Plans for private ownership of A-League still on table after FFA talks with US firm


Plans for private ownership of A-League still on table after FFA talks...

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“Plans for private ownership of A-League still on table after FFA talks with US firm



The A-League could fall under the private ownership of a global sports management firm with Football Federation Australia not ruling out selling off a stake in the competition to bring investment into the game. The A-League is braced for a major financial blow should broadcaster Fox Sports walk away from the final three years of its TV deal and is already looking for alternative revenue streams.
The Sydney Morning Herald can reveal a third-party private ownership model will be seriously considered as a means to draw much-needed investment into the league. FFA has already laid significant groundwork to sell a stake in the competition.

An evaluation was conducted last year that deemed the A-League worth between $100 million and $120 million. After that evaluation, FFA held talks with two overseas-based firms about selling between 30 per cent and 51 per cent of the A-League. The identity of one of those firms remains unknown but, according to sources close to the negotiations, the other was American sports marketing firm IMG. The New York-based company has a history of buying into sports competitions, having launched the Indian Super League in 2013. IMG part-owned the ISL until 2018.
 Discussions cooled in the months before the COVID-19 pandemic struck but had not died. There is a strong chance those talks will be revisited if Fox Sports pulls the plug on its 15-year partnership with FFA by terminating its $57 million a year broadcast deal.
 FFA declined to comment on negotiations with Fox Sports when contacted by the Herald but senior sources at the organisation did not rule out selling A-League equity if the TV deal was cut short. A-League clubs, FFA and the players union remain in the dark about Fox Sports' intentions. The pay TV provider did not make its final quarterly payment of this season's deal, which was due last week.

The A-League is suspended indefinitely due to the pandemic with FFA vowing to resume the season only when it gets the green light from federal and state governments.
 Meanwhile, private investors are also circling A-League clubs in the hope of a finding a bargain. Park Lane, a US investment bank which specialises in helping cashed-up clients buy sporting teams, is keeping an eye on all major Australian sports, including football, and has already made an informal approach to one A-League club. ....”

https://www.brisbanetimes.com.au/sport/soccer/plans-for-private-ownership-of-a-league-still-on-table-after-ffa-talks-with-us-firm-20200424-p54n1g.html


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Farrrrrrkk offfffffffff

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Oh dear...
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Doesn't worry me.  The important thing is that the competition can be adequately capitalised.

The core problem with the A League has been lack of money from the outset.
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CS - 25 Apr 2020 9:38 AM
Doesn't worry me.  The important thing is that the competition can be adequately capitalised.

The core problem with the A League has been lack of money from the outset.

Agreed. By all accounts they’re not worried about getting another tv deal if Fox walk, but there is a recognition that it won’t be at the level they’re used too so if this injects funds in to the competition then do be it. 

At least the focus will be on making the competition work and not getting distracted by other footballing matters. 

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scott20won - 25 Apr 2020 2:31 AM

“Plans for private ownership of A-League still on table after FFA talks with US firm



The A-League could fall under the private ownership of a global sports management firm with Football Federation Australia not ruling out selling off a stake in the competition to bring investment into the game. The A-League is braced for a major financial blow should broadcaster Fox Sports walk away from the final three years of its TV deal and is already looking for alternative revenue streams.
The Sydney Morning Herald can reveal a third-party private ownership model will be seriously considered as a means to draw much-needed investment into the league. FFA has already laid significant groundwork to sell a stake in the competition.

An evaluation was conducted last year that deemed the A-League worth between $100 million and $120 million. After that evaluation, FFA held talks with two overseas-based firms about selling between 30 per cent and 51 per cent of the A-League. The identity of one of those firms remains unknown but, according to sources close to the negotiations, the other was American sports marketing firm IMG. The New York-based company has a history of buying into sports competitions, having launched the Indian Super League in 2013. IMG part-owned the ISL until 2018.
 Discussions cooled in the months before the COVID-19 pandemic struck but had not died. There is a strong chance those talks will be revisited if Fox Sports pulls the plug on its 15-year partnership with FFA by terminating its $57 million a year broadcast deal.
 FFA declined to comment on negotiations with Fox Sports when contacted by the Herald but senior sources at the organisation did not rule out selling A-League equity if the TV deal was cut short. A-League clubs, FFA and the players union remain in the dark about Fox Sports' intentions. The pay TV provider did not make its final quarterly payment of this season's deal, which was due last week.

