Relocating the Central Coast Mariners to North Sydney or having the club play a number of home matches at North Sydney Oval could solve some of the club’s financial woes, but other problems will only exponentially increase.
News appeared on Monday throughout social media that Lawrie McKinna, the former coach and current Gosford mayor had stepped down as the official ambassador of the club.
Many believe this was the result of the club’s decision to increase the amount of games that are played at North Sydney Oval from next season, among a number of other issues on how the club is structured and the abandonment of their community model.
I do not point my finger at Michael Charlesworth, the current Central Coast Mariners owner, but rather the FFA and the way the competition is structured. This is coming from a passionate Sydney FC fan who believes that the current model only favours the city clubs and leaves the regional clubs out to dry.
Why the A-League needs reform
The current A-League model will never provide a sustainable competition that includes regional clubs.
As many are aware a club’s market reach and target audience can only get so big in a region with a population of 300,000. Straight from the get go the Mariners are behind financially in terms of sponsorship dollars, jersey sales, audience numbers and demand when compared to clubs which have populations well over the million mark.
In those terms a club should not be forced to compete on the same financial constraints as the likes of Melbourne Victory and Sydney. The salary cap was introduced to provide an equilibrium but the Mariners have not signed a formidable marquee in several seasons. Question marks should be placed on why salary caps and marquee quotas exist when clubs such as the Mariners have obviously not been able to sign big players in recent times.
Changes to the way the competition is run are required for regional clubs in the future to compete. Many have called for the likes of Wollongong and Canberra to be included within the A-League but I believe that the current model must be amended first.
Regional clubs must be given a chance to be sustainable, which will in turn allow clubs to operate and exist in years to follow. I strongly believe the only way forward where the A-League competition can be home to regional clubs is by removing the salary cap all together.
Alternatively, they could introduce a flexible salary cap where teams are required to spend a minimum of $2.5 million on their squads and a maximum of $10 million. Marquee spots would be removed and clubs would only able to have team rosters where total player wages are between $2.5 million and $10 million.
This will ensure rich owners can’t just buy silverware.
If you look at the current model many of the bigger clubs spend their entire salary cap allowance of $2.55 million and sign additional junior, Australian and international marquees, whose wages have been known to cumulate to well over $4 million when you combine the three.
This should raise questions to what purpose the salary cap serves. To me the current model only provides obstacles in increasing the quality throughout the league and allowing the league to fulfil its true potential.
What the new changes would signal
By introducing a flexible salary cap or removing it entirely you would see a great increase in player quality within the league, which would mean a greater increase and a greater commercial slice from TV deals and corporate dollars.
Looking at the current picture each club is guaranteed $2.55 million every season from the TV deal. By having a number of clubs spend more, who are more sustainable and in a greater position financially, it would also reward the clubs such as the Central Coast Mariners who can’t compete with the corporate dollars available in major cities.
By increasing the salary cap (or removing it) a greater sum can be generated from TV deals and corporate interest throughout the league would definitely increase in a similar way to the David Beckham frenzy which hit the MLS. All clubs recorded significant increases in sponsorship revenue.
The introduction of proper transfer fees throughout the A-League would also significantly benefit regional clubs such as the Mariners and would provide an excellent pathway for them to generate revenue on occasions.
With all these thoughts in mind, the current model of the A-League obviously doesn’t favour a club such as the Central Coast Mariners and the restructuring that has occurred at the Mariners was obviously necessary from a business point of view to cut losses.
However, if a model such as the one I have suggested was introduced how would fellow supporters feel if it meant that we had a sustainable league with 14 to 16 clubs? As highlighted throughout, a club that spends the most doesn’t usually win, everything from back room staff, board directors and the players on the roster all heavily impact a club’s success. Perfect examples are that of Melbourne City, who have one of the best squads and currently sit in seventh.
Without doubt certain aspects of the way the league is structured do need tinkering. Regional cities such as Canberra and Wollongong have been mooted for as expansion possibilities for some time, while Geelong, a third Sydney team and a second Adelaide club have also being mentioned.
For the competition to support clubs that would be entering from a fairly smaller region and with the current crop of ‘smaller’ clubs struggling, the league does need to follow the paths of other competitions throughout the world. Reform is necessary to increase corporate dollars, which in turn would also provide financial support to the smaller clubs.
Premy
Guest
The irony of using a League (MLS) with a Salary Cap as an example to see the benefits of not having a Salary Cap.
