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At his recent re-election as Football Federation Australia chairman, Frank Lowy was keen to stress that A-League clubs must stand on their own two feet and not totally dependent on the governing body for financial support.
“If you look at the figures we just can’t cope with that and clubs either need to be supported by their owners or their community,” said Lowy.
“They have to manage the business within their means.”
Those figures read: $3.7 million forecasted surplus; $4.6 million spent on keeping Adelaide United, Brisbane Roar, Newcastle Jets and the now deceased North Queensland Fury afloat; $891,000 in the red for the 2010-2011 financial year.
A-League clubs exist in a challenging market: struggling to turn profits with the financial return from the governing body often failing to cover their losses; reliant on millionaires who make their money elsewhere and hopefully have the interest and commitment to ride out the inevitable trough periods that come with running an Australian football club.
But if the last week in the A-League has taught us anything, it’s that some clubs, already hamstrung by the league’s financial limitations, are only compounding their challenging task with some epic own goals.
Look to Perth, where owner Tony Sage told the press “this will be my last season in charge of Perth Glory”.
“I just can’t sit there and cop abuse and my family cop abuse,” he added, following another home defeat, this time to Melbourne Heart.
“No one is really interested in coming to Perth Glory games and the fans don’t want me to be in control.
“It’s very obvious A-League football in Perth is not warranted.”
Although he is said to have backtracked somewhat, supposedly reaffirming his commitment to the FFA, the forthrightness of his comments and his attempted blame on Perth’s fans highlights how poorly the club is being run.
Coach Ian Ferguson has failed to turn the millions spent on building what appears on paper as a strong squad into a winning team.
Sage had targeted average crowds of 10,000, championships, premierships and Asian Champions League qualification. Yet the crowd average currently sits at 7947 as Perth, yet again, has failed to capitalise on a strong start to plummet down the ladder.
Yet, it appears, “A-League football in Perth is not warranted”. Rather than blaming long-suffering fans, where is the proper self-analysis from within the club, to try and figure out why high profile and numerous signings aren’t translating into results? Where is the most basic of due diligence to find fault, rather than ill-informed comments in the press?
If any club is in need of a proper football director it’s the Glory. Sage’s millions, invested in player signings, are being squandered by the club’s lack of a football direction. And, should it drive him and his cheque book away, jeopardises the club’s future, not through fan disinterest, as Sage says, but through consistent poor operations at the top.
With every passing poor campaign, the club’s successful NSL foundations and legacy wears away.
Of all clubs currently in the A-League, the Glory should be the most stable off the field, with 15 years to stamp their mark in the West Australian capital, which includes a winning background.
The Glory set the example for the A-League franchises to follow in the handover between the NSL and the current league. Now they are the example of how not to run a club.
If Sage does quit, the FFA won’t allow the Glory to go the way of the Fury. Perth is too important a market as the fourth biggest Australian city. But what of the FFA’s threat that “manage the business within their means”, let alone whether there is an interested party to takeover a club that continues to stagnate on and off the field?
Over in Adelaide, coach Rini Coolen, sitting on a one million dollar contract that doesn’t expire till 2014, has now been demoted to the club’s “youth development program”. It’s a sacking in all but name, seemingly so Coolen won’t go legal on the club’s owners.
Those owners, primarily from an Australian Rules background, mistakenly gave Coolen what appeared to be a free rule after a successful first season, due, in large part, to the magic of Marcos Flores.
Coolen was the list manager and had complete control of the squad, wielding the axe like a crazed mad-man, with victims including club favourites such as Paul Reid, Travis Dodd and Lucas Pantelis, while allowing key cogs such Iain Fyfe, Flores and more to pursue greener pastures. The spine of the club was ripped out and replaced.
Again, as in Perth, where was the football direction beyond the coach? Adelaide allowed the buck to stop with its head coach. And the owners, seemingly content after a season of promise, failed to do their due diligence and ensure the club’s integrity was being safeguarded.
Is the owners’ non-footballing background to blame, or is it simply a wrong business decision?
Either way, like Perth, self-inflicted wounds are hurting the club off the field as well as on, with crowds falling in a market that has consistently pulled strong averages, and the South Australian core of the team, that the owners should have been protecting, now barely visible.
