Jimmy Posted February 12, 2013 Report Share Posted February 12, 2013 David Gallop has called a press conference for 11AM in the morning to make a major announcement regarding the future of OZ Football, which is apparently that the A-League will have promotion and relegation very soon. With the winners of the APL playing off against the A-League wooden spooners for the A-League place provided certain criteria is met. Scary stuff. Quote Link to comment Share on other sites More sharing options...
yelawolf Posted February 12, 2013 Report Share Posted February 12, 2013 this just feels like another rushed thing from the FFA 1 Quote Link to comment Share on other sites More sharing options...
dRoy Posted February 12, 2013 Report Share Posted February 12, 2013 Good idea. Quote Link to comment Share on other sites More sharing options...
MKD Posted February 12, 2013 Report Share Posted February 12, 2013 This is stupid. The league won't be ready for a promotion/relegation system for at least another 10-20 years. It isn't sustainable in current circumstances. 1 Quote Link to comment Share on other sites More sharing options...
Braveheart Posted February 12, 2013 Report Share Posted February 12, 2013 Silly idea with the league still in it's infancy. The competition needs a period of relative stability and for all constituent clubs to be financially viable before medling with the dynamics of the whole league's structure. As Yelawolf said, seems like a rush job to me and clubs such as ours will be the ones who suffer. 1 Quote Link to comment Share on other sites More sharing options...
schrecky Posted February 12, 2013 Report Share Posted February 12, 2013 I doubt this is true... At a guess i would say any press confrence called this week is more likely to be ACC related... But if it is, what makes the league think it could withstand losing 50000+ fans from the unlucky club (each year). The diehards would hangaround perhaps, but that is 1% of the club Imagine if collingwood got relegated from the AFL or Victory from a-league or manly from the NRL. Each scenario would hurt each league dramaticly - its why it doesnt happen... Quote Link to comment Share on other sites More sharing options...
theresonlyonebzamora Posted February 12, 2013 Report Share Posted February 12, 2013 Surely none of those codes would actually allow that to happen schrecky - I'm sure they'd discover irregularities that suggest they should've stayed up! Quote Link to comment Share on other sites More sharing options...
KSK_47 Posted February 12, 2013 Report Share Posted February 12, 2013 (edited) I am very doubtful that its regarding promotion/relegation in the A-Leauge. I think it is just confirmation and details on the APL Edited February 12, 2013 by KSK_47 Quote Link to comment Share on other sites More sharing options...
mus-28 Posted February 12, 2013 Report Share Posted February 12, 2013 Gather it is just lip service to appease the AFC who want us to have Promotion & Relegation. The criteria for entry would be stacked so that the likelyhood of any teams being able to be promoted is extremely low. Apart from the fact the State League teams would be semi-pro, 99% wouldn't meet the stadium requirements to play in the A-League or the financial requirements to purchase a license. Quote Link to comment Share on other sites More sharing options...
jw1739 Posted February 12, 2013 Report Share Posted February 12, 2013 If that is the announcement then the people at FFA are even more stupid than I could ever have imagined. Relegation would be the death of the club involved, and the eventual demise of the League itself, and would take football in this country back 50 years. Quote Link to comment Share on other sites More sharing options...
Green Apple Posted February 12, 2013 Report Share Posted February 12, 2013 This is stupid. The league won't be ready for a promotion/relegation system for at least another 10-20 years. It isn't sustainable in current circumstances. Absolutely agree, the league is far too young and unstable as it is. Maybe in later years but certainly not in current circumstances Quote Link to comment Share on other sites More sharing options...
millm103 Posted February 12, 2013 Report Share Posted February 12, 2013 With the salary cap in place there is no viable option for promotion and relegation, one year a team can go from winning the championship to being relegated the next, when all clubs are sustainable and they raise the salary cap or scrap it all together then we may look into this option which would ultimately be in 20-30 years time 1 Quote Link to comment Share on other sites More sharing options...
Pigeon Posted February 12, 2013 Report Share Posted February 12, 2013 If it is introduced It'd be better to see 1st in the APL go straight up and last in the A-league drop down whilst 2nd plays the team that came 2nd last in a play-off. 1 Quote Link to comment Share on other sites More sharing options...
millm103 Posted February 13, 2013 Report Share Posted February 13, 2013 Pretty good idea, tbh I dont know why they didnt bring in the concept a few years ago http://www.footballaustralia.com.au/news-display/ffa-launches-national-premier-leagues/60728 Quote Link to comment Share on other sites More sharing options...
alexiano Posted February 13, 2013 Report Share Posted February 13, 2013 Means they do away with VPL, etc? Quote Link to comment Share on other sites More sharing options...
