From Today's Crikey: Demetriou's 80% Pay Hike

[St George]

What has Demetriou done to deserve the dough?
Charles Happell writes:
In 2005, AFL chief executive Andrew Demetriou was paid $780,000 to do his job; last year, his salary rose to $1.4 million. The AFL’s remuneration committee deemed that Demetriou’s performance had been so good over those two years that it warranted an 80% pay hike.
Inflation in that time has been negligible, the CPI running at about 3%. Most other CEOs – even at a time of executive salary blowouts – have had to make do with considerably less. The NAB’s chief executive John Stewart, for example, was rewarded last year with a piddling 5% increase.
Over at The Lodge, the Prime Minister’s salary since 1999 has limped up from $289,000 to roughly $336,000 – or a 15% rise. But that is over eight years.
And yet Andy boy pulls in 80% over two years. Why?
A chief executive in Melbourne who runs a vaguely similar club-based organisation and who is paid a similar amount to Demetriou is the RACV’s Colin Jordan. Jordan has responsibility for seven different businesses, 1700 staff, $2 billion in assets and 1.9 million members. And the RACV runs a profit of at least $100 million a year. On every count, it is a larger concern than the AFL, which recorded a profit of $26m last year. Yet, with fewer staff and responsibilities, Demetriou is remunerated the same as Jordan.
So, the question is begged: what has Andy D done to deserve the dough?
There is no denying the AFL secured a massive broadcast rights deal in January 2006, far in excess of what they had banked on. But it would be cheeky in the extreme for Demetriou and his team to claim credit for that.

Like an auctioneer mediating in the bidding between two people whose hearts are set on buying the same single-fronted terrace in North Carlton or Paddington, Demetriou happened to be in the right place at the right time as two of Australia’s richest men, Kerry Packer and Kerry Stokes, ramped up their own private power play to the tune of $780 million.
That much was revealed by James Packer in the weeks after his father’s death. Packer said that the Nine Network’s AFL bid was as much about making his rivals at Channels Seven and Ten pay top dollar as it was about ensuring his own network snared the lucrative deal. ’’If you get it, it’s OK and if the other guy gets it, you know, it’s going to be hopefully causing a bout of indigestion,’’ Packer jnr said.
All the performance indicators by which Demetriou’s job is judged – crowds, revenue, profitability, junior participation and so on – are up. So, within those narrow parameters, he can be considered to have done his job well.
But what about the intangibles, such as the League’s image? On Demetriou’s watch in the past two years, the AFL brand has taken a battering. The league watched helplessly as the Ben Cousins drug crisis unfolded before it, one PR disaster after another that went unchecked for months. Demetriou’s close links with those in power at West Coast did not help the perception that he was cutting the club too much slack.
The AFL also took a hammering from the former federal government, media pundits and many people within the game for its controversial three-strikes illicit drugs policy. And, after the most unsubtle and ham-fisted attempts at "persuasion", Demetriou failed to convince the Kangaroos to relocate to the Gold Coast despite a $100 million offer.
So it hasn’t been all beer and skittles for Team AFL. Perhaps fortunately for Demetriou, there’s no KPI dealing with the game’s image and the public’s perception of those running the game.
It is believed Demetriou wanted to be better remunerated than his one-time right-hand man, Ben Buckley, who was enticed to head Football Federation Australia on about $1.2 million a year. And in explaining Demetriou’s pay rise, which included bonuses, Commission chairman Mike Fitzpatrick said the AFL had decided to increase wages for key executives in order to stop poaching from other sports. Well that’s an argument that can be used to justify any pay hike, and is impossible to disprove. Was Demetriou awarded an 80% pay rise, and a $1.4 million salary, because he deserved it or just because the league wanted to deter any would-be suitors?
The AFL chief executive’s new deal was determined by the remuneration committee, comprising Fitzpatrick, Sam Mostyn and Bob Hammond. In 2006, the committee included the late Ron Evans, the then AFL chairman and well-known Demetriou supporter.
Demetriou said people would make their own mind up about the near-doubling of his salary in two years. At the moment the jury is out. Soon enough, though, they’ll come back with a verdict: that the game is succeeding because of Demetriou, or in spite of him.

