So, Brisbane Roar we are told are in a ‘transition’, as the former CEO of Brisbane Lions AFL club Ryan Bowers is hired to try and shore up the financial struggles of the club (the FFA were required to pump in $1.5 million into the club).
Bowers we are told has been hired to oversee a “restructure” of Brisbane Roar and make it more attractive for investors, thus helping to free up FFA resources for other football projects.
While managing to find a suitable local consortium led by Robert Gerard to buy Adelaide United after owning the Reds for one and a half years, the FFA are finding further headaches in their A-League business model with news that Perth Glory owner Tony Sage is seriously considering his future options.
Although the Victory aren’t considered to be in a financial vacuum, it is curious that the previously highly involved and proactive Chairman of Melbourne – Geoff Lord – has reduced his share to fifteen per cent and quit his post as Chairman of the club. The timing is questionable; just six months after (relatively long time) CEO Geoff Miles left his post to be replaced by Richard Wilson.
This is without going into the reasons why first former North Queensland owner Don Matheson’s partner couldn’t last a season, then Matheson himself left North Queensland after just a season. Why have the consortiums for footballs heartland in terms of football participation – Western Sydney – failed to find financial backing?
Can they see the writing on the wall? Con Constantine certainly did in his rather acrimonious departure.
Where there are backers to be found – such as the Gold Coast ,where Clive Palmer is committed to staying put, he finds himself in semi-regular public spats with the games governing body.
Upon taking control of Adelaide United Gerard is quoted as saying “None of us expect this to be a loss making exercise … we are not here to lose money, we are here to make it,” he said.
Yet Gerard at Adelaide and Bowers at the Roar are going to have their work cut out.
The core of the issue is that the A-League business model as it stands is not financially viable.
Not only is it not viable, it is not conducive for incoming owners to be able to reverse the financial fortunes of A-League clubs via innovative business practices.
Given the high growth of interest in the A-League in its inaugural seasons, the A League clubs would probably qualify what the BCG Matrix would categorise as “question marks”.
Far from becoming ‘Stars’ like the Socceroo brand or ‘Cash Cows’, A League clubs have turned into nothing more than a ‘Dog’.
While it is understandable to centralise many operations in the start-up phase to minimise start-up costs, the A-League is now at a crunch moment where the handbrakes needs to be taken off.
A-League owners and clubs must be allowed to be given control to diversify themselves from the standard A-League template website if they are to make full use of the online marketing and social media.
The issue has been much discussed, but A-League clubs quite clearly need to capacity to have control over much more of their revenue streams – this means more than just the decision to give them scope to choose their own kit manufacturers.
The A-League itself truly needs to be given more autonomy. It is not in football’s interest to have it become fully independent, lest it becomes a competitor to the FFA – with the FFA Chairmen given more power to determine its operation, namely the start and finish dates plus finals configuration (with respect to ACL commitments) amongst sponsorship issues.
TV revenue negotiations and hence the capacity to keep clubs in check with respect to the greater interest of the football fraternity should be retained by the FFA.
Whatever the precise structure, it is the A League itself and not just the Brisbane Roar that need restructuring, if the A League is to transition into a form of Cash Cow rather than be comdemned to everlasting mediocrity as a Dog.
It will require more than significantly increased revenue from the next television deal in 2013 to achieve this.
Nathan
Guest
You're not going to get more money for the same product. To get more money the FFA will in turn need to be improving their product, which requires ........ more expenditure in the football department in facilities and salaries. Please understand, I very much want A-League to succeed, I have nothing at all against any of the sporting codes of Australia.
The Bush
Guest
I hope your keyboard, and not your language abilities, is the reason your rant is so difficult to understand. I cannot believe I'm saying this, but I'm on the side of Fuss for once...
Redb
Roar Guru
"On the other hand, the AFL are poor performers given most clubs lose money despite their huge revenue streams, advertising, marketing, promotion and media attention" You obviously dont understand how the finances work and the floating nature of the salary cap which is indexed to the TV revenue the game generates and then redistributed by the AFL to the clubs. Each club has to pay a mimimum of 92% of the salary cap, when the club is performly poorly they may need a top up to meet these committments albeit with strings attached from the AFL in that they must endeavour to manager their own finances. 5 out of 16 clubs making losses is a major turnaround from a few years ago when it would have been only 5 clubs making a profit. Membership revenue has largely improved the position of most clubs. If the AFL redistributed all surplus money from the TV revenue then each club would make huge money every year, but it rewards slopping administration. Clubs will get help as a last resort, but have to be seen to be managing the finances of the club. AFL clubs are not for profit they are member owned, if they make more money its ploughed into the football Dept or other parts of the club like facilities. Not all clubs can have on field sucess and the riches it brings, so an equalisation fund helps balance out the books to a point of all clubs. Finally, if TV revenue dropped for some reason, the salary cap would also reduce and the costs to the clubs, its a floating mechanism.
