There has been a rush to condemn Clive Palmer after his anti-football comments on the weekend, but stop for a second and you might just hear a man raising some valid concerns about the financing and governance of the round ball game in Australia.
They are essentially the words of a man frustrated by the continuing struggle of clubs to make ends meet. Even if his reign as owner of Gold Coast United has been a laughing stock for the most part, he has been closer than most to workings of Football Federation Australia.
He, as much as anyone, understands the financial constraints with which teams operate in the A-League.
It’s unlikely he’s the only one frustrated by the framework and support provided by the governing body.
Speak privately to any number of A-League club owners and you’re likely to get a similar take, perhaps not on the record, but certainly they’d be just as unhappy.
Often the silence tells a tale.
Palmer is not the type to keep quiet, and after a few years of bleeding, $18 million dollars by his reckonening, he has just about had enough.
Other owners mightn’t be so public, but few, if any, are looking at a favourable bottom line.
Recently Tony Sage has been spotted among some rugby league folk. Read into it what you will.
Among Palmer’s biggest gripes appears to be the current TV deal with Foxsports, a seven year, $120 million deal that was signed after the competition’s first season.
Break it down and it amounts to less than $18 million a season. Spilt that out among 10 clubs, at least nine national teams and the running of FFA headquarters and there isn’t much change left.
At the time, of course, the FFA couldn’t say no to that type of money, but there’s an argument the length of the deal has held back the growth of the game since the initial post-Crawford buzz.
I wrote more that 14 months ago that it would be in everyone’s interests if the FFA were able to re-negotiate a deal to have a slice of the A-League on free-to-air TV.
In it, I quoted former A-League head Archie Fraser;
“The competition needs to be promoted properly and there needs to be a renegotiating of the TV rights deal with Fox which allows a free to air component. While the contract isn’t up until 2013, deals are renegotiated all the time and if the FFA thought it could land a World Cup and only ended up with one vote, surely it can go out and tweak a deal which has left the code hidden from a great majority of the public.”
Alas, nothing has yet happened on that front and the game waits, bickering and bleeding, almost limping to the next broadcast deal, hoping it brings a prosperous future.
Griffo
Roar Guru
If true then Palmer is not really comparing apples with apples then but that is how is wants it to come across. Why the FFA doesn't rebuke Palmer's claim, even without outlining all the budget details, only adds weight to Palmer's statement.
Squizz
Guest
The figures I have seen is $3.6 million between 9 senior executives of which I think Buckley gets $1.1 million. So the rest share $2.5million between 8. The comparison to Gallop though is skewed. Gallop runs one competition the NRL. He has nothing to do with the ARL, the NSWRL, the QRL and the CRL. his job is closer to that of Lyall Gorman.
Squizz
Guest
Fox should be retained to telecast live Australia wide. FTA can then be restricted so that they can't broadcast live into the state where it is played. If for example you follow Sydney and want to see every game on TV you would need Foxtel. If you only had free to air then the FTA broadcaster could show the Sydney FC away games live and the home games on a 2 hour delay. Each state would vary accordingly. Fox gets exposure to a game that they hold exclusive live games to all matches. FFA are happier since they have FTA access. FTA gets content for the summer months. The owners are happier because the revenue pie is larger, the audience is larger and there is an incentive to attend live for those without Fox
The_Wookie
Roar Guru
The AFL gets government handouts? since when?
asanchez
Roar Guru
Good stuff. I've emailed someone I know, who I reckon may know a fair bit, asking him to sniff around for any developments on the TV rights. Not sure how much he'll be able to tell me though. I'll keep you posted. But I heard Adam Peacock on SEN today saying that the our rights deal is on hold till Senator Conroy works out what to do with the Socceroos on the anti-siphoning list. The recent Government inquiry into the game advised them to take the Socceroos back off the list as it may potentially cost the FFA millions in lost revenue. Not 100% sure if this true.
Midfielder
Guest
Yes there is ... heaps...
Midfielder
Guest
asanchez Sorta ... I have a client who just retired and moved.. but his brother is a very senior media exc ... his role is in research and model building of trends and were and how that effects TV ratings .... who watches, when they watch etc... When people like AD, JON etc are in boards rooms discussing media deals he was always in the room for his ability to build viewer-ship patterns... forecasting and model building... all based on heaps of research .. We used to once maybe twice per year get together my client, his brother and myself for a night of good steaks, Hunter Reds and taxi rides home... the engineer, accountant and media analysis just having a good night out ... I have not spoken to him in over a year now, so I have no idea what 20 20 has done, BUT the A-League does have a value and so does the Socceroos and other national teams... Its a lot more than most give credit for...
The Cattery
Roar Guru
I've only just watched the Miron interview on the repeat of Fox FC, wow, what a fantastic interview, one of the best sports interviews of the past decade, well done to Fox FC for pulling that off and giving Miron space to give quite detailed and complex responses to questions which would have tripped up a lot of people.
AL
Guest
If Clive or Tony or the current Jet owner want to go to rugby league, let them. All codes have the same issues. If Clive thinks he can run any football team as a business to make money he is wrong. Even with all the TV money the AFL have, that league and rugby league have clubs strugling.
dasilva
Roar Guru
http://theworldgame.sbs.com.au/philip-micallef/blog/1094367/Palmer-rant-misses-the-point At least one person at SBS is willing to take on Palmer. Unfortunately he wasn't at the interview that day. I agree with you assessment. It seems like the way Foster was acting that Ben Buckley recently brought the game to disrepute recently and not clive palmer. I have always been skeptical when people shout agendas at SBS but really that interviews was a transparent agenda more than anything else I've seen.
dasilva
Roar Guru
I think there is a FIFA rule that if a club has to lose 3 players to international duty and they request postponement of their club fixture then FFA must postpone the match to avoid clashes with international fixture. This would have brought chaos to the A-league and their dealings with Foxsport, if any club goes through with that threat. So therefore there was agreement of maximum of 3 players per club and the clubs voluntarily agreed not to force postponement of fixtures even though they are entitled to with 3 players on international duty. I have a feeling that one of the a-league clubs threaten to do that which force FFA to compromise with the max 3 player limit.
