oliver.
Williams confirmed he had received a tax office demand after Carlton Football Club was accused in a federal Administrative Appeals Tribunal judgment of contriving with player-manager Peter Jess to breach the AFL salary cap with secret payments to players.
Oliver was penalised nearly A$23,000 by the Australian Taxation Office for underpaying tax.
Most of the other players facing big tax bills are also former Carlton players.
At least six Carlton players and two from Collingwood are believed to have been issued with assessments for allegedly unpaid tax.
Williams, who was also managed by Jess, would not disclose the amount of the assessment. “Just say it’s a bit more than Oliver’s,” he said.
Solicitor Leigh Baring, who represented Oliver at the AAT, said the amount of tax liability for some ex-players “would be hundreds of thousands in a couple of cases”.
Jess’s former clients included Williams, Barry Mitchell and Justin Madden (current Victorian Sports Minister).
AAT senior member John Handley, who heard Oliver’s appeal against the tax office’s ruling, described the arrangement between Jess and Carlton Football Club not only as a sham, but “were a deliberate and contrived intent to avoid the scrutiny of the AFL,” he said.
“I am not satisfied that the CFC (official abbreviation for Carlton) were intending to delude the ATO by describing the payments as being a fringe benefit, but were more intent to avoid the scrutiny of the AFL.”
Oliver told the hearing he negotiated his 1994 contract with Ian Collins, who was then chief executive officer at Carlton.
Handley said money paid to Oliver over and above the amount disclosed to the AFL was paid to “Secureinvest Pty Ltd”, a company of which Jess was a director. Secureinvest then paid the extra money to Oliver. “Those monies were treated by CFC and by Jess as fringe benefits, and not attracting income tax,” Handley said. Carlton later disclosed the secret payments during the AFL’s salary cap moratorium.
Oliver, who still plays football for Castlemaine in northwestern Victoria, said he came to the notice of the tax office “after Carlton did a backflip and sunk us into it”.
“I had a net of tax contract and Carlton and Jess structured a payment system which I was told was structured to suit my needs as far as the tax side of it went,” Oliver said. “I was told I wouldn’t be liable to pay tax on it.”
Oliver, 30, played only 14 senior games with Carlton during 1993-94.
His 1993 AFL player contract disclosed a base payment of A$30,000, a car and match payments of A$2500 a senior match, A$700 for reserve matches and A$250 for pre-season games.
The AAT judgment said Carlton paid A$70,000 to Secureinvest Pty Ltd in 1994 under the terms of the club’s contract with Oliver. Handley described Oliver as honest and candid.
“He was 19 when he first contracted with the CFC. He put his trust in the officials of CFC and Jess and relied on them to advise him and manage his affairs,” he said. “Unfortunately, although in hindsight, his trust was misplaced.”
Mr Madden said players often had their salaries packaged, but that wasn’t part of his arrangement. “I only found out after I retired that I’d been earning a paltry amount in comparison to a number of my colleagues, who admitted they were on a much better deal than I was, much to my disappointment,” he said.
Carlton chief executive officer Don Hanly, who took up the position only three weeks ago, said he had only just received a copy of the AAT decision and was taking it home to read over the weekend. He said the club had remitted the tax it owed in the Oliver case.
Carlton could be hit with a bill of up to A$500,000 for unpaid fringe benefits tax if the Oliver decision is applied in all outstanding cases.
An ATO spokeswoman would not confirm the number of pending cases against footballers.
Carlton was fined A$172,728 late last year and barred from the pre-season draft after the AFL found it guilty of making a large undisclosed payment to captain Craig Bradley.

Jarman out for two months
Skillful Crows veteran Darren Jarman is off crutches but facing a longer-than-anticipated lay-off with a calf injury.
Original estimates that 34-year-old Jarman would miss only one AFL match - the premiership-season opener against Sydney at the SCG on April 1 - have been revised to suggest the three-time premiership player may not be seen in action until May.
Crows medicos have confirmed Jarman tore rather than strained his right calf muscle in a training drill at West Lakes (Crows’ HQ near Football Park) last Tuesday week.
The tear - and Jarman’s history with the injury - could require six to eight weeks to heal and strengthen to ensure there is no recurrence, as there was last season when he missed six games with calf injuries.
Jarman, who enjoyed a drama-free pre-season training program until last Tuesday, has so far eased the right leg by moving on crutches and treated the tear with ice packs.