The A-League is suspended indefinitely due to the pandemic with FFA vowing to resume the season only when it gets the green light from federal and state governments.
 Meanwhile, private investors are also circling A-League clubs in the hope of a finding a bargain. Park Lane, a US investment bank which specialises in helping cashed-up clients buy sporting teams, is keeping an eye on all major Australian sports, including football, and has already made an informal approach to one A-League club. ....”

https://www.brisbanetimes.com.au/sport/soccer/plans-for-private-ownership-of-a-league-still-on-table-after-ffa-talks-with-us-firm-20200424-p54n1g.html


So FFA take backtrack on Independent League from Clubs and sell shares?
Doesn't sound like FFA at all.  

Clear Contact There

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yeah, nothing to see here - if there's anyone you can trust to "put football first", its an American sports marketing firm...
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libel - 25 Apr 2020 1:39 PM
yeah, nothing to see here - if there's anyone you can trust to "put football first", its an American sports marketing firm...

More trustworthy than any Lowy that’s for sure 👍
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Waz - 25 Apr 2020 1:45 PM
libel - 25 Apr 2020 1:39 PM

More trustworthy than any Lowy that’s for sure 

That remains to be seen. But of course, Americans do love their Soccer...
Edited
5 Years Ago by libel
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libel - 25 Apr 2020 1:51 PM
Waz - 25 Apr 2020 1:45 PM

That remains to be seen. But of course, Americans do love their Soccer...

Plenty of them losing billions in the EPL every season tbh.
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“News out of any national sporting body seldom rates a mention for dealmakers.

 But what about this line in a nondescript media release from Steven Lowy's Football Federation Australia: "FFA's intention to review the operating and ownership structure of the Hyundai A-League in order to attract more investment and increase the value of the league was also discussed."
 Got that?
 FFA is doing a Wesfarmers or Suncorp and, quite publicly, hanging up the for sale sign by telling anyone who is listening that it is considering ownership options for the country's football league.
 One option Street Talk is told that is actively under consideration is some sort of private equity involvement.
 It's accepted inside FFA that the current model is broken. FFA runs small losses, clubs run losses, television networks are bleeding and everyone thinks everyone else is getting too much.
 What's needed is a cash injection – and preferably one big hit to make one substantial step forward than try and do it the hard way.
 It sounds like a private equity job, if ever there was one. Think Archer Capital buying a 65 per cent stake in V8 Supercars for $180 million or global giant CVC investing in Formula One racing.
 The question is who's willing to tip in the money and what would they be buying? We know private equity firms will look at anything they think they can turn a dollar out of, particularly if there is a regional growth story that can play out and be used to find an exit after a few years. It's hard to see one of the traditional media companies investing in the sport, given issues in their own backyards, while the elusive sports management companies are often talked about as acquirers but are yet to really put their money where their mouth is on these shores. As for what would be offered – dealmakers know the Lowys love a restructuring deal.
If there is there is one thing FFA chair Steven Lowy wouldn't want to give away, it is control.
 How could a private equity investor make it work without taking control? That's the issue for investment bankers.
 You can bet there are some smart types at UBS who will be asked to make a few calls and see what is out there. After all, Matthew Grounds and Guy Fowler were integral to FFA's recent $254 million TV deal with Fox Sports. 
UBS Australia's top brass have an ongoing relationship with the Lowys, and FFA seems to be an extension of the mandate. 

http://www.afr.com/street-talk/ubs-could-score-in-ffa-private-equity-play-20170219-gug8db#ixzz4ZJh9FHMW

Hardly a new concept. This is Stevens legacy.

it was also written into the independence deal - that FFA gets a cut from any future sales of the league. 
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scott20won - 25 Apr 2020 1:47 PM

“News out of any national sporting body seldom rates a mention for dealmakers.