Tokyospliff Posted February 13, 2013 Report Share Posted February 13, 2013 What happens if the nux get relegated. Which is highly likely, will they participate in the APL? Seems to me they need to slow down and let the a-league get good average attendances before they think about expanding. Quote Link to comment Share on other sites More sharing options...
Tommykins Posted February 13, 2013 Report Share Posted February 13, 2013 All of this was kinda well known, will be interesting to see what the trickle down effect is to clubs in the lower state divisions. Quote Link to comment Share on other sites More sharing options...
Mentor Posted February 13, 2013 Report Share Posted February 13, 2013 I dont see how clubs can be expected to build a serious following when they can yoyo from pro to semi pro quite easily. i know a number of (local) sports like cricket to promotion relegation over a 3-5 year period, ie if you are the worste performing team over that period then you are relegated ect not just a one of season from hell ect It could kill franchises which took a decade to build imo, no need apart from to compete in the AFC. Quote Link to comment Share on other sites More sharing options...
MKD Posted February 13, 2013 Report Share Posted February 13, 2013 All of this was kinda well known, will be interesting to see what the trickle down effect is to clubs in the lower state divisions. If there is no relegation system from the APL to the state leagues, then many of the state clubs will forever be damned to these lower divisions. Even if a system exists, they will now be competing with teams all across Australia, which will make it even more difficult. Also, sorry to bring in the 'ethnic' factor once again, but an outlined promotion/relegation system from the A-League to the APL seems rather hypocritical. Wouldn't it just bring about the so called 'violence and politics' that was caused by these clubs? Makes no sense really, the FFA are definitely an odd bunch. Or perhaps it's a more subtle way to allow sides such as South Melbourne (and other well off clubs) an eventual entry into the top tier of Australian football. This would cause far less controversy than simply handing them an A-League license. That's only speculation though, currently there is no basis for such a viewpoint. I can only see this whole plan ending in a disaster. They need to start with baby-steps and gradually build up the A-League before they start even contemplating promotion and relegation. Not to mention, 90% of clubs would probably go belly up if they are relegated from the A-League. The only thing the FFA should be seriously considering in the next few years is an FA cup (which they have made mention of for 2015 onwards). This is long due, and would help build greater interest for all football fans, knowing that even their state teams are in with a chance. 1 Quote Link to comment Share on other sites More sharing options...
jw1739 Posted February 13, 2013 Report Share Posted February 13, 2013 I can only see this whole plan ending in a disaster. They need to start with baby-steps and gradually build up the A-League before they start even contemplating promotion and relegation. Not to mention, 90% of clubs would probably go belly up if they are relegated from the A-League. The only thing the FFA should be seriously considering in the next few years is an FA cup (which they have made mention of for 2015 onwards). This is long due, and would help build greater interest for all football fans, knowing that even their state teams are in with a chance. I'm in complete agreement. Three A-League franchises have already disappeared, even without relegation - Auckland, North Queensland, Gold Coast. How anyone can possibly envisage promotion and relegation at this point in the A-League's fragile position is beyond me. See http://www.abc.net.au/news/2013-02-13/fa-cup-style-comp-set-for-australia/4517108?section=sport I 1 Quote Link to comment Share on other sites More sharing options...
Shahanga Posted February 14, 2013 Report Share Posted February 14, 2013 i think the FFA know all that, but they are dealing with the AFC who aren't familar with a football landscape like we have in Australia. The FFA are trying to show the AFC they are doing something towards this, without destroying the game. Having said that i think its a dangerous game the FFA are playing, its hard enough breaking even in football without relegation plus you have the ethnic club factor to worry about in promoted clubs, which turns off mainstream Australia faster than you can say "an eight month election campaign". Quote Link to comment Share on other sites More sharing options...
