The independence of the A-League Men’s and Women’s competitions from Football Australia (FA) should open up all kinds of possibilities for NPL and NPLW clubs.
The state based NPL and NPLW competitions across the country are FA’s officially sanctioned/branded pathways.
The Australian Professional Leagues (APL) is the body who now looks after the A-League Men’s, Women’s and National Youth League competitions.
FA still have control over the lower NPL/W tiers, FFA Cup, national teams (junior and senior) and Asian Football Confederation-branded competitions.
In 2020, $31.3 million of $37.3 million (84 per cent) in post profit distributions by FA went to A-League and W-League clubs. Only $5.2 million (14 per cent) went to the state member federations who run the various NPL and NPLW competitions.
In 2019, $36.2 million of $43.6 million (83 per cent) distributed post profit by FA went to A-League and W-League clubs, while only $7.3 million (17 per cent) went to state member federations.
This disparity was understandable considering a large chunk of FA’s revenue came from the A-League and W-League in terms of broadcast rights, sponsorship, merchandising and gate receipts.
The good news now is that since FA don’t need to worry about running or supporting the A-League Men’s and Women’s competitions, in theory the bulk of their operating expenses and distributions should now be steered towards the state member federations, and by extension the NPL and NPLW competitions.
This would incorporate the proposed national second division, which is currently pencilled in to start in 2023.
(Photo by Con Chronis/Getty Images)
While the total revenue received by FA ($108 million in 2020 and $132 million in 2019) will obviously decline since the APL will now keep the bulk of income generated from the A-League competitions, it is understood FA still receive $3 million per year from the broadcast and sponsorship revenue generated by the APL as well as a ten per cent share of league profits.
This arrangement is believed to be there until 2026 at least.
The FA also apparently receive a ten per cent share of player transfers fees received by A-League Men’s and Women’s clubs as well as a ten per cent share on the sale of any club licences for the A-League competitions.
FA have declined to publicly confirm the intricate details of the independence agreement with the APL, but in other words, all isn’t lost for FA in terms of income received from the A-Leagues.
It is worth remembering, while FA have lost gross revenue from losing the A-Leagues, they will also save costs associated with running those competitions, including both operating expenses and post profit distributions.
The governing body also has its own internally generated revenue sources such as the new broadcast and sponsorship deals for the national teams (outside of World Cups), FFA Cup and Asian Cup. The broadcast deal signed in June this year is reportedly worth $100 million until 2024.
Any revenue from the 2022 Men’s World Cup in Qatar and the 2023 Women’s World Cup in Australia and New Zealand will be on top of this.
Government grants, FIFA and AFC grants, registration and affiliation fees (from state member federations) as well as national team gate receipts, prize money and merchandising will still contribute to FA’s coffers.
Time will tell how the overall profit of FA will be impacted from 2021 onwards ($35.5 million in 2020 and $44 million in 2019), however apart from the national teams, FA’s primary focus should be on assisting their state member federations.
Football Victoria recently announced their NPLW competition will become professional. While clubs have always paid wages above the minimum allowances allowed, it is now out in the open.
There is concern among the footballing community about how clubs will fund going professional. The obvious thought is that player registration fees for NPLW juniors will go through the roof.
However, considering FA’s new financial situation, there is an argument the national governing body should help fund the new professional era by increasing grants to Football Victoria.
Other state member federations would now reasonably expect help from FA to fund their NPL and NPLW competitions above the $5.3 million they received in 2020 and $7.3 million in 2019.
(Photo by Brett Hemmings/Getty Images)
Parents of junior players would be hoping their fees are subsidised from any additional distributions or at least not increased, with senior NPL/W teams now potentially having another revenue stream to fund their costs.
The national second division, the second-tier competition proposed by the Australian Association of Football Clubs (AAFC), is due to start in 2023 for the men and 2025 for women.
A 12-team men’s competition is expected to initially cost $2.5-3.3 million according to a report released by AAFC in January this year.
Revenue for the competition is expected to be around the same, with the national second division clubs expected to contributed $2-2.4 million of the revenue via participation fees ($200,000 each).
The national second division budgeted revenue at this stage does not factor in potential distributions from FA.
While many skeptics would find it hard to believe FA would be generous enough to support the lower tiers of Australian football with their new independent financial position, it would be in the governing bodies’ best interests to support the pathways they themselves created.
Only time will tell what happens.
Ben of Phnom Penh
Roar Guru
The national second division would be best run by the AAFC with perhaps grant aid from the FFA if they are able. Like the A-Leagues, such competitions need to be run by those for whom the competition is the entire focus. The FFA needs to concentrate on its higher order mandate; the health of the game in Australia. In that regards quality, reach, ethics and development needs to be coupled with national teams and competitions. We need an FFA who invests time in these aspects, for longer-term strategic thinking and guidance. Time which is not distracted by the hectic day-to-day management of club competitions.
Justin Mahon
Roar Rookie
If the FA can develop a sustinabe Div 2 out of the NPl, a Div 2 that contributes to the games growth and development without financially constraining critical investments is women's football, youth pathways and indigenous engagement --this will drive two outcomes in my opinion. Not only will the APL drive lots of content about Div 2 through through the portal, it will do so because Div 2 will be purchased or otherwise incorporated into the APL. THere will be no Pro/Rel to a Div 2 the APL don't regulate.
Justin Mahon
Roar Rookie
Nope. Football is entitled to strategic governance that facilitates game growth and sustainability - not having the FA simply act as a bank.