Elsewhere, we need only mention in passing the mess that is the Melbourne Victory and their over-active board, Brisbane Roar, whose new owners are still waiting for the handover of the club from the FFA, let alone Wellington, Newcastle and Gold Coast, who have all flirted with extinction.
As Central Coast has proven, on-field success is no guarantee of off-field stability. Their case proves the financial model the A-League is built on still needs amending, while the FFA needs to do more to ensure the clubs can attract and retain investors and owners, while also pushing them gently to survive on their own.
But it’s remarkable how some A-League clubs, in such a challenging environment, fail at what seem to be even the most fundamental aspects of running a successful football club.
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December 20th 2011 @ 7:42am
SVB said | December 20th 2011 @ 7:42am | Report comment
I notice that in the last few weeks that Perth, Adelaide and Brisbane have gone from travelling ok to the club being in crisis. There seems to be massive overrreactions from supporters and club owners when it looks as if the club can’t cope with the pace of the competition. Adelaide and Perth still both have a chance of making the to 6, which is all you need to do to win the championship. That is what puzzles me about Tony Sage’ reaction. I think it is more him losing faith in his team than what anybdy said to him. He thinks it’s all too hard even though they have a squad which can still win the chamionship.
In terms of saving costs for me Sydney, Wellington and Brisbane still must find smaller grounds to play in. I couldn’t look at Suncorp Stadium the other night with 10,000 people in there. I don’t care how comfortable it is. Also promote more youth. Eg each a-league side must at least 4 u/21 players in the run on team. Would much rather watch a young player with potential than an old plodder like Terry McFlynn.
January 4th 2012 @ 3:00am
John said | January 4th 2012 @ 3:00am | Report comment
For perth fans its not that the club cant cope with the game, we have been suffering that for about 6 years. It is the continued lack of leadership from above and the inability to make the hard decisions. Believe me when I say, we are used to losing but cant enough be enough after half a decade?
December 20th 2011 @ 8:23am
Qantas supports Australian Football said | December 20th 2011 @ 8:23am | Report comment
“Look to Perth, where owner Tony Sage told the press “this will be my last season in charge of Perth Glory”. “I just can’t sit there and cop abuse and my family cop abuse,” he added, following another home defeat, this time to Melbourne Heart.”
I think it’s about time that football club supporters wake up to themselves and at GCU we have the same problem. Why do we throw these sorts of insults to those who support the club with their money when we ourselves don’t want to. Yes we buy the memberships and the merchandise, but really how many of us are prepared to donate $5k of our saving to the club that has given us professional football in our region. If you can’t support your club with a donation of at least $5k to help out with its survival then shut the hell up. You have no right to abuse the owner of the club and his family—-what a disgrace some so called club football fans are.
December 20th 2011 @ 9:44am
Heart_ Away13 said | December 20th 2011 @ 9:44am | Report comment
I agree QSAF, these twits seem to think they have some inferable ownership of the team because they buy a ticket to the game (some of the members should know better too). The game would not survive in this country if we didn’t have owners who happily dip into their pocket to subsidies the rest of us. Community ownership would be great but I don’t know many fans that are willing to significantly dip into their own pockets every year to cash up the club.
This loud mouth ignorant minority are the same guys that give other football fans a bad name and to be honest most of them a sheep anyway being lead around by the nose with only (in my scientific opinion) about a 1/2 a brain between them all. I’d ask them to grow up but it would be a waste of breath.
December 20th 2011 @ 10:56am
Ian Whitchurch said | December 20th 2011 @ 10:56am | Report comment
The best association football team in the world, Barcelona, works on a community ownership model.
You might also have a look at this
http://membership.collingwoodfc.com.au/packages/reserved-seating/10
Collingwood take membership seriously.
December 20th 2011 @ 11:24am
Tony said | December 20th 2011 @ 11:24am | Report comment
I have been fascinated with the slogans the AFL clubs are using for membership in recent years. Perhaps this is the real code war!
December 20th 2011 @ 11:34am
The Cattery said | December 20th 2011 @ 11:34am | Report comment
I had to laugh reading the Collingwood catchcry: Are you with us?
Who’s running the pies? Dubbya Bush??!!
