apfca blueprint for an independent future · this document (“the apfca blueprint”) articulates...

Australian ProfessionalFootball Clubs Association

Australian ProfessionalFootball Clubs Association

APFCA Blueprint for an Independent Future

February 2019

Contents1 Executive Summary

2 Background

7 Part 1: Independent Governance

12 Part 2: Better Football

20 Part 3: Greater Sustainability

27 Part 4: A Bigger Contribution to the Australian Football Community


1 APFCA Blueprint for an Independent Future

Executive SummaryThis document (“the APFCA Blueprint”) articulates the shared vision of the members of the Australian Professional Football Clubs Association (APFCA) for the orderly transition to an independent A-League in preparation for the 2019/20 A-League season and in keeping with the FFA Congress New Leagues Working Group Resolution of October 2nd 2018.

It is the unanimous view of APFCA members that the establishment of an independent, autonomous and self-governing League – overseen by its participating clubs under a licence from Football Federation Australia (FFA) – will lead to improvements in the on-field quality, off-field governance and long-term sustainability of Australia’s premier domestic football competition. It will also fundamentally contribute to the overall strengthening of Australian football as a whole.

APFCA members also believe that the W-League and National Youth League would benefit from being operated by the same independent League body and that it should run all three of Australia’s top-tier league competitions.

The APFCA Blueprint begins with an overview of the challenges and opportunities confronting football in Australia and identifies the key domestic, regional and global trends impacting the sport and its stakeholders. It then outlines the four transformational benefits behind the need for an independent A-League and the benefits that independence is expected to deliver to the competition, its clubs, players and supporters, and the Australian football community as a whole.

Finally, this document articulates the APFCA’s recommendations for how an independent League should be established, structured, governed and operated, in order to allow the competition to fulfil its immense potential.

The four transformational benefits underpinning the proposed transition to an independent League include:

1. Independent Governance: An independent League will lead to vastly improved governance outcomes by reducing conflicts of interest in League-related decisions and by bringing the competition’s governance framework more closely into line with best practices in other Australian sports and the world’s most successful FIFA-aligned football leagues.

2. Better Football: An independent League will deliver a higher standard of football by enhancing the rules governing the game including those covering transfers, loans and the use of overseas players, creating new opportunities for homegrown young players to gain experience in the competition, investing in the recruitment, training, and development of professional referees, and adjusting fixture schedules to avoid clashes with international matches.

3. Greater Sustainability: An independent League will be more sustainable by optimising the allocation, marketing and sale of commercial inventory, introducing a fairer and more transparent system for the distribution of League-generated broadcast revenue, and ultimately, giving participating clubs a greater chance of breaking even or making a profit, and investing more in their on-field and off-field capabilities.

4. A Bigger Contribution to the Australian Football Community: An independent League will make a bigger contribution to the Australian football community through the provision of sustainable funding to support grassroots football, the strengthening of elite player development pathways, and the generation of increased public interest in the sport.

It is worth noting that the call for an independent League is not a new or radical proposal. The proposed transition to an independent League is consistent with the recommendations of the 2003 Report of the Independent Soccer Review Committee (AKA ‘the Crawford Report’), which called for the establishment of an independent premier domestic league, operating under a licence from the sport’s national governing body, overseen by an independent board elected by participating clubs, and sustained by its own sources of funding. It is also broadly consistent with the model for an Australian Premier League that was proposed by Professional Footballers Australia (PFA) in December 2002. The APFCA membership believes that the sporting, commercial and administrative rationale for the establishment of an independent League in Australia is even stronger today than it was sixteen years ago.

The APFCA Blueprint is based on a shared understanding that the professional game has a unique role to play in the Australian football ecosystem. It is the view of APFCA members that the most valuable contribution that elite clubs can make to the growth of grassroots football and the long-term success of Australia’s national teams is to create a thriving and competitive domestic League that expands local interest and participation in football and provides promising homegrown players with high-quality development opportunities here at home. Such opportunities should include the creation of a national second division.

All members of the Australian football family have their own role to play in the growth, development and stewardship of the game. As professional clubs competing in Australia’s premier domestic leagues, we believe this is ours. In fact, that role has been recognised internationally since 2017 when the APFCA was granted observer status of the World Leagues Forum (WLF).

The WLF represents 40 professional football leagues around the world, working closely with FIFA, FIFPro and the European Clubs Association (ECA). The APFCA subsequently became an Associate member of the WLF early in 2018. Through this forum and others, the APFCA remains actively engaged with our global counterparts in order to derive the best possible outcomes for Australia’s domestic competitions and the Australian game as a whole.

Executive Summary


The Hyundai A-League (HAL) is the premier men’s football league in Australia. The competition’s inaugural season kicked off in August 2005 after almost two years of planning and preparation.

The broad contours for the A-League were shaped by the findings of the 2003 Report of the Independent Soccer Review Committee (AKA ‘the Crawford Report’) and the recommendations of the NSL Task Force that was assembled in October 2003 and deliberated for four months. From the outset, the competition was intended to be more successful, sustainable and well-run than the National Soccer League (NSL) that was dissolved in 2004.

The A-League is on the leading edge of the Australian football community’s multifaceted efforts to generate greater interest in the sport. As the FFA’s Whole of Football Plan notes: “Australia’s Top Tier competitions, the A-League and W-League are the showcase of football’s endeavors to make the game the biggest and most popular in Australia. The key elements of community relations, fan engagement, elite player development and commercialisation come together in these competitions. They are the weekly shop window of football and their clubs are what make fans feel like they belong.”1

Football: Current Performance – Selected KPIs Performance of football in Australia is lagging behind domestic and international benchmarks

Source: Repucom World Football Report 2014, Transfermarkt (as at Jul-18), Press Search

1 Football Federation Australia, Whole of Football Plan, 2015, p.79

Background

Background

In several respects, the A-League’s entry into the competitive Australian sporting landscape has been a success. Today, the competition’s ten clubs have a combined total of over 115k members, and the FFA’s most recently concluded broadcast deal was worth approximately $346m over six years, with the A-League the most significant component of that deal. That said, and with many metrics now in decline, the League has failed to fulfill its true potential year-on-year despite significant investments from club owners. This is unequivocally due to the constraints placed on the League and its constituent clubs through it being managed strategically and tactically by its regulatory body – the FFA Administration and its Board.

