An ACL win could be a big loss for the Reds
Columnist 
3,356 reads
An Adelaide win in the ACL could be a big financial loss (AAP Image/Dave Hunt)
Related coverage
When Adelaide United meets Nagoya Grampus in the Round of 16 knockout final of the Asian Champions League tonight, fans will be hoping that the club can continue on the path to another crack at being crowned continental champions.
But success at home on Tuesday night comes at a cost that calls into question what’s really the best result for an A-League club that has been tightening its purse strings for a while now.
Asian Champions League progression brings with it recognition for the club and the wider Australian football community.
However, unless it leads to a guaranteed competition win with its $4 million-plus prize-money and a ticket to the FIFA World Club Cup alongside the best of Europe, South America and co, a noble exit in the Round of 16, quarter or semi-final stage would leave Adelaide United with a costly hole in its pocket.
The ACL, in contrast to its European counterpart, the UEFA Champions League, doesn’t deliver great financial rewards for clubs. In fact, in many cases, particularly for A-League clubs struggling to make money out of their domestic scene, it’s an added financial burden that barely justifies itself.
With figures such as a potential $250,000 loss for an ACL campaign, as a result of tight Asian Football Confederation regulations limiting sponsorship opportunities, insufficient travel allowances, meager win bonuses and poor crowds for home games in Australia, Asia is hardly fertile ground for A-League clubs.
While Adelaide United assistant coach Luciano Trani spoke of the “huge benefit to the club” and the branding of Adelaide United growing in Asia, which “we hold so much for years to come” upon reaching the knockout stage, it remains to be seen if the club can monetise that growth or make a dent in a market infatuated by English and European football and has its own domestic leagues and teams to support.
Despite having the freedom of selling sponsorships on the front of their shirts for their ACL tilts, A-League clubs involved in the current campaign have failed to do so.
So desperate was Adelaide United for sponsorship earlier in the ACL season, it was on the brink of getting into bed with football outcast Clive Palmer and his rebel Football Australia body to help bankroll its Asian campaign. Such an act considering the political climate between Palmer and Football Federation Australia threatened to isolate Adelaide United, yet highlighted how frenzied the club was for financial assistance.
Despite a stable ownership structure of a club that dates back to the last days of the National Soccer League and has enjoyed a healthy market share in its hometown, Adelaide United remains restricted by the financial limitations of other A-League clubs.
Remember, too, former head coach Rini Coolen is dragging the club into the courts over his dismissal with debate raging over whether the club should leave its spiritual home at Hindmarsh Stadium over a $25,000 match fee.
Losing tonight provides the club with the chance to focus solely on rebuilding after such a disappointing A-League season, without the added burden of the ACL campaign and the associated financial strain.
Winning, in contrast, takes the club one step closer to the jackpot prize. But like a contestant on Deal or No Deal, it could be another costly step to being left with nothing by going with one suitcase too many.
Unless the jackpot is guaranteed, the thrill of another run through the knockout phase and excitement it will generate for the club will be tempered by the financial burden. And even the excitement it generates is questionable given the competition’s lack of traction in Australia.
This isn’t to say that that Adelaide United should tank out of the Asian Champions League, nor that the competition doesn’t have an important place within Asian football and for the Australian game. It has enormous scope to grow and provide the financial reward to truly entice clubs.
Instead, it’s a realisation that the ACL isn’t the golden ticket many people think it is by wrongly comparing it to the UEFA Champions League.
Nevertheless, let’s hope for an Adelaide United win tonight. But, sadly, losing isn’t such a disastrous outcome.
Adrian Musolino is editor of V8X Magazine, and has written as an expert on The Roar since 2008, cementing himself as a key writer who can see the big picture in sport. He freelances on other forms of motorsport, football, cycling and more.
Sport, all day long. Does this sound too good to be true? We're searching for a Group Sales Manager to lead our team in Sydney. If you're a sales star who doesn't mind a hit, kick, throw, or cycle, we want to hear from you. Apply now.
May 29th 2012 @ 8:08am
Victer said | May 29th 2012 @ 8:08am | Report comment
The ACL should have been a knockout comp without the group stage. The group stage has low crowds and too much travel cost. We have to stop thinking that aping Europe will always lead us to success, this also applies for promotion and relegation for countries like Australia as well.
