McGlinchey's Phoenix rebirth highlights compensation flaws

By Janek Speight / Expert

One of the A-League’s most drawn-out contract wrangles is nearing a conclusion, with Michael McGlinchey’s signature on a Wellington Phoenix contract expected to be imminent.

Yet while the saga should satisfy McGlinchey, Wellington and the Professional Footballers Association, where does it leave the midfielder’s former team, Central Coast Mariners?

The club has done the admirable thing, and accepted defeat in retaining McGlinchey’s services, but there are a number of problems arising from his defection.

Firstly, A-League clubs aren’t able to exchange transfer fees between each other. They can receive money from overseas clubs, but anytime a player wants to move to another Australian side he has to force through a release from his contract.

So it remains to be seen whether the Mariners will receive any compensation for their part in developing McGlinchey into one of the most consistent, versatile and dangerous midfielders in the league. The contract has been settled, but that’s hardly adequate.

If they do get compensation, how doesn’t it fall under the category of a transfer fee? If that don’t get compensation, how is that a fair deal?

McGlinchey has a market value that could reach more than $1 million, a fee that Wellington could receive if he attracts interest from Asia or Europe over the next 12 months. And while the Mariners seem content to put the matter to bed, the debacle still raises concerns.

For starters, why can’t Australian clubs pay fellow A-League rivals transfer fees? I can understand that FFA don’t want clubs spending money unwisely, but surely there has to be some form of reward for developing talent.

Clubs releasing players from contracts to join other A-League sides is commonplace, but this is one of the Mariners’ greatest talents. The Newcastle Jets released both Connor Chapman and Craig Goodwin in the off-season, but they were mutual break-ups.

FFA need to introduce some sort of compensation fee that clubs pay when they target players still under contract at rival franchises, especially if those players have been there long term or were brought through the youth system.

The next question stems from McGlinchey’s claims that he wasn’t under contract at the Mariners, based on advice he received from the Professional Footballers Association.

In August FFA ruled, through an independent arbitrator, that McGlinchey was contracted to the Mariners until January 1, 2015 and that he was not allowed to sign with Wellington. The PFA refuted the ruling and were in the middle of an appeal.

The confusion can be traced to the Mariners’ ownership, which changed hands in April last year when Mike Charlesworth took majority control from previous chairman Peter Turnbull.

When there’s a change of ownership in the A-League the club’s license must be transferred into a new company, in this case one under Charlesworth’s name. Players are then required to sign new contracts with the new entity.

However, McGlinchey was on loan with Japanese club Vegalta Sendai at the time these agreements were circulated, so according to the PFA he wasn’t tied to a contract and was free to sign with Wellington.

This is where the water gets a little muddy. PFA chief executive Adam Vivian said it became clear the entity licensed to operate the Mariners had not changed, but was due to in the future.

“The reason for the failure to transfer the license has not been satisfactorily explained the PFA,” he said.

Which means that more than a year has passed, and the relevant paperwork to change ownership at the Mariners hasn’t occurred. There may be nothing to read into this, but if anything it signals incompetence as well as neglect for player welfare.

If the players were asked to sign new agreements under a new company, but that company still doesn’t actually hold an A-League license, then where does that leave them?

Are the Mariners able to discard players when this ownership change does come into effect? Is the loophole that McGlinchey tried to exploit also open to the club? The PFA claim that players have lost more than $2.5 million in entitlements due to ownership changes in the A-League.

The loopholes when clubs change owners need to be clarified. It’s lucky the Mariners decided to release McGlinchey, otherwise an appeal from the PFA could have turned into a messy affair.

The saga also brings up questions of how fans will react to McGlinchey’s move. Will they respect his decision to return home to Wellington, or will they resent him for bailing on the club that made him a star?

He’s been training with Wellington since July, and reportedly informed Mariners manager Phil Moss of his decision via text message. That shows a clear lack of respect on the part of the player, even if he felt he was legally in the clear.

Moss aimed a few sly digs at McGlinchey when announcing the club wouldn’t stand in his way anymore.

“This club – and particularly Graham Arnold – took him from being a run-of-the-mill A-League player to an international, who went to a World Cup and an Olympic Games,” Moss told Goal.

“But the culture and the structures here will outlast any player.”

The Mariners helped McGlinchey become the player he is today, signing him in 2009 after growing up in Scotland. He has transformed into a feared A-League attacker in his 121 games, and the Central Coast are right to feel aggrieved.

Struggling with finances as it is, the club could have done with a transfer fee from McGlinchey’s sale and it’s uncertain why they’ve backed out quietly.

