When Fox Sports lost the rights to the English Premier League to Optus, $25 million of TV rights capital per year was retained by the station.
This $25 million is a huge opportunity for football in this country, and it all sits in the hands of the TV rights negotiators at Football Federation Australia. If used correctly, this $25 million could be a game changer.
While I understand the FFA may have debts to settle, or financial savings to build, I wholeheartedly believe this money can be used to make a whole lot more money.
The FFA currently earns $160 million over four years ($40 million per year) from their TV deal with Fox Sports and SBS, covering the Socceroos, A-League and Westfield FFA Cup.
I propose Fox Sports – or any other broadcaster willing – to contribute $260 million over four years ($65 million per year) to the next football TV deal. For the sake of this business case, we’ll call the extra $25 million on the deal the ‘Fox Superstar Clause’.
The Fox Superstar would be a marquee player that draws crowds.
Most marquee players in the A-League collect between $400,000 and $1.2 million in the A-League. Most of them are very good players but are often previously unknown to even the most devout Australian football fan. While lots of these players are effective (Besart Berisha, Thomas Broich, Diego Castro etc), none attract a previously untapped football audience.
The Fox Superstar Clause changes that.
About $2.5 million (10 per cent of $25 million) would be made available to each club on the condition of one thing only; the whole sum of that capital is spent on one marquee player that both Fox Sports and Football Federation Australia approve of.
To earn this player, the A-League club must submit a short report that details why this player will add value to the local market and the statistics, facts and market research that these assumptions are based on. If the A-League team doesn’t sign a Fox Superstar, Fox Sports keeps their $2.5 million.
To give you an idea of what you can get with $2.5 million; Didier Drogba earns $1.3 million at Montreal Impact, Alessandro del Piero collected $2 million at most at Sydney FC, and Andrea Pirlo picks up $2.2 million at New York City FC.
Recently, I spoke to one of my old Major League Soccer colleagues in New York, who informed me that his agency has 2010 FIFA World Cup Golden Ball winner Diego Forlan and the mercurial ex-English Premier League striker Hugo Rodallega available for $2 million each and willing to move to greener pastures.
The Fox Superstar Clause gives you more than added superstar quality to the league, it creates numerous other benefits too:
• Encourages bigger stadium attendances Australia-wide, thus improving the television product and sponsorship value for each club and the governing body.
• Encourages larger national and international television audiences, improving sponsorship.
• Improves the television product, audience and financial viability of the financially ‘smaller’ teams such as the Newcastle Jets, Central Coast Mariners, Wellington Phoenix and Perth Glory.
• Greater incentive for free-to-air television broadcasters to become involved in the next TV deal.
Of course, there should be no barriers imposed on any club that wants to add some of their own money to the $2.5 million to pull an excellent player.
You can even go further with the concept, too. There’s the possibility that the FFA reduce the number to $2.4 million for each team and hire two full-time scouts or agents that offer a pool of FFA and Fox Sports approved players that are offered to all 10 A-League clubs or to specific clubs. Alternatively, they can encourage international agents to get involved with a $100,000 ‘bounty’ for each world-class player brought to the A-League.
So what about the other marquees? Leave them as they are.
The Fox Superstar Clause is an equal improvement for each team in the league. Plus imagine three marquees per team, the standard of football would skyrocket. Clubs would feel more comfortable to sign a defensive marquee player and each team will have three heroes to support.
How big could this be for football in Australia?
Put it this way, Major League Soccer in the United States has three designated (marquee) players per team, including superstars like Kaka, Steven Gerrard, Drogba, Frank Lampard, Robbie Keane, Sebastian Giovinco, Giovani dos Santos and more.
In the last four World Cups, USA has made it to the round of 16 three times, including a quarter-final berth in 2002 in South Korea and Japan. These players inspire excellence around them.
Imagine what it could do to Australian football. Could the FFA make it happen?
NaBUru38
Guest
I disagree. Federations should promote amateur sport. That kind of money should be better invested in improving youth clubs.
Chris
Guest
Great article . Make it happen .
Waz
Guest
A distant 3rd behind AFL and NRL??? SuperRugby is behind Soccer as well!
Waz
Guest
How do you know that Steve?
Waz
Guest
Whiskers, NRL and AFL viewing figures were down also. Their media rights went through the roof - what does that tell you?
