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?!
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