MKD Posted February 14, 2013 Report Share Posted February 14, 2013 This will essentially turn state league teams into youth development squads for the A-League. Rushing into these kind of decisions is only asking for trouble. With no promotion/relegation from the APL to state leagues, I simply can't see a just outcome eventuating from all of this. Quote Link to comment Share on other sites More sharing options...
jw1739 Posted February 15, 2013 Report Share Posted February 15, 2013 i think the FFA know all that, but they are dealing with the AFC who aren't familar with a football landscape like we have in Australia. The FFA are trying to show the AFC they are doing something towards this, without destroying the game. Having said that i think its a dangerous game the FFA are playing, its hard enough breaking even in football without relegation plus you have the ethnic club factor to worry about in promoted clubs, which turns off mainstream Australia faster than you can say "an eight month election campaign". You're probably right, but I would suggest that a far more sensible approach would be to try to show the AFC what the real football landscape is in Australia rather than have Gallop making perhaps off-the-cuff remarks in some form of appeasement mode. For starters neither of our two 'major football codes' AFL and NRL have promotion and relegation and there is no likelihood of either introducing it. I'm not into either code, but even the mighty AFL has seen two Melbourne-based clubs move elsewhere for financial reasons (however much the AFL likes to dress that up), and I've lost count of the various rises, falls and mergers that have taken place in Rugby League. To hear Gallop of all people talking about something for football that neither the AFL or NRL embrace just sends shudders down my spine. Quote Link to comment Share on other sites More sharing options...
George Cross Posted February 15, 2013 Report Share Posted February 15, 2013 I doubt this is true... At a guess i would say any press confrence called this week is more likely to be ACC related... But if it is, what makes the league think it could withstand losing 50000+ fans from the unlucky club (each year). The diehards would hangaround perhaps, but that is 1% of the club Imagine if collingwood got relegated from the AFL or Victory from a-league or manly from the NRL. Each scenario would hurt each league dramaticly - its why it doesnt happen... Manchester United was relegated from the first division, the world ddin't end!! Quote Link to comment Share on other sites More sharing options...
schrecky Posted February 15, 2013 Report Share Posted February 15, 2013 I doubt this is true... At a guess i would say any press confrence called this week is more likely to be ACC related... But if it is, what makes the league think it could withstand losing 50000+ fans from the unlucky club (each year). The diehards would hangaround perhaps, but that is 1% of the club Imagine if collingwood got relegated from the AFL or Victory from a-league or manly from the NRL. Each scenario would hurt each league dramaticly - its why it doesnt happen... Manchester United was relegated from the first division, the world ddin't end!! 40 years ago the sporting landscape was not quite as commercial as it is now, and that league was a little more established than ours perhaps Quote Link to comment Share on other sites More sharing options...
cadete Posted February 15, 2013 Report Share Posted February 15, 2013 I doubt this is true... At a guess i would say any press confrence called this week is more likely to be ACC related... But if it is, what makes the league think it could withstand losing 50000+ fans from the unlucky club (each year). The diehards would hangaround perhaps, but that is 1% of the club Imagine if collingwood got relegated from the AFL or Victory from a-league or manly from the NRL. Each scenario would hurt each league dramaticly - its why it doesnt happen... Manchester United was relegated from the first division, the world ddin't end!! The various towns their supporters travelled to that season almost did though... Quote Link to comment Share on other sites More sharing options...
CALZALOL Posted February 15, 2013 Report Share Posted February 15, 2013 (edited) I doubt this is true... At a guess i would say any press confrence called this week is more likely to be ACC related... But if it is, what makes the league think it could withstand losing 50000+ fans from the unlucky club (each year). The diehards would hangaround perhaps, but that is 1% of the club Imagine if collingwood got relegated from the AFL or Victory from a-league or manly from the NRL. Each scenario would hurt each league dramaticly - its why it doesnt happen... If victory get relegated we riot. (Out of pure delight lads) Edited February 15, 2013 by CALZALOL Quote Link to comment Share on other sites More sharing options...
