In recent months, and in past seasons of the A-League, we have seen clubs that have fallen on hard times and some that collapsed due to those hard times. The most recent example is the Central Coast Mariners, who were in the untenable position of not paying their players on time and the delay dragged on.
For a club that is about to play in its fourth grand final in the hopes of winning their first, it is an indictment on the FFA that the Mariners are in such financial strife, and they are not the only ones.
There are three simple steps that I saw at the start of this season to help ensure the financial stability of the A-League clubs.
The first was to sign a new and financially larger TV rights deal with a free to air component. This has occurred and will ensure the following:
- Larger distribution to each club to cover the salary cap, which will ease financial pressure on the clubs and go towards ensuring that players under the salary cap will always be paid.
- The free to air component will make sponsoring an A-league club more attractive as their brand will reach a wider audience, thus increasing the money spent by sponsors.
The second step is to give financial incentive to the clubs to make the finals and win the Championship. Currently the entire gate is taken by the FFA and there is no prize money distribution. The fairest way to reward the clubs in the finals is to give them a percentage of the gate. The option I would go with is 50% to the FFA, 30% to the home team and 20% to the away team. This rewards the higher ranked sides as well as all sides playing in the finals. While this does not create a huge position of financial stability, it will assist and reward the clubs that after a gruelling season make the finals.
The final and most important step is for the FFA to remove all restrictions on sponsorship that protect their major sponsors. Currently no A-League club is allowed to have an airline sponsor that conflicts with Qantas, a telecommunications company that conflicts with Optus or a motor vehicle company that conflicts with Hyundai. The clubs are also prevented from having alcohol sponsors based on a moral standpoint the FFA has.
So due to their moral obligations (which I agree with) and their protection of their major sponsors four of the largest sponsorship industries in the world cannot sponsor any of the A-League clubs.
This protectionist system needs to be removed and needs to be done before the next season, and the free to air component of the coverage starts. The AFL’s major sponsor is Toyota and 7 AFL clubs major sponsor is a motor vehicle company in direct competition with Toyota. If the AFL are happy to allow clubs have sponsors that compete with the AFL major sponsor, the FFA and the A-League should also be able to do the same.
If these changes are made, especially the final point in regards to sponsors, it will help ensure the financial stability of the A-League clubs, which in turn will help ensure the growth of the A-League.
I agree with the majority of what you have said, I would disagree with the standpoint by which FFA refuses to allow alcoholic sponsors because of a moral standpoint. As long as their is a logical and valid reason to deny a sponsorship because of moral reasoning, thats a good thing. While it would be a good idea to allow the A-League clubs their own sponsors regardless if it conflicts with FFA sponsors.
I agree, we don’t want alcohol or even betting sponsors but apart from that the clubs need to be freed up in who they can attract as sponsors. The more they can attract, the less support they need from FFA and the more money it has to spend in other important areas.
A good article that makes a lot of sense. I would remove the sponsorship restrictions to allow for competitor brands. As you’ve pointed out, if it works in the AFL it shouldn’t be a problem in the A-League. Regarding alcohol sponsorship, I wasn’t aware that there were any restrictions. Is that why coopers left Adelaide?
Yes that is why Coopers no longer sponsor Adelaide
Sorry – those exclusivity deals make the FFA sponsorships worth a lot more. We end those – those sponsors walk away.
Really? The AFL and the NRL can get big sponsors and allow their clubs to have competing sponsors. If the FFA do not remove these Draconian restrictions we will not have a league as owners will not prop up clubs restricted from earning a larger piece of the sponsorship pie.