If the stated goal is to make football the biggest and most popular sport in Australia, then we still have a long way to go. Contrary to popular opinion, the Australian public’s interest in the game actually remains relatively low. According to the Nielsen Sports (formerly Repucom) World Football Report (2014), only 37% of Australian respondents reported a basic interest in football, materially lower than the global average of 46%. This is also reflected in the public’s viewing habits, with only 17% of Australian respondents identifying football as one of their favourite sports to watch on TV, below Mexico, the UK, India, Japan and China. Football: Current Performance – Selected KPIs

Performance of football in Australia is lagging behind domestic and int’l benchmarks

1a) Background: Domestic Landscape

Draft & Confidential – Not For Sharing

80%

70%

60%

50%

40%

30%

20%

10%

0% Mexico UK Japan Australia India China USA

Global46%

Global26%

% of population who say that they are interested in football

70%

52%42% 37%

31% 30% 27%

Interest

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Mexico UK India Australia USA Japan China

% of population who play football at least once a week

39%33%

22%

11% 10%6% 6%

ParticipationPlaying Quality

AttendanceAverage Domestic Sport Attendance 2018

Aussie Rules Cricket Rugby League Rugby Union Football

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

36,692

26,531

16,205

12,034 10,671

31%

11%

EPL MLS CSL Liga MX ISL A-League

% of players picked for their respective International squadsfrom Leagues – July 2018

9% 8% 8%4%

J-League (J1)

4%

Jun-17 15Source: Repucom World Football Report 2014, Transfermarkt (as at Mar-17), Press Search

40,000


A-League Clubs’ Total Net Losses 2015/2016Only 1 A-League club broke even in 2015/2016, with an average net loss of $1.9m

4) Financial Sustainability

Jun-17 58Source: FFA Financial Update 2016

Combined HAL Club P&L, 2015/2016$m AUD

108

(19)

-40

-20

0

20

40

60

80

100

120

Revenues Expenses Total Profit

Revenue Expense Profit (Loss)

-126

Club by Club Profit/Loss, 2015/2016$m AUD

1

(1)(1) (2) (2) (2) (3)

(8)(10)

(5)

0

5

10

Club1

Club10

Average:- $1.9m

(0) (0)

A-League Clubs’ Total Net Losses 2015/16 Only 1 A-League club broke even in 2015/16, with an average net loss of $1.9m

The League has failed to fulfill its true potential year-on-year despite significant investments from club owners

Source: FFA Financial Update 2016

If the A-League, alongside the W-League, is expected to help turn this around, then the competition has some structural challenges of its own that must first be addressed. A-League clubs currently start each year with a funding deficit of at least $1m per club – due in large part to unrealistic and conflicted funding policies from the FFA – with nine out of ten A-League clubs reporting a net loss in 2015-16 (with club losses as a whole for that year totalling $19m). This lags behind key international benchmarks, with no European league (of any size) posting a lower proportion of profitable clubs than the A-League.

Background


A-League Club Dissolutions and License ReturnsMany licences returned or clubs have dissolved due to financial difficulties


Jun-17 59Source: Press Search

2008 2009 2010 2011 2012 2013 2014 2015 20162007

Northern Fury(Quensland)

Wellington Phoenix Newcastle Jets

Newcastle JetsGold Coast UnitedBrisbane RoarAdelaide United

Dissolved

Dissolved

Central CoastMariners

Newcastle Jets

Dissolved

New ZealandKnights (Auckland)

Benchmarking: (Majority) Ownership ChangesA-League has a higher proportion of ownership change than EPL and MLS


Feb-19 186

80%

45%

24%

0%

20%

40%

60%

80%

A-League EPL MLS

Majority Ownership Change Across Leagues Since 2011/12% of current league members founded pre-2011/12, that have had majority ownership change1

Source Press SearchNote 1: As at Feb-17. Based on Clubs in each league over 16/17 season; excludes Clubs established since 2012A-League changes: Brisbane Roar, Central Coast Mariners, Melbourne City, Melbourne Victory, Newcastle Jets,Wellington Phoenix, Western Sydney WanderersMLS changes: Colorado Rapids, Columbus Crew, DC United, Houston Dynamo, Real Salt LakePL changes: Arsenal, Bournemouth, Burnley, Crystal Palace, Everton, Manchester United (IPO), Swansea, Watford,

A-League Club Dissolutions and Licence Returns Many licences returned or clubs have dissolved due to financial difficulties

Benchmarking: (Majority) Ownership Changes A-League has a higher proportion of ownership change than EPL and MLS

Source Press SearchNote 1: As of Dec-18. Based on Clubs in each league over 17/18 season; excludes Clubs established since 2012A-League changes: Adelaide United, Brisbane Roar, Central Coast Mariners, Melbourne City, Melbourne Victory, Newcastle Jets, Wellington Phoenix, Western Sydney WanderersMLS changes: Columbus Crew, DC United, Houston Dynamo, Real Salt LakePL changes: B’mouth, Burnley, Crystal Palace, Everton, Fulham, Man United (IPO), Southampton, Watford, Wolves

This is not a recent phenomenon. The A-League’s short history has been punctuated by the dissolution of multiple clubs and the return of multiple club licences. This level of instability is unusually high by international standards and has not been conducive to the growth of fan loyalty and public confidence in the competition.