HEARTinator Posted February 29, 2016 Report Share Posted February 29, 2016 Really interesting article by Shaun Mooney http://leopoldmethod.com.au/the-restlessness-of-the-aspirationals/ I'm still at a loss to understand how we can have pro/rel without substantially increased financial resources that can prop up both the HAL and a second division - we can barely keep the HAL afloat as it is. ________________________________________________________________________________ The restlessness of the aspirationals In February 2014, FFA chief executive David Gallop made an announcement that would ignite the promotion and relegation movement. FFA granted the nine Australian A-League franchises a 20-year licence extension, a move to curry favour with the owners, although Wellington Phoenix would have to wait until last week to be granted a 10-year licence filled with clauses. “Today’s decision is consistent with our long-term strategy. The extension will give the clubs the certainty they need over a 20-year timeframe to invest, and will also underpin and enhance the value of the licence,” said Gallop upon the announcement. With any franchise system, the security of the licence adds value and also makes an A-League club more attractive to potential investors. However, clubs outside the A-League system felt they were doomed to play out their days in the state leagues. Between the announcement of the A-League licence extension on 17 February 2014 and the formal launch of the FFA Cup on 24 February, a little known administrator from Victoria would write to both FIFA and the Asian Football Confederation’s (AFC) top brass, requesting that FFA introduce a promotion and relegation system between the A-League and National Premier Leagues (NPL). On 19 February 2014, Football Federation Victoria (FFV) Men’s Standing Committee chairman Harry Zaitman, emailed the then FIFA Secretary General Jerome Valcke and AFC President Shaikh Salman bin Ebrahim Al Khalifa on behalf of the Victorian clubs, asking if the governing bodies would put “any more effort and scrutiny” into ensuring promotion and relegation is “mandated in Australia within a certain time frame”. Zaitman made reference to the long process of setting up the NPL competition as a “more professionally orientated second tier” and felt FFA had thwarted attempts for these clubs to ever get a chance to play top flight football, “effectively shut the door on any club in Australia that wishes to rise to the highest level in a free and open marketplace”. FIFA asked FFA for a please explain and to handle the issue internally. Gallop was incensed that a representative of the clubs would go over his head and communicate directly with FIFA and AFC. On 11 March, Gallop emailed Zaitman clarifying that the licence extension for A-League clubs did not lock out any promotion and relegation system. Gallop also revealed a clause within the A-League participation agreement which: “Expressly provide for the introduction by FFA of a promotion and relegation system for the A-League and furthermore that an A-League club’s continued participation in the A-League is subject to any such promotion and relegation system.” There would be further correspondence between Zaitman and Gallop. Zaitman sent an email on 22 July demanding a firm commitment on the “time frame” for introduction of promotion and relegation. Gallop responded on 9 September, reinforcing his previous argument that the NPL and FFA Cup were the next stages in developing the second tier to get clubs up to the standard required for professional sport: “This process is of course essential to enable the introduction of a promotion and relegation system that is sustainable and does not operate to the detriment rather than benefit of participating clubs, the A-League and Australian football generally. The appropriate timing of introduction of a promotion and relegation system will depend upon ensuring this sustainability.” This correspondence started the battle between the so called “aspirational clubs”, who vie for the opportunity for a regular spot in Australia’s premier competition, and a national federation which is trying to balance the competing interests of club owners – who have effectively bankrolled the A-League – with the demands of AFC to fall in line with its competition guidelines. All of this is being played out while a cash strapped FFA try to grow football in a highly competitive market without sending the sport broke. FFA’s relationship with AFC since joining the federation has always been mixed. FFA has been criticised for not working hard enough in trying to understand its Asian neighbours and imposing its way of thinking on the confederation. Over time, FFA has slowly improved on the diplomacy front, spending more time explaining the “Australian Way”. Back in 2010, former FFA chief executive Ben Buckley realised that the federation needed to been seen to be proactive in implementing the list of AFC’s requirements on governance and structure of domestic competitions. With each passing year, FFA could no longer sell the line that the A-League was still in its infancy. So the federation announced that it would commence a National Competition Review (NCR) with the aim to “seek the best option for a second tier national competition”. The following year, a delegation from AFC went on week long “fact finding mission” to learn more about Australian football and give its recommendations on how to improve it. Listed among the top of the recommendations was for the A-League to “have a promotion and relegation system” and a “knock-out cup” competition. FFA was not ready to enact the recommendations. It was still less than 12 months off from the release of the NCR and