Taking 2-3 mill out of their "incoming" is gonna hurt the small ones, no two ways about it.... I can see a lot of 7k "poaching" from NPL clubs going on next year :(

From Fairfax and behind a paywall so copied below.
https://www.smh.com.au/sport/soccer/spent-too-much-money-a-league-club-distributions-slashed-to-500-000-20240703-p5jqu1.html

Australian Professional Leagues chairman Stephen Conroy has admitted the A-Leagues had no choice but to abandon its “overly ambitious” strategy and slash costs to stay afloat in a decision that has left clubs scrambling to address a dramatic financial shortfall and the professional game facing a period of austerity.

Club distributions for the 2024-25 season have been reduced to just $530,000, the APL confirmed on Wednesday, meaning club owners will have to find an extra $2.2 million just to cover the salary cap in the men’s and women’s leagues.

It is a cut of almost $1.5 million from last season, and $3 million from the high of about six years ago when the competitions were administered by Football Australia and broadcast on Fox Sports.

The high point was just as the clubs began to agitate for an “unbundling” from the federation, made official on December 31, 2020, on the basis that it would vastly improve their financial prospects

.Instead, Conroy suggested the A-Leagues would have collapsed had they not moved away from their high-spending digital strategy, having shuttered the KEEPUP app and website in March and made more than half of the APL’s workforce redundant.

He all but confirmed the $140 million private equity investment from Silver Lake had been spent and that penalty clauses within the APL’s broadcast rights deal with Paramount – as first reported by this masthead – had meant it was not worth as much as was publicly announced when the deal was inked in May 2021, thus necessitating immediate budgetary adjustments

Conroy and APL commissioner Nick Garcia, who spoke to reporters on Wednesday afternoon, said there was no imminent risk of any of the 13 clubs folding as a result of the measures from the feedback they had received, but warned that the A-Leagues would be facing a difficult 12 to 18 months until the next broadcast deal hopefully improves their fortunes.

“Launching into COVID was not the moment to go for a big, bold, ambitious strategy,” said Conroy, the former Labor senator who was appointed APL chairman in September.

“There was a lot of ambition behind the KEEPUP strategy. Obviously, it’s a strategy we’ve largely retired ... you wouldn’t do that again if you’re about to launch into COVID. There’s been a string of, I’d say, optimistic projects that were embarked on which didn’t pay off, and so the decisions we took over the last six to nine months have been to focus on football strategy.

“I describe it as being overly ambitious at the wrong moment, and the consequences for the league are that we’re having to significantly cut our cloth. The league ran too fast, spent too much money. The Silver Lake investment has been widely reported to have been spent, and so the ability to dip into a sort of capital reserve to fund recurrent losses just didn’t exist.

“We’re reviewing every single cost inside the business to make savings so that we can reduce the impact ultimately on the distributions, but the distributions were the single largest cost. And they were based on a set of numbers in the TV deal ... the numbers, as has been widely reported, reduced, and therefore a gap opened up. We have to do everything we can to ensure that we have a sustainable APL.”

While the APL is now projecting to break even in the next financial year, club owners will have to wear a collective hit of almost $20 million a season until the next broadcast deal, which will take effect from the 2026-27 competition.

“While clubs are obviously hurting by the size of this reduction, no one gave any indication they [would collapse],” Conroy said. “They obviously weren’t dancing a jig, but no one said, ‘Right, that’s it, we are shutting the doors’.”

Almost all of the APL’s previous leadership, who were the drivers behind their split from FA and the KEEPUP strategy, have departed or have heavily diminished roles within the sport. Former APL chairman Paul Lederer left the board in December 2023 and is also no longer chairman of Western Sydney Wanderers, Anthony Di Pietro left the board in December 2022 amid the furore over the scrapped grand final deal with Destination NSW, Scott Barlow left the board last month, while former chief executive Danny Townsend departed in October and is now working in Saudi Arabia.

