Professional Documents
Culture Documents
conducted by
Terry Dillon B. Bus (Acc) CPA Grad.Dip. Man. MBA
Presentation to the Board - 6.2.2017
SUMMARISED VERSION
APPENDICES
1 - Club rankings of the top 10 challenges for the OMFNL competition 12
2 - Club rankings of the top 10 challenges for the OMFNL clubs 13
Working with associations, leagues and clubs at every level across Victoria, offers a window on the good, the bad and
the indifferent when it comes to sports management. Wherever they are, there is one thing in common, though - all
sports and their volunteers are under similar pressure and face similar challenges. The OMFNL is no outlier in this
regard.
The OMFNL Board should be applauded for taking the significant step of undertaking a review to identify, understand
and deal with the many challenges the current community sports environment poses.
In business and in life, we are encouraged to think globally, act locally. Local sporting clubs offer the perfect opportunity
to enact this philosophy. They are most often at the centre of their communities and their success as vital local resources
is crucially important to the communities they serve.
From my experience, we can all learn from each other, no matter our place in society. Dealing with a wide variety of
clubs and communities, I am reminded time and again how similar the challenges are at local level to those faced in the
AFL landscape. The only significant difference is scale; the issues are just as relevant, both to the health of the
respective competitions and to the communities they serve.
The healthier a competition is the greater its return to shareholders the clubs, league, supporters and the community -
so competitive balance, or equalisation, features strongly in this report. Without the current measures being implemented
to address imbalance, and the will to implement them, the competition puts itself at risk. If concerns over equalisation are
not addressed, the OMFNLs core product - competitive community sport - will become increasingly unpalatable to its
market and, ultimately, threaten the leagues long term sustainability.
One factor of the review is to focus on the health of the OMFNL and its clubs. The intent of this review is to focus on
securing the long-term sustainability, vibrancy and health of the OMFNL and its clubs and to provide strategies to deal
with the issues currently in play.
The results and findings in the reports are substantial. They provide an evidence base on which the OMFNL Board can
establish a drive to make the appropriate change.
My sincere thanks go to the Ovens & Murray Football Netball League for the opportunity to undertake this review of its
competition and its 10 clubs. It has been a very rewarding process. It has been especially enjoyable meeting the people
of the OMFNL, who are positive and passionate about their clubs and communities; their passion is the engine that will
drive the league towards its goal of sustainable success.
Terry Dillon
B. Bus (Acc) CPA Grad.Dip. Man. MBA
6 February 2017
Terry Dillon has extensive experience in both sport and business. He served for 16 years
as COO, CFO and acting-CEO at Hawthorn FC, Collingwood FC and St Kilda FC. He is vice
president of the Cora Lynn FNC, West Gippsland, where he played over 300 senior
games. Terry is a passionate supporter of community clubs and not-for profit
organisations & has been helping community club for more than 2 decades.
19 INTERVIEWEES
OMFNL directors and staff
Stakeholders
8. Aaron McGlynn - former OMFNL GM
9. John ODonohue - AFLNEB GM
The clubs were very welcoming of the review process. They took the process very seriously and completed all
requested tasks. As it was important to get a feel for each of the clubs, interviews were conducted on-site at each
of the clubs facilities.
Competitive
Fan engagement / Club Health/ People/ Key Infra-structure /
Balance /
Interest Levels Education Partnerships facilities
Equalisation
FOCUS AREAS - Player points - Participation - Gaps / benchmarking - Board / staff skills - Centralised working party
- Salary cap - Community focused - Educate / skill deficiency - AFLNEB relatonship - Build it & they will come
- 3rd party employment - Engagement / fans - Committee turnover - Media relationships - Govt support
- Talent pathways - Maintain 10 team comp
The strongest and most consistent theme of club interviews is that competitive imbalance is at a concerning level.
There is overwhelming agreement that there is a need for more than just a player points system to provide equalisation.
Rigid enforcement of the salary cap and 3rd party employment agreements will play an important role in achieving a level
of equality for all. These additional measures are in train with AFL Victoria and the policing of these potential solutions is
a key question raised by many clubs.
PILLAR 2 - FAN ENGAGEMENT, INTEREST LEVELS, UNPALATABLE PRODUCT
There is declining supporter interest in the competition; the club numbers are showing they are walking away. Especially
in the case of football, the game is losing relevance in the community. There is agreement that the League would benefit
from a focus on community activities, including competition-wide participation and engagement programs, and the
building of relationships with designated supporter groups. The level of resources often becomes the biggest hurdle here
but is a key piece of the puzzle.
PILLAR 3 - CLUB HEALTH
Among the clubs, there is a high level of concern that the sustainability of various clubs is under threat. At least seven of
the ten clubs agree that the health and sustainability of the competition is more important now than any perception of the
standard of play or the status of the OMFNL. Continuing survival is foremost in their minds. Clubs are keen to maintain a
ten-team competition to help ensure the long-term sustainability of the League. With several clubs under financial
pressure, there is a general view that the time is right for intervention and /or support.