the birth of the national cup competition was delayed due to financials constraints. In FY2011, FFA’s revenue dropped $17 million compared to the previous year. FFA was waiting for the finalisation of the media rights deal before committing funds to a national cup competition and still had full ownership of Brisbane Roar. In November 2012, FFA received news of a massive financial windfall for the game while also receiving swift retribution from AFC for failing to act on its demands. A $160 million media rights deal enabled the federation to finally cover the full cost of the salary cap for all 10 A-League clubs. With the owners back on side with FFA – following a tumultuous period of keeping then Newcastle Jets owner Nathan Tinkler from walking away from his licence, closing down Gold Coast United and successfully launching a replacement franchise in western Sydney – then FFA chairman Frank Lowy announced expansion would be placed on hold until after 2017. The sustainability of the A-League clubs would be the federation’s priority. FFA’s joy would soon turn to disappointment by the end of the month, with AFC stripping one automatic spot for the Asian Champions League (ACL). The reason? FFA’s failure to have the A-League under separate administration and no promotion and relegation system. Melbourne Victory’s chairman Anthony Di Pietro words reflected the opinion of the other clubs: “What we need to do in this country is understand the Asian Confederation and get ourselves more involved. We need to get on committees, build relationships and have interaction,” said Di Pietro. FFA did indeed worked harder on building relationships with AFC and eventually got back its lost automatic ACL spot. 2013 marked the year where FFA worked on trying to meet some of the demands of AFC, launching a national second tier competition and the FFA Cup. In February, the NPL competition was launched after a 29-month process of reviews, road shows and restructure. The end result was a competition with only five out of the nine state federations participating – NSW, South Australia, ACT, Queensland and Tasmania. The other federations (except Northern Territory) agreed to commence in 2014, after it was deemed they required more time to implement the new model. The challenge FFA identified in rolling out a standard competition and youth development system across the country was that: “Clubs are resourced to varying degrees nationally, they do not presently have the capability to deliver youth development programs to a nationally consistent high level of quality.” The main objective was to get all state league clubs up to the same level in administration, coaching and development, facilities, financial management and governance. A noteworthy cause, one that was much needed, but did not necessarily satisfy those who felt they were already there. Rumours began to circulate that the NPL was the first step towards setting up a national tiered system of football. Gallop did little to fan out the speculation, and reports emanated that promotion and relegation could happen within five years of the NPL launch. However, the truth was that FFA had rebadged the state league competitions and relegated the participating clubs into being a development pool for the A-League. “Our aim is to see highly qualified coaches employed by stable and well-run NPL clubs producing better Australian players from under 12 to under 18, then under 20s and finally to senior ranks,” said Gallop at the NPL launch. The NCR was lead by then FFA National Technical Director, Han Berger. He identified two main issues within the state league system: an inadequate focus on youth development and unsustainable player wages. The state league clubs were accused, which was not unfounded in many cases, of paying overs for journeymen in the aim of winning titles. The solution was to get the clubs to focus on developing their own talent rather than procuring it. Rather than introduce a salary cap system as is used in the A-League, Berger developed a Player Points System (PPS), which forced clubs to use more players under the age of 25 developed from their youth teams. Unlike modern professional sport where the aim is to get star players to help drive attendances, Berger had devised a competition that effectively turned the state competitions into a development league. Berger’s reforms pushed the cost of development down to the clubs. The NPL model was designed to reduce player wages, however, as a consequence, it lead to higher costs in employing accredited coaches and technical directors (most of who paid to get themselves accredited). FFA failed to understand the club’s economics and develop, along with the respective state federations, a plan to increase revenue. “The common brand and logo will be crucial in our endeavours to find sponsors and commercial partners who’ll be attracted to the national footprint of the NPL,” explained Gallop at the NPL launch. It would take 20 months for FFA to find an official naming rights partner. The NPL, still to this day, has a solitary partnership with Sony PlayStation, with the state federations supplementing it with minor sponsorship deals for their respective competitions. While the FFA Cup, which has only been operating for two years has Westfield, Telstra, Continental, NAB, Harvey Norman and Umbro. Also Fox Sports televises FFA Cup games from Round 32 to the final. For those wishing to watch the NPL, even the final series, they have to hope their internet stream works. The Victorian state league clubs weren’t happy with the NPL model. A revolt began after Melbourne Knights announced in May 2013 that they would not be participating. From there the tipping point became an