Background


Foreign Leagues: Selected KPIsRival leagues attract increasing broadcast and sponsorship revenues

1a) Background: International Landscape


120

100

80

60

40

20

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Domestic Broadcast Revenue ($AUDm)

22 22

31 31 31

120120120 120 120

MLS Broadcast Revenue

J-League Broadcast Revenue UpliftDomestic Broadcast Revenue ($AUDm)

Feb-19 15Source: Press Search

4x Uplift

300

250

200

150

100

50

0

2012 2013 2014 2015 2016 2017 2018 2019

55 55 5567 67

266 266 266

4x uplift

ISL Sponsorship RevenueTitle Sponsorship Revenue ($AUDm)

12

10

8

6

4

2

0 2014 2015 2016 2017 2018 2019

3.2 3.2 3.2

10.4 10.4 10.4

x x

x x x

3.3x uplift

45

40

35

30

25

20

15

10

5

0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Title Sponsorship Revenue ($AUDm)

9.4 9.4 9.7 9.7 9.7

27.1 27.1 27.1 27.1

41.8 41.8

9.7

x

CSL Sponsorship Revenue Increase

2.8x uplift

1.5x uplift

Attendance: Australian Sports BenchmarksA-League had the lowest average attendance of 5 the major Australian leagues


Source:Press Search

36,692

26,531

16,205

12,034 10,671

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Aussie Rules Cricket Rugby League Rugby Union Football

Benchmarking Average Domestic Sport Attendance2018

Feb 19 131

Foreign Leagues: Selected KPIs Rival leagues attract increasing broadcast and sponsorship revenues

Attendance: Australian Sports Benchmarks A-League had the lowest average attendance of 5 of the major Australian leagues

The A-League also continues to be impacted by a range of external forces. These include the rise of cashed-up football leagues in Asia – most notably in China – that are expected to drive up the costs of players and coaches in the region over the next decade, the relative decline of Australia as a force in

global football since the retirement of the “Golden Generation”, the shortcomings of Australia’s disjointed elite youth development system, and fierce competition for the public’s attention from rival domestic sports and foreign football leagues.

Source: Press Search


Background



The challenges faced by Australia’s professional football clubs are not in dispute. The FFA’s Whole of Football Plan acknowledges: “Australian club football has great momentum, but continues to lack the type of scale, reach and commercial revenues required if they are to become the most popular in Australia. Furthermore, football operates in the most competitive professional sporting market in the world in the face of strong, well-financed competitor codes.”2

Ultimately, the current situation has put the A-League in a vicious cycle. The most effective way to boost the popularity and sustainability of the League is to improve the quality of football played on the pitch. However, the commercial challenges faced by A-League clubs – combined with concerns over the competition’s existing governance arrangements – have been a handbrake on efforts to do that. In the absence of a measurable and sustained increase in the value of A-League licences, it is difficult for clubs to commercially justify increased investment in their facilities, on-field and off-field capabilities.

As a result, the A-League is effectively in a holding pattern. Although the League is highly-competitive and its most high-profile matches create an atmosphere unlike any other in Australian sport, the hard truth is that the competition is not yet consistently delivering the week-in-week-out quality and intensity that fans and clubs would like to see in Australia’s premier domestic league. In the absence of essential changes to the League’s governance arrangements and opaque commercial model, this situation is unlikely to change, and the A-League will never become the thriving domestic league that its clubs, players and fans know that it can be.

The APFCA believes that the establishment of an independent A-League is an essential step to, in the first instance, ensure the sustainability of Australia’s premier domestic football competition and, in the second, improve its quality. The establishment of an independent A-League will enable the League and its participating clubs to make an even greater contribution to the football community’s efforts to make the world game the biggest and most popular sport in the country.

Source: Worldfootball.netNote: Regular season only (i.e. excludes grand finals)

Attendance: A-League AverageAttendances have decreased since 2013/14, and remains 16% below 2007/08 peak


Source: Worldfootball.netNote: Regular season only (i.e. excludes grand finals)

A-League Average Attendance: Last 10 Years2007/08 to 2017/18

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

14,612

12,181

9,7918,459

10,49612,343 13,041 12,513 12,309

2016/17 2017/18

12,29510,671

Jun-17 163

Attendance: A-League Average 2017/18 attendances 3rd lowest in league history following four consecutive falls

The APFCA believes that the establishment of an independent A-League is an essential step to ensure the sustainability of Australia’s premier domestic football competition and improve its quality

Background


The recent FFA governance reform “process” has given rise to an unprecedented discovery on the part of the APFCA – and that of other Australian football stakeholders – as to exactly how bereft of good governance the Australian game has been. The only conclusion that can be drawn is that Australian football has remained firmly rooted in the era of FIFA 1.0 for too long. The resolutions passed by the FFA Congress on October 2nd 2018 have created a pathway for Australian football to potentially achieve best practice governance standards. The creation of the New Leagues Working Group is fundamental to that transformational process.

The focus of Australian governance reform since April 2016 has been the FFA Congress. Whilst the Congress matter has sat at the heart of the issues affecting FFA governance, the focus solely on it as an issue has been to the detriment of linked and equally-relevant governance matters. Put simply, the focus solely on the FFA Congress has created an artificial impediment to the much-needed broader governance reform of the FFA and the game in Australia. An essential component of that reform process must be the formation of an independent A-League.

1

Independent Governance

The APFCA believes that the transition to an independent League will lead to improved governance outcomes by reducing conflicts of interest in League-related decisions and bringing the competition’s governance framework more closely into line with best practices in other Australian sports and the world’s most successful FIFA-aligned football leagues.

Independent GovernancePart 1


Reducing Conflicts of Interest

The FFA currently oversees all aspects of Australian football. That includes the oversight of nine national teams and six domestic competitions, including the A-League, W-League and the FFA Cup, the sale of their respective broadcast and commercial rights, and the distribution of the resulting revenue to different parts of the football ecosystem.

It is from this central vantage point that the FFA asserts significant control over the A-League’s strategy and day-to-day operations. Under the existing arrangements, participating clubs – even if all ten are in unanimous agreement – do not have the power to make changes to the competition’s rules and regulations without FFA approval. This is atypical of benchmark leagues, including, for example, the EPL, other major European leagues and the MLS.