Charlesworth is never one to keep his mouth shut when it comes to controversial issues, especially those involving FFA. Have they received a fee for McGlinchey, and if so how does that fit into A-League protocol regarding transfer fees?

This bizarre case has taken too long to be resolved and confusion over the Mariners’ ownership model is not a good look. There’s a lot more to this story than has been fed to the media.

More information is unlikely to surface for the general public and the case will likely be forgotten soon enough. But this saga should at the very least be used as a clutch for FFA to bring in clear guidelines for compensation to avoid unnecessary drama.

The Crowd Says:

2014-09-17T07:41:20+00:00

Hand of God

Guest


I reckon the issue that the CCM players technically play for a company without an A-League license is pretty worrying - what if that "company" suddenly folds? If it's true, I can't believe the PFA aren't focusing their efforts on that, rather than getting involved in an individual contract dispute.

2014-09-15T09:55:28+00:00

Justin Mahon

Guest


Yep, players and clubs come to early departure agreements all the time all over the world. This is no different. All the club had to do was put a price of his attitude...... I am glad the FFA left this matter to the ADR process and stayed out. The decision of the panel was also a good one for the league. Contacts must be honoured and disputed resolved lawfully. I am a lifelong unionist and though the PFA were a bit cute on this.

2014-09-14T01:27:38+00:00

clayts

Guest


I don't get you. You first essentially discredit the author's piece because he hasn't spoken to the player or his legal team etc, then because you read a media statement you somehow think your argument is more valid in some way. Why not skip the first step where you condescend and just state your opinion?

2014-09-13T08:06:34+00:00

Batou

Guest


Yeah, I read your posts and *somehow* I interpreted the bit where you applauded the FFA for 'doing their bit to keep fees reasonable' as an endorsement of the status quo whereby A-League clubs are unable to pay each other transfer fees. I don't agree that zero ability to pay transfers is 'reasonable'

2014-09-13T07:45:24+00:00

Justin Mahon

Guest


Academy time and an opportunity for owners to take a breath.

2014-09-13T00:30:40+00:00

DFG

Guest


McGlinchey has agreed to pay compensation, however that is not the same as him agreeing to pay out the value of his contract. CCM have not done well out of this financially at all. Plus you also need to include the costs of the lawyers in arguing the matter at FFA - although CCM won that case there was no award of costs to the Club.

2014-09-13T00:21:56+00:00

Fussball ist unser leben

Roar Guru


Off topic, but relevant to the ALeague. In Dom Bossi's article looking at 10 years of the ALeague , he mentions: "A 12-team competition is being pitched to broadcasters for 2017 which could double fundings provided to clubs, giving them an annual cheque of more than $5 million." Story: http://www.smh.com.au/sport/soccer/10-years-of-the-aleague-and--profits-aside--theyre-having-a-ball-20140912-10g097.html#ixzz3D9NYPtTP ------- So, if we assume the ALeague clubs dividend share from TV rights remains the same (60% of TV money to ALeague), we're looking at the next ALeague Tv rights being worth around $100 million. Interesting times ahead.

2014-09-12T13:08:08+00:00

Leonardo

Roar Guru


batou, I didn't say there were no transfer fees, I said they were "reasonable" and "not massive". They are very small compared to what they pay overseas. Sure, like a lot of things in life there are advantages and disadvantages to everything. If you read my posts above, I've pointed out some of the advantages.

2014-09-12T10:42:01+00:00

Fussball ist unser leben

Roar Guru


The media statement says: "McGlinchey has agreed to compensate the Mariners for the early termination of his contract in order to join rival Hyundai A-League outfit Wellington Phoenix.” I've read that the compensation means McGlinchey pays out his contract (same as would be required of CCM if they decide to terminate a player's contract early). So, CCM has emerged from this very well. Maybe it will give other clubs confidence to stand firm & receive the compensation they deserve. Of course, it works both ways. MVFC didn't want Jonathan Bru & they were forced to pay a player who was not even allowed to train with the main team.

2014-09-12T10:21:01+00:00

Batou

Guest


Leo, how is not allowing transfer fees 'keeping transfer fees reasonable'? I think that transfer fees are great. They allow a good outcome for both sides instead of this stupid system where players (almost) always get a release if they want it (yet clubs are unable to cut players when they want). It could help smaller clubs financially as well by transferring $ to them from the bigger clubs.