avalanche, as over 50 clubs refused to sign up, citing that the model was “financially unviable”. The clubs presented a financial model that showed costs would go up without an increase in revenue. The clubs demanded to know what the plans were for revenue generation. “With some strategic thinking around that model in terms of sponsorship and revenue that they can get more dollars in through those avenues,” the then Football Federation Victoria chief executive Mitchell Murphy told FourFourTwo. At the time, FFV said that FFA was working on securing a seven-figure sponsorship for the NPL competition. It is believed that Sony has paid nowhere near this ‘seven-figures’ for the naming rights agreement. FFA tried to distance itself from Victoria’s dramas. It had wanted each state to develop a variation of the NPL model to suit each federation’s unique circumstances. However, it grew tired of FFV’s incompetence to resolve the situation with the Victorian clubs and decided to step in. By December 2013, a truce was made and Victoria joined the NPL the following year. In February 2014, the FFA Cup was officially launched, along with a truly Australia-wide NPL competition. The national federation realised it was onto a winner with the FFA Cup – a product it could sell to the football community, even to those who felt neglected after the demise of the National Soccer League (NSL). Within its first year, the potential of the competition was on full display, as former NSL club Sydney United 58 hosted A-League club Sydney FC in front of over 8,000 people. The NPL competition was proving to be a much harder sell. At the NPL launch, Head of A-League Damien De Bohun told the Guardian, “Like a lot of these commercial properties, until you’re actually organised and can show people exactly what it is, it’s hard to lock someone into [sponsoring the competition].” As most attendance levels in the NPL competition have stagnated at low to mid hundreds, the FFA Cup has caught the imagination of the footballing public. Many in the football community got a taste of what could be. Others wanted more. The talk of promotion and relegation started to move into column inches, as respected football journalists Michael Cockerill, Michael Lynch and Simon Hill, argued its merits. Lowy was asked by Fox Sports about plans for promotion and relegation. He admitted that it would become an “eventuality”. “They [AFC] know that we have started, it will take time. Nobody’s pressing us at the moment except ourselves,” said Lowy. FFA had been working hard to buy time with AFC in introducing promotion and relegation, as it explained its strategy around the A-League, NPL and FFA Cup. AFC began to understand the uniqueness of the Australian sporting market and were generally pleased with the administration of the sport compared to its other member nations. As one source involved in the discussions told Leopold Method, “They [AFC] don’t want to be the body that has these rules that brings [Australian] football to its knees.” As the platitudes of Australia successfully hosting (and winning) the 2015 Asian Cup died down, attentions turned to the domestic competition. The rush of an exciting international tournament caused the domestic league to hit a little bit of slump. Journalists turned their minds to how the competition could be spiced up and the discussion of promotion and relegation was back on the sports pages. “The Asian Football Confederation insists this is a non-negotiable for continued membership – even Frank Lowy admits that eventually, Australia must have it,” wrote Hill for Fox Sports. What Hill, and others in the media didn’t realise, was that FFA used the Asian Cup to buy some time with the Confederation’s “demands” of a separate administration of the A-League and promotion and relegation system. On the foreshores of Sydney harbour in May 2015, David Gallop announced FFA’s 20-year vision for Australian football. Gallop’s Whole of Football Plan (WOFP) is centred around addressing the issue that has continually plagued football in Australia – the lack of money – by trying to create a ‘virtuous cycle’ by doubling the number of participants and converting 75% of them into fans of the A-League. The revenue generated from this virtuous circle, along with targeted programs, will then “trickle down” all the way to grassroots. While the plan was ambitious, not everyone embraced it. Most of the objections focused on how the A-League intended to continue operating out of the central body, and on its plans for future expansion teams to come from key strategic markets, “rather than a relegation and promotion system based purely on results”. FFA not only convinced AFC on the “Australian Way” of football, to give it some time to meet its competition regulations, it also announced publicly in black and white it had bought at least two decades of time. Some of the former NSL clubs were livid about the lack of detail in the WOFP to develop football’s second tier without a promotion and relegation system. South Melbourne released a statement calling it the “possible end for aspirational football in this country”. Melbourne Knights shared South Melbourne’s view and even presented an alternative WOFP. South Hobart argued that Tasmanian football was “relegated to backwater status”. Some parts of the WOFP were seen as overly ambitious, others felt it was not ambitious enough. To understand what is wrong with the second tier of football in Australia is to examine the differences in how clubs approach the FFA Cup and NPL. In September 2015, former NSL club Heidelberg United hosted A-League club Melbourne City in front of 11,372 people. In the lead up, Heidelberg invested more than $50,000 to get its