Halving any household budget would automatically cause significant change. At my place, Foxtel would most likely be the first in a series of culls.
Followed by some absurdly priced swimming lessons and my wife’s hair and beauty treatments that still stun me whenever I see the damage on her credit card statement.
A couple of vineyards in the Hunter Valley might lose a member, dining out would become a thing of the past and the number of supermarket items purchased with the word ‘budget’ on them would increase dramatically.
If Foxtel’s rumoured attempt to renegotiate and potentially halve the value of its A and W-League broadcast deal with FFA is indeed real, James Johnson will be calling the FFA family around the kitchen table very soon, in an effort to deliver the bad news and explain the areas in which the belts will need to be tightened.
There are many options.
Scrapping the entire VAR system will save money, remove much consternation and cause many fans to cheer. It must be seriously discussed by FFA in conjunction with the clubs and FIFA, with a promise made to bring the controversial system back as soon as it is financially viable, in order to comply with FIFA’s expectations.
FIFA want uniformity within VAR, something that is yet to be achieved. Yet at vast expense, it could very well be something that many leagues will be looking to jettison in order to be able to pay wages elsewhere.
On Friday, Vince Rugari reported in the Sydney Morning Herald that discussions had already began in regards to the A-League perhaps spending between A$12-A$15 million per season and taking control of its own production costs.
Potentially that would allow the league to on-sell content, streamline costs and became more attractive to services like Optus Sport. Such a model suits the new found growth in streaming, with the production bill addressed to the league or governing body and the service provider hosting the content.
Should a renegotiation of the broadcast deal occur with Foxtel retaining production costs and remaining involved for a further three seasons, it too will be looking to lessen its annual spend. Hopefully, that will lead to a decrease in the number of presenters involved in match day broadcasts.
How can the A-League really shed costs? (AAP Image/George Salpigtidis)
One chief commentator, a host and a wing man in the box is more than enough to convey a game of football efficiently.
Having a pre-game panel of three, some footballers and some not, is exorbitant and unnecessary.
Although, with Foxtel already having taken an axe to it sports arm, it is doubtful there will be enough troops to even fill those spaces at five weekly A-League matches. That would be a very good thing.
Somewhere near 230 people work at the FFA; symptomatic of the modern trend to fatten the management and governance level of sports’ businesses.
With a keen awareness that without the A and W-Leagues there would be no relationship at all between FFA and Foxtel, perhaps it is high time for the governing body to undergo a restructure, shed staff and make similar sacrifices to which the clubs will be forced to make.
Any savings made by FFA would need to be passed on to the clubs themselves. Should the annual funding grant handed out to each of the eleven clubs drop considerably, potentially below the A$2 million mark, some clubs will be on death’s door.
Player contracts would require renegotiation, the minimum wage could be lowered and staff cuts would be assured. With tightened purse strings, the chances of maintaining or attracting quality international marquees to the league will be minuscule in the short to medium term.
Every dollar that FFA can save and subsequently funnel through to the clubs, will provide a further reason for hope and potentially allow all eleven to remain financially viable. Sadly, that seems unlikely.
Originally estimated at A$500,000 per season, VAR is an expensive exercise and far from perfect. Along with acquiring the production responsibilities of the A-League and a removal of some excess fat at FFA headquarters, money could be saved.
Would those savings be anywhere near enough to cover a A$20-30 million annual decrease in broadcast revenue from Foxtel? Not even close.
However, streamlining governance, pro-activity in the production of content and an honest assessment of the financial commitment to VAR, that considers the current circumstances, could save a few pennies.
With Australian football looking likely to have its household budget slashed, each and every one of those pennies is about to become incredibly important if the A-League is to emerge as a survivor of the COVID-19 pandemic.
Grem
Roar Rookie
A truly national game with international players and coaches - it's a little harder to get this format up and going compared to a mainly 2 state game. AFL is a national game and they have also been a bit slower off the mark than league, too! And we don't have the media and financial backing of the other codes. I admire Johnson's thoughtful and careful approach. Roll on August- should be a great month and hopefully next season is being prepared/organised as well.
Roberto Bettega
Roar Rookie
I have to admit, given we only had 5 or 6 rounds to go to finish the season, it is surprising we'd put it off for so long.
AxeMaster
Roar Rookie
The A-League should have announced a return date way before August. Nearly 2 months behind the AFL and NRL. Talk about a dumb move, but then again who's really surprised.
Ben
Guest
Does the A-league receive any royalty from sports betting companies? I suspect decline in tv attendances are partly because some people don't want to watch full matches anymore- they gamble online and want score/goal updates and little else. This is probably where the money lies and some of the interest has shifted towards.
Samuel Power
Roar Rookie
I believe that Charlesworth is just saying this hoping to get a response from the Gosford council and hopefully work something out with them. Would love to see a healthy and strong Mariners team like they were from 2010-2014. Good on those 5,000 Mariners supporters that still turn up every week. However, I do think experimenting with playing 1-2 games there next season is an idea worth exploring.