May 29th 2012 @ 8:15am
Kasey said | May 29th 2012 @ 8:15am | Report comment
I can think of one very good reason why the Reds should hope for a win even with the financial hit they might take as a result. We all know how big a supporter of the round ball News Ltd has been in this country. The Adelaide Advertiser has always been a pretty good supporter of the game in this city – at least compared to some of the mainland capitals I have lived in since the HAL kicked off in 2005. the ’tiser has sponsored an award (the Advertiser Golden Boots award) for the best player representing ADL in a national comp from way back in the 1980s (the days of West and Adelaide City) but in 2008 When AU made the final of the AFCCL, they really swung behind the club in a way I haven’t seen since the Crows first went East in 1994 to go deep into the AFL finals series. It was almost as if News realized they could sell more papers by supporting the club in an “us against them” manner – harnessing Adelaide’s famous parochialism. Oh we still get treated to the occasional traditional Aussie media bash of OMG Sokkah riotzz if somebody breaks wind at Hindmarsh, but on the whole 2008 will likely be seen as a turning point in the relationship between the city and its football team. Yes we lost the final, but so many more people in Adelaide are now aware of the name Adelaide United FC . That money ‘lost’ in the tilt at ACL glory should be seen as money invested in the club and its image. Money just cant buy the type of good publicity that our 2008 run generated – packed stadiums, t-shirt give aways and commemorative posters from the paper. The Reds are now seen as a deserving member of the city Sporting landscape, even amongst the bogan hoardes. So much so that I believe it directly led to the current situation after former owner Nick Bianco’s building supply business was crippled by the GFC and he had to relinquish the licence to FFA. A consortium of ADL businessmen stepped up and paraphrasing said: “ADL needs a representative in the national competition.”
The AFCCL is about more than just dollars and cents. Maybe in a couple of decades, when even more money has flown into Asian football (eg: Didier Drogba just left Chelsea for Shanghai) the riches will flow to the clubs in a manner more reminiscent of the UEFACL, and when that happens, AUs history of accomplishment in the comp could very well pay dividends as Liverpool’s continental history allows them to still delude themselves into thinking they are a big club;)
I’ve got my tickets and I’m keen as mustard for tonights game! COYR! UTID!
May 29th 2012 @ 8:59am
Brick Tamlin of the Pants Party said | May 29th 2012 @ 8:59am | Report comment
Interesting your comments on “Sokkah Riots”,would you believe over here in Perth the day after the Grand Final there was a story on how 4 van loads of police were called to a pub in the city because there were visibly upset soccer fans who “may” be a problem.Turns out the police were there for 10 minutes and one person was restrained and told to move on,CHAOS!.
May 29th 2012 @ 9:06am
Kasey said | May 29th 2012 @ 9:06am | Report comment
I honestly believe that when Security and police are told they have to work an A-League game, they mentally think of the UK hooliganism of the 80s and bring a terrible attitude to the task, creating more problems than they are there to prevent. If you compare the police attitude towards the public at a cricket game to a football game it is a marked contrast. Posture and the way you carry yourself are very important. If you turn up expecting trouble you bring an aggressive stance and this I feel is part of the problem football faces in this country. The “English disease” still taints perceptions of the game in Australia to this day:( Heck, that stupid AFL bint Caroline Wilson actually lists on her sporting CV that she covered “the UK Soccer Riots” Simple fact is, there is absolutely NO hooliganism/element of danger at A-League games, but that in itself doesn’t stop the image of the local game being dragged through the mud by lazy journalists and editors with agendas to push.
http://www.abc.net.au/sport/offsiders/aboutus.htm
http://en.wikipedia.org/wiki/English_Disease
May 29th 2012 @ 5:24pm
Brick Tamlin of the Pants Party said | May 29th 2012 @ 5:24pm | Report comment
Yeah it really was uncalled for i mean the Glory have been on the landscape for 15 years not once has there been an incident involving our fans,but hey they were “visibly upset”.
May 29th 2012 @ 6:17pm
c said | May 29th 2012 @ 6:17pm | Report comment
Adelaide Advertiser have been piss poor this time kasey. go u reds
May 29th 2012 @ 8:35am
Ben of Phnom Penh said | May 29th 2012 @ 8:35am | Report comment
One of the problems was the uncertainty surrounding the Persipura game which meant that sponsors were unsure as to whether the product was available or not. If they win tonight they have several months to source more sponsorship for the remaining fixtures which should take some of the sting out of the process.
Also the analysis by Adrian does not take into account the value adding that ACL exposure adds to the regular season sponsorships and attendances.
May 29th 2012 @ 8:39am
Kasey said | May 29th 2012 @ 8:39am | Report comment
Ben that’s exactly the situation. Even me a die-hard fan, refused to buy my 3 game super-pass for the Home games until I was 100% sure the club were participating in the CL. I waited until they had played the first away game in Uzbekistan before I purchased my tickets. that was only a $70 purchase. I can only imagine how difficult it must have been for the club to sell sponsorship in such an uncertain environment a terribly short time-frame.
