A-League clubs have walked out of a meeting with Football Federation Australia after rejecting a redistribution offer from head office.
There appears to be no end in sight to the lengthy stoush between FFA and the clubs, who are fighting for more funding and extra seats at the sport’s key decision-making table.
Adelaide United chairman Greg Griffin, speaking on behalf of his colleagues, said clubs had unanimously turned down an increased annual distribution of $3.25 million.
“We have worked in good faith for the last eighteen months to achieve a distribution that will deliver a sustainable future for the league,” he said.
“With this proposal the FFA has shown its disregard for the A-League and those who have invested in it. The clubs are no longer prepared to fund the FFA through annual club losses.
“This is yet another example of the need for reform of the governance and management of our game and things must change now.”
It’s understood FFA chairman Steven Lowy is overseas and was not at the meeting.
FFA has been contacted for comment.
Presently, the league doles out an annual amount to clubs corresponding with the A-League salary cap – which in 2016/17 was $2.6 million.
Under the terms of the CBA, the salary cap will rise to at least $2.92 million in 2017/18, owing to the league’s bumper $57.6 million-a-year broadcast deal with Fox Sports.
The clubs are eager for a greater share of that pie than the $32.5 million currently on offer.
The Australian Professional Football Clubs Association (APFCA) says the current offer means clubs will receive less than half of the revenues generated by the league.
Having argued for redistributions above and beyond the total salary cap amount, the clubs were aghast to learn that the offer from FFA would only barely cover A-League, W-League, NPL and NYL player wages.
Clubs see these talks as time to secure a genuine return on their investments over the first 12 years of the league, where almost all club owners have worn significant losses on their investments.
Rick
Guest
37 Tevin McDonald Jersey.How much is affordable jerseys? Cannot miss the 24 Nevin Lawson Jersey too.
Nemesis
Guest
I don't think this is true. From what I've observed many musicians who have been successful on the charts sign contracts which deliver royalties in perpetuity to agents & record labels but leave them relatively poor. The courts don't intervene.
mattq
Guest
@ Nem Yes but contracts do also operate on procedural fairness in decision making. Inadequate distribution of revenue generated by the clubs and historical evidence of losses, you'd have to question the benefit of the FFA retaining such IPs particularly if the club association could demonstrate a willingness to deliver a more favourable model to the court.
Nemesis
Guest
@ mattq I doubt that very much. Yes, the court can intervene if there are unconscionable terms in a contract. The club owners are capable of hiring legal minds to review the Licence Agreement. If they thought the terms were unfair, they should have said "no thanks". Once you sign a contract, you're bound by the terms.
mattq
Guest
despite the FFA owning the IPs. Surely there would be some weight in a legal challenge which focused on unfair distribution of revenue generated by the clubs couple with the significant losses over the course of the competition. Is it possible a finding of poor governance from the FFA could see the IP ownership to be found in favour of the clubs?
Realfootball
Guest
Agree, MF. Maybe we will get our wish...
Caltex & SBS support Australian Football
Guest
Yes RF, very disappointing indeed, to have this discussion on the eve of the GF.
Caltex & SBS support Australian Football
Guest
Agree Waz, why on the eve of the Grand Final?
Midfielder
Guest
Because we have the J-League, K-League etc...
Real Mister Football
Roar Rookie
Don't know about anybody else but that name, "A-League"...never liked it. What about The "APL - Australian Premier League", can't understand why they never branded it that in the first place.
Nemesis
Guest
"So I’m right then, you do support tiered equalisation funding" Are you really so obtuse? NO. It's the very opposite of equalisation funding. The HIGHER position on the ladder will receive higher Merit Distribution. Depending on the amount in the Merit Pool, each position up the ladder should receive $0.5 million MORE; starting at $0.5m for the team on the bottom. So, it is NOTHING like an equalisation fund. An equalisation fund is for Mickey Mouse competitions that want to reward failure. So the clubs that fail are rewarded more than clubs that succeed. PS: The Roar website is not geoblocked. If you ever go to Europe you will be able to read & comment.
Brendo
Guest
It would certainly resolve a lot of the current issues if they move to this type of structure but of course I am sure it will throw up new ones.
Nemesis
Guest
Middy A breakaway League is so far from reality it's not worth worrying about. It's the off-season for 8 clubs and they're shaking the trees to get attention for their cause. The FFA has been working on a new operating structure & model for the past 3 months. I think the report advising the way forward is due in July. From what I've been hearing, the model i outlined in my article is close to what we'll get. 1) All Aleague finances & contracts & assets will be ring-fenced in a new entity 2) This new ALeague entity will be owned by: Clubs, private equity & FFA; or FFA has no ownership but gets a Licence Fee each year 3) All IP will be transferred to each club 4) The operation of the League will always need FFA approval for any changes Win-Win-Win.
Sydneysider
Guest
Middie I agree. Gallop has to go now. He can't take the game any further in this country. Change has to happen and a person with good negotiation skills and football knowledge needs to come in. Not sure where they can find such a person. I also agree that Steve Lowy is meak and isn't the right person to be Chairman. Things are going to get a whole lot more interesting next week.....
Midfielder
Guest
Real Agree with everything except the Gallop part. Gallop needs to go but if he stays another few months I won't loose any sleep... Gallop as CEO implements FFA board policy... look to where the actual issues are and they are with a chairman who wont show up to key meetings but sits behind a desk telling Gallop what he must do. If for example the FFA chairman said to Gallop set up P & R ... I believe he would do an OK job.
Midfielder
Guest
N Hand on heart not the other thing I don't think its in anyones interest to form a new league. Given MC links and connections I think FIFA could step in and force governance changes ... however I think FFA and the Lowy's would see whats coming and act accordingly. Its going to be beyond messy I think but change is coming... I still maintain FFA since Stephen Lowy has taken charge have lost the ability to set the agenda and have lost the conversation .. We do need a new leader..
Realfootball
Guest
This is far and away the most important discussion on the football tab. I suspect that the clubs are holding fire until after the GF, then it will really start. This is Gallop's D Day. Let's see how he handles it. It will make or break him in the job. I wouldn't be putting money on him surviving.
Nemesis
Guest
Finally some good BREAKING NEWS Josep Gombau names u23 squad for training camp to prepare for u23 Asian Championship Qualifiers in July. http://www.socceroos.com.au/article/josep-gombau-names-australian-u23s-squad-for-training-camp/34bxk4drhw511cu7zfxfrwaxx
Nemesis
Guest
Your 2nd point has merit. If the FFA cannot deliver the ALeague to FoxSports, then FoxSports could counter-sue for failure to perform. Your 1st point I don't understand what you're saying. The fact is the FFA owns property (IP). We may think that's wrong. We may not like it. But, at law, the FFA owns the IP rights. No legal argument will change that fact. The only way it could be challenged is if the Licence Contract containing the terms about IP has loopholes. And, if it has loopholes, the IP ownership could be challenged right now. Today. So, even with Fifa backing, Melbourne Victory, Brisbane Roar etc cannot operate in Australia unless the FFA allows them to do so.
Midfielder
Guest
Real, Waz, Pun, N, & Ben Agree with the theme of what you guys posted.... I am greatly saddened by the present position. HOWEVER my belief is good will come of this ... even if the good is forced ... What also saddens me is much of the work FFA have done that is excellent, is being lost because of what FFA is doing. The importance of a leader whom can command respect, has business and political connections is needed ... Lowy reminds me of Rugby Admins .. Interesting to consider who could be the new chairman .. BUT I still think overall good will come of the showdown thats coming ...