Briefly:
*Essendon premiership forward and Coleman medallist Matthew Lloyd has rejected his team’s first offer of a new contract.
Lloyd this week met his manager Ricky Nixon, who then told the Bombers of Lloyd’s decision.
Although there is no suggestion Lloyd would consider leaving Windy Hill, it is believed Nixon offered his terms and the Bombers then responded with theirs, which Lloyd refused.
Nixon would not comment other than to say: “We feel we put something fair and reasonable, but at this stage we haven’t come to an agreement.”
Lloyd is almost certain to receive a long-term contract starting at A$500,000 a season.
*Still with Essendon, coach Kevin Sheedy has called for an end to timewasting after behinds are scored. Sheedy would like to get rid of the goal umpires’ flag-waving and see the ball kicked back into play immediately after a behind. This would make the game quicker, more exciting, and challenge defensive zones for kick-ins. “There should be consideration that a ball or two should be left at the goal post or at the back of the goal with one of the attendants and you don’t wait for the crowd to hold up the play,” Sheedy said.
AFL chief executive Wayne Jackson said if Sheedy had such a good idea, he should discuss it at the next coaches’ meeting.
*Carlton’s star duo of Anthony Koutoufides and Stephen Silvagni made a tentative comeback to football yesterday (Friday) with the pair taking part in a VFL reserves practice match.
With just a fortnight to go before the start of the season and the Blues hopeful that the pair will be back for round one, their appearance for a half of football against Box Hill was a major boost for the club.
The Blues’ match committee made the decision to play the pair on Thursday night. The duo changed between playing on the half-forward line and on the ball.
Carlton communications manager Ian Coutts said the Blues were very happy with the progress of the pair. Both players pulled up well after their run and Koutoufides will have a further medical check on his troublesome knee today.
Both players have been away from the action all summer after Koutoufides seriously injured his knee against Essendon in round 20 last season and Silvagni tore his hamstring from the bone during the Blues finals campaign.
*West Coast defender Phillip Read will not play again this year. Along with Andrew Williams, Rowan Jones, Michael Braun and Chad Morrison, Read was part of a select group of players the Eagles were desperately relying on to help arrest the club's dramatic decline.
In the words of Eagles chief executive and former football manager Trevor Nisbett, Read was among those players the Eagles had earmarked to “start having an impact on the game rather than just being out there with the rest of the crew”.
Read did not even find out the knee was seriously damaged until late Wednesday, some five days after the club’s Ansett Cup match at Colonial Stadium. An arthroscope confirmed what the club medical staff had feared; a ruptured anterior cruciate ligament in Read’s right knee.
*North Melbourne captain Wayne Carey (calf) and ruckman Corey McKernan (knee) will be available for the opening round of the AFL season after injury assessments this week.
Both players underwent medicals after being injured in the Ansett Cup semi-final loss to Port Adelaide last weekend.
*Hawthorn coach Peter Schwab said he had no say in his side’s sudden change of uniform during Saturday night’s Ansett Cup semi-final loss to the Lions.
The Hawks started the match in a new garish-styled rugby tops before changing into their original strips at the long break. The Hawks’ on-field performance improved dramatically, levelled the score with the Lions at three-quarter time before losing the match.
“They probably felt more comfortable in their original jumpers,” Schwab said.
*Essendon will knock back any request from North Melbourne to unfurl its premiership flag in Round 1.
The Bombers will show off their 16th pennant to members and supporters at Colonial Stadium in Round 2 against Port Adelaide.
The cash-strapped Kangaroos, who will receive all gate receipts from the Bombers’ game, had hoped the flag unfurling could attract more paying customers. But Bombers chief executive Peter Jackson dismissed the idea, stating the general interest of the Kangaroos-Essendon game will draw a big crowd without worrying about unfurling the premiership flag.
*The AFL has asked Colonial Stadium operators to allow spectators on the ground for kick-to-kick after games.
Colonial and the Sydney Cricket Ground (for obvious reasons) are the only two grounds that do not allow fans on the ground.
AFL boss Wayne Jackson said it was an enormous promotion for football to allow fans on the grounds for a kick. “We recognise and respect that they would not be able to go on to Colonial after every game, but we would want them to go on as much as they possibly can,” he said. “As we understand it, if Colonial gets the Ansett Cup grand final they’ll have the kids on it after the game.”
Jackson said if Colonial was able to host rugby league and pop concerts, having a couple of thousand kids on the ground for 10 minutes after a game shouldn’t be a problem.
*Chief football writer for Melbourne’s Herald Sun newspaper, Mike Sheahan, has signed with Channel Nine. Sheahan will join Channel 9's Sunday football panel for the first program on April 1.
He is the first big name to switch channels since the AFL TV rights changed hands earlier this year.
The only remaining original member of the Channel Seven’s Monday night chat show Talking Footy, Sheahan parted company with the network last month after six years. (Johnson’s note: Sheahan had appeared on Seven’s football coverage since 1992) He will join Garry Lyon on the Sunday Footy Show panel, replacing Robert Walls who moved to Seven before the AFL rights decision was made.
It is understood the show will include a segment with Sheahan and Sam Newman conducting head-to-head interviews with the most important and newsworthy football identities of the week.
“I really enjoyed my six years at Talking Footy but there was a breakdown between Seven and myself over the arrangements for the new season and they saw fit to change the panel,” Sheahan said. “I am really looking forward to Sunday mornings with Gazza, Sam and the boys.”
Footy Show producer Cos Cardone said Sheahan was an invaluable addition to the network’s football coverage.

That's all for today. See you soon.

Regards,