https://www.theage.com.au/sport/soccer/fox-sports-threaten-to-withhold-5m-from-ffa-over-western-united-20190221-p50zeh.html

Fox Sports threaten to withhold $5m from FFA over Western United

A decision by A-League expansion side Western United not to incorporate the word ‘Melbourne' in its name could cost Football Federation Australia $5 million in annual TV rights after it opened the door for Fox Sports to challenge its obligation to increase broadcast payments.

The Herald understands Fox Sports is seeking to avoid paying a nine percent increase of its broadcast deal in June 2021 despite being contractually obliged to contribute an additional $5million if two new teams were introduced to the A-League from Sydney and Melbourne.

However, several sources suggest the Pay TV provider is intending to withhold the revenue increase after the newest A-League side announced last week that it would compete under the name "Western United Football Club" while based in Wyndham in west Melbourne while temporarily playing games in Geelong in its first two years. 

It's understood that representatives of Fox Sports argued to FFA that in not being associated by name with Melbourne, Western United cannot be viewed as a team from the Victorian capital, rather as a regional club.

FFA issued a stern response to Fox Sports, arguing the name does not diminish its association with Melbourne, citing AFL side Western Bulldogs as an example. Meanwhile, behind the scenes, administrators urged Western United to incorporate more references to the city of Melbourne in their latter stages of branding.

It's understood FFA hoped to kill off the argument entirely by pushing the new club to include the word "Melbourne" or references to the city in its yet-to-be-released logo. Sources suggest FFA is continuing to lobby the group to adapt a stronger association with the city before entering the competition.

The governing body is hoping the new team will be playing out of its new purpose-built football stadium on the outskirts of Melbourne before July 2021, when Fox Sports must increase its payments for expansion.

The club will enter the A-League in October, playing out of Kardinia Park in Geelong for at least two seasons during construction of its permanent home in Tarneit, 30 kilometres from the centre of Melbourne.

The Herald sought comment from Fox Sports on Thursday. It is understood the network has not disputed the other A-League expansion club, Macarthur South-West Sydney, being a team from Sydney.

While Fox Sports are unlikely to be successful in arguing the newest A-League club are not from Melbourne, the stoush reflects the pay TV provider's dwindling appetite for Australian domestic football at a time when viewership has dropped significantly.

Last week, only 29,000 watched Western Sydney Wanderers beat Adelaide United on the Saturday night timeslot while Newcastle Jets win over Melbourne City on Friday night attracted 18,000 viewers on Fox Sports.

Last season had an average ratings of 51,000 for each game while the 2016-17 season average audience was 63,000 per match. The A-League's peak average rating on Fox Sports was almost 75,000 in the 2012-13 season which included Alessandro Del Piero at Sydney FC and the birth of Western Sydney Wanderers.

The FFA has entered negotiations for a new free-to-air partnership for next season with its partnership with Channel1 0 yet to attract a broader reach.

The A-League has been televised live on 10 for the past two seasons after Fox Sports purchased the FTA component, moving it to 10 as part of its former partnership with the network. The current agreement doesn't encourage promotion from 10 with sources suggesting Fox Sports retains the bulk of advertising revenue from Saturday night games.