[barks4eva]

FAIR FRICKEN DINKUM

Where do you start?

This is an absolute rort, the sooner the 16 AFL clubs get together and vote this prick out the better,

As if the game of AFL football needs Demetriou to survive and prosper, fair dinkum

I'll be going for an evening walk a bit later on today and will be walking past Demetriou's house (he lives around the corner) wonder if he's good for a loan.

Should I knock on the door and find out?

[plugger66]

FAIR FRICKEN DINKUM

Where do you start?

This is an absolute rort, the sooner the 16 AFL clubs get together and vote this prick out the better,

As if the game of AFL football needs Demetriou to survive and prosper, fair dinkum

I'll be going for an evening walk a bit later on today and will be walking past Demetriou's house (he lives around the corner) wonder if he's good for a loan.

Should I knock on the door and find out?

And who would you have run the most succesful and quickest growing competition in Australia. Ask him for a loan and if he says no maybe Gt might be good for one soon.

[stinger]

FAIR FRICKEN DINKUM

Where do you start?

This is an absolute rort, the sooner the 16 AFL clubs get together and vote this prick out the better,

As if the game of AFL football needs Demetriou to survive and prosper, fair dinkum

I'll be going for an evening walk a bit later on today and will be walking past Demetriou's house (he lives around the corner) wonder if he's good for a loan.

Should I knock on the door and find out?

good idea, mate....

[Sainterman]

Plugger, you seem to support most things the AFL does...

Do you think this amount of pay is reasonable? Are you happy with this much money going to Andy? Do you feel he is doing a good job?

Is the game growing because of this guy running it? Do you think he is responsible for the growth??

Dont think you need to be Einstein to make this competition work...id be more than happy to do it for half. The current AFL comission has presided over some of the greatest stuff ups in the history of the game, and thats just over the last couple of years.

They answer to no one!

[plugger66]

Plugger, you seem to support most things the AFL does...

Do you think this amount of pay is reasonable? Are you happy with this much money going to Andy? Do you feel he is doing a good job?

Is the game growing because of this guy running it? Do you think he is responsible for the growth??

Dont think you need to be Einstein to make this competition work...id be more than happy to do it for half. The current AFL comission has presided over some of the greatest stuff ups in the history of the game, and thats just over the last couple of years.

They answer to no one!

How would you know if it is growing because of him all I know is it is growing so he isnt doing a bad job. And for the size of the business he seems to be getting the correct amount after all Ben Buckley is getting 1.2 million. Also the AFL commission appoint AD and he is only one vote of the commission so do we get rid of them all and get maybe just supportors of clubs in there to run a multi million dollar business.

Lets face it over the years no one really has been happy with the CEO's of the AFL beccause only one club wins a flag in a year so most supportors are upset with someone.

Also everyone bags AD but can never come up with a better replacement.

[iwantmeseats]

Its all bulls*** , I mean come on! really! A woodduck could run the AFL so it makes mucho money. A woodduck could negotiate the media deal for mucho money.

Running the AFL is like running a bank, you cant lose!

[ausfatcat]

inflation negligible?



Could've sworn we had pollies and the reserve bank telling us else wise for the last 5 months.

Stoped reading after that.

[barks4eva]

Also the AFL commission appoint AD and he is only one vote of the commission so do we get rid of them all and get maybe just supportors of clubs in there to run a multi million dollar business.

Lets face it over the years no one really has been happy with the CEO's of the AFL beccause only one club wins a flag in a year so most supportors are upset with someone.

Also everyone bags AD but can never come up with a better replacement.

[Oh When the Saints]

Plugger, you seem to support most things the AFL does...

Do you think this amount of pay is reasonable? Are you happy with this much money going to Andy? Do you feel he is doing a good job?

Is the game growing because of this guy running it? Do you think he is responsible for the growth??

