Why did the VFL admit interstate teams and expand?
Despite the success of the VFL, many teams were suffering financially by the 1980s. Much of this is blamed on “cheque-book recruiting”, clubs attempting to buy successful players from other clubs in the VFL or in other states. This lead to many clubs being technically bankrupt, with some being investigated by the Department of Corporate Affairs. In addition, crowds were falling, as were club memberships. Transfer fees were excessive and the competition was operating at a loss, while ground facilities were falling into disrepair. The new teams provided income to save the failing Victorian clubs by firstly paying substantial licence fees to join the competition, and secondly by providing increased income from television rights. The money from these two areas helped refinance the VFL and its clubs.
Despite the success of the VFL, many teams were suffering financially by the 1980s. Much of this is blamed on “cheque-book recruiting”, clubs attempting to buy successful players from other clubs in the VFL or in other states. This led to many clubs being technically bankrupt, with some being investigated by the Department of Corporate Affairs. In addition, crowds were falling, as were club memberships. Transfer fees were excessive and the competition was operating at a loss, while ground facilities were falling into disrepair. The new teams provided income to save the failing Victorian clubs by firstly paying substantial licence fees to join the competition, and secondly by providing increased income from television rights. The money from these two areas helped refinance the VFL and its clubs.
Despite the success of the VFL, many teams were suffering financially. Much of this is blamed on “cheque-book recruiting”, that is where teams attempted to buy successful players from other teams in the VFL or playing in other states. This lead to many clubs being technically bankrupt, with some being investigated by the Department of Corporate Affairs. In addition, crowds were falling, as were club memberships. Transfer fees were excessive and the competition was operating at a loss, whilst ground facilities were falling into disrepair. The new teams provided income to save the failing Victorian teams by firstly paying substantial licence fees to join the competition, and secondly by providing increased income from television rights. The money from these two areas helped refinance the teams in the VFL.