December 20th 2011 @ 11:52am
Qantas supports Australian Football said | December 20th 2011 @ 11:52am | Report comment
Ian—I like your Barcelona comment but please remember this is a football tab and AFL comments should be directed to the AFL tab—-we are not interested in AFL here and don’t turn this into an AFL blogsphere..
Mods take note and delete the AFL agitators who always come to turn the Football blog into an AFL blogsphere we have been down this road before..
December 20th 2011 @ 12:00pm
Tristan Rayner said | December 20th 2011 @ 12:00pm | Report comment
Thanks QASF, but this is hardly inappropriate.
December 20th 2011 @ 12:08pm
Qantas supports Australian Football said | December 20th 2011 @ 12:08pm | Report comment
Well then Tristan does that mean my ban from making comments on the AFL tab with my blog name in tack is lifted..? Then fair enough..
December 20th 2011 @ 12:15pm
Tristan Rayner said | December 20th 2011 @ 12:15pm | Report comment
Of course not. This is not a code wars argument.
December 20th 2011 @ 12:20pm
Ian Whitchurch said | December 20th 2011 @ 12:20pm | Report comment
QSAF,
The issues of how you run a club in a professional competition are code-neutral – it literally doesnt matter what you play.
Here is Sydney FC’s equivalent page
http://www.footballaustralia.com.au/sydneyfc/membership
Note how Collingwood make it so much easier to give them more money.
December 20th 2011 @ 1:59pm
Punter said | December 20th 2011 @ 1:59pm | Report comment
Don’t worry QASF, the fact these AFL fans are commenting on the football tabs is that they either 1. care for football more than they think, though not as much as their preferred sport or 2. fear football & needs to constantly remind us how much bigger they, AFL, are.
I neither care nor fear Aussie rules & hence would not generally visit a AFL related blog.
December 20th 2011 @ 4:37pm
Bondy said | December 20th 2011 @ 4:37pm | Report comment
personally i dont mind the aussie rule bit on this thread at least they no how to run a business .
December 20th 2011 @ 12:42pm
Gob Bluth said | December 20th 2011 @ 12:42pm | Report comment
The pies also take Mopney from the pokies seriously. Their argument that they are a noble community club were blown ouyt of the water by Maguire’s childish attacks on the pokies legislation.
December 20th 2011 @ 5:59pm
David said | December 20th 2011 @ 5:59pm | Report comment
Barcelona may “work” on a community model, but it doesn’t mean they make a profit or survive on community revenues.
The larger teams are reliant on huge media deals. They still make operating losses and have huge debts.
You may be interested in this article on comments from Sandro Roselli…
http://www.esadealumni.net/ea/activities/matins/description_past_events?id_evento=182301
December 20th 2011 @ 8:23am
Bondy said | December 20th 2011 @ 8:23am | Report comment
With the greatest of respect to Mr Sage ,i think won of Tony’s problems is the gaffa no longer does Australian Football rely on one dimesional coaches from Great Britain their no longer coaching in the A League really.
Great British coaches are no longer valued or seen as a solution they are part of the problem for mine .I watched the glory vs the heart on the weekend and perth play direct and deal with anything with physicality truth be told i felt the glory were a wrestling team and no longer good enough for the standard of the H.A.L.
I hope Mr Sage you stick with football your team is relatively competitive but play with no art or vision, i support the mariners and look forward to a very difficult game this week .
It’s very interesting most of the shining lights in a managerial sense are Australians Ange ,Arnie , potentially dutchy .My team just beat our nemesis last weekend Brisbane but i didn’t give a ##ck prior to the match because our club is run correctly ( although finacially screwed ) .
We will get nowhere if we dont learn from the best in the business, Quote from Wenger -football is a business for strong people ,Quote from Mourinho- football will betray you .
December 20th 2011 @ 8:45am
Rellum said | December 20th 2011 @ 8:45am | Report comment
Sage’s problem is he comes across as the football manager. As you say Adrian, if he appointed a football manager and a technical director of quality and he stepped back and let them be the face of the player transfer market, the fans would treat him as a club owner.
We all know where the problem lies at Perth.
December 20th 2011 @ 8:59am
Chris said | December 20th 2011 @ 8:59am | Report comment
Frank Lowy’s point is still valid though. A-League clubs are pretty much all living beyond their means.