Simon Pearce, the Melbourne City vice-chairman and City Football Group powerbroker who is regularly described as one of the most influential figures in the Australian game, remains on the APL board.

Asked directly if Pearce would continue in that role, Conroy said. “We’ve all already seen a couple of directors stand down. It won’t surprise me if a couple more stand down. As to individuals you want to name ... the board is elected by the club owners, unit-holders as they’re called. But I think you’ll see a significantly different board after the elections, which are in September.

”Sources familiar with the APL’s predicament, who were not authorised to speak publicly, said an even lower distribution figure – or even no money at all – would have been on the cards were it not for renegotiations with broadcast partner Paramount, Football Australia and other parties, which have helped manage costs. The sources also suggested that the APL had, in fact, been effectively overpaying clubs for several years based on what it could afford.

Clubs have been aware for months that distributions would be dramatically decreased, Conroy said. While the situation is likely to lead to an exodus of highly paid players and a struggle to attract credentialed foreigners, Conroy pointed to the recent success of the Central Coast Mariners – who won the treble with the lowest budget in the A-League Men – as proof that it would not necessarily impact the on-field product.

There is a reasonable expectation that the APL’s next broadcast deal – with negotiations to begin in the next six-to-nine months – will be a material increase on the current deal, given the A-Leagues have had three successive years of growth in attendances and increases in television viewership and memberships. However, Paramount is also facing an uncertain future globally, and their Australian subsidiary – which owns and operates Network Ten – has also undergone recent cost-cutting exercises.

Conroy also ruled out any possibility of the APL seeking to merge again with Football Australia, as has been rumoured, but said both organisations were in discussions about the possibility of shared services to further cut costs.“

In terms of the level of potential co-operation with the FA, that’s probably the brightest spot in terms of the discussions that we’ve been having,” he said.“

They want the A-League to be successful because they understand that a strong A-League means a strong pipeline for the Matildas and the Socceroos. As soon as we can reunite the pyramid in a raft of really constructive ways, the better, and that’s what both boards are working on at the moment.”

As for Silver Lake, Conroy said the investment firm was “leaning in rather than being critical” and did not rule out the prospect of the APL exploring another capital raise.

Good to see the A-League is closing the gap with the NST, and removing that argument from the Cartel fans

Yes hopefully the a league can work otherwise we can kiss the NST and hopes of a professional league goodbye

I'm wondering where this 'reasonable expectation' has come from. 

Claiming growth when the base line is a COVID Season isn't going to fool anyone, and they're going to be running a Youth League from now on

??? What has one thing got to do with the other mate? FA is flush with cash and hasnt pissed away 140 million on an only fans website... thats the cartel owners :)

What about:

"As soon as we can reunite the pyramid in a raft of really constructive ways, the better, and that’s what both boards are working on at the moment"

Hahahahah cant wait to see what these "constructive ways" are?

Well it IS a valid point... How can we have a fully functioning pyramid when the Aleague clubs wont be able to afford to fly interstate soon? 

NPL on planes anyone ? hahahahahahahaahah

The a league is professional so if it's not viable then who's going to start a second division. That's what I don't get like a league and npl are in the Australia cup so if nobody gives a shit about the a league the npl won't grow either. 

The NST clubs have survived for the 20 years of the A-League exclusion

Why do you think they are in any way dependent on the A-League ?

Who told you that ? Danny Townsend ?

But do you want to survive or get bigger? If the a league is successful we can get a second division and an Australia cup that people care about. It'll benefit the NPL 

The FA is starting a Second Divison mate.... (second division only as long as the Aleague still exists that is) and by their own definition it will be professional to whatever degree Australian club football can sustain... Thats enough to grow the pie... for now. Thousands of clubs around Australia that are pushing for this thing as just that mate, clubs. Not for profit, sporting organisations with members who are also the "owners" if you will of these clubs... Every single dollar made through revenue or distribution from the broadcaster is used to fund the day to day operations of the club... its in their constitution and some of them have been operating just fine for a hundred years... 

