if we do not have billion dollar tv deals where is the money going to come from

http://www.theage.com.au/sport/soccer/nsw-youth-football-registration-fees-prompt-questions-about-club-funding-models-20161103-gsh8pd.html

• NOVEMBER 5 2016 - 12:15AM
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NSW youth football registration fees prompt questions about club funding models

 

• Lucy Cormack

   
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Questions have been raised about the funding arrangements of football clubs in the elite youth National Premier League and how registration fees of up to $2400 per child are being spent.More than 8300 players from the age of nine to 16 are registered in the Football NSW youth and children's programs, for which clubs are permitted to charge fees of up to $2400 a year, to be reinvested into the same programs under the rules of Football NSW.

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From incredible goalkeeping to cliff diving glory, these are the most exciting, silly and downright crazy plays in the sport world this week.However a former Sydney club team manager, who has asked not to be named, alleges that youth registration fees are being shifted to senior adult programs to pay for player wages, coaches' wages, equipment and dinners.It is understood it can cost about $300,000 to run a first-grade team for one season.

"If you pay $2400 for your kids' program, you expect it all to be spent on your kids' program. But an enormous margin is being creamed off to the first team," he said."The problem is there are no salary caps, so the clubs end up offering higher and higher wages to attract players. The average is $600 for a win. The club cannot raise enough sponsorship, so they have to raid the money collected for the youth and kids' fees."AdvertisementFrom registration fees alone, male and female youth and children's teams from 64 clubs have an earning capacity of up to $11,289,600, based on the maximum amount a club may charge a player to participate under Football NSW rules.In a statement to Fairfax Media, Football NSW said it "could not comment on the allegations", but noted that clubs invested "various income streams of sponsorships [and] fees ... into their club programs, including coaches, managers, administration, equipment, ground hire, player payments and players' uniforms".

This year, Football NSW reviewed the investment the clubs made in under-9s to under-12s programs, finding that, on average, 38 per cent of expenses were coaching-related, while 54 per cent were for gear, ground hire and other club expenses.In its recent annual survey of Youth League parents, Football NSW found 46.2 per cent of respondents were satisfied with current fees and 27.4 per cent were dissatisfied.As to whether the fee was appropriately priced for the experience, 43.3 per cent agreed, while 26.5 per cent disagreed and 30 per cent neither agreed nor disagreed.A condition of all clubs operating in the NPL competition is that they must annually submit a financial report to Football NSW, including "how fees from youth programs are reinvested into those programs".However the former team manager says he has seen some costings for youth and children's programs inflated by up to 50 per cent when financial reports are submitted."In turn, the coach and player wages and other expenses for the first grade team are under-reported to make it look like the money is being spent properly ... but it's not audited."Asked how many clubs had been audited this year, Football NSW said it "conducted a review of [under-9s to under-12s] expenses in 2016 and it is planned to review the Youth League financials in 2017".Football NSW added that it had procedures in place to review and examine any evidence of misreporting.Raff Del Vecchio has been involved in the youth football league for six years, since his son was 10.He said that having watched his son move from junior rugby league to football, one thing was clear."The problem with football in this country is its bottom-up funding process. In [junior] Aussie Rules and rugby league, they receive huge TV deals and the money filters down to the grassroots. That doesn't occur in football," Mr Del Vecchio said."You have this system whereby NPL clubs are paying their first grade squad ... it's true that some of the [registration] money is subsidising first grade teams, but until they can become more mainstream, you are going to have this problem."Now 16, Mr Del Vecchio's son has recently joined the Dunbar Rovers, the first NPL club to provide free football to elite youth players funded by sponsors.The eastern suburbs club says the philosophy behind the free football model is to remove one of the major barriers for kids to get to the top: cost."You get a perception, without naming any specific clubs, that parents felt fees were exorbitantly high and they didn't necessarily think it was being invested into their kids and teams," said club co-director Peter Hennessy."Clubs can do what they want. There are very good clubs out there who do a good job of developing footballers. We just have a different approach."Dunbar Rovers parent Glen Kotopoulos said the club's alternative model was "questioning the system"."Is it sustainable for other clubs across the league? That's not for me to judge. All I know is the guys at Dunbar have a vision and I subscribe to it."Manly United Football Club general manager Jeremy Toivonen said registration fees may "seem like a lot, but there is a lot of work"."Coaches, equipment, facilities ... It would be a pleasure not to charge people fees ... but I can't see that happening, unless there is a major influx of third-party funds."Do you know more? Email lucy.cormack@fairfaxmedia.com.au

Great read!