FFA PropertiesFFA’s governance spans both Australia’s National and Domestic Football



Feb-19 10Note 1: Futsalroos had funding cut for 2017/18 season by FFA Note 2: Paralympic Football Team for athletes with cerebral palsy, acquired brain injury or symptoms acquired from a stroke

11 National Football Entities

MatildasWomen’s National Team

SocceroosMen’s National Team

Olyroos Men’s U23 National Team

Young SocceroosMen’s U20 National Team

Joeys Men’s U17 National Team

Young Matildas Women’s U20 National Team

4 Domestic Football Leagues

A-LeagueMen’s Professional League

National Youth LeagueMen’s Youth League

National Premier LeaguesMen’s Federation Leagues

W-LeagueWomen’s Professional League

FFA CupMen’s Knockout Cup

F-LeagueFutsal League

Futsalroos1

Futsal National Team

Pararoos2

Paralympic National Team

Junior Matildas Women’s U17 National Team

FFA

Voting Process: FFA vs. Global BenchmarksClubs involvement in voting process differs from league benchmarks

2b) Independent Governance: Recommendations


Jun-17 163

MLS / EPL

ProposingClub (s)

League

Changeproposal

Other clubs

Vote onproposal

Implemented tothe league

Uponsuper-

majority(c.66%)

agreement

1

2

3

FFA / HAL

ProposingClub (s)

FFA

Unsolicitedsuggestions

Other FFAMembers(Potentiallyconflicted)

Vote onproposal

Implemented toHALUpon

agreement

1

3

4

FFAMembers w/

Voting Rights

VoluntaryProposal2

FFA Properties FFA’s governance spans both Australia’s National and Domestic Football

Voting Process: FFA vs. Global Benchmarks Clubs’ involvement in voting process differs from league benchmarks

Note 1: Futsalroos had funding cut for 2017/18 season by FFA Note 2: Paralympic Football Team for athletes with cerebral palsy, acquired brain injury or symptoms acquired from a stroke



This situation is highly problematic. It is only natural for situations to arise in which the perceived best interests of one aspect of Australian football are at least partially in conflict with those of another. One example is rules relating to the use of ‘visa players’ or ‘guest players’ in the A-League, where the FFA – with concurrent responsibility for the A-League and the men’s national team – is inevitably influenced by factors that do not relate exclusively to the best sporting and commercial interests of the League. These conflicts have been compounded by the number of senior FFA officials wearing multiple hats and having dual responsibilities relating to Australia’s domestic leagues and national team programs.

The APFCA is not the first to raise these concerns. In fact, the existing governance model for the A-League is inconsistent with the recommendations of the 2003 Report of the Independent

Alignment with FIFA Statutes and International Best Practice

The APFCA believes that the FFA should be fully aligned with FIFA Statutes. There is no such alignment at present. The extent to which the lack of FFA alignment with FIFA statutes has a material impact on professional football stakeholders needs to be rectified as part of the process of a transition to an independent League. To do so will require a revision of the contractual obligations imposed upon Clubs and players through three crucial documents. These are inherently in opposition to FIFA Statutes:

- The Club Participation Agreement (CPA) first executed in November 2004 by the then 8 constituent member clubs of the A-League – of which several have subsequently become bankrupt and no longer exist.

- The Standard Player Agreement (SPA)

- The Collective Bargaining Agreement (CBA), which inexplicably the clubs are not a party to but are bound to by virtue of the CPA – a document all clubs were obliged to execute by the FFA without any right to demand amendments or the deletion of clauses they found unacceptable in the document. This in itself produces significant financial liabilities for clubs with no recourse.

Soccer Review Committee (AKA ‘the Crawford Report’). Among a range of recommendations designed to improve the management, governance and sustainability of soccer in Australia, the Crawford Report called for the establishment of an independent domestic league, operating under a licence from the sport’s national governing body, overseen by an independent board elected by participating clubs, and sustained by its own sources of funding.

APFCA analysis suggests that less than half of the Crawford Report’s recommendations have been fully implemented in the sixteen years that have passed its publication. It is the shared view of APFCA members that the independent league model recommended in the Crawford Report continues to represent the best way forward for Australia’s premier domestic football competitions.

As part of the formation of an independent A-League, such considerations will be a natural part of the new structural relationship between the professional game and the FFA in a role as a Member Association organisation.

A further consideration of alignment with FIFA Statutes must be Article 15.d of the FIFA Statutes. It creates the obligation for all Member Associations to have independent arbitration processes. The experience for all stakeholders of the FFA is that Australian football does not meet that obligation.

As a result, the professional game in Australia lives under a regime which provides no FIFA-compliant or meaningful appeal process. Put simply, the dispute resolution process contained in the FFA Rules and Regulations is itself not compliant with FIFA Rules. As part of the creation of the independent League, the APFCA sees the alignment of the FFA with FIFA Statute Article 15.d as an essential step in the necessary empowerment and focus of the FFA as a regulator of the professional game.

APFCA Recommendation: The APFCA recommends an orderly transition to an independent, autonomous and self-governing A-League, in readiness for the 2019/20 A-League season.

NB: Under the APFCA Blueprint, the FFA will still retain ‘football-wide responsibilities’ throughout Australia, FFA representatives will be granted observer status on the board of the independent League, and the FFA will retain influence over certain decisions related to the League.

APFCA Recommendation: The APFCA recommends that the FFA should be fully aligned with FIFA Statutes and best international practice and this should extend comprehensively to the contractual obligations between the FFA as the Member Association, APFCA members and Australian professional players.

In particular, the APFCA recommends that as part of the formation of the independent A-League the FFA is aligned fully with Article 15.d of the FIFA Statutes.



A Fairer Say for the Professional Game

The FFA has had a dominating and all-powerful influence over decisions affecting the A-League. Australia’s professional clubs have had minimal input into decisions related to the sport as a whole - including the rules and regulations governing their own competition.

Until October 2nd 2018, A-League clubs held only one vote out of 10 within the FFA Membership, which elects the FFA Board. Moreover, Professional Footballers Australia (PFA), which represents the interests of Australia’s professional football players and is a full member of the Fédération Internationale des Associations de Footballeurs Professionnels (FIFPro), had zero representation in the FFA membership, prior to the 2018 reform of the FFA Congress.

Whilst the hard-fought reform of the FFA Congress is a welcome watershed moment in the history of the Australian game, the

legacy of the preceding period is that the professional game has been deprived of meaningful input into key decisions impacting the A-League and the game as a whole. Importantly it has also prevented the game from benefitting at a governance level from groups with unique insights. The creation of an independent League is therefore a much-needed corrective measure.

Moreover, it will necessarily create greater collaboration between APFCA members and the PFA. The relationship between the two parties will necessarily become direct and ongoing to the benefit of the game as whole.