A league isnt viable because they are trying to be something these "other" clubs are not... Aleague was set up by Lowy as a carbon copy of the MLS, you know, sell licenses at exorbitant prices to fund the investment of wealthy individuals looking to market their "product" to consumers in a geographically defined sales region... By their own admission, they are (or now apparently they are trying to change their tune) in the entertainment business and the actual football is packaged and presented as this bright shiny consumer product to be paid for by ..... customers(fans).... 

The NPL or the state league clubs below it dont NEED to grow mate, they dont have any shareholders to accomodate or need to show a ROI to anyone.. They just have to exisit... If joinging them all together helps them professionalise how they do things it is only to the benefit of football in this country. 

Ill give you an immediate example of this, this window opened up has seen NPL clubs that arent quite ready to make the jump to NST recruit players straight from Aleague clubs... Oakleigh and Heidelberg as two examples.... now they will be pushing , next season to be the big fish in NPL VIC, and rightly so... this will add to their ambition to get promoted into the national tier..... Any growth in attendance and fiance will come through success, through building better links with their community (both geographic and effnik) from better exposure to a broader audience, and this will lead to improvement in their admin, staff, football programs and on and on.... Shiny stadiums, corporate boxes and 100K per game rental agreements are great for a product you are trying to sell to a broadcaster but down in the weeds its all about the football. 

If the A-league is 'successful' they'll carry on riding off into the sunset singing "Fuck the NST"

You're living in a dream

Telling comment mentioned :
"As soon as we can reunite the pyramid in a raft of really constructive ways, the better, and that’s what both boards are working on at the moment."

Will be interesting what prevails.

Thank you for the explanation that makes sense. are you saying the FA's nst will overtake the a league as the top pyramid?  From my end all these fucking suits need to work together and just fix it 

If the NST and Aleague is successful the NPL will benfit as will all of Australian football baring the 11 Australian Aleague franchises... thats what matters... 

He'll sing a different tune if a couple of franchises pull the plug in the next few seasons :)

For the FA it will be the first division mate.. APL is a totally different entity...  I dont think the Aleague will disappear but I can imagine in the forseable future a few franchises may see the appeal of being in a national competition that doesn't demand of them that they have to play out of cavernous stadiums and rely on wealthy investors to stump up 5-6 million dollars a year with no return... time will tell. 

Ok interesting. I just want the sport to be fucking successful at a professional level and grassroots I don't even want to know any of these suits names.

Like I said I love the Australia cup think everyone can agree hopefully we get a good one this season 🔥 

Mate you have to be a little clearer though.. What does "successful" mean to you?

I attend 25-30 live matches a season with my kids and friends... I follow the same club my father and uncles did before me.. We have a national team that isnt hugely embarrassing and the womens game is growing in participation and appeal... thats pretty successful to me. 

Why mention it at all then? That's the one thing that stuck in my head when I read it and I thought that's interesting, I wonder what that means?

Then he gets called on it and it's 'Oh that was just some bullshit we threw in there to try and assuage the haters'.

Cock.

On another matter if this NST ever gets up and running and becomes successful are the FA then in direct competition with the APL? They'd have to be right?

And is that a good or bad thing?

Undermining your 'competitor' would normally be a good strategy but what about here? Particularly if they start dragging sponsors and bums on seats away from the A League.

You would hope it hasten pro / rel but what if it just ended up making both comps shitter?

I want people to care about a professional league in this country. So more then two blokes and a dog turning up to matches. Then maybe we'll get a broadcaster that actually cares we get advertising, midweek show etc the players deserve it as well 

Conroy also ruled out any possibility of the APL seeking to merge again with Football Australia, as has been rumoured, but said both organisations were in discussions about the possibility of shared services to further cut costs.“

I'm sure you seen I've mentioned many times the game will never be united and strong having 2 seperate parties fighting over the same patch.
We got a square peg trying to fit in a round hole.
Your/the APL will forever go through highs/lows, snakes and ladders.
No different to its heydays but now at a lower base, whereas the game below will remain constant, consistant and survive week in week out year on decades on.......
The Australia Cup is just a piece of the game that us invested supporters enjoy but its not the be all end all.
Me wonders how many APL devotees even care go and support their local Club's Australia Cup games as a matter of interest and support of the game as a thought for the rare times I have checked in on that insidious reddit all most do is pay out on anything under the artificial world.
IMO this is like people who are brand followers thats just my opinion.