Waz
Guest
Ian, I have Foxtel for the HAL and broadband with it. Kids get kids programs and drama cos we can. If the HAL goes I will cancel my Foxtel outright which, fully enough ends in 2 years when the Hal rights are due for renewal (I won't be persuaded by any promotions between now and then until I know where the HAL is going). If they go to Optus so do I. My broadband then goes with it. My families three mobile plans will likely follow. It's not hard - the old model was eyeballs = advertising revenue, but advertising is fragmented across social media platforms now so the new model is content = subscribers and that is good for the AFL, NRL is a bit odd as its gone big on FTA but time will tell whether that's a commercial success for the network, and the HAL (hopefully) can expect to leverage this new world to the tune of $60, $80m per year, maybe more? At last nights Roar fan forum expansion of the Hal was brought up and the answer given was the "expansion model" is based upon the impact it will have upon media rights - top 3 markets bring Sydney, Melbourne then Canberra. That's the expansion roadmap!
Fussball ist unser leben
Roar Guru
Fair point, Freycinet1803. I guess the obvious question is: how much less would the crowd have been if one, or all three, of Pirlo, Lampard & Villa were not signed? Are we talking 10% drop? 33% drop? 50% drop? What happens when these 3 lads leave? Will NYC have to buy big-name players every season? How much long-term attachment is there between club & fans if fans will only turn up to watch big-name players?
Freycinet1803
Roar Rookie
NYC averaged nearly 30,000 a year, Orlando averaged nearly 33K (neither made the playoffs) ... the only team with better crowds was Seattle (who have a great engagement strategy, but also one of the highest paid players in Clint Dempsey). The on-field results are not the only thing to worry about ... imagine all the kids now the States who want to play soccer, or those that may just pursue their dream a little bit harder. Perhaps now with such great returns these teams can set up better facilities for youth players, offer greater services/programs to youth in the area etc. etc.
JAR
Guest
So we do this.. once? So each A-League team gets its superstar for one year, all the plastic fans come to games in droves and then stop coming once the superstars go home with all of Fox Sports's money. Then what?
Fear the Smell
Guest
You put Fuss/Uncle Junior in the same category as pat malone/kevin dustby/fiddlesticks? That's a serious burn.
Ian
Guest
i saw fiddlesticks at the conference, or was that kevin dustby.....looked like pat malone actually. they all look surprisingly similar.
EastsFootyFan
Roar Guru
Interesting that the NRL continues growing. I'd expect it with soccer, but thought the NRL would have largely plateaued. You have to give them credit I suppose - in spite of all the bile spewed at them by News Corp lately, they appear to be an increasingly well run outfit. Anyone know if Dave Smith is interested in a role at the FFA? Did they comment on the Cricket playing stats? Last summer CA had come out and said they're now officially the most played game in the country.
fiddlesticks
Guest
did you go to the conference or Fuss?
Uncle Junior
Guest
Yesterday, in Sydney, at the Money In Sport Conference Roy Morgan Research presented the following market research about Sport in Australia … Football & NRL are the only sports showing increase in TV viewership in Australia over time … in the 14+ age group, the following sports are losing market share: AFL, cricket, netball, RL & golf … for the first time ever, more girls in Australia now play football than netball … swimming is no longer Australia’s national sport amongst 6-13 year olds – football has taken over with 50% of participation.
Uncle Junior
Guest
Kaks My mistake in the 2nd post. The FFA registration fee for u18s in NSW & Victoria is $12.60. I've provided the link to all the FFA Fees for football in NSW.
Bitza
Guest
I remeber when super rugby was very new they decided to go aftrr rugby league stars to encourage people to watch their game. They through truck loads of cash to Sailor, Rogers and a few other players, to build the profilie of their game. They even had a FTA tv deal. But in the end, they are now a very distant 3rd behind Afl and NRL. Did the Marquee players help?
Whiskers
Guest
why will there be an increase (above inflation)? TV ratings for the a-league have fallen off a cliff. Even SEN, which has boosted a-league for years, appears to be tired of it.
Towser
Guest
Some claim Daniel that Gallop is also a Lowy stooge, so we've got Murdoch, Lowy and maybe his missus. So what would that make him, the Three Stooges.
Towser
Guest
A bit of vision and direction, will not go astray for the A-League Harley ,in fact I consider it imperative ,given the global competition in the game.
Kaks
Roar Guru
UJ you said 12.60 in your first post. My mistake