Monday, 31 October 2011

What's the Smith Review fishing for?

As we await the Federal Government's Smith Review of the Game, the scope of the reform is becoming increasingly clearer: '...structure, governance and administration...positioning for the Asian Cup...financial viability and sustainability...' - this is a huge net to cast, with some potentially big fish to catch!
Let's start with the small fry...the release that announced the Review quotes some interesting figures of our hosting of the 2015 Asian Cup: tv audience of one billion, 45,000 international guests, 6,200 media personnel, 1,000 jobs created. This is going to be big!
Can the FFA really be trusted to run this show?
It is a certainty that there will be a huge Government stamp on the organisation of this event. The trade and tourism potential alone would suggest that it would be foolish to think otherwise. This will not only include staff numbers employed, but will no doubt involve some heavy hitters overseeing it all. It will be a time when Frank Lowy will have to share the big stage...if he lasts that long! More about that later...
But there'll be bigger fish in the other elements of the Review. Any corner shop bookkeeper will tell you where the current financial wounds of the FFA bleed profusely. Taking all expenses into account, the A-League has become a burden for Club owners and the Federation. All indications are that Smith will pursue the recommendation by Crawford about the independence required to run the league through a commission or similar body. This has been the consistent line emanating from Government for the major sports and the NRL will also fall into line soon.
If this were to happen, the Tinklers and the Palmers of our Football world would have some justification to make a big play for control. It may not happen immediately but Smith will surely deal with this and a timetable for implementation may well be in place soon after.
This has the potential to change the whole power dynamic of the sport in this country. Currently the A-League rightly sits behind the National Team in FFA priorities and in many ways has ridden on the coat-tails of our recent World Cup appearances. But it will clearly be the 'Commission's' only priority and any arrangement will need to be carefully crafted to ensure that the finite Football dollar is spent for the benefit of the Game and not any other profit-making purpose. This transition will be a big test of Buckley's leadership and he may well pay for it with his own blood. Lowy will no doubt look at manufacturing a process to ensure that his legacy to the sport will be noted...there will be a lot of huge egos wrestling for this catch!
Finally, the Review is dealing with the issue of Governance...and this looks like coming down to one single whaling expedition! What will Smith say about the position of Chairman, especially in light of the  Galahs' Galati/Galanos' impotent play for power? The issues of unchallenged leadership and lack of democratic process will not please Smith one bit...and nor should it. Yes, we know Lowy and Co. pulled the Game out of the fire but that doesn't give him a job for life.
It would be something to see: Smith finalising the report, knowing that Lowy will be in that room, a big presence in any gathering. Whatever is released in public, it will include Frank Lowy looking after number one and coming out smelling like roses. But Smith again must pursue Crawford's line of having a largely ceremonial head for the Federation, and this may well be Lowy's role till death us do part. Booted upstairs with no real authority and looking down benevolently on us all!
There are interesting times ahead and even though this won't be a Crawford-like revolution, there'll be some shaking of the foundations once again!

Wednesday, 12 October 2011

The A-League Clubs' Ownership Game!



When we read that A-League players receive 48% of Club revenue, compared to 20-22% for the other codes in Australia, we can't but welcome any reliable sources of funding into the competition.
But are we in a position to reject the interests of foreign investors entering into Club ownership?
Craig Foster and David Zdrilic, commenting during SBS's The World Game show, clearly stated that the FFA should not allow this, questioning the Indonesians' 'motives' and preferring to see 'membership-based ownership' or at most a '49% share'.
What seems to have been proven in the short life of the A-League is that current circumstances conspire against Clubs making a profit - in fact it is almost certain that losses will continue to be recorded until there is some change in the economic and sporting landscape. In this sort of setting how can the FFA reject overseas wealth whilst also hopefully continuing to work to improve the A-League's income streams and its ownership practices?  A damn difficult job in a competitive Australian sports market for a sport affected by world-wide trends.
The other recent ownership transfer at Wellington Phoenix highlights the danger of relying on the 'benefactor' model as a whole. This rings many more alarm bells than any foreign investment. In the current economic climate individual wealth becomes more precarious. Terry Serepisos was only doing in Wellington what Greek Governments have been doing for decades! The A-League Club owners' financial criteria certainly needs tightening up and it is hoped that the Roar's new Indonesian group are soundly funded.
Nathan Tinkler is another benefactor who has demonstrated different dangers: the sudden sacking of Branko Culina (and potentially son Jason) has the smell of the cowboy's six-shooter...riding into town like he owns the place (which he does!) nailing anyone in his sights. I wonder what democratic process Mr Tinkler followed?! But money talks and the financial threat that the loss of Jason entailed was enough to act. I wonder what the whole A-League would look like now if the FFA had accepted his offer of 25 mill. to bail it out!
And don't get me started on Clive Palmer's 'crowd cap'...
With such glowing role-models, surely Dali Tahir is worth a go as Roar's new Chairman. Interestingly he is a member of the FIFA Ethics Committee, the very same committee that SBS's Les Murray sits on. Have Foster and Zdrilic been chatting to Les about this?!
In any case, we are certainly living in interesting times when cash is king and there will no doubt be more uncertainties to come. One potential outcome from a positive analysis of the current economic woes suggests that Australia's stronger economy could become a haven for players looking to escape the austerity of European Clubs in countries that are struggling under huge debts.
The other promising, if somewhat amazing, sign is that the A-League still manages to attract wealth in the first place. You would think that there must be some potential in the Game if 'new money' continues to be interested and you just have to wonder if that potential is seen in Asia. It would be difficult to justify that we are seeking to build wealth through our involvement in our neighbouring continent but not allowing their investment to have a stake in our Clubs.
The complexity in all this is bound to continue, particularly as UEFA, through it's relatively new Financial Fair Play rules, seeks to diminish their Clubs' reliance on benefactors so that they could become more self-sufficient. Wonder if a rich Russian billionaire would be rejected by any financially astute SBS Football Commentators?!