Australian football must consider a new operating model

By Midfielder / Roar Guru

The FFA are at a crossroads with the question of the best way forward. Most of it comes down to money.

If you believe everything you read, you could be forgiven for thinking football in Australia was on its knees, waiting for the executioner. The facts tell a different story.

Last year, football had $103 million in income on the back of a $40 million media deal. Most expect a new deal will come in between $70 million and $80 million.

Meanwhile, revenue for the Socceroos has fallen with the AFC rules, meaning the extra $30 million could be bigger if the AFC rules did not apply.

Football is also the only sport other than basketball growing player numbers, which have exploded since the start of the A-League.

This all means that football will have an income of around $135 million – possibly more – and somewhere between 14 and 16 bidders wanting to obtain a new A-League licence. Plus, if media reports are correct, football will be on a mainstream free-to-air station, with most thinking Network Ten.

That’s all within 12 years of the game being bankrupt and having next to no media exposure – hardly the work of an inept organisation.

Johnny Warren often used the phrase “We have the best game but the country’s worst administrators.” Today he could add that by a huge margin football has the most opinionated and critical sub-parts.

The players association are far more demanding than unions in other codes. Journalists, especially former Socceroos, believe they have all the answers, as do fans. Then there are the clubs which, being mostly privately-owned, are more powerful than in other competitions.

Many are disappointed by the expected value of the media deal, hoping it would be around $100 million. Around 15 months ago, David Gallop even suggested this was possible.

A better, simpler way of running football is to have the FFA at the top of the chart, with a separate body to run the A-League, W-League and state associations. All competitions retain their own revenues, while the FFA takes enough to cover the shortfall between their own revenue and operating costs.

This will make each part responsible for its own future, which will allow an ‘A-League Commission’, for want of a better name, to decide what is best for itself without club influence.

Whoever finds themselves in charge of football in Australia will face these problems. Given changes are inevitable, the concern is that unless we carefully consider our options to choose the best model, we will simply replace one set of suits with another, who will get the same results.

The Crowd Says:

2017-02-24T12:01:50+00:00

j binnie

Guest


Nemesis - I don't regard the HAL as a finishing school for young local players,I prefer to look at it as a place where they should be putting on an exhibition of the skills and knowledge they should have learned much earlier in their football careers. At the moment this is not happening and we see ,almost in every team,young local players struggle to play at the same level as the imports who, you must remember, are in the twilight of their careers. Until that situation changes we will always be behind the 8 ball. Of course there are a few showing all the necessities but as cream always rises to the top this is to be expected ,but we still have a long way to go. Cheers jb.

2017-02-23T22:10:21+00:00

Chris

Guest


In regards to our teams not performing in the ACL, you need to qualify that to say 2-3 teams are not performing well. Both WSW and Adelaide are having very ordinary seasons domestically while Brisbane are doing well (domestically and in the ACL). To make sweeping statements that we cant match the skill level in the ACL is a bit of a stretch.

2017-02-23T05:19:46+00:00

Square Nostrils

Guest


The obsession for sports is TV money, but it is in the end MONEY, if that money comes from another source as well, to help grow the game, it doesn't matter. TV money also comes with proviso's like scheduling to suit them and their view as to your worth., not the clubs. Who has that sort of money to throw around, plenty of Asians, even the City Group & China, well we know the cash they've been throwing at football recently. Also one man in Australia ,now not involved in the game,who was reluctant when in control, could be a game changer. Will he who knows,but he could be Australia's Lamar Hunt or Phil Anschutz from the MLS. the A-League will continue to struggle to reach its full potential in Australia unless it receives a large injection(s) of funds from whatever the source. As long as its understood, as indicated, that their are controls in place to stop guys like Clive Palmer stamping his brand of Football management on the League.

2017-02-23T04:48:59+00:00

Caltex & SBS support Australian Football

Guest


The FFA are fudging. Clearly the FFA are lying or incompetent with only having to look after 4 national teams with shared staff and admin plus gov assistance with the Olympic squads men and women. Whereas, the 10 clubs have twice the staff requirements and players required. Yet operate year in year out for the past 11 seasons. Questions have to be asked?