At present, under the contractual obligations imposed upon Clubs and players, A-League clubs are not a party to the Collective Bargaining Agreement (CBA) and, as a result, the FFA has been a conflicted, unnecessary, and at times obstructive conduit in the commercial relationship between the APFCA and the PFA.

APFCA Recommendation: The APFCA recommends as part of the transition to an independent League, the revision of the contractual obligations imposed upon clubs and players through the CPA, SPA and the CBA, and the creation of a formal, contractual, direct working relationship between the APFCA and the PFA.

APFCA Recommendation: The APFCA commits that an independent League will consult directly with the PFA on a range of matters impacting its members, including, but not limited to, collective bargaining agreements, salary cap policies and a Code of Practice for the League, improving disciplinary policies and procedures, and partnering on community and commercial programs.

Financial Transparency

Fundamental to the issues surrounding FFA governance is the lack of financial transparency of the FFA.

After two years of pressure the APFCA members were finally provided with a summary “attribution” Profit and Loss statement for the 2017/18 A-League season. This is the extent of the disclosure the clubs have been given. The FFA has been unable or unwilling to provide further financial statements. A simple benchmarking of line

items from that statement against other global leagues begs many questions.

An independent League will not only create greater transparency around the costs and revenues associated with the elite game, it will also force transparency on all other areas of FFA operations – clarity that can only be good for the game as a whole.

APFCA Recommendation: The APFCA commits that an independent League will provide transparent financial reporting aligned with best practice and will continue to advocate the same for the FFA for the benefit of all of its stakeholders.

The creation of an independent League is a much-needed corrective measure that will deliver optimal impact to the game as a whole



Partnering with the Federations

The nine state and regional football federations represented at FFA membership level provide important connections between the governing body, the A-League and grassroots football stakeholders across Australia. Their key functions are set out in the FFA Member Federations Charter – signed by the FFA and the Federations in 2010 – and include the development and promotion of football and the implementation of FFA strategies, policies, programs and regulations within their respective jurisdictions.

It is the view of the APFCA that the Federations play an irreplaceable role in the Australian football ecosystem that must be preserved. Further, the APFCA believes that significant opportunities exist for an independent League and its participating clubs to expand their cooperation with the Member Federations in a range of fields, including through the provision of direct financial support for grassroots football across Australia and partnering on community-based programs and initiatives designed to convert more grassroots participants into fans of the domestic game.

APFCA Recommendation: The APFCA commits that an independent League will evolve its relationships with the Federations to support the development and promotion of the game nationally, as well as in their respective states and territories.



Better Football Part 2

The APFCA believes that an independent League will deliver a higher standard of football by enhancing the rules governing transfers, loans and the use of overseas players; creating new opportunities for homegrown young players to gain experience in the competition; investing in the recruitment, training and development of professional referees; and optimally adjusting fixture schedules to maximise opportunities for the growth and success of Australia’s elite professional Leagues.

2

Better Football


Sensible Overseas Player Restrictions

There is broad agreement within the A-League that the use of overseas players has a positive impact on playing quality and public interest in the League. In the 2017-18 season alone, seven out of the top ten goal scorers in the competition were overseas players. The average EA Sports FIFA Rating for overseas players plying their trade in the A-League is eight points higher than that of their Australian counterparts. Contrary to popular opinion, 90% of respondents to a survey of A-League club representatives in 2014-15 reported that the presence of overseas players in their squads also made a positive contribution to the development of young Australian talent.

Source: EA Sports; correct as of December 2018

Overseas Players: Benefits SummaryOverseas players help drive the growth of the game in Australia in multiple ways

3) Better Football


Jun-18 182

Overseas Player Benefits Examples

Fanbase

Del Piero at Sydney FC- 57% growth in Sydney FC attendance during Del Piero tenure

Designated Player Signings in MLS- 79% increase in Facebook followers in 2 days following a DP signing

EA Rankings- Overseas players are on average ranked 8 points higher than than Australian players by EA sports

A-League Clubs Survey- 90% of survey respondents believe that overseas players support youth talent development

Attendance

Youth Development

Playing Quality / On-Pitch

Overseas Players: Benefits – Playing Quality (1/2)Visa players are on average ranked 7 + than Australian players by EA sports

3a) Better Football: Overseas Players


Jun-18 42Source: EA Sports; correct as of December 2018

2017/18 A-League Top Scorers EA Sports FIFA Rating: A-League Players-

99

Goa

ls S

core

d

Domestic Overseas

-

61

69

50

60

70

Domestic Overseas

FIFA

Rat

ing

Ber

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10 10

1315

10

1414

27

0

5

10

15

20

25

30

Overseas Players: Benefits Summary Overseas players help drive the growth of the game in Australia in multiple ways

Overseas Players Benefits – Playing Quality Overseas players are on average rated 8 points higher than domestic players by EA Sports

In the 2017-18 season alone, seven out of the top ten goal scorers in the competition were overseas players

Better Football


The use of overseas players in the A-League is tightly controlled for valid sporting and commercial reasons. For the avoidance of doubt, the APFCA supports the existence of certain restrictions on the use of overseas players in Australia’s premier domestic football competition. However, in 2018 it was once again proposed that the current limit of ‘five visa players per team’ shift to a more prescriptive ‘four visa players plus one Asian visa player’ arrangement (otherwise known as the “4 + 1” model).

The APFCA opposed – and will continue to oppose – this specific proposal for a number of reasons. A survey of club representatives conducted in 2014-15 found that 83% of respondents believed that reducing the number of ‘visa players’ allowed in the A-League would have a negative impact on the quality of football played in the competition. The proposed replacement of a currently free ‘visa player’ slot with a mandated ‘Asian player’ slot is of particular concern to APFCA members due to the significant inflationary pressures that exist in the market for Asian players that are beyond

the control of Australian clubs. Moreover, talk of further restrictions on overseas players ignores the simple economic realities and player recruitment dynamics that the necessary expansion of the competition will create.