I don't see how having two parties is an issue, one in charge of Football & the in charge of the Top tier of football can work, this is how it works in England.
Hopefully the 2 parties can work together & unite football & work under one Pyramid of pro/reg going forward.

Brand supporters, what is that? I see on social media some PL team supporters including Liverpool supporters showing pictures on social media of fans clearly not from Liverpool or their local area & having a go that tickets are scarce at Anfield why do these 'Brand Supporter' get 'our' tickets?
Are you a diehard or Brand supporter, the fact that you get up at ungodly hours to cheer on Klopp & the boys but you have never been to Liverpool apart from visiting Anfield & you don't drink the local ale & talk about days around the Mersey or the Merrill or talk with a scouser accent?

I agree that the APL admin has totally stuffed it up, hoping James Johnson can regroup & unite, but if you relying on the NSD ONLY with the same old clubs that failed football before well, we are in trouble.

It's what the A-League did to the rest



(Pea)Cock

As you well know the FA (Football Association) is the governing body of Football in the UK.
The FA is responsible for all regulatory aspects of the game of football in England and is responsible for promoting the development of the game at every level.

Maybe I could have expressed Brand comment better if possible.
Sorry a Club DNA to me goes back to the local roots foundations.
We all start up as players at the local Club, thats what I mean in the very very small picture.
Support grows by levels of play or Rep Club close by stepping up to follow another higher Club if so is typical progression to me OR family links or close friends playing for XYZ Club OR you just luv the stripe and your dragged in.
Maybe some see it another way and I expect you'll say thats why you stand behind SFC because you couldn't relate to the ethnics, I get you stick by them but I don't see them as a core start up club as I see it and you'l argue yours.

Top tier Clubs not matter large or small and forward under ogarlords where did they commence originally ? (exception one like RB in Bundas and similar here or there are a minority though RB did come from a local small time Club)
We are not disputing or challenging my offshore passion and being a half cast Aussie/wog speaking aussie, we're talking about games and Clubs that as you say, you have pre game and post drinks, talk about the past talk about the highs and lows yep correct......
You prefer SFC, I'd sooner see Manly/any northern old Club climb the ladder, get promoted, get relegated - banter with mates and against wearing their colours.
APIA/SU go back to fam ties, stalwarts of the game failed and not.
You keep having a sore neck carrying on about the failed past, its moved on, its better understood, they have suffered and can't be the same.
Obviously JJ doesn't see the future like you call it being trouble (anything new will have its issues no doubt nothing is perfect) for otherwise WHY has he perserved in getting the NST up and running tell me ?
He knows the game to move forward HAS to have this to move ahead.
The APL are the 2nd entity who have stuffed up the Pro level robbos, worse the first gen had it all and still screwed it up.
There is only so many new invested supporters like yourselves I'm afraid - people after all this damn time is cringing for a system here finally like the FA mentioned above.
Its there for the taking and to finally unite football and move on and give it a go, no it can't work with 2 separate models too many complications as if it isn't complicated enough.

Muz quotes some very other valid points - say the NST does OK going forward, obviosuly there is a small % of NPL support who go to WSW/SFC/CCM games for eg, they will hedge their bets with clash of koffs for starters.
This will test alot of time poor people when you think about it.

Understood but it could kill both.

Bozza claimed that the silverlake money needs to be paid back by 2029

Would be a miracle if they can pay that back.

If they can be profitable enough to pay it back that would suggest they are capable of expanding by a cool 25 mil per season...