May 29th 2012 @ 8:39am
Brick Tamlin of the Pants Party said | May 29th 2012 @ 8:39am | Report comment
Yes it would seem unless you actually win the thing playing in the ACL seems more of a burden than anything,costs an absolute fortune to compete in and games seem to fall at the most inaproppriate times(namely during our own finals series).Having said that playing these top clubs from abroad will only improve our teams and the quality of the A-League,i hope Adelaide win tonights game and go on to win the title(from a Glory fan).
May 29th 2012 @ 2:57pm
Kasey said | May 29th 2012 @ 2:57pm | Report comment
It might seem like a burden, and the SBI article below indicates just how frustrating it can be for the accountants at the clubs, but I imagine a true fan of any of the Australian participants would give up a body part to be the first Australian winner of the title. The bragging rights alone would be monumental.
May 29th 2012 @ 9:16am
Roscoe said | May 29th 2012 @ 9:16am | Report comment
Kasey your comments re security/police thinking “here’s trouble” when asked to work soccer is spot on. Sad but true- I work in one of those groups. It has definitely improved. It’s a great game- and I’m not a “soccer person”. Does seem strange a club can be successful yet lose money.
Let’s hope AU can go all the way!
May 29th 2012 @ 9:28am
Titus said | May 29th 2012 @ 9:28am | Report comment
Need to sort out the sponsorship arrangement, the exposure value should easily be able to cover any financial shortfall.
Also a home and away style knockout to replace the group stage could be looked at, given the travel costs involved.
May 29th 2012 @ 9:33am
Kasey said | May 29th 2012 @ 9:33am | Report comment
It is only this stage that is direct knockout. Should we progress, the Quarters, Semis and final are H+A games.
May 29th 2012 @ 9:33am
Fussball ist unser leben said | May 29th 2012 @ 9:33am | Report comment
Whilst it’s true that there is a financial burden on clubs during the Group Stages – particularly, if clubs do not win – I think it’s an exaggeration to suggest there is greater financial reward for AUFC to lose, than win, their Ro16 match against Nagoya Grampus.
For this ACL tournament, the prize money for ALL clubs participating is:
a) Ro16: US$50k
b) QF: US$80k
c) SF: US$120k
d) runner up: US$750k
e) Winning: US$1.5m
So, if AUFC wins tonight, the club immediately is $80k better off than if it loses. In addition, there are the financial benefits that accrue from increased brand exposure across the global football community, particularly the football communities of Asia & Australia.
People, who follow games that aren’t global try to play down the business opportunities – direct & indirect – created by international sporting competitions.
However, successful businessmen understand the importance of relationships when doing deals in Asia and sporting events are the universal business relationship “introduction agency”.
When he signed Shane Smeltz 12 months ago, Tony Sage said that his sights were firmly set on achieving Asian Champions League success. For Sage, the ACL tournament has more financial value than the HAL.
Source: http://newsstore.fairfax.com.au/apps/viewDocument.ac;jsessionid=194567D743EBF966BB631CF512EDD612?sy=afr&pb=all_ffx&dt=selectRange&dr=1month&so=relevance&sf=text&sf=headline&rc=10&rm=200&sp=brs&cls=19663&clsPage=1&docID=SMH110420J03IE5FBMBE
May 29th 2012 @ 9:36am
Kasey said | May 29th 2012 @ 9:36am | Report comment
AFC gives each club $US30-60k in a travel subsidy for away legs – increasing as the competition progresses.
Prizemoney is rising each edition of the comp. the budget for the tournament has increased from US $4 million in 2008 to US $20 million in 2009, with the total prize pool now equaling US $14 million.
Does that ridiculous FFA rule of sharing the prizemoney amongst the 10 HAL teams still exist? If we win, the boost to prestige of the club in football’s fastest growing region is of great value, certainly well worth chasing the win:) COYR!
Regardless, just for making the Ro16, AU receives US$50k
we get US$80k if we win tonight:)
I’m sure the PFA has ensured the players will be amply recompensed for their efforts:)
May 29th 2012 @ 11:04pm
Tristan Rayner said | May 29th 2012 @ 11:04pm | Report comment
Kasey, old friend, $50k doesn’t touch the sides of what it costs to play an ACL game. Did you not read the article linked earlier? It costs $20k just to change the sponsorship signs at the grounds eg Hindmarsh. $50k in travel costs isn’t enough for an Australian away team to do a round-trip. Think of flying & transporting 20+ people to Japan from Adelaide and then putting them up in a hotel. The mind boggles really.