It is worth noting that the current limit of ‘five visa players per squad’ is already more restrictive than both the English Premier League (unlimited visa spots provided 8 homegrown players in squad) and MLS (8 visa spots plus players can be traded between clubs). Moreover, it is in opposition to the trends being seen in leagues across the Asian Football Confederation, most notably in the Saudi Arabian Pro League with an increase in visa slots from 4 to 6 in 2017/18 and then a further increase to 8 for 2018/19. That rival AFC leagues are becoming more welcoming of foreign talent while the A-League becomes more restrictive can only act to the economic detriment of the A-League, its clubs and the entire Australian football ecosystem.

Note 1: Assumes 25-man squad

Source: Transfermarkt as of Dec-18

Overseas Player Limits: International Benchmarks Many international leagues have less restrictive visa regulations than the A-League



Jun-18 40

Note 1: Limit refers to no. of players in matchday squadNote 2: Limit in starting lineup, 7th foreigner allowed on benchNote 3: Limits refers to no. of players in matchday squad, 1 of whom must be from AFC.

Foreign Player Regulations (Selected Leagues)

17

England

17

Italy

16

Mexico

13

Germany

6

6

USA

Each squad has between 6 and 12 international player roster slots- 184 (tradeable) slots are divided between 23 clubs

8

India

7

S.Arabia

6

Argentina

51

Hong Kong

5

Uzbekistan

4

Australia Japan

3

3

Thailand

4

China

3

S. Korea

11Foreign players allowed on pitch 11 91 11 11 562 514 55 434 4 4

Max

imum

no.

of o

vers

eas

play

ers

0

2

4

6

8

10

12

14

16

18

Plus 1 South-East Asian player

FFA 4 + 1 AFC Proposal

Overseas Players (All)

1

11

Overseas Players (AFC)




Jun-18 40Source: Football Observatory, Press Search , Transfermarkt as at November 2017

Proportion Of Foreign Players By League

68%

57% 55% 55% 52% 50%

37%

30%

24%

16% 15%13% 10%

0%

20%

40%

60%

80%

EPL

MLS

Serie

A

Eng.

Cha

mp

Bund

elig

a

Liga

MX

Scot

. Pre

m

Hon

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Jun-18 40

Note 1: Limit refers to no. of players in matchday squadNote 2: Limit in starting lineup, 7th foreigner allowed on benchNote 3: Limits refers to no. of players in matchday squad, 1 of whom must be from AFC.

Foreign Player Regulations (Selected Leagues)

17

England

17

Italy

16

Mexico

13

Germany

6

6

USA

Each squad has between 6 and 12 international player roster slots- 184 (tradeable) slots are divided between 23 clubs

8

India

7

S.Arabia

6

Argentina

51

Hong Kong

5

Uzbekistan

4

Australia Japan

3

3

Thailand

4

China

3

S. Korea

11Foreign players allowed on pitch 11 91 11 11 562 514 55 434 4 4

Max

imum

no.

of o

vers

eas

play

ers

0

2

4

6

8

10

12

14

16

18

Plus 1 South-East Asian player

FFA 4 + 1 AFC Proposal

Overseas Players (All)

1

11

Overseas Players (AFC)

Overseas Player Limits: International Benchmarks 1/2 Many international leagues have less restrictive visa regulations than the A-League

Overseas Player Limits: International Benchmarks 2/2 A-League has a relatively high proportion of domestic players

APFCA Recommendation: The APFCA membership recommends retaining at least the current limit of five overseas players per A-League club with a commitment to ongoing evaluation of this limit in the context of League expansion (in which more clubs will be competing for the same amount of local talent).

Better Football


Player Development Pathways: Socceroos RankingSocceroos ranking peaked in the period from 2006 to 2012

3b) Better Football: Homegrown Talent

Jun-17 45Source: FIFA, Press Search

Australia FIFA Men’s World Ranking By Year

“Golden Generation”

8475

49 47

83

58

48

38

2821

26 23

36

58

100

59

4838

41

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018120

100

80

60

40

20

0

Harry Kewell, Tim Cahill, Mark Viduka era

Common characteristic = Early exposure to elite 1st Team football

New Opportunities for Homegrown Talent

One of the key characteristics of Australian football’s ‘Golden Generation’ was that players such as Harry Kewell, Tim Cahill and Mark Viduka had been exposed to elite first team football early in their careers. These ‘baptisms of fire’ contributed significantly to their growth and development into seasoned international players and high-level competitors. This phenomenon isn’t unique to Australia. Data from teams that made the quarter finals of the UEFA Champions League in 2015-16 reveals that 83% of players had debuted in senior league football aged 18 or under, while the average player in these squads had notched up more than 30 first team games by the age of 18. Player Development Pathways: Golden GenerationAustralia’s golden generation had early exposure to 1st team football in elite leagues


Jun-18 46Source: Press Search

Position

Selected Achievements

Pathway

• Football League 2 (2002)• FA Cup Runner Up (2004, 2009)• OFC Nations Cup (2004) • FIFA World Cup L16 (2006)• MLS Supporter’s Shield (2013)• Chinese FA Cup Runner-Up (2015)• AFC Asian Cup (2015)• FFA Cup (2016)

• Balmain Police Boys Club; Marrickville Football Club; Plumpton/Oakhurst Soccer Club• Milwall (1997-2004)• Everton (2004-12)• NY Red Bulls (2012-15)• Shanghai Shenhua (2015-16) • Hangzhou Greentown (2016)• Melbourne City (2016-2018)• Millwall (2018)• Jamshedpur (2018-Present)

• NSL (1995)• Scottish League Cup (2000)• Captained Australia to last 16 FIFA World Cup (2006)• Most goals scored by an Australian in the UEFA Champions League

• Melbourne Knights (1993-95)• Dinamo Zagreb (1995-98)• Celtic (1998-99)• Leeds United (2000-04)• Middlesbrough (2005-07)• Newcastle United (2007-09)

• Forward• Forward/Attacking Midfield

• FA Youth Cup (1997)• OFC Nations Cup (2004)• UEFA Champion’s League (2005)• UEFA Super Cup (2005)• FIFA Club World Cup Runner Up (2005) • FA Cup (2006)• FA Community Shield (2006)• Turkish Super Cup (2008) • AFC Asian Cup Runner Up (2011) • Oceania Footballer of the Year (1999, 2001, 2003)