But putting that fact into perspective, how many professional football teams of any code in Australia actually manage to break even or make a profit? Very few really.
February 27th 2012 @ 6:05pm
Jason said | February 27th 2012 @ 6:05pm | Report comment
quite funny how one of the richest men in the australia runs the ffa and hardly puts any money into the competition compared to the actual owners. I would like to see that man own a team and show them how it is done. I would almost bet my house that he could not run a a-league team any better then those already doing it
December 20th 2011 @ 9:00am
Dean said | December 20th 2011 @ 9:00am | Report comment
Yes, sporting clubs lose money. HAL clubs lose money and even clubs competing in the EPL lose money.
Closer to home, hugely successful NRL & AFL competitions are filled with clubs that lose money. Even with huge attendances, massive FTA TV revenue and blanket print and TV media coverage, yesterday, Jon Pierik, in The Melbourne Age, reported that: “The end-of-financial year reporting season hasn’t made for great reading (for AFL clubs). A detailed analysis of balance sheets shows many clubs are doing it tough, with nine expected to post losses.”
So, more than 50% of the clubs competing in the highest-attended sporting competition are losing money. Now, that’s a news story worth reporting: “AFL clubs running themselves into the ground in Australia’s most successful sporting competition”.
December 20th 2011 @ 9:07am
The Cattery said | December 20th 2011 @ 9:07am | Report comment
Chris and Dean
Nine AFL clubs have lost money, the biggest being Port’s $3+ mill loss off over $30 mill in annual revenue. Most of the losses are relatively small, but that means that 8 clubs made profits, and a few made very big profits (around $2 mill).
But as I argue below, no surprise that the clubs going deep into September will invariably make profits, while those at the opposite end will invariably make losses.
The AFL business model recognises this and makes additional annual grants available to those clubs making losses, coupled with management advice to help them turn that around. AFL assistance comes at a price – they will stick their noses into the affiars of clubs receiving assistance to make sure there is no waste and that their administrative structures are at best practice, but as the saying goes – beggars can’t be choosers.
December 20th 2011 @ 9:41am
Dean said | December 20th 2011 @ 9:41am | Report comment
Cattery, as a result of the fantastic TV rights deals, each AFL club receives a dividend of $8-9 p.a. from the AFL. From what I’ve heard, the average membership – committed paid up supporters – at AFL clubs is around 25-30k. If this is all true, then it remains a mystery – or, an example of fiscal incompetence – that any AFL club – playing 22 games a year – cannot balance its books.
December 20th 2011 @ 9:46am
stabpass said | December 20th 2011 @ 9:46am | Report comment
AFL dividend covers salary cap, it is football department spend that breaks the bank, being among some of the world leaders in sports science does not come cheaply, in other words, leaving no stone unturned.
Collingwood spent about 19 million on coaching, rehab, Arizona trips etc.
December 20th 2011 @ 10:10am
The Cattery said | December 20th 2011 @ 10:10am | Report comment
Dean
as you know, some of the biggest soccer clubs on Earth make huge losses.
As stabpass suggests, the share of the TV rights cover the salary cap, more or less, and that’s roughly 40 listed players earning an approximate average of $240k per annum.
But if there is one common thread amongst all sporting clubs, it is this: they will endeavour to spend every single available cent, plus some, in the pursuit of the grand prize – they will eat themselves out of house and home to win the unwinnable.
The AFL learned long ago that clubs have to be saved from themselves, you can’t rely on a professional sporting club to live within its means, it won’t happen, because many in power will always believe that if they can just take that one step closer to the grand prize, all their finanical woes will disappear overnight.
So taking a leaf out of the NFL, the AFL instituted its various equalisation policies, which have worked over the course of 25 years in keeping clubs financially honest, forcing them to live within their means and spreading the premierships around, which has been healthy for the competition as a whole.
But the trend over the last few years has been for the Haves to spend big on “football department” expenses, e.g. coaches, more coaches, specialist staff, physios, trips to Arizona, etc, etc
And once one club starts doing it, and wins a grand final, the others are sure to be not too far behind.
And the cycle starts again – living beyond your means.
In general society, there are individuals who have never earned more than $45,000 per annum, raised a family, own their own home, and then there are people who have earned millions of dollars in the space of a few years, and are hugely in debt all the same.
