Where does all the money football generates actually go?

By Mike Tuckerman / Expert

Cutting costs and increasing fees – Football Federation Australia is under siege once again as the high price of running football comes under the microscope.

The Australian’s resident football journalist Ray Gatt revealed on Tuesday that FFA spent an average of around $300,000 per player sending the Socceroos to the World Cup in Russia.

Despite pocketing at least $10 million for qualifying for the World Cup finals, Gatt also said the FFA was only expecting to break even from the tournament.

It prompted a verbose response from the FFA, who stated that football “doesn’t yet generate the massive revenues from broadcast agreements that the other major codes enjoy”.

In the same breath they also announced that National Registration fees would be increasing for the first time since 2013.

“The NRF increase is $1.40 a year for junior players (to $14 up from $12.60) and $8.00 a year for senior players (to $33 up from $25),” the FFA said in their statement.

For all intents and purposes, it looks like a case of the grassroots subsidising the top end of the game.

And it comes on the back of parents across Australia struggling to pay the ever-increasing costs of registering their kids to play football.

It should be acknowledged that sending a national team to the World Cup finals is always going to be an expensive proposition. There would have been just as much of an outcry had the Socceroos not prepared for the tournament properly.

But increasing registration fees barely a week after the Socceroos exit the World Cup is not a great look for the game.

(SAEED KHAN/AFP/Getty Images)

Outspoken former international and current Fox Sports commentator Robbie Slater has suggested the Socceroos were already one of the highest paid teams in the World Cup.

It also seems relevant to wonder just how much the FFA spent on sending its own executives over to Russia.

It goes without saying that FFA should have indeed had some presence at the World Cup – it’s the perfect way to do some networking, after all – but there’s a perception that, with independent chairwoman Judith Griggs now in charge of the Congress Review Working Group, the World Cup represented one last chance for an all-expenses paid junket before the winds of change sweep through the game.

And the issue of who is funding what plays a role in A-League expansion as well.

Football might not enjoy the same broadcast revenues as other codes, but as the FFA hinted in their statement on Tuesday, one of the reasons they’re expanding the A-League is to try and encourage more people to watch it.

And the $57 million Fox Sports is paying annually to broadcast the competition isn’t exactly chump change.

Is it any wonder, then, that expansion bids like Tasmania’s fall by the wayside when it’s understood Fox Sports’ preference is for the next two expansion clubs to come from a major metropolitan market in one of Australia’s three largest cities?

How can anyone – and this counts for fans as much as the FFA – expect Fox Sports to effectively subsidise running the A-League without having a say in important topics like expansion?

Of course, there’s so much more to running football in Australia than just the A-League.

As the FFA themselves pointed out, their $121 million budget for the next financial year is intended to cover the costs of not only the A-League and the Socceroos, but also the Matildas’ campaign at next year’s FIFA Women’s World Cup in France.

These things cost money – that’s a given.

But having slashed $5 million from their “central costs” last year, as well cutting a further $1.6 million this year, it’s hard not to wonder where all this money is actually being spent.

I’m not for a second suggesting I have all the answers. I just think it’s important we ask the question.

UPDATE: The FFA has responded to this article, pointing out a breakdown of funding costs can be found in their 2017 annual report.

The Crowd Says:

2018-07-11T04:34:52+00:00

Kris

Guest


I'd imagine Torres would have a say in that, and he is probably going to insist on living in Sydney despite the many charms of Adelaide and Newcastle. For the league WSW would be best. A latent crowd dropping off, get that crowd back. Probably the biggest bang for bucks.

2018-07-08T14:22:56+00:00

BrainsTrust

Guest


She has the 5 million from FIFA a year wrong, that would drive even FIFA broke with over 200 federatiions. The 80% of the Tv deal is fair enough So if thats 32 million of the 40 million uder the previous deal, how then do you arrive at the figure of 70 million in revenue from the A-league. She says the A-league gets half of the sponsorship, so what is that 38 million doubled is 74 million in sponsorship. Add that to the 40 million revenue deal and you have 114 million in revenue but the levy provides 14 million of that so already you know the figure is nonsense. FFa would be lucky to get 20 million from sponsorship, the other major source of revenue would be from Socceroos home matches.

2018-07-08T13:23:10+00:00

Waz

Roar Rookie


Not sharing any horses, although I do prefer people on the outside than on the “in” so despite Bonita’s history (and yes, her agenda) it does not make the basis of this article incorrect. Sadly, it’s the best analysis we’ve received on the topic which needs way more scrutiny than it’s getting. Sounds like we both agree on that.

2018-07-08T09:52:44+00:00

Matt

Guest


I suspect it would have to be a Sydney or Melbourne club, maybe a Brisbane club to make financial sense. It’s not fair to clubs like Newcastle, Mariners, Perth or Adelaide but that’s just reality at the moment and is what will be best for the league as a whole. If the FFA don’t get things right over the next 4 years and Fox/other broadcasters decide the product value hasn’t increased football will be in all sorts of trouble. If that means Victory or Sydney, whose boards have shown to be the most competent in the league in the last 5 years, getting help from the FFA financially is the difference between not signing Torres and signing Torres to boost viewing figures (with Fox hopefully kicking in $500k-$1 Mil) then it’s an evil I think we need to live with for the future health of the A-League.