 But what about this line in a nondescript media release from Steven Lowy's Football Federation Australia: "FFA's intention to review the operating and ownership structure of the Hyundai A-League in order to attract more investment and increase the value of the league was also discussed."
 Got that?
 FFA is doing a Wesfarmers or Suncorp and, quite publicly, hanging up the for sale sign by telling anyone who is listening that it is considering ownership options for the country's football league.
 One option Street Talk is told that is actively under consideration is some sort of private equity involvement.
 It's accepted inside FFA that the current model is broken. FFA runs small losses, clubs run losses, television networks are bleeding and everyone thinks everyone else is getting too much.
 What's needed is a cash injection – and preferably one big hit to make one substantial step forward than try and do it the hard way.
 It sounds like a private equity job, if ever there was one. Think Archer Capital buying a 65 per cent stake in V8 Supercars for $180 million or global giant CVC investing in Formula One racing.
 The question is who's willing to tip in the money and what would they be buying? We know private equity firms will look at anything they think they can turn a dollar out of, particularly if there is a regional growth story that can play out and be used to find an exit after a few years. It's hard to see one of the traditional media companies investing in the sport, given issues in their own backyards, while the elusive sports management companies are often talked about as acquirers but are yet to really put their money where their mouth is on these shores. As for what would be offered – dealmakers know the Lowys love a restructuring deal.
If there is there is one thing FFA chair Steven Lowy wouldn't want to give away, it is control.
 How could a private equity investor make it work without taking control? That's the issue for investment bankers.
 You can bet there are some smart types at UBS who will be asked to make a few calls and see what is out there. After all, Matthew Grounds and Guy Fowler were integral to FFA's recent $254 million TV deal with Fox Sports. 
UBS Australia's top brass have an ongoing relationship with the Lowys, and FFA seems to be an extension of the mandate. 

http://www.afr.com/street-talk/ubs-could-score-in-ffa-private-equity-play-20170219-gug8db#ixzz4ZJh9FHMW

Hardly a new concept. This is Stevens legacy.

it was also written into the independence deal - that FFA gets a cut from any future sales of the league. 

Just been reported - "Think Archer Capital buying a 65 per cent stake in V8 Supercars for $180 million" or global giant CVC investing in Formula One racing.
V8Supercars is now worth 1/2 what they paid as TV deal talks falter (2017 article) .  SLowy is long gone.

Clear Contact There

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Blew.2 - 25 Apr 2020 2:48 PM
scott20won - 25 Apr 2020 1:47 PM

Just been reported - "Think Archer Capital buying a 65 per cent stake in V8 Supercars for $180 million" or global giant CVC investing in Formula One racing.
V8Supercars is now worth 1/2 what they paid as TV deal talks falter (2017 article) .  SLowy is long gone.

Is he though?

He started this ball rolling and his replacement and close working partner Nikou is just continuing with his plan.
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scott20won - 25 Apr 2020 3:05 PM
Blew.2 - 25 Apr 2020 2:48 PM

Is he though?

Err, yes he is.
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libel - 25 Apr 2020 3:12 PM
scott20won - 25 Apr 2020 3:05 PM

Err, yes he is.

And yet his work continues
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scott20won - 25 Apr 2020 3:19 PM
libel - 25 Apr 2020 3:12 PM

And yet his work continues

Any decision made post-Lowy is on the new mob.
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libel - 25 Apr 2020 3:22 PM
scott20won - 25 Apr 2020 3:19 PM

Any decision made post-Lowy is on the new mob.

Nikou is old mob
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scott20won - 25 Apr 2020 3:22 PM
libel - 25 Apr 2020 3:22 PM

Nikou is old mob

LOL !
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libel - 25 Apr 2020 3:24 PM
scott20won - 25 Apr 2020 3:22 PM

LOL !