Grem
Roar Rookie
I'm glad that Charlesworth is still involved and wants to make the Central Coast Mariners more viable. He has to try something to get more people at games. I realise spending more money and getting more talent or holding onto the talent they had would help but credit needs to be given for the investment he has made. He wanted to take over the Gosford Stadium lease but has been unable to negotiate that with council. Perhaps moving to this area might bring in more supporters and this would be payback for his investment over time in the Mariners. Like all A League supporters I'd love to see the Mariners strong again. They have been such a successful club and provided great players to the Socceroos. I hope the regular 5000 supporters they have will stay with the club. And perhaps moving away or threatening to move away might bring a more favourable leasing arrangement for the at their present stadium.
Le Hack
Guest
Also bring in transfer fees payable between clubs in the A-league and the potential 2nd division and that also creates a path of profitability for the smaller clubs and n incentive to develop and go the youth player track
Samuel Power
Roar Rookie
Charlesworth in talks with the North Beaches Council for a possible new home for the Central Coast Mariners at Brookvale Oval: https://theworldgame.sbs.com.au/mariners-bid-to-flee-gosford-for-brookvale-oval-in-shock-nrl-hook-up
Roberto Bettega
Roar Rookie
TTT Appreciate the enthusiasm, but you make some claims there that appear to be wide off the mark. This is a football tab, so I really only want to talk football, but I will just say it's unlikely in the extreme that the world game can learn anything from a purely domestic game played in a backwater country like the one we live in. If Australia wants to stop being a backwater, it is high time that it joins the rest of the world.
Ten Tribes Of Texas
Guest
Like it or not, ALF is one of the most successful sporting codes in the world. It regularly ranks number 4, 5, or 6 in attendances of all sports anywhere in the world. It is also the oldest encoded field sport in history. Yes even older than soccer. AFLs achievement is remarkable and it is one of the most reputable sporting codes anywhere. It has got where it is due to invotative and creative thinking and calculated risk taking. It has been extremely well managed and administered throughout its history. It has never been frightened to innovate. It was the first professional field sport. The VFL originally broke away from the earlier amateur VFA, which started in 1854, in 1894 in order to pay its players. Anyone who thinks they cant learn from one of the most sucessful sporting competitions in the world and in history has got rocks in their head.
Nemesis
Guest
Football has nothing in common with AFL other than they are team sports played with a ball. For starters, the administration of Football requires coordination with a Global HQ, Continental HQ. The laws of the game are controlled by a global organisation. Football administration oversees 8 National Teams (men & women, youth & adult) playing in continental competitions & Global Competitions, including the Summer Olympics. From administration, football & basketball - maybe even Rugby - are probably the most similar sports in Australia
Roberto Bettega
Roar Rookie
their admin might suit their specific circumstances, but it does not suit the cirumstances of Australian football and where we want to be (three tiers, NSD, P&R between all three tiers, no salary cap)
Ian Whitchurch
Guest
Yup. Ignore the best administered sporting code in Australia. That's a fine plan !
Nemesis
Guest
Any drop in TV revenue for A-League will have minimal impact on the FFA. Right now, the FFA gets around $62 million per yr from broadcasting. Foxtel's contribution would be around $50 million with the rest from IMG's international deal & AFC for World Cup qualifiers. Of this $50 million from Foxtel around $35 million is given to A-League clubs as an annual distribution and to pay for interstate travel. So, right now, FFA probably gets a $15 million net benefit from the Foxtel deal. IF Foxtel walks away, the biggest concern is for A-League clubs. For the FFA, the impact will be minimal &, once Foxtel walks away the A-League will legally separate from FFA, so the impact of A-League Tv rights on FFA revenue will be even further reduced in the future.
Roberto Bettega
Roar Rookie
This had been known for a while now. A 15 year run as major sponsor is a long time in the world of sport, so the relationship ending is not the issue, it's whether we can find a new major sponsor for similar money. The A-League clubs are now in control of matters so, I guess if falls on them. I think Hyundai might still be involved in NT sponsorships, which would remain with the FFA. Either way, we're in for a tough few years of Australian football.
Waz
Roar Rookie
Football should NOT implement any AFL models.
Ten Tribes of Texas
Guest
A few Socceroos world cup games and A League All Star exhibition games in big stadiums could raise significant revenue and media interest. 60,000 spectators at the MCG against a high profile opponent would raise millions by itself. Friendlies against USA, Canada, Japan, England, Scotland would pay well in currencies of higher value than the Aussie peso. Internationals are the way to raise revenue, raise media interest, keep national players in form and up to speed and blood new players. All is not lost. Just need some innovative thinking.
jamesb
Roar Guru
Bayliss was interviewed on Sydney radio last week. http://media.skyracing.com.au/POD/1/doCbXo.mp3 It’s worth a listen. Looks like Optus will just concentrate on Football.
Stevo
Roar Rookie
And now Hyundai walking away from football so another $6M to find from somewhere https://www.theage.com.au/sport/soccer/ffa-suffers-6m-hit-after-losing-major-a-league-sponsor-hyundai-20200512-p54sa2.html
Johan
Guest
Two options. First option, pay the a league players far less which is actually what their talent warrants. Second, charge a league fans much more for their tickets at games. The second option will be difficult as most a league fans are hugely working class, blue collar types e.g no university education, tradies and manual labour folk who cannot afford higher prices. So lower salaries for the players seems the most achievable.