Ben of Phnom Penh
Guest
I must admit I found that bit about the Asian Cup highly amusing, particularly since I'm in Cambodia and copped it left, right and centre from the Khmers following our loss to Japan :D
Fussball ist unser leben
Roar Guru
I know nothing about NRL or Rugby, so how can I hate them? And, I still watch every AFL GF when I'm in Australia. But, I no longer care who wins and I've lost interest in the team I used to support when I was younger ... that's life, the things we care about change.
Titus
Guest
Zero interest in the Asian Cup hey banana, cumulative audience of over 650 million. Your small mind seems to be stuck in a small cage.
punter
Guest
Such a awful word 'Hate'. Maybe dislike would be more appropiate
banaba
Guest
Mr Fussball, just like you hate the AFL/NRL game and post alot more than me = this does not give me "incredible JOY", "I would be embarrassed if people like you understood what the Tru Believers understand", we are talking here of a couple of 1000 people, maybe try and get some more of your "tru believer" mates to watch the game on tv or maybe go to a game, because sadly no one is !!!, a=league clubs are BROKE !!!, Foxtel is trying to offload the mighty world game, Asian Cup whatever has ZERO interest !!!, Mr Fussball/Craig Foster = flogging a dead horse!!
punter
Guest
Parody, they say it's a form of compliment.
Fussball ist unser leben
Roar Guru
banaba ... I've got to be honest, I can barely comprehend your semi-literate posts. However, I do understand you hate The Beautiful Game and ... that gives me incredible JOY. I would be embarrassed if people like you understood what True Believers understand ... it would cheapen the whole experience.
punter
Guest
Why don't you add something constructive so I can add to it. You are a joke, don't like football, fine stay away from football tabs. Simple.
banaba
Guest
So Sad!!!,the question is why?
banaba
Guest
punter?, who are you? (craig foster?, mr fussball?), how about you add something constructive to the thread (or are Mr Mighty Fussball trying to throw in another fake name !!!)
punter
Guest
So sad!!! The question is why?
banaba
Guest
I knew you would bite mr fussball (aka craig foster) u spend more time on the anti-AFL/NRL than me, almost all the A-League teams are broke (and let us all get ready for your defence - blah blah) it is gone, the pathetic world cup bid saw to it (hmmmm, u are must be one of the freeloaders of the World Cup bid = $45 Million has gone to someone?), great con job, hmmmmm Sir Frank behind this?, surely not !!!!
punter
Guest
So sad!!!!
Fussball ist unser leben
Roar Guru
They say "ignorance is bliss", so you must be a very content person. For a person, who thinks football is dead ... you spend a lot of time posting on the FOOTBALL tab. I guess, there's not much to discuss in your preferred oval ball sport ... I mean it's only weeks until the new season in AFL, NRL & RU?
banaba
Guest
The HAL IS a very slow start up business(which the NRL and AFL did over 100 years ago) Fussball (Mr Craig Foster - because you are the only one that cares) get back to us in a 100 yrs and see how your sad and pathetic game is?, the A_League is dead, the mighty Footeroos's are gone (how pathetic it would be if Harry Kewell ((show us another pic of him with his shirt off - sad marketing !! - the same man who never wanted to play for his country (he is going to represent AUSTRALIA not ENG or TURKEY!!!!) now he is going to representi us in Brazil - at least Timmy Cahill call's Aust home) ps: Mark Viduka is a Legend of Aust Soccer - the same guy that wore Serbian boxers under his Socceroo shorts !!!
Fussball ist unser leben
Roar Guru
Well said, Moonface. 1. The HAL is a start-up business And, it is facing the same issues that confront all start-up businesses and, in my opinion, the results are extremely positive. The recognition of the HAL brand and the individual clubs is extremely high for a 6 year old business and the product being offered gets a high rating from those, who are qualified to assess the product's quality. Yes, there are times when the start-up operators wonder if they'll be able to open the doors, but with a high-quality global product there is never any shortage of investors wanting to assist. 2. The AFL is an established brand Faced with saturated markets that cannot deliver more customers, the AFL has decided to expand its operations into new geographical markets. Such geographical expansion always requires huge capital investment and is never easy as different geographies have different cultures and desires. The AFL will be sinking tens of millions of dollars each year to establish, market and develop their new businesses. At the same time many of the AFL's existing businesses are also struggling to survive. Further complicating the issue for the AFL is that expansion requires an increase in its labour force by 12% over 2 years but the potential labour market is not expanding, so it is inevitable that the quality of the AFL's product is going to drop dramatically as the AFL has to hire less skilled labour.
Moonface
Roar Guru
Please explain what additional expenses would be incurred if the FFA got a bigger payout for the A-League media rights? I'm just trying to point out the uneven treatment of the different codes by the media and their different revenues. Given how much revenue they all get - it seems to me that the soccer people are doing a much better job of the running of their clubs than people guve them credit for by keeping the losses down. On the other hand, the AFL are poor performers given most clubs lose money despite their huge revenue streams, advertising, marketing, promotion and media attention. While people keep giving Demetriou high praise - I think the AFL are doing a very poor job with the amount of money they have at their disposal. Their ROI would be very low or is probably negative.