Dont think you need to be Einstein to make this competition work...id be more than happy to do it for half. The current AFL comission has presided over some of the greatest stuff ups in the history of the game, and thats just over the last couple of years.

They answer to no one!

How would you know if it is growing because of him all I know is it is growing so he isnt doing a bad job. And for the size of the business he seems to be getting the correct amount after all Ben Buckley is getting 1.2 million. Also the AFL commission appoint AD and he is only one vote of the commission so do we get rid of them all and get maybe just supportors of clubs in there to run a multi million dollar business.

Lets face it over the years no one really has been happy with the CEO's of the AFL beccause only one club wins a flag in a year so most supportors are upset with someone.

Also everyone bags AD but can never come up with a better replacement.

What about the tarnishing of the game's image in the last 3-4 years?
Or what about how much the AFL has lost touch with grassroots supporters?
Or the incessant rule changes that have upset so many fans?

To say the people are not happy with the CEO because their club does not win the premiership is disingenous.

It's a pathetic argument.

Demetriou has met his "KPI's" - the measurable indicators of his performance.

But there are some things you can't measure in numbers - how's he gone with those?

There are plenty of equally or more talented operators out there that would do Demetriou's job better than he could.

Ben Buckley is one .......

[barks4eva]

What about the tarnishing of the game's image in the last 3-4 years?
Or what about how much the AFL has lost touch with grassroots supporters?
Or the incessant rule changes that have upset so many fans?

To say the people are not happy with the CEO because their club does not win the premiership is disingenous.

It's a pathetic argument.

Demetriou has met his "KPI's" - the measurable indicators of his performance.

But there are some things you can't measure in numbers - how's he gone with those?

There are plenty of equally or more talented operators out there that would do Demetriou's job better than he could.

Ben Buckley is one .......

exactly

and when Cousins ran from the booze bus high on drugs, what was the AFL's response

hit him on the wrist with a wet lettuce

later that year known drug cheats such as Cousins won a premiership by one point after the AFL had failed miserably to do anything through their sheer incompetence

FWIW Wayne Jackson did a tremendous job while he was CEO and he didn't give himself an 80% pay rise, which is effectively what has happened, as if Fitzpatrick and the others that decided this, are at arms length, I mean fair fricken dinkum

So instead of Demetriou getting paid nearly $780,000 a year, he now gets 1.4 million dollars to line his own greedy pockets with, and therefore there's around $600,000 less, to actually benefit the sport nationwide.


As if $780,000 a year isn't enough

Pay rise> 1.4 million

Anyone with clue can see that this is nothing more than a rort, a fat pig with his greedy snout in the troth

This is an absolute disgrace, almost time for the evening walk

[plugger66]

Plugger, you seem to support most things the AFL does...

Do you think this amount of pay is reasonable? Are you happy with this much money going to Andy? Do you feel he is doing a good job?

Is the game growing because of this guy running it? Do you think he is responsible for the growth??

Dont think you need to be Einstein to make this competition work...id be more than happy to do it for half. The current AFL comission has presided over some of the greatest stuff ups in the history of the game, and thats just over the last couple of years.

They answer to no one!

How would you know if it is growing because of him all I know is it is growing so he isnt doing a bad job. And for the size of the business he seems to be getting the correct amount after all Ben Buckley is getting 1.2 million. Also the AFL commission appoint AD and he is only one vote of the commission so do we get rid of them all and get maybe just supportors of clubs in there to run a multi million dollar business.

Lets face it over the years no one really has been happy with the CEO's of the AFL beccause only one club wins a flag in a year so most supportors are upset with someone.

Also everyone bags AD but can never come up with a better replacement.

What about the tarnishing of the game's image in the last 3-4 years?
Or what about how much the AFL has lost touch with grassroots supporters?
Or the incessant rule changes that have upset so many fans?

To say the people are not happy with the CEO because their club does not win the premiership is disingenous.

It's a pathetic argument.

Demetriou has met his "KPI's" - the measurable indicators of his performance.

But there are some things you can't measure in numbers - how's he gone with those?