• NSW Youth League & NSW Junior Soccer Academy U13-U15• U14 club tour of Thailand, Italy and England• Aged 15 trials at Leeds United – part of Big Brother Movement• Leeds United (1995-2003)• Liverpool (2003-08)• Galatasaray (2008-11) • Melbourne Victory (2011-12)• Al-Gharafa (2012-13)• Melbourne Heart (2013-14)

• Left Wing

Tim Cahill

Mark Viduka

Harry Kewell

Player Development Pathways: Golden Generation Australia’s golden generation had early exposure to 1st team football in elite leagues

Player Development Pathways: Socceroos Ranking Socceroos ranking peaked in the period from 2006 to 2012


Source: FIFA, Press Search

Better Football


Encouragingly, this is one area where the optimal development needs of homegrown players are in natural alignment with the stated wishes of local fans and the commercial interests of Australia’s professional clubs. Football consumers in Australia have made it clear that they would like to see more emerging homegrown players competing in the A-League alongside a mix of established names and imported international talent. APFCA members share this ambition. In fact, research conducted by the PFA finds that one out of every two minutes of professional football played by Australian men’s players anywhere in the world takes place in the A-League.

However, it is the view of the APFCA that growth in the number of young Australian players in the A-League is being constrained by shortcomings in Australia’s elite player development system and the League’s own restrictions on the number of substitutes that teams are allowed to field per match.

Europe

Player Pathways: Minutes Played by ConfederationOne of every two minutes played by pro Australian men’s players is in the A-League

3) Better Football

Aug-17 5Source: PFA Research ‘Player Career Path’

Total Football Minutes Played by Australian Men’s Players by Confederation2004 – 2016

Australia Asia Other

Key Takeaways

• One of every two minutes played by professional Australian men’s players is in the A-League

• Negligible presence of Australian men’s players in the Americas and Africa

• Europe still outstrips Asia (excl. A-League) by six to one

Player Pathways: Minutes Played by Confederation One of every two minutes played by pro Australian men’s players is in the A-League

Source: PFA Research ‘Player Career Path’

APFCA Recommendation: The APFCA recommends an expansion of the limit on allowable substitutes in A-League matches from 5 to 7, with these additional two spots on the bench to be reserved for Australian players aged 23 or younger.

Football consumers in Australia have made it clear that they would like to see more emerging homegrown players competing in the A-League

Better Football


Smart Scheduling

Until the 2018/19 season, clashes were often allowed to occur between A-League matches and international fixtures involving the Socceroos and/or the All Whites. This had a number of consequences, most noticeably the absence of some of the game’s biggest homegrown stars from A-League matches (with immediate sporting and commercial implications), in addition to the increased risk of injury or fatigue to players by the end of the season.

Benchmark leagues around the world, including the English Premier League, lessen fixture congestion by building FIFA prescribed international breaks into their season from the outset. Until the current season, the A-League did not automatically include scheduled breaks for international matches. Thankfully, APFCA and PFA pressure eventually led to common sense prevailing on this issue.

Anecdotally, international breaks make players in contention for national team selection more attractive to top flight domestic clubs when they make recruiting choices because the clubs no longer need to factor in the likelihood that such players would be as absent for training, matches and other commitments. This allows more established and emerging national team players to remain in (or return to) Australia or New Zealand to play in the A-League, which provides a mutually positive outcome for players, clubs, fans, the League, and the relevant national team programs.

However, with the prevalence of FIFA and AFC Youth and Women’s competitions taking place outside of FIFA windows, important work still needs to be done to ensure a better outcome for those players participating in our domestic professional leagues who are called up to represent Australia in these competitions and the preparations for them.

All of the historic challenges experienced by professional male players – around player development, player welfare and the undermining of domestic competitions – as a result of the previous failure to recognise FIFA Windows appropriately, remain largely unresolved for professional Women and Youth players who represent Australia in FIFA and AFC sanctioned competitions outside of FIFA windows. This situation is unsustainable.

Resolution of these issues can only come through better coordination between an independent Leagues body and the FFA, and cooperation around the preparation of National sides in collaboration with an ever-strengthening domestic professional ecosystem precipitated by a new independent Leagues organisation.

APFCA Recommendation: The APFCA recommends the ongoing recognition of FIFA Windows and better coordination and cooperation between an independent Leagues body and the FFA around the development of National Women’s and Youth sides.

Important work still needs to be done to ensure a better outcome for those players participating in our domestic professional leagues who are called up to represent Australia

Better Football


Improved Refereeing Standards

A participant in the FFA’s Whole of Football Forum in Canberra in 2014 said it well: “A good game of football has a good referee.” 3

However, at present there are only three professional referees officiating matches in Australia’s premier domestic football league.

Criticisms of A-League refereeing have been well-documented in recent years, with frequent errors occurring in relation to penalties and free kicks, red cards and offside calls. The introduction of “VAR” notwithstanding, if not addressed, shortcomings in the quality of refereeing threaten to materially hamper the growth, appeal and professionalism of the League.

Australia is not the first country to face this issue. In 2001, the FA, Premier League and Football League in England teamed up to create and fund a dedicated body known as Professional Game Match Officials Ltd (PGMOL) that was mandated to improve refereeing standards at the highest levels of English football. In just over fifteen years the organisation has provided professional training, development and mentoring to over 100 referees and over 200 assistant referees officiating in the EPL, EFL and FA competitions. This has included the creation of a Select Group of

65 full-time professional match officials, including referees and assistant referees.

One of Australia’s current leading referees (Jarred Gillet) will join PGMOL Select Group 2 for season 2019/20; the group of referees that officiate the English Football League Championship. This is both a reflection of the potential for Australian referees and the limited domestic pathways currently available.

Without a critical mass of professional referees and the associated pathway to achieving and sustaining that outcome, Australia is missing out on an important resource in terms of international engagement with key stakeholders of the world game. Were Australia capable of filling its FIFA quota of referees it would have the potential to enhance its reputation globally and have constant contact with key Member Federations around the world through what would effectively be a powerful group of ambassadors for our game and its stakeholders. The APFCA believes this is essential and that referees should be treated as if they were an additional team within the League – benefiting from the medical and training infrastructure that is at the disposal of the clubs.