December 20th 2011 @ 10:19am
Dean said | December 20th 2011 @ 10:19am | Report comment
Cattery when the biggest football clubs on Earth are making operating losses it will be due to gross fiscal irresponsibility and mismanagement. There are no excuses for having a huge customer-base, a product that customers love, global markets and still lose money.
I’m aghast that you flippantly suggest: “you can’t rely on a professional sporting club to live within its means”. That’s the very definition of fiscal irresponsibility and mismanagement.
UEFA is setting new Financial Fair Play rules. Will they be effective? Who knows. But, the first step to resolving a problem is to admit there is a problem.
December 20th 2011 @ 10:26am
The Cattery said | December 20th 2011 @ 10:26am | Report comment
Dean
you are right that UEFA is setting up new Financial Fair Play rules, and that’s partly because of my flippant statement that you can’t rely on professional clubs to live within their means.
History tells us that.
So UEFA’s policy is a way of forcing clubs to be financially responsible, as I said, clubs need to be saved from themselves – you can’t leave it to them.
The reason is obvious.
Everyone talks about “investing” in a club and buying players, etc. Many clubs will do so, but they are all competing to win one prize (just to simplify the argument), and it follows the greatest rewards will fall to those 2 or 3 clubs that get closest to the prize.
Spread that out over a few years, or even a few decades, and you end up with clubs living beyond their means because they “invested” in winning the grand prize, but couldn’t, because every other club is investing in the same thing – by definition, the vast majority must be disappointed.
If you have ever played Football Manager, you will come across this exact phenomenon time and time again. If you can win a few trophies, you are absolutely swimming in money, but if you spend a few years in the middle of the table, you are financially shot.
December 20th 2011 @ 9:01am
The Cattery said | December 20th 2011 @ 9:01am | Report comment
I have sympathies with Mr Sage, if it’s true that Glory fans have abused him and his family, it would be only human to ask ourselves if we were in the same situation: why am I doing this?
I have previously expressed my views about private ownership, so I won’t repeat them here. I accept the counter-argument that private investment was needed to kick-start the league, but perhaps the time has come to explore and transition to alternative ownership models, or at the very least, look at ways to spread the load – fans cannot continue to expect individuals to carry the full financial load indefinitely, it’s a completely unrealistic expectation.
Lastly, whenever these sorts of discussions arise, and the author himself has fallen into the same trap, people will make comments like: the club just needs to find some onfield success, win a trophy, make Asia, etc, etc.
The reality is that in any one season, only three or four clubs at a time can be deemed to have experienced onfield success, and even then, self-annointed giants of the league will deem a 3rd or 4th placing as unacceptable by their high standards.
It’s an impossibility that every club can rely on onfield success as their business model. We see even in the lucrative AFL, that half the clubs (mostly the bottom half) have made losses, while those clubs going deep into the finals have made profits. Anytime a club makes a grand final, money is getting pumped into that club from every direction, it’s impossible not to make a pile of money in those dizzying few weeks before and after the big event – everyone wants to jump on board, but it’s the opposite story at the other end of the ladder.
That being the reality of the “sports industry”, there is actually a strong argument for the governing body to financially assist those clubs finishing towards the bottom of the ladder, because we know they are going to lose money, but at the same time, we know we need to retain them to have a viable competition, and when it turns around, as a salary cap will help do, it will be another club’s turn to receive some assistance.
December 20th 2011 @ 9:16am
Bondy said | December 20th 2011 @ 9:16am | Report comment
Cattery.
Your last paragraph makes alot of sense .
December 20th 2011 @ 9:47am
Cpaaa said | December 20th 2011 @ 9:47am | Report comment
Its wrong for fans to turn on the owner but what other choice do they have, they are the mob, and this is what mobs do.
As for Big Tony, connect with and meet with fans, like a fans forum for the club only.
If Perth Glory members had an election, would have Ian Ferguson been elected?
…its easy Tone to simply walk away, but where is the Glory in that?
December 20th 2011 @ 10:08am
Titus said | December 20th 2011 @ 10:08am | Report comment
Last year Sydney were terrible, the fans were angry that players had been let go and adequate cover hadn’t been brought in, Lavicka didn’t have a lot of fans, crowds sank to an average of 8 000 with some midweek attendances of 4-5 000.
