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A-League football clubs lost close to $27 million during the 2011-12 season, and despite record television ratings, attendances, merchandise sales, transfers and corporate sponsorship for the 2012-13 season a loss of $20 million has been recorded.
The Australian Financial Review has provided an insight into the gains, losses and break evens for season 2012-13.
Melbourne Victory, having witnessed a significant improvement both on and off the field, has aided them in recording a small profit, while their rivals Melbourne Heart and Adelaide United reportedly broke even.
Unfortunately for the other seven A-League clubs consisting of Brisbane Roar, Central Coast Mariners, Newcastle Jets, Perth Glory, Sydney FC, Wellington Phoenix and Western Sydney Wanderers, they are left to share in the unfortunate $20 million loss.
Sydney FC, despite luring the greatest signing in Australian football, Alessandro Del Piero, have recorded a significant loss. It may not be until next season that the benefits of his arrival will appear.
Perth Glory have also incurred significant financial losses as they were unfortunately denied compensation at the start of the season while refurbishment occurred at a reduced capacity NIB stadium, much to the dismay of club owner Tony Sage.
To make matters worse for the Perth club, Tony Sage’s health has come under the spotlight throughout this past season and there is talk he may have to walk away for the betterment of his health.
The Wanderers were always expected to record a financial loss, but considering they had such tremendous success both on and off the field you could have perhaps hoped they could break even, rather than incurring a loss of more than $1 million.
Fortunately for the Wanderers, their success of 2012-13 may transcend into next season in which participation in the Asian Champions League may aid their process to one day challenge Victory as the biggest club in Australian football.
Grand final champion Central Coast Mariners also recorded a loss of more than $1 million. Mike Charlesworth, a British telecommunications company owner, is in the process of taking closer control of the club with concerns over the immediate financial future.
Although aiding the club through such a hard time, it seems as though things may be more bleak than first thought.
It has been reported that Charlesworth spoke with the Australian Financial Review and said the Mariners may seek to forgo their participation in the 2014 Asian Champions League as the costs of the competition come close to about $300,000 extra on an already expensive business to run.
FFA chief executive David Gallop has said Charlesworth and the Mariners may need to look at the longer-term picture regarding ACL participation. Their participation remains to be seen, but Australian football fans are hopeful.
However concerning these matters may be, it has been said all the clubs should remain optimistic as the future of Australian football looks bright.
Football Federation Australia believe clubs and fans will see improved financial results next season when the new broadcast deal with Fox Sports/SBS begins. It has also been said the clubs’ salary caps will be fully subsidised in an effort to aid club owners stem the flow of money. This could in-turn cut losses by $5 million between all clubs.
Although it has been said the cap will look to be covered, it must also be noted the FFA will soon enter negotiations with the Professional Footballers Association in regards to a new enterprise bargaining arrangement.
Over the coming months A-League club owners and the FFA will continue to work together in an effort to maximise revenue and minimise losses.
Future financial security is a must and despite the hardships our club owners have had to endure, hopefully they can see the light at the end of the tunnel and wait to see our competition flourish even further.
Despite all the positives of the most successful season, it is a timely reminder that the A-League still has a long way to go.
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