2018-07-08T09:40:50+00:00

Matt

Guest


I knew there was a more recent cricketer than the Waugh Brothers who were apparently very good at junior levels and I think even played for the NSW state team (with Steve still being better than Mark, poor Mark)

2018-07-08T08:55:53+00:00

MQ

Guest


You now remind me that I once listened to a podcast featuring Ned Zelic talking about his junior footballing days in Canberra, and one of his biggest rivals at the time was Michael Bevan (the cricketer).

2018-07-08T08:52:47+00:00

MQ

Guest


It will be interesting to see which club ends up being the beneficiary of the FFA's largesse.

2018-07-08T07:59:21+00:00

Eamon Stocker

Roar Rookie


But that's his job

2018-07-08T06:58:32+00:00

Matt

Guest


How is this about a gotcha moment Mike? You haven’t responded to any of my points that other readers have pointed out are important questions that have been neglected in this conversation. Do you not believe that it is not relevant in respect to FFA finances, the last CBA that the PFA, Ange and senior Socceroos pushed for and whether they knew the CBA was detrimental to the rest of football? If so why didn’t you bring it up, surely it is more related to FFA finances than a Tasmania bid being rejected for expansion that we don’t know the details about. Why do you take such offence to someone holding you accountable?As a consumer do I not have the right to question your motivations, isn’t that part of being a journalist, having your views challenged? If you wrote for a website with a paywall I’d pay to read your articles just as I do for the Herald and Age publications to read their football writers. Why rather than actually responding to the points I have brought up do you want to run around going “oh don’t pick on me I’m not a real journalist” You continue to report unverified and unsourced information without giving the FFA an opportunity to respond and I will continue to call you out for poor journalism because that’s what it is. You’re the TMZ of Australian football Mike.

2018-07-08T06:46:31+00:00

Matt

Guest


Waz, I’m not the person here purporting to be a journalist, my reputability isn’t at stake. All I have done is quoted the Garcia Report on Bonita Mersaides evidence so I don’t see how it goes to detriment my credibility, I didn’t make up the Garcia Report or Bonita’s responses that led to her being called an unreliable witness. Do you think it is unfair as a consumer of football media to question her character based on multiple examples within the Garcia report of her being caught telling half truths to fit her agenda? Personally I don’t and the many examples of her being caught out framing things in a light to make her look better cuts right at her credibility as a commentator on Australian football for me. I don’t see why you have taken such offence to me quoting the Garcia Report directly on BM, if she wasn’t such an unreliable witness, why has she never commented on the findings in the Garcia Report about herself? This has nothing to do with playing the woman, she fails to account for the last CBA and how the PFA, Ange and senior Socceroos pushed for the deal, threatening strike action, knowing full well that the deal was at the dertriment of the rest of Australian football, she fails to explain why at the last World Cup the players earned more on a per game basis than the German champions, she fails to ask questions of the roll of state federations in this mess and the profits they make from insurance, three of the biggest issues relating to this and like Mike she doesn’t mention them as it doesn’t suit the anti FFA agenda. I never said my opinion is more informed or even made my opinions fully known on this subject, all I asked was that this was reported fairly from both sides, nobody, not Mike, not Bonita and not Ray Gatt have asked the FFA the question directly before making these accusations, do you not think to be fair in their reporting they should have asked the FFA for comment first. Oh and I have asked Bonita to respond to the Garcia Report, in person and on Twitter and funnily enough she chooses to ignore the question like it is an insult for wanting clarification on the findings of the Garcia Report in relation to her evidence. I don’t work for the FFA or in media so have no idea why they haven’t responded to the article but agree that they should, but on the same token Bonita has never responded to the Garcia Report and the judgements on her personal character either. In other words it’s a long way down from the high horse you and Bonita seem to be sharing there Waz.

2018-07-08T06:24:36+00:00

Onside

Guest


Thanks for your reply Matt. The written word can be interpreted every which way. I sometimes think if people who disagreed with each other on this site had a chance to talk about the subject over a glass of something, there would be much more understanding of the other persons opinion. Sometimes people like to 'shoot the messenger' when a journalist is not actually offering a point of view, but instead asking readers for their ideas and opinions on a subject. and as any lawyer would say, 'but on the other hand'

2018-07-08T06:22:05+00:00

Waz

Roar Rookie


Matt You actually have no reputability. We don’t know who you are, who you work for, and what your motives are? So you’re questioning reputability??? You are publishing anonymously without offering any facts yourself, you can have no credibility on the topic because of this - you can’t simply rip into a published article, under someone’s own name, and attack them without factually basis and expect to be taken seriously. She has put this up on Twitter it would be enlightening if you, under your own name, would go there and make these same allegations. Will you? I got one would like to see the debate that follows ... Now I checked with a couple of sources that would know whether these numbers were “in the right ball park” and they recon they are stating that the only addition they would make is the FFA don’t pay for all travel, they only pay for air fares. Clubs pick up transport, hotels and food. So rather than play the woman in this debate, what is it in her article that you disagree with, why do you disagree with it, and why should your opinion be anything more informed than hers?? Finally, if the ffa disagree with Bonita’s article then they need to come out and clarify the situation. They are the only organisation that can end this endless debate over where money is going - if they were more transparent we’d all know then debates like this would be better informed right?

