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A-League’s path to profitability

Frank Lowy will step down as FFA chairman in November. (AAP Image/Dean Lewins)
Roar Guru
3rd May, 2013
25
1669 Reads

The A-League has enjoyed a fantastic season with rising attendance, ratings and merchandise sakes, but its clubs are still losing a lot of money.

A recent report in The Australian Financial Review detailed that in the 2012-2013 season A-League clubs lost close to $20 million, an improvement, down from a loss of about $27 million in 2011-2012.

According to the story Melbourne Victory, the biggest club in the competition, was the only club to record a profit for the season just ending, while it is believed their neighbors the Heart and Adelaide United broke even.

This shows the A-League remains a work in progress and private ownership should not be the only ownership option considered. Other options, such as members ownership and supporters trusts, have been successful overseas for example.

There are definite positives, with 2012-2013 having been a resounding success with growth in TV figures, crowd numbers, digital media, membership and sponsorship.

Perfecting the model and building on this growth is now paramount. The FFA has done a sensational job with establishing the Western Sydney Wanderers, but now it’s time to separate them from the governing body and end the conflict of interest.

Finding the right buyer, who will continue the good work done and maintain the strong community connection the club has created, would be a great step.

Helping A-League clubs nut out more sustainable stadium deals, such as for Perth Glory and Melbourne Heart, is another must.

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The new broadcast rights contract with Fox Sports and SBS is a massive shot in the arm for the A-League, with the central grant from the FFA potentially rising up to $2.5 million for each club, covering the salary cap.

Encouraging and helping A-League clubs to sign the right marquees, the right and suitable foreign stars that boost the value of the entire competition, is also important.

Several could do with some star power, such as Perth Glory, the Heart and Wellington Phoenix. Sydney FC and the Jets are set, the same for the Wanderers, and the Roar are probably full with both Thomas Broich and Besart Berisha.

But imagine if we could add in the quality of a Francesco Totti, Raul, Ruud van Nistelrooy or Michael Owen to season 2013-2014? We need to think and dream big.

Hardly anyone would have imagined a year ago that the A-League would convince a footballing freak like Alessandro Del Piero, a World Cup winner and Juve icon, to move down under and grace our shore with his silky skills. But he did, and the fact he did means others of his ilk can be convinced to do the same.

The standard of the A-League is improving and more younger Australian players are getting a chance to play and develop. This is a great thing.

The A-League needs to keep improving its status as a powerful production line so the Marco Rojases, Mustafa Aminis, Tom Rogics, Robbie Kruses, Mitchell Langeraks and Terry Antonises keep emerging and have the opportunity to go on to greener pastures overseas.

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There are big financial gains to be made for the clubs in developing and selling these boom youngsters to cash-rich outfits outside Australia.

Membership is growing in the A-League, however it remains small and the good work in that area needs to continue.

Ticket prices remain fairly low compared to many other sports, and they should remain stable as the competition is marketed as an affordable and family-friendly experience.

Another area that needs work is the Asian Champions League and the A-League clubs participation in it. The Australian football public has yet to fully engage with Asia’s top club competition and the FFA needs to encourage fans to get involved.

The financial costs of participation for the Aussie clubs are massive so FFA needs to step in to assist where they can in marketing, promotion or whatever. They can’t do this at the same time as bankrolling the Wanderers.

There is a lot that can be done to help A-League clubs get in the black.

It is too soon for expansion next season but a new franchise for 2015 or 2016 is possible. The right location and the right bid, whether it be from Canberra, Wollongong, Hobart or wherever, could bring big benefits if done correctly.

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And lastly the issue of separate body to run the A-League, distinct from the FFA, needs to be debated.

This has been proposed in the past but the fragile nature of the still raw competition, and indeed the FFA itself, made it impossible. But as the foundations become more stable and progress continues, this would be a crucial advance.

It is something that occurs in other football leagues around the world and already Basketball Australia and the NBL are considering it with their own competition.

The A-League has basked in a beautiful six months. But let’s not take our eyes off the ball as there’s a lot still left to be done.

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