“Football Federation Australia plan for life after Frank Lowy

FFA plan for life after Lowy

Two new directors were appointed to the FFA board on Wednesday in preparation for Frank Lowy's retirement as chairman in November of next year Football Federation Australia (FFA) have promoted two new directors to their board as the succession plan to replace veteran chairman Frank Lowy gathers pace.Lowy has been chairman since the organisation changed its name from the Australian Soccer Assocation to FFA, helping form the A-League and essentially revolutionise football in Australia.But with Lowy's term set to expire in November 2015, as well as those of Brian Schwartz (deputy chairman) and Phillip Wolanski (director), the FFA appointed Simon Hepworth and Chris Nikou to the board on Wednesday.Hepworth - chief operating officer and chief financial officer of Caltex Australia - and Nikou - senior partner at law firm K&L Gates - will start a two-year term from October 16."The renewal process we see unfolding today shows that we are taking deliberate steps in the succession plan for the four-year period from 2015," Lowy said in a statement."We have two new directors who will add valuable skills and experience around the FFA boardroom table."Yesterday, we were able to brief our key stakeholders on the process of identifying candidates for nomination and election by the Members at the AGM in November 2015."There's more work to be done and we will make sure there is a meticulous process to find the best available candidates to serve on the FFA Board in the post-2015 years."Nikou has previously served as a director with Football Federation Victoria and is part of the AFC Asian Cup Australia 2015 Local Organising Committee, while Hepworth's football credentials include stints in semi-pro football in the United Kingdom and as both a qualified referee and junior coach.The appointments of Hepworth and Nikou will also cover the departure of former Sydney FC director Chris Rex, who has had to step down from the FFA board due to work commitments.”
https://www.goal.com/en-au/news/4016/main/2014/10/08/5165852/ffa-plan-for-life-after-lowy

Sure thing brah
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scott20won - 25 Apr 2020 3:31 PM
libel - 25 Apr 2020 3:24 PM


Sure thing brah


My response was to the suggestion that old ffa = new ffa.

Whatever you do, don't tell the nuvo new dawners !
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libel - 25 Apr 2020 3:41 PM
scott20won - 25 Apr 2020 3:31 PM

My response was to the suggestion that old ffa = new ffa.

Whatever you do, don't tell the nuvo new dawners !

There is no new FFA.

its FFA and the current chairman was hand picked by Frank Lowy.

New CEO doesn’t mean new FFA. You often try to confuse people between the two here.
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scott20won - 25 Apr 2020 3:43 PM
libel - 25 Apr 2020 3:41 PM

There is no new FFA.

LOL !
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libel - 25 Apr 2020 3:45 PM
scott20won - 25 Apr 2020 3:43 PM

LOL !

Enjoy your Saturday
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scott20won - 25 Apr 2020 3:47 PM
libel - 25 Apr 2020 3:45 PM

Enjoy your Saturday

You too
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scott20won - 25 Apr 2020 3:31 PM
libel - 25 Apr 2020 3:24 PM

“Football Federation Australia plan for life after Frank Lowy

FFA plan for life after Lowy

Two new directors were appointed to the FFA board on Wednesday in preparation for Frank Lowy's retirement as chairman in November of next year Football Federation Australia (FFA) have promoted two new directors to their board as the succession plan to replace veteran chairman Frank Lowy gathers pace.Lowy has been chairman since the organisation changed its name from the Australian Soccer Assocation to FFA, helping form the A-League and essentially revolutionise football in Australia.But with Lowy's term set to expire in November 2015, as well as those of Brian Schwartz (deputy chairman) and Phillip Wolanski (director), the FFA appointed Simon Hepworth and Chris Nikou to the board on Wednesday.Hepworth - chief operating officer and chief financial officer of Caltex Australia - and Nikou - senior partner at law firm K&L Gates - will start a two-year term from October 16."The renewal process we see unfolding today shows that we are taking deliberate steps in the succession plan for the four-year period from 2015," Lowy said in a statement."We have two new directors who will add valuable skills and experience around the FFA boardroom table."Yesterday, we were able to brief our key stakeholders on the process of identifying candidates for nomination and election by the Members at the AGM in November 2015."There's more work to be done and we will make sure there is a meticulous process to find the best available candidates to serve on the FFA Board in the post-2015 years."Nikou has previously served as a director with Football Federation Victoria and is part of the AFC Asian Cup Australia 2015 Local Organising Committee, while Hepworth's football credentials include stints in semi-pro football in the United Kingdom and as both a qualified referee and junior coach.The appointments of Hepworth and Nikou will also cover the departure of former Sydney FC director Chris Rex, who has had to step down from the FFA board due to work commitments.”
https://www.goal.com/en-au/news/4016/main/2014/10/08/5165852/ffa-plan-for-life-after-lowy

Sure thing brah

Shit this is straight out of THE LOWY FAMILY history book - election by the Members at the AGM in November 2015. Is even pre the Head Roll - Stage Fright 

Clear Contact There

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libel - 25 Apr 2020 1:39 PM
yeah, nothing to see here - if there's anyone you can trust to "put football first", its an American sports marketing firm...