AUTHOR

2018-07-08T06:05:01+00:00

Mike Tuckerman

Expert


I view the motivation behind behaviour like Matt's a bit differently, and I find the psychology behind it quite interesting. There's a bit of a desperation online to provide 'gotcha' moments, and to prove anyone deemed an expert in whatever field as wrong. And forums like The Roar, which encourage user interaction, offer the perfect opportunity to do so. You don't see online users having daily cracks at Craig Foster or Robbie Slater, for example, because those guys don't interact with their audience (and usually end up blocking people they don't like). If Matt was serious about the sort of journalism he believes he's entitled to read on The Roar, he should be offering to pay me to conduct it. Shall we say you pay me $50 a month to get started, Matt? But of course, he's not the least bit interested in that kind of journalism. He just wants to say "gotcha!" and feel a sense of validation. And that's okay, I guess, but it's certainly not something that keeps me up at night. I'll continue to write the columns I want to write. If readers don't like it, that's their problem.

2018-07-08T04:52:36+00:00

Matt

Guest


While AW provided some useful information regarding possible issues for the Investigatory Chamber to examine, the evidence—including evidence she provided—often did not support her specific recollections and allegations. That’s Benita’s credibility summed up by the Garcia Report.

2018-07-08T04:49:39+00:00

Garcia Report Page 58

Guest


While AW provided some useful information regarding possible issues for the Investigatory Chamber to examine, the evidence—including evidence she provided—often did not support her specific recollections and allegations. Bonita Mersaides credibility ladies and gentleman.

2018-07-08T04:45:33+00:00

Matt

Guest


Coincidentally anything Bonita writes should come with the Garcia report section highlighting her as one of the most untrustworthy individuals interviewed in his investigation.

2018-07-08T04:42:13+00:00

Matt

Guest


Bonita Mersaides isn’t trustworthy and this article isn’t a proper analysis at all. Bonita was singles out in the Garcia report on corruption as being more unreliable than the actually corrupt officials in interviews, contradicting herself so often Garcia needed to single her out in his report as being agenda driven, a liar and self serving. She hasn’t looked into the proportion of funds to the Socceroos vs junior vs women’s football, hasn’t looked into what portion goes to state federations, absolved her friends without confronting any of their actions that lead to the disparity. She doesn’t break down what percentage of revenue comes from Youth Development programs vs amateur football, she doesn’t investigate how funding is allocated. All she hasn’t done is copy pasted numbers around her normal anti FFA rhetoric driven by the fact she was let go from the organisation.

2018-07-08T04:35:00+00:00

Matt

Guest


So what if he is 34? He was playing Champions League last season with Athletico Madrid, he is one of the biggest names in world football in the last 10 years and proper marquees are proven to work in Australia (Yorke and ADP being the only two proper marquees we have had) $2 million would be chump change compared to the corporate, main stream and TV interest he would bring to the game.

2018-07-08T04:31:14+00:00

Matt

Guest


The most famous ones would be Andrew Johns who was a highly rated in football in the late 80’s and early 90’s and Adam Goodes (who to be fair could have played any sport he wanted as a kid and been the best at it given his talent) but there are a few professional NRL/Union back line players and AFL players and cricketers who were talented junior footballers that we couldn’t retain. A couple of lesser known player off the top of my head would be Joel Reddy, Liam’s brother who was a speedy and talented winger but gave the game up for NRL and Preston Campbell who is football obsessed. Also believe Anthony Minnichello was quite the footballer and a big fan and he now attends Sydney FC games quite regularly.

2018-07-08T04:04:56+00:00

Matt

Guest


I won’t shy away from the fact I’m harsh on football journalists in Australia but from my point of view people like Mike are hurting the game more than helping it and after 25 years of reading articles like this about football (and sports in general in Australia) I for one am sick of playing nice. If Mike wants to deal in facts, I wouldn’t be so harsh on him but the fact he didn’t even put these questions to the FFA prior to posting this article, to get some balance from both sides of the argument, makes me irrationally angry. Regarding Mike’s articles, that is part of what really gets to me, is that he has an anti FFA agenda bias. He doesn’t offer the FFA perspective or even try to, all Mike is doing in my opinion is trying to rule up the Sokkah Twitter crowd and get clicks. To me that is the most disappointing thing about this because financial accountability of the FFA is imperative in the growth of the game but articles like this don’t put any pressure on the right people and are eastbound for the FFA to fob off as they have done to Mike by pointing to the 2016/7 accounts.

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