There are plenty of equally or more talented operators out there that would do Demetriou's job better than he could.

Ben Buckley is one .......

And you thought Oakley was good and Jackson. Most people do noy like Ceo's of the AFL because they sometimes make unpopular decisions for current that have huge benefite for the future.

Most rule changes have improved the game and I would say last years football was the best 3-4 years. Yes they have lost touch with grass roots because the AFL is now a huge business competing against Soccer and Rugby which they werent 10 years ago.

And what has Ben Buckley done. I think he is popular know because he isnt with the AFL. When he was he copped heaps because he was in charge of a rigged draw as some people seem to think.

Who ever is in charge will continue to make similar decisions that are made now and if you beleive any different you have your head in the sand.

[meher baba]

Demetriou is basically an amateur who holds his position because he has been both a footballer and a reasonably successful businessman. He is not a professional sports administrator of the calibre of those who run most other major sports in our country.

I think the game was much better run a couple of decades ago There has been a rot steadily setting in at the top of the AFL. Examples include: a delusional obsession with conquering NSW and Qld, a tendency to play favourites among the clubs (Freo, Sydney, Collingwood), a series of dodgy deals around the Docklands Stadium, a failure to do anything about the clear decline in umpiring standards/professionalism, a series of unnecessary and unhelpful rule changes, a failure to take any action to stop lowly clubs from tanking in the second half of the regular season (the current victimisation of Paul Roos ranks as the basest form of hypocrisy given what Carlton has gotten away with in recent seasons), a tribunal system which is a mockery of justice (Barry Hall in 2005) and I can go on.

A clear illustration of Demetriou's complete lack of professionalism was his failure to make even the slightest attempt to disguise his dislike of Grant Thomas. He has shown poor judgement on a number of important occasions and I, for one, am strongly inclined to believe Crikey's story about his injudicious conversation in public about the Kangaroos

But that's just my view of Demetriou from afar, and - having never personally met the man - I respect the opinions of others who perhaps know him better. But even they should admit that he could probably do with better some better public relations advice.

[Sainterman]

Does anyone have information of what he actually did prior to his AFL role. I think he was a teacher at Trinity for a while, but whats his work history? I tried google but cant find much...

Anyone know much about the pre AFL days?

[casey scorp]

I’m almost speechless. I’ve had a carp about some of the AFL decisions in my time, but like a couple of posters have said you can’t please everyone.

The reality is that this is a big, big business. People throw around telephone number sized budgets with gay abandon, and when you say it quickly it maybe seems not a lot of money. But with that much money driving a rampant industry like the AFL the Chief Executive Officer has to finely balance his control of the organisation (he would simply have to trust his lieutenants) with the need to deal with strategic developments, current media issues, political matters (state and federal governments, AFLPA, club politics and internal AFL politics), business relationships and many other matters. The stakes are high in all respects.

Those who kindly offer their services for half the price would, IMO, probably have no idea of the pressure and demands of the job.

[Oh When the Saints]

Does anyone have information of what he actually did prior to his AFL role. I think he was a teacher at Trinity for a while, but whats his work history? I tried google but cant find much...

Anyone know much about the pre AFL days?

Exporting and manufacturing of false teeth I think. Made a bit of money.

Couldn't have said it better than this though:

Demetriou is basically an amateur who holds his position because he has been both a footballer and a reasonably successful businessman. He is not a professional sports administrator of the calibre of those who run most other major sports in our country.

I think the game was much better run a couple of decades ago There has been a rot steadily setting in at the top of the AFL. Examples include: a delusional obsession with conquering NSW and Qld, a tendency to play favourites among the clubs (Freo, Sydney, Collingwood), a series of dodgy deals around the Docklands Stadium, a failure to do anything about the clear decline in umpiring standards/professionalism, a series of unnecessary and unhelpful rule changes, a failure to take any action to stop lowly clubs from tanking in the second half of the regular season (the current victimisation of Paul Roos ranks as the basest form of hypocrisy given what Carlton has gotten away with in recent seasons), a tribunal system which is a mockery of justice (Barry Hall in 2005) and I can go on.