Exactly

this is a disaster waiting to happen. 

Selling control to an American marketing firm??? I thought this was the opposite of what everyone has been driving for over the past 10 years ?!!

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Not sure where this fits:

https://analytics.twitter.com/mob_idsync_click?slug=AfK9sMON6z&idb=AAAAEIAYhTMY0KvJLwrtz5cTp_18ckG8nQn9gaJir1UtROaBpq94vW3CSmFjGRADy2BY18rZjkxxCelM8QEjOpDC51yuejzZn6ylP3m94X7UL36dCBKHmsIFprxLw1BuXFK7_8pGXakryrEVVUPQOaaFX5p9Ik_c&ad_tracking=false&tailored_ads=false

FIFA releasing US$150m if funds early to member organisations early as part of the crisis response, with more to follow. 

The good news is this helps separate the dependency of the FFA and HAL 

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“A-League club owners are unwilling to sell a stake in the competition to a global sports management firm, saying they have not spoken about raising investment through a private third-party ownership model.”

https://www.smh.com.au/sport/soccer/clubs-unwilling-to-sell-a-league-to-private-equity-firm-20200520-p54uos.html

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scott20won - 20 May 2020 2:18 PM
“A-League club owners are unwilling to sell a stake in the competition to a global sports management firm, saying they have not spoken about raising investment through a private third-party ownership model.”

https://www.smh.com.au/sport/soccer/clubs-unwilling-to-sell-a-league-to-private-equity-firm-20200520-p54uos.html

Further confirmation that the FFA still own the A League and think they can sell it off 
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Waz - 20 May 2020 2:23 PM
scott20won - 20 May 2020 2:18 PM

Further confirmation that the FFA still own the A League and think they can sell it off 

There are so many talking points in this article, that's just one of them.
For example, if the FFA is trying to sell a half share, presumably for tens of millions of dollars, prior to handing it over to the clubs, does that mean the FFA expects a similar payment from the clubs to take it over?
I mean, if the league is worth $100 million, and the FFA is currently able to sell half of it, why on Earth would they hand it over for nothing to the clubs?
Doesn't actually make any sense, clearly, you are not going to hand it over for nothing, that would be foolish (from the FFA's perspective).

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bettega - 20 May 2020 6:30 PM
Waz - 20 May 2020 2:23 PM

There are so many talking points in this article, that's just one of them.
For example, if the FFA is trying to sell a half share, presumably for tens of millions of dollars, prior to handing it over to the clubs, does that mean the FFA expects a similar payment from the clubs to take it over?
I mean, if the league is worth $100 million, and the FFA is currently able to sell half of it, why on Earth would they hand it over for nothing to the clubs?
Doesn't actually make any sense, clearly, you are not going to hand it over for nothing, that would be foolish (from the FFA's perspective).

The deal with the clubs is a little different as the clubs would be paying a fee back to the FFA every year. In the long run, that could be far more lucrative for the FFA than a once off sale.
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bettega - 20 May 2020 6:30 PM
Waz - 20 May 2020 2:23 PM

There are so many talking points in this article, that's just one of them.
For example, if the FFA is trying to sell a half share, presumably for tens of millions of dollars, prior to handing it over to the clubs, does that mean the FFA expects a similar payment from the clubs to take it over?
I mean, if the league is worth $100 million, and the FFA is currently able to sell half of it, why on Earth would they hand it over for nothing to the clubs?
Doesn't actually make any sense, clearly, you are not going to hand it over for nothing, that would be foolish (from the FFA's perspective).

The value is determined by the 11 clubs that make up the competition. They are free to leave and set up their own competition, as English clubs did in forming the EPL, so the FFA don’t have to hand it over, but equally the clubs don’t have to stay. 
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Waz - 20 May 2020 7:31 PM
bettega - 20 May 2020 6:30 PM

The value is determined by the 11 clubs that make up the competition. They are free to leave and set up their own competition, as English clubs did in forming the EPL, so the FFA don’t have to hand it over, but equally the clubs don’t have to stay. 