What happens if the OMFNL loses a club? Is there a strategy in place? The answer I believe currently is no.
Getting the right balance on the Board, with a wide variety of appropriate skills around the table, is extremely important.
Each of the directors should have a clear understanding of their responsibilities, as a director and as an office bearer or
portfolio holder. All directors should be visible and available to all ten clubs.
It is important to have a relatively strong media presence, so that the League can have a voice on issues that concern
the OMNFL its clubs or its community constituency.
The clubs understand that the relationship between OMFNL and the AFLNEB needs improvement. This situation to be
remedied as a priority and forms one of the key pillars for the League to act upon.
Visits to all ten clubs revealed clear disparity in the quality of their facilities.
Other competitions facing this issue having addressed it successfully by forming a working party, that focusses on
facilities as a collective strategy. The clubs and key nominated individuals work together to raise standards in several key
areas that enable the improvement of facilities for individual clubs and, therefore, the improvement of player, spectator
and supporter experiences for all.
Clubs working together on a long-term, major infrastructure project is, potentially, a hard sell. However, the reality is that
home and away fixture scheduling means clubs share each others facilities every week during the season, so everyone
has a stake in its success. Instituting a minimum acceptable standard for facilities, then working together to ensure all
clubs meet the standard, benefits the clubs, the League and all its stakeholders.
Financial /
Revenue Executive Skills / Volunteers Membership
Governance
Generation effectiveness (reliance on too few) (lacks real focus)
planning
The philosophy of clubs working together and helping each other is one that needs discussion and support
from all. This maybe a shift from some of the clubs current practices but for the long-term health and
sustainability of the OMFNL competition and its clubs it is very important that we support each other so all can
maximise its potential.
How do you raise the bar when you dont know the level of the bar? Strong benchmarking is required and a
consistent financial framework (chart of accounts to start with) for such comparisons to concur amongst all
clubs.
Not surprising as Pillar 1; this is a common issue for all sports. There is a variety of proven ways to maximise revenue.
Benchmarking should play an important role in the financial health of clubs. They should be encouraged to share
information on their revenue what it is and how they have achieved it. Lessons learned from other Leagues and other
sports should be shared to effectively help the health of each of the OMFNL clubs.
PILLAR 2 EXECUTIVE SKILLS / EFFECTIVENESS -.
The skills and effectiveness of committees are often problem areas for clubs. Many clubs assessed their committee as
not having the necessary skills around the boardroom table. Targeting key people with the skills necessary for specific
roles is vital, so that clubs can thrive through good management, and, by sharing the load, avoid burning out good people
who perform well. This is an area at clubs that needs real attention.
PILLAR 3 FINANCIAL PLANNING / GOVERNANCE
Clubs do not spend enough time planning. This is a product of poor governance. The maxim that if you fail to plan, you
plan to fail is borne out in the clubs health assessments, which identify planning deficiencies. Profit forecasting is a
must the budget is just a start and some key tips to enhance individual accountability at club level is crucial to the
implementation.
PILLAR 4 VOLUNTEERS
Eight of the 10 clubs are down on the required level of volunteers. This is another area where clubs should be
encouraged to share successful volunteer engagement strategies. Once again, many lessons are learned from what
works well at other leagues and sports and how you overcome the primary issue of 3-4 people doing all the work at any
one club.
PILLAR 5 MEMBERSHIP
Membership is often an area that lacks focus at club level but it is probably the most important indicator of a clubs
current and future health. Most clubs do not run effective membership programs. Membership must be a focus as the
priority for the OMFNL clubs as the flow-on effects are significant.
To the Leagues credit it shows that Governance is the best performing area of the clubs operations at 67%.
Benchmarking level of 70% is where the clubs should be aiming.
Digital 50% 52% 55% 72% 45% 42% 27% 35% 42% 52% 77%
Fundraising 52% 80% 56% 41% 51% 45% 60% 50% 50% 33% 51%
Volunteers 52% 90% 50% 50% 35% 45% 75% 55% 42% 30% 52%
Membership 56% 68% 54% 44% 50% 62% 62% 54% 42% 48% 72%
Capital Grants 56% 68% 66% 88% 31% 46% 58% 58% 58% 40% 46%
Fund-saving 60% 73% 59% 59% 63% 59% 53% 59% 59% 36% 76%
Finance 65% 82% 82% 80% 64% 74% 57% 58% 60% 20% 71%
Sponsorship 65% 84% 62% 70% 60% 82% 62% 64% 46% 48% 76%
Taking Club - Next level 65% 69% 69% 63% 50% 76% 66% 69% 63% 56% 66%
Governance 67% 85% 71% 76% 68% 77% 63% 47% 72% 25% 82%
REFER BENCHMARKING OF SALARY CAP AND PLAYER POINTS ACROSS VARIOUS PARTS OF VIC
NB # GOULBURN VALLEY as the closest major league poses some threat to OMFNL from both attracting and
recruiting players to the region. This potentially could impact OMFNL. Impact needs to be assessed on an annual basis.