A clear illustration of Demetriou's complete lack of professionalism was his failure to make even the slightest attempt to disguise his dislike of Grant Thomas. He has shown poor judgement on a number of important occasions and I, for one, am strongly inclined to believe Crikey's story about his injudicious conversation in public about the Kangaroos

But that's just my view of Demetriou from afar, and - having never personally met the man - I respect the opinions of others who perhaps know him better. But even they should admit that he could probably do with better some better public relations advice.

[Oh When the Saints]

And you thought Oakley was good and Jackson. Most people do noy like Ceo's of the AFL because they sometimes make unpopular decisions for current that have huge benefite for the future.

Oakley and Jackson presided at a FAR more difficult period for the game. They dealt with far more upheaval and managed it successfully.
Both very good operators, especially Jackson.

Most rule changes have improved the game and I would say last years football was the best 3-4 years.

Totally subjective opinion.

I for one enjoyed the footy much more in the late 90's than I do now. My dad enjoyed the footy much more in the 80's and 90's than he does now.

And what has Ben Buckley done. I think he is popular know because he isnt with the AFL. When he was he copped heaps because he was in charge of a rigged draw as some people seem to think.

He always had the reputation as the brains behind Demetriou's success; indeed, since Buckley left, what success have the AFL had?
Buckley did most of the work on the last TV deal.

Frank Lowy isn't close to the best businessman in this country for being an idiot.

Why do you think he hired Buckley on $1.2m a year and left Demetriou where he was?

Who ever is in charge will continue to make similar decisions that are made now and if you beleive any different you have your head in the sand.

Would someone else handle the media as badly?
Would someone else be as unprofessional in dealing with those he doesn't like or hold in high regard?
Would someone else have mismanaged the Cousins/West Coast fiasco as badly?

[Oh When the Saints]

To judge Demetriou, ask yourself a simple question as an average football fan:

Do you enjoy AFL as much as you did 10 years ago?

[plugger66]

To judge Demetriou, ask yourself a simple question as an average football fan:

Do you enjoy AFL as much as you did 10 years ago?

No I dont but I enjoy far more than 5 year ago.

[BakesFan]

AD and his paypacket wouldn't bother me if he showed a little humility.
It's the fact that he's such an arrogant pig that pisses me off.

We often talk about over-rated things in football. I think Dimwit tops the list.

[BakesFan]

To judge Demetriou, ask yourself a simple question as an average football fan:

Do you enjoy AFL as much as you did 10 years ago?

NO, I don't enjoy AFL as much as I did 10 years ago.... but I do enjoy supporting the Saints just as much; and that has nothing to do with Dimwit.

[Enrico_Misso]

I'm sure the Junior Development Officers could think of some better ways of spending Dimwit's $600k rise ?

[barks4eva]

Walked past his house last night, property has been sold, was a man resembling Demetriou in a four wheel drive parked out the front who was, I presume looking at me suspisciously as he drove off then drove back a few minutes later checking me out, couldn't quite make out who it was exactly, but looked very much like him, got the feeling it was him.


Good thing for him he stayed in his vehicle

[GrumpyOne]

Walked past his house last night, property has been sold, was a man resembling Demetriou in a four wheel drive parked out the front who was, I presume looking at me suspisciously as he drove off then drove back a few minutes later checking me out, couldn't quite make out who it was exactly, but looked very much like him, got the feeling it was him.


Good thing for him he stayed in his vehicle

Doesn't everyone look at you suspiciously B4?

Nothing exceptional in that.

[barks4eva]

Walked past his house last night, property has been sold, was a man resembling Demetriou in a four wheel drive parked out the front who was, I presume looking at me suspisciously as he drove off then drove back a few minutes later checking me out, couldn't quite make out who it was exactly, but looked very much like him, got the feeling it was him.


Good thing for him he stayed in his vehicle

Doesn't everyone look at you suspiciously B4?

Nothing exceptional in that.