infrastructure up to the required standard to host the game. They also recruited 116-game Greek international Kostas Katsouranis as the marquee signing. The investment paid off, with the club making a six-figure windfall from the match, more than it would in a season of NPL match takings. What this has done is distort the economics of the second tier, with clubs now playing “crap shoot” in trying to host an FFA Cup game against an A-League club. Playing on the national stage with media spotlight, and a television appearance, helps attract sponsors. Playing in front of several hundred die-hard fans, in the almost complete anonymity of the NPL, does not. During the Victorian clubs’ stand-off over the NPL plan, a financial model presented showed that 94% of revenue was derived from three main sources – registration fees (68.1%), canteen (19.7%) and sponsorship (15.5%). Leopold Method has analysed the financial reports of various NPL clubs, and for most of the clubs, these revenue sources have barely changed since the introduction of the new competition, with some clubs deriving up to 80% of their revenue from registration fees. The clubs, the national and state federations have found it difficult to attract corporate sponsorship dollars for the NPL. With no transfer fees between clubs in the Australian football system, NPL clubs make a pittance from the compensation payments made by A-League clubs for signing their players. The only real game changer in the regular source of revenue for NPL clubs has been the installation of synthetic pitches. Those clubs fortunate enough to have a synthetic pitch can be known to make six-figures from summer football competitions and hiring the pitch to other clubs, private academies and schools. The installation of a synthetic pitch comes with a $1 million plus investment. Clubs on council grounds can source funding from local and state government. Those on private property find that they have to pay from their own pocket. And with not all synthetic pitch installations bringing in instant revenue streams, the investment does come with risk. Leading into the third NPL final series, and following its conclusion, Cockerill lamented about the current dilemma of the second-tier competition. “The annual three-week play-off series crowns the second-tier champions and is in its third year. Truth is, you’d hardly know it existed,” wrote Cockerill, as he ramped up his argument for a national second division with promotion and relegation system with the A-League. Cockerill told the plight of the NPL clubs through the narrative of 2015 NPL champions, Blacktown City. Based in Sydney’s west, Blacktown City is arguably the benchmark NPL club. Backed by successful businessman, Lily Homes’ Vince Camera, City derives revenue from a mix of sources including a function centre that has recently been expanded and a synthetic pitch which hosts numerous competitions, private academies and clubs. Blacktown City is not actively pushing for a national second tier; it’s not their style. They are a club who keeps their head down and continually focuses on developing talent. However, like most NPL clubs, success has not translated through the gate. The economics of second tier football is skewed towards Sydney and Melbourne mainly due to the sheer number of former NSL clubs that play within those respective competitions. Sydney clubs are generally better resourced, due to some of the teams being backed by local associations. Some of these associations have larger, or almost equal, playing numbers as some of the smaller state federations, which has resulted in sizable bank balances. Association cash funds can provide the funding gap for their NPL club’s ever increasing expenses and stagnate revenue. The focus on improving facilities has been one of the major positives to come out of the NPL system. Again, the Sydney clubs lead the way through their own endevours and a proactive state federation. This has resulted in clubs like Blacktown City, APIA Leichhardt, and Sydney United 58 joining the likes of Manly United, Sutherland Sharks and Blacktown Spartans, in installing synthetic pitches. Both Sydney Olympic and newly promoted Hakoah are going through the process of building new football facilities complete with a synthetic pitch. Even NPL2 and NPL3 clubs are joining the movement. This means more revenue is coming into the Sydney club system as the other states play catch up. While the aim of the NPL was to bring all of state league clubs across the country to similar level in development, governance, facilities and finances, the reality is there is still a massive gap between the haves and the have-nots. The aspirational clubs are frustrated that they have to remain stagnant while they wait for the other clubs to catch up. In FFA’s mind it is still early days for the NPL competition. This season will be the first time all Australian A-League clubs will enter teams within their respective state competitions, again, adding to the dilemma that the NPL is seen purely as a development league. The A-League is the most successful football competition in Australia’s history. FFA’s administration has brought the game into the modern professional sporting world. Even with these accomplishments, the game is a long way off in securing its future. FFA recorded a paltry $259,000 profit on revenue of $103.1 million for FY2015. In the same period, A-League clubs recorded a combined loss of $17 million. But compared to the other football codes, with their much larger media rights deal, FFA and the A-League is fairing well. FFA has focused a lot of its attention on improving the financial viability of the A-League clubs. It is aiming to double the current media