EXAMPLE OF EQUALISATION - The Western Bulldogs in the AFL are a great example of how equalisation works.
Equalisation is about trying to create an environment that allows competition to thrive and rewarding the administrators
and the clubs that maximise the outcomes from within the parameters they work within. Many lessons can be taken from
the success of the AFL equalization model adopted over the past 20 years.
COMMERCIAL REALITY WITHOUT COMPETITIVE BALANCE - the business model of running a League and its clubs
becomes highly prohibitive without true competitive balance.
SUSTAINABILITY V/S STATUS One of the primary issues, as the person undertaking the review was balancing the
importance of club sustainability / competition whilst maintaining the status of the OMFNL as one of the top 5 Leagues in
the State of Victoria.
It became clear at this current time and after reviewing the financial pressures (Balance Sheet and Profit and Loss
reviews completed for the 10 clubs) that club sustainability needs to be the main priority.
A few clubs are concerned that the quality of the game will diminish under the new proposed parameters, but I am
comfortable under the current landscape and comparing it to the other Vic Country Leagues ranked in the top 10 that
OMFNL is well positioned.
The level of points and salary cap can be reviewed annually on how it is working in the current circumstance.
PILLAR
STRATEGIC PILLARS NO
Develop and support appropriate pathways for all segments to open age
PARTICIPATION
(including womens football) to maximise participation
Pillar Support clubs / schools to provide quality management & environment to
COMMUNITY
motivate volunteers, umpires, coaches, teachers and sports trainers.
no 2
Develop community engagement initiatives that add social value and
ENGAGEMENT
support program accessibility, equality and inclusive environments.
The Additional team (for both football and netball) was a strong topic of
discussion for the future of some clubs. AFLNEB saying the research
MAINTAINING 10 TEAM COMPETITION
undertaken that the negatives far outweighed the positives of such a
change. OMFNL to explore the research that OMFNL has completed.
Cumulated points
80.0
Ranking 70.0
AREA OF REVIEW Points Avg Challenges 60.0
50.0
Competitive bal F'ball 19.0 1.9 1 40.0
30.0
Equalisation 27.0 2.7 2 20.0
10.0
Financial stability 38.0 3.8 3 0.0
Brand 57.0 5.7 4
O&M Board effective 57.0 5.7 5
AFLVIC Support 60.0 6.0 6
Relationship AFLNEB 61.0 6.1 7
Competitive bal N'ball 73.0 7.3 8
Biggest challenges OMFNL Competition
Govt support 77.0 7.7 9 (starting from the left)
N'ball Vic support 81.0 8.1 10
The above results show that competitive imbalance (result 1.9) and equalisation (result 2.7) being the 2 biggest issues at
the current time for the OMFNL competition as assessed by the 10 clubs. These 2 primary issues have a direct impact on
the 3rd and the 4th ranked challenges of financial stability (result 3.8) and the brand (result 5.7) for the League itself.
Remember the lower the result out of 10 represents the greater the challenge as assessed by the Clubs.
Note * - We have not named any clubs in any of the tailored OMFNL questions. Strictly confidentiality provided to ensure
clubs were honest and frank with their input.
Note * - It is from the interviews / on-line survey results (part A and Part B) that we have determined the strategic and
operational pillars identified in the first section of this report.
CHALLENGES FOR THE CURRENT CHALLENGES FOR THE CURRENT OMFNL "CLUBS"
OMFNL "CLUBS" 100
90
ANSWERED BY ALL 10 CLUBS
Cumulative points
80
Ranking 70
AREA OF REVIEW Points Avg Challenges 60
50
Financial stability 24 2.4 1 40
Volunteers 27 2.7 2 30
20
Facilities F'ball 39 3.9 3 10
0
Facilities N'ball 50 5.0 4
Standard of f'ball 54 5.4 5
Engagement Level 58 5.8 6
Feeder health F'ball 66 6.6 7
Standard of netball 73 7.3 8
Community inclusive 75 7.5 9 Biggest challenges 10 Clubs (starting from the left)
Feeder health Nball 88 8.8 10
The above results show that Financial Stability (result 2.4 out of 10) and number of volunteers (result 2.7) at community
level as being the 2 biggest issues at the current time for the OMFNL Clubs. Remember the lower the result out of 10
represent the greater the challenge as assessed by the Clubs.
Note * - We have not named any clubs in any of the tailored OMFNL questions. Strictly confidentiality provided to ensure
club are honest and frank with their input.
Note * - It is from the interviews / on-line survey results that I have determined the strategic and operational pillars
identified in the executive summary.