Griffo
Roar Guru
Clive has certainly stirred the pot. Will the Jets be the only ones to ask some questions of the FFA now? “There is a difference between a licence fee and an acquisition fee and the distinction is important,” said Head of A-League Lyall Gorman. I'm no expert in such matters, but does "acquisition" imply ownership of the licence rather than some sort of temporary lease of said licence? Tinkler does not like being taken for a ride and is no stranger to using the courts to resolve matters if needed. A worry if Tinkler cannot see the red, FFA emblazened flag Palmer is stirring the pot with from the trees outside Hunter Stadium. So far so good by talking to the FFA directly. A groundswell of clubs asking for more input into the running of the A-League is brewing. Interesting times ahead.
Stevo
Guest
Would have a lot to offer no doubt but his heart:) and home is on the Gold Coast.
asanchez
Roar Guru
Miron will coach the Heart next season, mark my words.
Tony Tannous
Expert
Yep, terrific interview
Stevo
Guest
Great interview occurring with Miron. Lot's of background stuff coming through. A genuine bloke.
Stevo
Guest
On a previous post I wrote about the coming Palmer interview: " Seriously, tonight could turn out to be a seminal moment in the short history of the HAL. I hope that a lot of good comes out of this “confrontation”." It seems that if nothing else, Clive's comments will hopefully flush out a lot more discussion. Interesting Foxsports FC tonight with Miron !
The Cattery
Roar Guru
Tony have you had a chance to catch up with Archie Fraser's interview with SEN radio in Melbourne where he makes the claim that Palmer is trying to head a break away league and is planning to take the FFA and Lowy head on. http://www.sen.com.au/
The Cattery
Roar Guru
The Tinkler concern over the size of the license/acquisition fee is quite legitimate - it seems a huge price to pay for something that is likely to produce losses for many years to come - and he has done the right thing by taking his concern directly to the FFA. But Palmer's gripes are all over the shop - nothing to do with Tinkler's specific concern, and in any event, I still can't see how Palmer is justified in running the club into the ground and taking down the whole league with him by bad mouthing everyone left, right and centre.
Tony Tannous
Expert
As suggested in my piece, Palmer's comments are essentially borne out of frustration and he's unlikley to be the only one frustrated with th governance and financial state of the competition. Now this from the Newcastle Jets: Following Gold Coast United Clive Palmer’s appearance on SBS’s The World Game last night, the Newcastle Jets has today received a variety of media enquiries. The Newcastle Jets, owned by the Hunter Sports Group, has been in dialogue with the FFA for several months in an attempt to resolve a number of key issues and takes this opportunity to clarify its position. The Jets can confirm the FFA charged a substantial fee for its Club licence. This money was paid in good faith as the Jets were advised from the FFA it was a standard fee. It has since become apparent at the time of acquisition; the Jets were the only owners to be charged a multi million-dollar fee. The Jets are currently reviewing this transaction and considering its legal options. In regards to the key points raised by Clive Palmer, the Newcastle Jets supports the notion of: · Clubs having greater input into the running of the A-League. · Increased transparency and accountability of the FFA. · A change in the current commercial model of the A-League. The combined loss of the Clubs is in the vicinity of $40 million per year which is unstainable. The Jets will continue to work with the Club owners and the FFA to ensure these matters are resolved as quickly as possible to guarantee a viable game for the future. The Hunter Sports Group is 100 per cent committed to the Newcastle Jets. The Club has a great Membership program, supporter base and sponsors. The Club continues to develop a pathway for junior development that will ensure football is a success in the region and throughout Australia. And here's the reply statement from FFA; FFA today responded to a statement from the Hunter Sports Group regarding its acquisition of the Newcastle Jets. FFA rejected the inference that the group was somehow misled on licence fees at the time of its acquisition of the licence. “There is a difference between a licence fee and an acquisition fee and the distinction is important,” said Head of A-League Lyall Gorman. “The acquisition fee for a licence is unique to each club and reflects the particular circumstances of that club and its market – its history, its success, its support, prior investment including by FFA, the potential of the market and other factors that are relevant to an assessment of value.” “In the case of the Jets, those market variables included the fact there was an established club with a successful history and strong supporter base in a traditional football area”. “The agreement by Hunter Sports Group to the acquisition price reflected those market factors and followed an open and comprehensive commercial negotiation and due diligence process”. “There are other transactions that support the fact that there is a substantial value in an A-League license.” The Jets, former champions of the Hyundai A-League in the 2007/08 season, continue to enjoy on-field success in what is shaping up as the most competitive of finishes to a season in Hyundai A-League history. With the Hunter Group’s commitment FFA remains confident this success, both on and off the field can only continue. “We absolutely agree with the comments regarding the club’s great membership, supporter base and sponsors and commend the work that Nathan Tinkler and his group have done in building on what was already a great club with a rich history,” continued Gorman. “The work the club is doing in the area of junior development working in cooperation with Football Northern NSW is also a great sign for the future of football in a region with a strong football culture and high participation levels at the grass roots.”