H.E. Pennypacker
Guest
There is already a Geelong FC. Founded in 1859. North Geelong is doing well in the NPL of Victoria.
Bomb78
Guest
Yes, the Gold Coast. And it didn't work, in a city of 600,000, with a great stadium, good weather and a strong, established football community. Why? 1. Clive Palmer. 2. No one else - private or corporate - willing to stick their hands in their pockets. To add to my list above of struggling regional sports teams, look to the NBL. Townsville, successful and well supported, needed over a million dollars tipped in last year just to survive. If you want to see regional teams that can work, look at the Intrust Super Cup in Queensland. Lots of regional teams, Cairns, Mackay, Rockhampton, Sunshine Coast. Most years a side from outside of Brisbane wins the competition, the team from Cairns won the national title held for the first time this year. For the most part these clubs are financially sustainable at that level of competition but it's unlikely any of them could step up to the NRL. Toowoomba - bigger than Ballarat - doesn't have an ISC team, despite being a substantial and historic rugby league town. The reason isn't support or community, it's money. To suggest regional city could of this size support an A League side is folly.
Fussball ist unser leben
Roar Guru
"I note you miss the biggest regional market in Australia off your list – the one that also has the best stadium in regional Australia for football. Any reason why?" You've lost me. Are you referring to the Gold Coast? Be great to have a team on the Gold Coast if there is sufficient interest from the football community. To be honest, I'd be excited about a team in any regional town if the local football & business community took complete ownership of the team.
dibo
Guest
The present situation where big clubs can afford *some* players who are better than we can afford (e.g. Berisha) but the rest of the squad has to be broadly similar in standard. If we raised the salary floor to the current cap, we'd screw the Mariners right off the bat, but worse, if we quadrupled the cap and allowed it to be spread across the entire squad, all that we get is rich clubs where *every* player is better than what CCM can afford, ensuring that CCM (and clubs that draw similar size crowds like Wellington, Perth and Melbourne City) could never compete. They will always have a lesser standard of player across the board. If you want to see the A-League expand, clubs will need to survive and even thrive on crowds of around 9,000 or even less. Survival does not mean locking some clubs into permanent mediocrity or worse. Otherwise who in their right mind is going to put their hand up to invest in a new A-League club anywhere other than in capital cities if they will never be able to compete with the big money clubs?
Bomb78
Guest
Fussball - regional markets are troublesome. Amir makes the argument but misses the point. I note you miss the biggest regional market in Australia off your list – the one that also has the best stadium in regional Australia for football. Any reason why? North Queensland didn’t work before, and a new stadium in Townsville won’t change that. The weather through most of the A League season just doesn't work once you get much north of Brisbane. To my point now: the AFL only has two regional teams, one of which is propped up by mega dollars from the AFL itself. The NRL has four teams outside of state capitals, and each of these has substantial financials issues. Add to this the Brumbies, who exist on a shoe string, and my count is that the only financially successful regional team in any of our professional football codes in Australia is Geelong in the AFL. Beside the WSW, they would be the most community centered club in the country, and deserve their success both on and off the field. However, they are the exception, not the rule. Given the track record of deep pocket owners of sports teams in Australia – Clive Palmer, Nathan Tinkler, Eddy Groves – the only realistic avenue for professional sports teams to thrive is through corporate backing. The vast majority of which comes from Melbourne and Sydney. Regional markets have always struggled to attract this money, even with successful teams – the Brumbies, Raiders and Knights are all good examples of this. Despite some pressure to do otherwise, Cricket Australia has resisted calls to expand the BBL into regional markets like Geelong, Canberra and the Gold Coast. The shape of the ball and field may change but the economics do not. IMO, the line for sustainability is probably over half a million people. That rules out Gosford, Geelong, Canberra, Cairns, Townsville, anywhere in Victoria outside of Melbourne. The Gold Coast and Auckland both failed previously. Further metro expansion would seem more logical and sustainable. However, if you start talking about a second division, that changes things. Through business Darwinism you might just get one or two really strong regional teams to evolve into nationally competitive clubs.
eenfish
Guest
Getting rid of the salary cap would not be good for the Mariners. There would be a bigger gap between the quality of players the Mariners have and the Sydney FC/Victory/City clubs, the Mariners would stay further down the table, crowds would continue to drop, the Mariners would die. The only benefit is if big clubs put emphasis on buying bigger names then the smaller sides can focus on developing youth (how the Mariners make their bones at the moment) - the only way this would be feasible is if there is the introduction of transfer fees between A-League clubs to allow smaller clubs to sell to bigger clubs and make a profit.