Janakan Seemampillai
Roar Guru
I think the idea - in theory - FA provide revenue to clubs so they don’t rip off parents as much. This may not be realistic though. We need to make NPL more self sustainable. Not sure how though. Aussie fans won’t go to NPL as much due to wanting to go to the higher leagues. Aussie sports fans just don’t support Lower tiers like fans in other countries. Not part of our culture sadly
Waz
Roar Rookie
All good. Good article.
Janakan Seemampillai
Roar Guru
Fair enough! Sorry misconstrued what you said.
Janakan Seemampillai
Roar Guru
The issue with the NSD is if it will give any return to FA. I don’t think it’s financially viable for 2023. Maybe in the future. I think FA are expanding the NPL playoff series and that is their version of an NSD
Waz
Roar Rookie
The FFA are responsible for all of football and will fund it on both a needs basis and a strategic basis. Right now I can’t see that happening but the obvious place the FFA might fund the APL would be in the area of coaching development, youth development facilities or more likely payment/compensation for players released for international duty. The reality is the FFA has so little money it’s unlikely to want to go that st the expense of other areas it could invest in. This lack of funds Aldo makes it unlikely the FFA would bankroll a NSD imo
Waz
Roar Rookie
I didn’t say the APL would get a distribution from the FFA but instead said they are entitled, being part of the FFA football community, to a distribution. Clearly there is a commercial arrangement in place between the two which would mean that isn’t happening but your earlier comment implied APL don't qualify for funding (“distribution”) from the FFA - they do
Janakan Seemampillai
Roar Guru
I just checked with someone from an A-League club, while the APL is registered with FA per FIFA requirements, FA won’t be distributing anything to APL. FA does get a profit share from APL though as mentioned already
Janakan Seemampillai
Roar Guru
It’s interesting. Surely FA won’t distribute to the APL? Since the APL now keep the bulk of revenue and have to fund their costs, why would FA hand them any grants? Sure FA get a kickback but that is surely because FA govern football in this country? It’s not as clear as we would like i think
Waz
Roar Rookie
The independence arrangement is fairly clear although although FFAs previous financial arrangements were less than transparent so who knows what’s the balance is. But all AL revenues have transferred to the APL and every evidence suggests they’re getting more money than they were with the FFA - the FFA do (as you point out) get a kick back as part of independence so it’s not necessarily a win-lose arrangement. The area (imo) the FFA needs to lift its game is in securing government grants, and that means taking a national approach to the code (and less of a NSWs centric approach). Per participant we are getting way less dollars than less popular codes and we only have ourselves to blame for that (or the FFA to blame for that).
Janakan Seemampillai
Roar Guru
I think it was FA’s money though as they controlled the A-league which was the cause of all the problems as you say. I am not sure of the ins and outs of how FA distributed previous surpluses. FA have been tight lipped on all commercial arrangements prior and post independence
Janakan Seemampillai
Roar Guru
Yep for sure but FA still get revenue now albeit less, the National teams are worth a bit. The costs are less so any surplus available - a great unknown - should be distributed to state member federations.
Janakan Seemampillai
Roar Guru
I am not sure of the rules with that as FA said it was confidential when I asked them about it. FA get a profit share but not sure how it works the other way tbh
Nick Symonds
Guest
ABC: Girls from minority communities facing high hurdles to get into football in Australia - In 2017, Balga Soccer Club in Perth implemented a fee-free model for players aged between five and 18. According to club president Ken Shorto, Balga has since doubled the number of registered players — with the vast majority being newly arrived migrant families. - But as the sporting world reckons with the economic fallout from COVID-19, fee-free football clubs like Balga face increased pressure due to their dependence on local businesses and events to raise funds. "That's our fear now: when we start up again, businesses are going to be so affected that they're not going to have any money available to support clubs like ours," Mr Shorto said. "We had to shut down the whole place and had no income whatsoever, but still had outgoings. The federation is still asking for their money from registrations … we've still got a lot of stuff in the club that needs to be maintained, make sure everything's still working. "What we're doing now is using that time to get together and make plans. We're obviously aware that sponsorship may not be as big in the future, but I like to be positive and think the associations will come through and reduce their fees for a year or two to help people get back." - https://www.abc.net.au/news/2020-05-04/fee-free-football-opening-up-womens-football-for-migrant-girls/12204812
Brainstrust
Roar Rookie
So not only do NPL clubs rip off kids, you want the FFA to pay them money as well. The NPL clubs are getting too much money from rich parents, so they know they have a guaranteed income of a couple of a hundred thousand, if they play talented kids they gamble on them making it. If Australia was a poorer country like Adelaide is there would less of an issue. The state federations take a percentage of regos and so do the FFA. This is basically asking the grassroots rego to subsidise the NPL.
Waz
Roar Rookie
The APL are still members of the FFA so are entitled to distributions.
Waz
Roar Rookie
“ In 2020, $31.3 million of $37.3 million (84 per cent) in post profit distributions by FA went to A-League and W-League clubs” You do understand that was the distribution from the AL TV deal and sponsorship right? It’s not like it was the FFAs money who chose to give it to the AL (that money now goes direct to the APL). In reality, the AL generated more money for the FFA than it gave back to the clubs, effectively subsidising the FFA - that’s pretty much what the civil war was all about.
Janakan
Guest
They should redistribute to state member federations as that is one of their revenue streams. By investing in them they’ll get a better product out of them which will attract more participants which makes more money for FA. They do pay international players more money and that is part of the redistribution too. Everyone needs to get their fair share.