Collingwood invests $4m in South Melbourne property to house players and staff

Collingwood FC has purchased a residential property in South Melbourne for nearly $4 million to provide housing for players and staff, according to reporting by The Age. The AFL has approved the investment, provided the club charges market rental rates to avoid breaching the league’s salary cap or soft cap on football spending.

Why did Collingwood invest in South Melbourne residential property?

The Magpies acquired the South Melbourne property to secure dedicated accommodation for AFL and AFLW players and staff, a move the club has branded as a new version of “Coventry House.” This name honors 1920s and ’30s club legends Syd and Gordon Coventry. According to The Age, the property was already being used for player and staff housing prior to the purchase, which was finalized late last year following the club’s annual general meeting.

The move mirrors a strategy used by the West Coast Eagles, who spent approximately $4 million to construct four separate units next to their Mineral Resources Park training base in Lathlain. Both clubs have utilized these assets to manage the logistical challenges of relocating personnel within a tight housing market.

How does the AFL regulate club-owned housing?

The AFL must approve any arrangement where a club rents property to its own players or football staff. This oversight ensures that the housing does not function as a hidden payment. According to The Age, the league verifies that rental agreements are set at market rates. If a player were to receive discounted rent, that benefit would be counted as part of their remuneration, potentially triggering a breach of the salary cap or the football department’s soft cap.

How do Collingwood’s financials compare to other AFL clubs?

Collingwood remains one of the most financially robust organizations in the AFL. The club reported revenue of $96 million for 2025, with cash, cash equivalents, and financial assets totaling $54 million. Its operating profit before depreciation and amortisation stood at $9.3 million, while statutory profit reached $4.5 million, per financial data cited by The Age.

Beyond the new residential property, the club maintains several other significant non-football assets:

• Future Fund: A fund of nearly $30 million invested in shares to provide annual returns.
• The Glasshouse: A function venue and the Magpie Nest cafe located at their training base near Melbourne Park, operated in partnership with the Big Group.

While Collingwood and West Coast have invested in residential real estate, other Victorian powerhouses such as Hawthorn, Essendon, and Richmond do not own residential properties for players. Instead, these clubs focus their capital elsewhere; Hawthorn has invested tens of millions into the Kennedy Community Centre in Dingley, and Richmond has allocated over $100 million to redevelop its Punt Road headquarters.

The history of Coventry House

The current investment is a return to a previous club tradition. In the 1990s, Collingwood operated the original Coventry House near their former Victoria Park base in Abbotsford. That residence served as a hub for young players, particularly those recruited from interstate or regional areas. The club sold the original Coventry House and surrounding properties during financial difficulties in the mid-to-late 1990s, though those assets saw rapid value appreciation following the sale.