We need more pieces like these as to why the fees are so high, its criminal for the kids and parents sake but something has to be done about it.

Its a complex issue which needs more attention and scrutiny from the media. 

I seriously worry that there are some seriously talented kids from low income backgrounds that won't make it here because they can't afford the playing fees. What an utter tragedy that would be.

The sooner a-league clubs offer free scholarships to the low income backgrounds the better we dont miss out on these talents, this is what they do in Europe.

Not sure if it's true or not but I heard Sydney FC were charging about $6000 for their youth players. 

Not sure how many realise but FNSW charges the NPL clubs $37,000 per season to participate in the competition. Then you need to add the various compliance costs like having Technical directors, facilities, etc, and the operating costs for NPL as significantly higher than what community clubs face.  

NPL clubs get no income from developing players (just ask Blacktown what they got for Danny Choi) so they have to cover their costs somehow. 

It is too expensive but when the kids are older and player first grade someone else's kids will be payer their match fees and the parents won't be complaining then!

Those worries are well founded. I grew up in the Rabbitohs district/catchment area. Every single kid that plays within the South Sydney (and Eastern Suburbs, as the Rabbits are administratively in charge of their junior levels really) area don't pay registration fees nor do they pay for uniforms or referees as they're funded by the proceeds from the South Sydney Juniors club. Now, they make a fucktonne of money through pokies which is shit - but that point remains, no kid (hell, I think even A-grade too) pays for rego.

So many kids are lost to football because their parents have to make the decision of buying boots, petrol for travel, etc weighed on top of football and exorbitant fees or rugby league and free uniforms and no rego fees. I know it happened to me. No complaints here, had a great time and a bit of a career, but still, talent will always be lost in this area for that fact alone.

It's a concerning trend amongst sports these days...kids get to age 16 and then find other interests.

Football is not unique

Surprised this is still an issue 

Also what's the point of an academy if its pay to play ?

I know most NPL clubs in Victoria would cease to function if not for income from the exorbitant junior fees they charge.

I have raised this before and while I sympathize with parents, what else would you like NPL teams to do. It's not like they are funded by the FFA like A-league clubs. That brings me to the second point. If NPL clubs charge this much while being unfunded then surely A-league clubs would charge less because they are partly funded by the FFA. 

WHY DO A-LEAGUE CLUBS CHARGE MORE THAN NPL CLUBS??

That should be the real question. 


Dont get me wrong I hate the fact that NPL clubs are "gouging" families but nobody is forcing parents to take their kids to "elite" training academies. If they are so unhappy take the child to a normal run of the mill club or take your child to an A-league club who should be charging less. Where is the outrage there, FMD. 

Seeing the difference between clubs and privately owned franchises yet ?

Because it's unregulated and if people are willing to pay for it, then they'll charge whatever they can.

Dem apples.

Surely any club that offered a well run free program would be effectively securing the best young talent in the country and have a huge advantage for years to come ? seems like a no brainer 

It feels like everyone is surprised but hasn't this been an issue for a little while now?

Exactly!

But the toxic fumes from all the poisonous plastic is starting to get to people's heads! 

face it kids!

all these kids are subsidizing all the A League Woolworths and Ronald McDonald Franchises! 

It's all a business now based on the franchise business model like McDonalds. There are no clubs in the A League. NONE! 

The only club in NSW that offers free youth programs is Dunbar Rovers in Sydney's eastern suburbs where the parents are more likely to be able to actually afford it. They have definitely not been able to secure the best youth in NSW NPL Youth Tier 2, mainly I think due to location. We need clubs in more central positions in Sydney to offer free youth programs and then we'll see the best youth go there.