My recollection is that after a lot of whinging and general sulleness at games, numbers dropped away but when you got to that core group of supporters, that was some of my most enjoyable times at games. The Cove just got smaller but louder and more joyful in their support of the club, fans on the sidelines sat together 6-7000 in a 40 000 seat stadium and everyone gave everyone else a certain amount of respect just for turning up.
They were hard times but they galvanise your love and commitment to your team. I don’t remember a lot of anger directed at Lavicka or the board publicly but privately there was a lot of discussion and opinion. In the end the the board had to make some business decisions and they made some important appointments and began to look at how the club was run, these decisions are beginning to bear fruit.
The point is, it is easy for the anger and frustration and emotion to turn toxic, that core of 6 000 odd glory supporters should be the ones who will turn up whether Ferguson is coach or not, whether Perth is playing good or not and just support the team and support each other, Glory will eventually turn a corner and the people running the clubs will learn from it but also realise that the fans and the club are worth saving and building.
December 20th 2011 @ 10:13am
The Cattery said | December 20th 2011 @ 10:13am | Report comment
Hard times really allow you to savour the good times.
December 20th 2011 @ 10:18am
The Cattery said | December 20th 2011 @ 10:18am | Report comment
Of course the reverse is true, to plummet all the way from the top, down to the bottom, as the Jets did from season 3 to season 4, is a very bitter pill to swallow.
Sometimes you just have to take the medicine.
December 20th 2011 @ 1:43pm
Axelv said | December 20th 2011 @ 1:43pm | Report comment
To be fair Perth have been taking this medicine for a good part of the last 7 years, when is enough, enough?
They are yet to have a single good coach.
December 20th 2011 @ 2:14pm
The Cattery said | December 20th 2011 @ 2:14pm | Report comment
Axelv
I don’t disagree, and Glory fans have definitely demonstrated the patience of the Gods.
I would agree that over seven seasons, you expect to challenge for a grand final berth on at least two occasions and make one of those, that’s not asking a lot in a relatively even comp with a salary cap.
But once a season kicks off, once that ball is in play, anything can happen, meaning some teams will manage to get above average bites at the cherry, and other teams will get below average bites at the cherry, or even no bites at all.
December 20th 2011 @ 6:08pm
Titus said | December 20th 2011 @ 6:08pm | Report comment
Well, yeah, thats a fair point AxelV, but the Perth team seriously isn’t that bad and I haven’t watched all their games but to me they appear to be playing some good football.
They are still a very good shot at finals football and if the fans get behind them instead of giving themselves ulcers worrying about Fergie, they might just get on a bit of a roll.
I think it is a mistake to pin all your hopes on a miracle coach coming in and suddenly you are playing like Barcelona in front of packed out crowds.
December 20th 2011 @ 11:54pm
Axelv said | December 20th 2011 @ 11:54pm | Report comment
To them I’m sure it’s not about playing like Barcelona, it’s about playing like a top 4 team! They have never played like this in 7 years, meanwhile every other club except Fury has.
December 20th 2011 @ 11:20am
MG said | December 20th 2011 @ 11:20am | Report comment
Sometimes I wonder how these Club Owners ever made their millions in the first place.
When you go into business, be it Football or a fish and chip shop, you have to hav some idea of what you are getting into.
I don’t want to sound like the Foss, but you need Football People there involved with these Clubs.
December 20th 2011 @ 11:53am
stu said | December 20th 2011 @ 11:53am | Report comment
I am football through and through, however I can’t agree with Foss. Football people do not mean good business people and what makes football any different from any other sport when it comes to cash flow, marketing, manageing assets (players) and tangables. Business principles remain the same. We really need Foss to quantify exactly what he means as my impression is he simply does not want ‘business people’ with interest in AFL or NRL involved in soccer.
December 20th 2011 @ 12:09pm
MG said | December 20th 2011 @ 12:09pm | Report comment
Stu, as an AUFC Supporter I can’t help thinking that if our Board had more football knowledge they wouldn’t have been sold a 4-Year Plan by Rini Coolen and would have avoided this mess.
I don’t think having an AFL or NRL background should exclude you from being part of our game, and I don’t think Fossie has said that either. My opinion is the more people involved the better, but you still need people who live and breathe the game involved too.