2017-02-23T04:17:13+00:00

Midfielder

Guest


Caltex They are both big boys TBH I have no idea what it cost to run FFA and how much of that cost is to run the A-League... All I know is last year FFA reported 103 million in revenue which includes most of the things you mentioned. They gave the clubs 26 million... They kept 79 million and included in that was running cost outside the 26 million to the clubs of running the A-League...

2017-02-23T04:08:36+00:00

Caltex & SBS support Australian Football

Guest


So, I just found $30 you can put on top of the $53m---suddenly they have $83m to work with. Also State federations are cashed-up, in particular, the NSW Federation of the FFA. Therefore, they don't have to give States too much cash. So what is the problem in giving the clubs a fair deal? ($6m dividend)

2017-02-23T03:43:09+00:00

Nemesis

Guest


This is the sort of big & bold thinking we need for ALeague. Simply put, if the ALeague could get a huge capital injection - and i mean huge - more than what we can expect from club owners other than City Football Group. Didn't IMG & Reliance Group underwrite the Indian Super League? Private Equity understands how to take undervalued assets that have growth potential & make them big. But, FFA must ensure there are strict rules that ensure the new entity always adheres to FIFA & FFA policy & rules.

2017-02-23T03:24:57+00:00

Midfielder

Guest


boy that is an interesting article.

2017-02-23T03:07:43+00:00

Nemesis

Guest


One option Street Talk has heard is a Private Equity ownership of the ALeague. Full story: http://www.afr.com/street-talk/ubs-could-score-in-ffa-private-equity-play-20170219-gug8db

2017-02-23T03:04:28+00:00

mattq

Guest


someone posted in in the 442 forums

2017-02-23T03:01:19+00:00

Midfielder

Guest


do you have the link or title of the article.

2017-02-23T02:30:03+00:00

Caltex & SBS support Australian Football

Guest


I forgot, add all the money from the finals series ($3m ? gate) Also add appearance money for the FIFA confederation cup, $6m.

2017-02-23T02:27:12+00:00

Griffo

Roar Guru


That is the question, but my question has been how much dividend to the FFA that both parties agree to is more pertinent. The FFA would have to be happy with a figure and confident of some growth in that dividend to meet increases, demand, new developments in the years ahead. But this doesn't take into consideration the PFA, nor growing other aspects of the game including youth and women's football... You also have to be careful the club/owner interest doesn't detract from the games development, or the national teams, in the pursuit of protecting the product at the expense of everything else. You have to wonder how a model like what the German football FA (DFB) in terms of development by clubs and overall oversight would work here. It is a complex situation with no easy answers. And perhaps the FFA's necessary tight control since inception have now weakened their position by club growth demands...

2017-02-23T01:24:10+00:00

DH

Guest


That would probably be the best for the A-League and in the short-term interests of cash strapped owners, but not in the interests of football in this country, or the W-League, youth development or Socceroos.

2017-02-23T01:09:07+00:00

Midfielder

Guest


Agree 100%

2017-02-23T00:44:31+00:00

Slane

Guest


That's an interesting idea, mattq. I can't wait to see just what a league seperated from its sports governing body is capable of. I dream of a day when each A-league club is a powerful, self-sustaining business entity capable of attracting some of the best football talent on the planet.

2017-02-23T00:27:31+00:00

mattq

Guest


that Les article was 5 minutes I'll never get back.

2017-02-23T00:26:30+00:00

mattq

Guest


also the AFR article re: private equity injection, I thought was interesting. Check it out if you didn't see it.

2017-02-23T00:25:53+00:00

mattq

Guest


why not just handover the league and then charge an annual fee to the entity in control of the A-League in order to continue to be officially offiliated with the FFA and therefore AFC and FIFA? Let the league control it's own income destiny and just ensure the fee the FFA charges is enough to cover the rest of the game allowing for annual increases.

2017-02-23T00:22:07+00:00

Midfielder

Guest


You may be right about FFA crying poor but Les Murray wrote an article a couple of days ago saying how complex and costly is was to run the non A-League functions of FFA ..

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