Getting decent compensation from HAL clubs would be a start 

The only problem with your rant is it's the "REAL CLUBS" in the NPL that are doing this. This is the way they do business.  It's not the A League bunch.  A League lot, for the most part, don't have academies at all.  That is the "difference".  

no you are wrong. The NPL don't want to be doing this, fund the A League through their youth programs which are getting expensive, and get nothing in return from the FFA.

It's a system on false pretenses, and this house of cards will eventually collapse when there are no more kids playing because the parents can't afford it. 

Over half the fees go to the FFA, and FFSA and then there is insurance on top of that. 

The A League gets millions, and the NPL gets nothing. Whereas, without the NPL, this country is up shit creek in terms of soccer. 

Bloody hell, let's order a McHappy meal! 

LOL no you're wrong.  The NPL Clubs have always done this.  It is not even close to being new.

Most of your post is a line of strawmen but I'll help you get them burning.
It's not about failing to get anything in return from the FFA (and why should they)? The FFA don't take away their children.  Joondalup sends truckloads of kids off to Europe - that path is still open if they have created some wunderkind that is really worth something.  Nothing to do with the FFA.

If some A League outfit gives a kid from an NPL Club a chance then it is rightly "lauded".  It's usually better value for them to hire an import or recycle a discard from somewhere else in the League.  The products* from the NPL are only very rarely close to the starting eleven without a year or more of intense development.  When they do take someone then there is some system in place that allows them to get a payment for development, even though it probably wouldn't cover rego fees for an "elite" NPL Club.

Do you know the exact fee that is paid to the FFA for a junior rego?  It's $12.60.  Using Victoria as typical, the FFV fee for juniors is $73.40.  The rest goes to the Club.

If a Club wants to play in the FFV NPL then they do have to raise real money.  $40k.  That's quite a sum but then again, how much do they pay their first team players?

This again has nothing to do with charging juniors massive fees to play at the Clubs and their hilariously named "Academies".   That is simply about ripping off the parents of young kids so a better class of backpacker can be hired to beat the old enemy from down the road.  It really is no more than that.  What of the future?

The FFA stated that they wanted to divert income from the next TV deal back to the "grass roots" to address just this problem.  They have been roundly "slammed" for that concept in these forums and in the press.  "More power to an independent League" is the cry. That tune won't change.  It will get louder if anything.

The FFA will have to face it, the whole system needs to be torn down and rebuilt.  As more money enters the game in this country there will be less willingness to spread the largesse by those that earn the cash.  A League Clubs will have to be let loose to earn what they can and they will receive nothing/nada/nil/zero  from upstream.  A2 League and NPL will also have to be largely untied and left to act as individuals looking after their own self-interests.  They also will receive nothing from upstream (except they will be allowed to charge transfer and loan fees). The FFA will have to raise its income by charging annual licence fees from each of their franchises.  Expect to see 7 figure annual fees payable.

It can't go any other direction really and it seems to me that a sea-change is already under-way.  Stephen Lowy is turning out to be quite a different operator to his pater.

This is a huuuuge problem! Senior and Junior programs should by federation law, have separate financing.

We started a club 10 years ago and our sole goal was to build from the juniors but provide a social place for the seniors without it being too pricey, we managed to subsidise all junior costs through running local events and programs in schools, we were more active than the local npl clubs and were scoopingup money that was literally just waiting there from schools who needed to spend government grants.
In the past 2 years since the new committee has come in, there is no activity in the community, no programs, no applying for grants.  the juniors pay full cost, some seniors get paid and all the while the club has never had a home ground, mooches off the local association for the hire of a ground and is now applying for entry into the state league. Not to mention the club subsidised the div 1 senior men's end of season yep. 
This is how they run this shit now, it's easier for committees to hassle parents to pay more money, the whole thing is bullshit. 

Agreed. 

As well as making coach education free, the ffa should provide grants for a-league academies in the next tv deal if not sooner 

Capital Football launch junior season and freeze registration fees on back of growth

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