rights deal from $40 million per year to $80 million. If FFA is successful in achieving this, it will mean more funds flowing towards the A-League clubs and players. But if the NPL competition runs on its current course, with no trickle down funds from FFA, it will result in a widening gap between the two tiers. The question that needs to be asked is whether the current NPL model can source the same revenue streams as other professional leagues? If it can’t, then what competition format will? What has been lost in the argument for promotion and relegation is the urgent need to improve the financial model of the NPL. Contained within the words of the WOFP is the commitment from the national federation to help NPL clubs “secure new sources of revenue through providing national exposure for the NPL”. The most pressing issue is finding a way to commercialise the NPL. Modern professional sports generate revenue from three main sources: the stadium (ticket sales, memberships and corporate packages), broadcasting rights and marketing (sponsorship and merchandising). Currently, most NPL clubs derive more than two thirds of income from fee-paying parents, there are no broadcasting rights, let alone television coverage, and only a handful of clubs are proactive in growing memberships and generating corporate support. If it is deemed that the national second division is the best way of generating not only revenue, but also investment, then this option should be explored. How do you convince an administration, who have been versed in the world of successful closed market competitions, and have built the national league competition to its greatest ever position, to open up the A-League? Provide a comprehensive model that will grow the domestic competition sustainably. How do you convince a risk-adverse administration plagued by the precarious financial circumstances that is Australian football economics? Speak in a way that will pique their interests: the potential for more money to enter the game. What the aspirational clubs lack is a united front, with a respected leader within football who talks the same language as FFA’s suits and a business model for a national second division competition. All that has been presented at this stage is single shot messages from a handful of clubs, supported by words written by small group of football journalists and bloggers, and a couple of television debates. If aspirational clubs want to convince FFA to look at an alternative model, one that replicates the rest of the football world, it needs to present a better sales pitch. By Shaun Mooney|February 29th, 2016|Features|0 Comments 2 Quote Link to comment Share on other sites More sharing options...
jw1739 Posted February 29, 2016 Report Share Posted February 29, 2016 Utter madness to even talk about promotion and relegation at this point in time. Not even worth debating. 2 Quote Link to comment Share on other sites More sharing options...
NewConvert Posted March 1, 2016 Report Share Posted March 1, 2016 1 hour ago, jw1739 said: Utter madness to even talk about promotion and relegation at this point in time. Not even worth debating. I agree but it seems that there are those who believe otherwise. Quote Link to comment Share on other sites More sharing options...
recyclosaurusrex Posted March 1, 2016 Report Share Posted March 1, 2016 If wellington ever went down they wouldn't be able to get back up. Quote Link to comment Share on other sites More sharing options...
Nate Posted March 1, 2016 Report Share Posted March 1, 2016 There shouldn't even be a debate, promotion and relegation isn't feasible for at least another 20 years and even then I still think it'd be too difficult to implement. 1 Quote Link to comment Share on other sites More sharing options...
cadete Posted March 1, 2016 Report Share Posted March 1, 2016 3 hours ago, recyclosaurusrex said: If wellington ever went down they wouldn't be able to get back up. If any A-League side went down they would still have half their roster signed up for the next Season and the difference between even a subpar A-League side like the late Melbourne Heart and those in the NPL is still a bridge way too far for another club to compete with them throughout an entire Season. (And you would assume promotion would be based on the League Winner and not GF result so it could actually stand a chance of working.) FWIW Hoffman was as big an impact player as fucken Aaron Mooy was as an AM when he was on loan at Richmond in the VPL and caused even more havoc as a CF when playing Preseason games against local opposition. Therefore you would think the A-League side would be able to come straight back up even if the side lost ten or so of its players who were on one year deals and that is taking into consideration that some of these players who would be lost would be Internationals and better Australians who signed smaller deals with an eye on departing overseas after a strong season. I guess what might get difficult would be players started having clauses in their contracts that said they could leave automatically if the club was relegated like what most young A-League players currently have in their contracts in regards to European Interest which we saw hurt Heart in JA's first season (Albeit probably not as badly as he made out). Quote Link to comment Share on other sites More sharing options...
recyclosaurusrex Posted March 1, 2016 Report Share Posted March 1, 2016 What I was getting at is would Wellington be eligible to compete in a second division? They already have a hard enough time staying afloat in the A-League. Quote Link to comment Share on other sites More sharing options...
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