True, but they are not free to take their IP with them.
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someguyjc - 20 May 2020 8:05 PM
Waz - 20 May 2020 7:31 PM

True, but they are not free to take their IP with them.

They are. The sticking point would be the participation agreements 
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Waz - 20 May 2020 7:31 PM
bettega - 20 May 2020 6:30 PM

The value is determined by the 11 clubs that make up the competition. They are free to leave and set up their own competition, as English clubs did in forming the EPL, so the FFA don’t have to hand it over, but equally the clubs don’t have to stay. 

Actually, FFA has to sanction the comp otherwise it won’t be recognised by FIFA or AFC.








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AJF - 20 May 2020 9:41 PM
Waz - 20 May 2020 7:31 PM

Actually, FFA has to sanction the comp otherwise it won’t be recognised by FIFA or AFC.

Of course it does but they can’t block clubs without good reason, and there’s very few good reasons to block clubs forming their own competition. 

So the FFA can’t block clubs from forming their own competition just because they like running the AL,  Otherwise the FFA won’t be recognised by FIFA. 

This all played out when the EPL was formed. The English FA and Football League thought they could dictate to the clubs, FIFA reminded them they can’t. 

FIFA is very clear - football is organised for the players and their clubs; not for the benefit of Administrators. 


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Waz - 20 May 2020 10:22 PM
AJF - 20 May 2020 9:41 PM

Of course it does but they can’t block clubs without good reason, and there’s very few good reasons to block clubs forming their own competition. 

So the FFA can’t block clubs from forming their own competition just because they like running the AL,  Otherwise the FFA won’t be recognised by FIFA. 

This all played out when the EPL was formed. The English FA and Football League thought they could dictate to the clubs, FIFA reminded them they can’t. 

FIFA is very clear - football is organised for the players and their clubs; not for the benefit of Administrators. 


Oh the irony of that last paragraph. 
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charlied - 21 May 2020 4:52 AM
Waz - 20 May 2020 10:22 PM

Oh the irony of that last paragraph. 

haha :D
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Waz - 20 May 2020 10:22 PM
AJF - 20 May 2020 9:41 PM

Of course it does but they can’t block clubs without good reason, and there’s very few good reasons to block clubs forming their own competition. 

So the FFA can’t block clubs from forming their own competition just because they like running the AL,  Otherwise the FFA won’t be recognised by FIFA. 

This all played out when the EPL was formed. The English FA and Football League thought they could dictate to the clubs, FIFA reminded them they can’t. 

FIFA is very clear - football is organised for the players and their clubs; not for the benefit of Administrators. 


so the old NSL clubs could create their own national comp and FFA cant stop them? dont think so 








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bettega - 20 May 2020 6:30 PM
Waz - 20 May 2020 2:23 PM

There are so many talking points in this article, that's just one of them.
For example, if the FFA is trying to sell a half share, presumably for tens of millions of dollars, prior to handing it over to the clubs, does that mean the FFA expects a similar payment from the clubs to take it over?
I mean, if the league is worth $100 million, and the FFA is currently able to sell half of it, why on Earth would they hand it over for nothing to the clubs?
Doesn't actually make any sense, clearly, you are not going to hand it over for nothing, that would be foolish (from the FFA's perspective).

That’s actually a really good point, AL is a FFA asset at present and giving it away for free would not only be foolish but probably expose directors to negligence. I wonder if this is also one of the sticking points, how much owners have to pay FFA to buy out the AL?








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Another shitfest that will take 2 years to sort out.
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If the owners continue to oppose global investment, when the foreign investors are lined up, just sign up contracts with them ffa.
Then when the owners theaten to leave, the US entities can come Straight in and buy the clubs outright.
Stuff independence, ffa bring in investment to save the aleague!
Some owners are now the New Lowy/Gallop.
The aleague needs global investment asap or it will stay small fry, No second division along with No eventual pro/rel either, it won't suit their Self Interest!
Edited
5 Years Ago by soccerfoo
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I'm OK with selling a percentage of the AL if it brings in more revenue, and a marketing firm should bring in better marketing ideas... but we need to be worried about the intentions of the potential buyers. Do they have the best interests of Football at heart? You'd think profit or capital growth would be the priority. You would hope that if some of it was sold, it would be a minority stake.

GO

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