Carlton are set to request a financial lifeline from the AFL in oder to keep the club afloat.
The Blues have long been in debt and were due to finally claw their way out of debt in the 2020 season. However, the postponement of the season has seen the money dry up as clubs miss out on key income.
The Blues will ask the AFL for a slice of the $600 million loan the league secured from NAB and ANZ banks.
Clubs will be required to repay all money loaned out by the league and some clubs have chosen not to take the AFL up on their offer, including Adelaide, Collingwood, West Coast, Hawthorn, Richmond and the Western Bulldogs.
Carlton president Mark Logiudice emailed members to explain the clubs decision, saying that had the crisis come 12 months later they would not have needed to seek such assistance.
โFirstly, 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,โ Logiudice wrote.
โOur revised budget, forecast that the remaining $3 million debt was likely to be eliminated by the end of this season.
โThis 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.
โThe improved financial performance was also to be fuelled by the continued growth of Carlton IN Business and Carlton College of Sport.
โHad the COVID-19 situation occurred this time next year, it is highly likely we would have been in a position to be a โnon-assistedโ club, meaning we would not need to rely on any AFL financial support through this period.
โUnfortunately, that wasnโt to be, and as a result, the Board has elected to be an โassistedโ club, which means we will have access to AFL financial support if and when we require it.
โOur cash flow modelling suggests we may need this support through the latter part of this year and into next year.
โThereafter, 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.โ
Logiudice said that the club would not be cutting funding to their AFLW and AFL programs aside from what is already mandated by the AFL, he also added that the club now aims to be debt free by 2023.