I’m struggling to understand why people can’t see this as not necessarily the greatest thing since sliced bread. I enjoyed it when the Jets were in the ACL – but it just about ruined poor old Con, who, it must be said, was Conning everyone including himself about how much $ he had.
It’s nothing on the prestige and the glory – the money is the issue here.
May 30th 2012 @ 7:17am
Kasey said | May 30th 2012 @ 7:17am | Report comment
Don’t patronise me TR I read the SBI article,
The competition is a tool, an expensive one, but a definite tool towards building a positive image for the game and the clubs involved. Football unfortunately has an image in Australia of being a ‘foreign sport’. What better way to turn that on its head than to represent our country taking on the best Asia has to offer and beat them. Aussies are parochial and love to beat the world at sport.
Ask anybody at the game last night if they were thinking of finances as they cheered like mad at the final whistle?
Usually reading comments from the general population on a sokkah article in the Advertiser makes me angry, but take a gander at these:
http://www.adelaidenow.com.au/sport/soccer/jon-mckain-puts-adelaide-united-through-to-asian-champions-league-quarter-final/comments-e6frectc-1226373039422
Its been a while since I’ve read a “Who cares its only Soccer comment”- just saying;)
The boost to the image of the club would surely be worth the coin it cost for the Reds to once again make it happen on the Asian Stage. In only 7 years AU have already developed a reputation for being able to represent on the continental stage. A Reputation that could well prove invaluable when it comes to selling corporate boxes and sponsorships for the next HAL season.
May 30th 2012 @ 8:20am
Bondy said | May 30th 2012 @ 8:20am | Report comment
I think we dont want to hear what we know tristan , I remember watching Sydney FC last year in a champs lge game at home against chinese or korean opponents and due to the GFC they slashed their marketing budget back from something like 10 mill a year back to 7 something like that, it was staggering just on promoting their image .
It’s strange to support this sport at times it financially demorilises at times, and tevez wont take to the pitch , I think most who follow the sport would have know that Con would’ve been struggling for a while with the jets ,it’s terrible to think that boycotting a tournament could financially ease pressure on clubs, i’ve heard of stranger things happening in the sport .
May 29th 2012 @ 9:50am
whiskeymac said | May 29th 2012 @ 9:50am | Report comment
is prizemoney shared amongst the other clubs?
..
Adelaides run in 2008 was fantastic – raised the clubs profile in the media and certainly got my support. its great to see a local team do so well on the international stage and against more fancied opposition. Certainly did Vidmar’s reputation no harm at the time too. Am hoping the club can go on another good run – it reflects well on the comp here to have continental success and gives the supporters something tangible in our very boring and long off season.
May 29th 2012 @ 9:34am
Bondy said | May 29th 2012 @ 9:34am | Report comment
A strange article on the day an Australian club can advance to a quater final birth, I wish some people would realise which clubs throughout sport make money ! how many sporting clubs make clear profits annually in any sport, some do but in general most lose money, how much is the trick .
If you have a look at most games in Asia there not packed out we know this , we know Asia does not embrace Chmps Lge Fttbl let alone Australia, it’s partially dissapointing to not experience that european feel to asian football ,but we can only try to help it grow .
And good luck with the Reds tonight, I’ll be watching,interesting point I noticed with both Chelsea and Inter Milan respectively played a similar style or structure to Adelaide keeping it tight in defence and launching quickly to counter attack both of those clubs went on to win the european cup, hopefully Adelaide can do the same .
May 29th 2012 @ 10:44am
nordster said | May 29th 2012 @ 10:44am | Report comment
Yeah I jumped on here hoping for more of a preview of the game …just sayin
May 29th 2012 @ 2:18pm
jonathanQ said | May 29th 2012 @ 2:18pm | Report comment
bondy, why are u such a bender?
May 29th 2012 @ 3:20pm
Bondy said | May 29th 2012 @ 3:20pm | Report comment
you were calling yourself the flattery last week ,Johnathan “thats a lovely name” .
May 29th 2012 @ 9:41am
JonathanP said | May 29th 2012 @ 9:41am | Report comment
Does the possible financial loss, due to travel and admin costs, account for tickets sales at home games in the ACL? 10,000 supporters at average $20 each = $200,000. Surely that more than covers the costs of 2 legs.
May 29th 2012 @ 9:48am
AGO74 said | May 29th 2012 @ 9:48am | Report comment
It is well documented every club is losing money. So if you are losing money but you have opportunity to generate success/goodwill/support etc then take it. Even with the losses, Adelaide (from what I know) are a relatively stable club under the new ownership.
Good luck Adelaide. Should be a great night at Hindmarsh!