2014-09-12T08:13:18+00:00

Leonardo

Roar Guru


Metaphorically speaking, of course. :)

2014-09-12T08:02:16+00:00

Bondy

Guest


I generally dont wish a player to break down, but on this occasion I hope he breaks his f^^^"n leg ...

2014-09-12T07:19:58+00:00

Leonardo

Roar Guru


Yeah, fair enough midfielder, there were hidden agendas. But at the end of the day I think it was basically a lack of trust. I think Mac didn't trust the new owners and didn't want to sign with them in case they didn't release him to the Nix. You Mariners fans are entitled to be angry with him, because from my viewpoint, he was the trouble maker and showed a complete lack of loyalty to the Mariners after what they did to resurrect his career from the dole queue to the A-League and a call up for the All Whites.

2014-09-12T07:12:32+00:00

Leonardo

Roar Guru


Its actually enshrined in the FFA's National Football Development Plan and the big picture for developing talented youth. The transferring clubs are entitled to reasonable training/development costs and a transfer fee. I think from State League to A-League its about 5K plus incentives for first team appearances, Socceroos selections etc. It gets a bit complicated but all contracts are registered with the FFA. There are of course a few exceptions with the marquees and also Socceroos returning to Australia incentives. Don't forget players like Del Piero, Heskey and Janko came to the A-League for free and that has to be a great boost for clubs. They deal directly with the players. There are some drawbacks of course, but overall its a good idea. Its a big boost for local player development and giving young Aussies a chance. Its also a big incentive to develop Player Academies for your own player stocks and future overseas transfers. The overseas transfers are administered by FIFA so FFA can't do anything about them. Imagine what the EPL would be like if local English players were free transfers and they had a similar system to the A-League. Would it be a good thing or bad thing for the clubs? Better for the English national team and England youth player development?

AUTHOR

2014-09-12T07:12:01+00:00

Janek Speight

Expert


True, Fuss. I'd agree that they're probably happy to be rid of the drama, but they fought this for three months and then conceded defeat without a word.

2014-09-12T06:54:04+00:00

Fussball ist unser leben

Roar Guru


I'd assume they'd rather not have a disgruntled player upsetting the rest of the squad? Last season AUFC had to let Lustica (a very talented player) leave after he decided he wanted to go to Brisbane. A-League clubs aren't wealthy enough & squads sizes aren't big enough to allow us the luxury of standing firm & having players take up space when they're obviously not interested in playing.

AUTHOR

2014-09-12T06:48:34+00:00

Janek Speight

Expert


I'm not suggesting we get cranky Fuss, I'm questioning why the Mariners are happy with losing their best player. A player worth close to $1 million. They settled with McGlinchey, but that compensation would be peanuts compared to a transfer fee.

2014-09-12T06:39:59+00:00

DFG

Guest


The PFA has done a lot of good things for players in Australia and, I believe, are a necessary stakeholder going forward. However be under no illusions that they stuffed this up royally - bad advice was given to the player and then the PFA was too dogmatic to change its position and accordingly kept pushing a losing argument. There is no doubt in my mind that they would have lost the McGlinchey appeal if it ever made it to a hearing, and I am familiar with how this system operates. Mariners helped develop a player into one of the best in the league, allowed him to go on loan half way through the season (and severely impacted its chances of winning the league) because that's what the player wanted, and then got screwed by the player, as advised by the PFA, in return. Mariners won the arbitration but what use is that given that the relationship is now beyond repair as a result of the PFA's counsel? Hard not to feel some sympathy for the Club ... We should appreciate the good the PFA have done but equally hold them to account in situations like this

2014-09-12T06:27:16+00:00

Chop

Roar Guru


Had you heard of McGlinchy before he played for the Mariners? There's no doubt that CC Mariners have been dudded by this, I don't know why Moss would say he was satisfied with the outcome. Many a Mariner fan are very unhappy. The FPA should be disgusted in themselves for backing McGlinchy in this case and Wellington have behaved disgracefully in this as well. Surely their first reaction should've been 'Go sort out your contract status with the Mariners, then we'll talk' but they took him on board in an attempt to become slightly better than mediocre as has been their standard since inception.

2014-09-12T04:10:22+00:00

Squizz

Guest


McGlinchey was on the scrap-heap when he got picked up by the Mariners. He played 1 game for Celtic as a sub in 2005. He was loaned to Dunfermline for in 2007 and played 8 games suffering a groin injury, He played no more senior football until he played with the Mariners in 2009.Lawrie McKinna picked him up after spotting him training on a trip back to Scotland in a place setup for footballers to train when they are unemployed but are trying to regain/hone their skills.

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