Fussball ist unser leben
Roar Guru
@Bomb78 Yes, I think it's fantastic we have NEW & CCM in the ALeague. Maybe, a team from Nth Qld & regional Victoria could be added to the ALeague? I'd also like to see Canberra, Hobart, Woolongong represented in the ALeague - I'd call these regions part of major cities.
Bomb78
Guest
Fussball, you're from Victoria, right? There are already 2 regional teams, plus Wellington which is from a smaller market than the Central Coast.
Jack Peters
Guest
worst article I've read in a while. The system they have now gradually increases the salary cap and thats fine. The only thing they need to change is they should allow more international players, maybe 9 per squad and 2 international marquees.
Midfielder
Guest
Q Mark this as a special day ... I agree with you 100%.
melbourneterrace
Guest
What's more important? Having a chance of winning the league or not folding/relocating? Clubs are not born equal and CCM is lucky they won those premierships but the reality is that they are unlikely to even after that success, they are no closer to sustainability and looking more likely than ever to leave Gosford. It is more important that central coast have an outlet to develop local players than wasting money on a title push. CCM have already stripped their organisations costs down to the barebones, the only thing they can't touch is the wage bill which is ridiculous. It's not like it's that outrageous a suggestion, small clubs all over the world are in the same predicament.
Patrick
Guest
In the Socialist Republic of the A League, smaller clubs can't run as a business. (I feel this debate should be on the AFR). CCM needs to be run like the government runs the SBS - FFA give them a budget, that is run with the sole purpose of creating footballers (not money) and being competitive. The operating model of the CCM needs (and probably already is) run to the smallest $ amount, however I've heard rumblings of dropping community engagement which is probably hurting them. However, if the A League wants 10 clubs making money then the CCM have to drop out, their business model is so paper thin any turn in the economy or financial mismanagement and they are going under.
RBBAnonymous
Guest
If clubs like CCM were focused on youth and development they would have no chance at all winning the league. All their best players would leave for better A-league clubs once they developed as they would be chasing higher contracts. By allowing their standards to drop CCM would find it even harder to attract sponsors, crowds and maintain standards. Its all great in theory but when put in practice there comes a price.
Midfielder
Guest
He also withdrew about the time MC was appointed ... he used to be a huge supporter of the club .. most would love him to take over...
Ben of Phnom Penh
Roar Guru
If we want to have an expanded competition then we need to allow clubs greater flexibility in where they spend their 2.5 million. The current arrangement works well when you have catchment areas of 1 to 2 million people. For those of you with a map of Australia handy you will notice we have something of a dearth in the big city department. The next media deal should incorporate a greater level of flexibility. The floor is a far bigger issue than the cap.
Franko
Guest
Does John Singleton have any involvement with the club...?
Ben of Phnom Penh
Roar Guru
Valid point.
AR
Guest
See: Geelong FC
Midfielder
Guest
What Turnbull and Gorman did, that in many ways, was the most important [and I still remember Goram saying its a 15 year plan] was they created a community for the first time ever on the CC ... we were for years Woy Woy or Gosford or Wyong - or The Entrance - they created we are now the Central Coast. It was a local joke that you could not hold a party on the Coast without the Mariners turning up... Given the over hang of the Northern Eagles on the Coast when RL came to town and left ... People on the Coast everywhere supported the Mariners, they may not have come to games as yet But the sense of Community and Our team.... especially when we beat Sydney & Newcastle ... The sense of community and identity the Mariners have brought to the coast has been invaluable, to the Coast and many of its business... and this is why for many there is a sense of betrayal by the new owner... What is complex for the FFA and the good folk of the Coast is there are not people out there lining up to buy Football teams ... I have no idea were all this is heading ... but I do get the feeling its building and at some stage will burst and were it all ends I have no idea ... massive issue and is the perfect example why FFA were so right in taking their time to decide who they sold WSW too.... The Gold Coast may have worked if not for Fat Tony he paid wages but was a marketing nightmare ... The Coast will work with the right people I hope MC realises this .. however he and those he has appointed seem to have "Confirmation Bias" as I see it .... BTW google "Confirmation Bias" if you don't know what it is...