Orderly Transfers and Loans

Transfers between teams are currently prohibited in the A-League. Players can only move from one team in the competition to another if they are released by their current club or when their contract expires. Clubs can loan up to two Australian players under the age of 23 to other A-League clubs but the impracticalities of this restricted practice make it difficult to utilise for the benefit of players and clubs.

This situation runs counter to most professional leagues around the world in which, not only are transfers and loans between teams allowed, they are generally viewed as a valid and effective method for accelerating player development.

Moreover, training compensation or “solidarity” payments resulting from transfers would help distribute money into the wider game (i.e. NPL clubs) and reward the contribution made in the development of players.

APFCA Recommendation: The APFCA recommends that loans and transfers should be allowed between A-League clubs during current trading windows, with an agreed limit of 3 inward or outward loans per club in any given season, noting that the existing salary cap provides the League with built-in protection against excessively inflationary wage pressures.


Better Football


APFCA Recommendation: The APFCA recommends the establishment of a Professional Game Match Officials body in Australia, primarily funded by the League, that is mandated to train and develop professional referees and non-professional assistant referees for the competition. The APFCA also recommends recruiting experienced officials from other countries as “guest referees” and/or consultants to work with and mentor Australia’s most promising refereeing talent.

Context- Small number of professional officials in HAL

Proposed Changes

45

20

30

10

20

30

40

50

60

EPL Eng. Champ. HAL

Improve Refereeing Standards: Referees BodyIntroduce independent refereeing body to improve refereeing standards

1. Create Professional Football Match Officials Limited (PFMOL) body funded by independent A-League, with aim to secure 10 professional referees and improve training - E.g. Premier League

- to provide support staff and coaches for improved standards

2. Recruit “guest referees” from other countries as referees / consultants E.g. Mark Clattenburg, Saudi Arabia

Improve Refereeing Standards: Referees Body Introduce independent refereeing body to improve refereeing standards

Source: PFRA Analysis, Press SearchNote 1: Select Group 1 (EPL and below) = 18 full-time referees and 27 full-time assistant referees, Select Group 2 (Championship and below) = 20 full-time referees, 36 non-full-time assistant referees

Better Football


Greater SustainabilityPart 3

The APFCA believes that an independent League will be more sustainable by optimising the allocation, marketing and sale of commercial inventory; introducing a fairer and more transparent system for the distribution of League-generated broadcast revenue; and ultimately, giving participating clubs a greater chance of breaking even or making a profit, and investing more in their on-field and off-field capabilities.

3

Greater Sustainability


A Fairer Share of Broadcast Revenue

The FFA owns the broadcast rights for its various properties, including the A-League, Socceroos, FFA Cup, W-League, Matildas and NYL. The FFA bundles these properties into collective rights packages, rather than selling each property individually. Currently the rights packages are split between Pay TV and Free-To-Air, with the Australian Government requiring certain matches to be shown on Free-To-Air television under anti-siphoning legislation. The FFA then allocates the revenue it earns from the sale of these rights back to the different properties – including the A-League – on the basis of an outdated formula that does not withstand close scrutiny.

For the 2016-17 season, the A-League received an approximate 65% share of FFA broadcast revenue under the current model. However, independent research undertaken by Nielsen indicated that A-League clubs actually produced approximately 90% of the FFA’s domestic broadcast value, based on an analysis conducted over a 4-year cycle from 2013 to 2016, which tracked total viewer hours across pay TV and free-to-air networks.

This gap suggests a significant portion of broadcast revenue generated by the A-League has been effectively redistributed to other parts of the football ecosystem while 90% of its clubs were posting financial losses in order to maintain – and improve – the quality, competitiveness and intensity of the sport’s flagship competition. This is inequitable, unjustifiable and unsustainable.

Broadcast Revenue: HAL Share of Value Creation 1/2 In FY2017 c.65% of broadcast revenue distributed to A-League

Broadcast Revenue: HAL Share of Value Creation 2/2 HAL drives 90% of broadcast value, but only received 65% of revenue distribution

Broadcast Revenue: HAL Share of Value CreationIn FY2017 c.65% of broadcast revenue distributed to A-League


Jun-18 189Source: FFANote 1: Figures are based on allocation at c.65% of “contracted fee” for HAL applied to $40m gross broadcast rights value

Total Estimated Split to Entities

FY2017 deal100%1

A-Leaguec.65%

FFA Other (e.g.Socceroos)

c.35%

FFA Domestic Broadcast Revenue Distribution

c.$27m

c.$13m

Broadcast Revenue: HAL Share of Value CreationHAL drives 90% of broadcast value, but only received 65% of revenue distribution


Feb-19

63

FFA Broadcast Value Creation vs. DistributionDomestic Broadcast only

A-League contributes 90% of the current FFA domestic value - Based on external Nielsen analysis over a 4 year period

However, A-League clubs only received c.65% of the total FFA broadcast revenue distribution in 2016/17

c.65%

c.35%

0%

20%

40%

60%

80%

100%

Revenue SharePre-17/18

League FFA

Source: Nielsen (2017) measured over 4yr cycle. HAL (90%), Socceroos (10%)Note 1: League Entities = A-League, W-League, NYL, Club Friendlies, 50% share of FFA Cup; FFA Entities = Socceroos, Matildas, 50% share of FFA CupNote 2: Rev 17/18 FFA 2018 forecasts $47m allocated to A-League of $55m total deal value (incl. international rights)

Source: Nielsen (2017) measured over 4yr cycle. HAL (90%), Socceroos (10%)Note 1: League Entities = A-League, W-League, NYL, Club Friendlies, 50% share of FFA Cup; FFA Entities = Socceroos, Matildas, 50% share of FFA CupNote 2: Rev 17/18 FFA 2018 forecasts $47m allocated to A-League of $55m total deal value (incl. international rights)

Value Creation

90%

10%

Source: FFANote 1: Figures are based on allocation at c.65% of “contracted fee” for HAL applied to $40m gross broadcast rights value

Source: Nielsen (2017) measured over 4yr cycle. HAL (90%), Socceroos (10%)Note 1: League Entities = A-League, W-League, NYL, Club Friendlies, 50% share of FFA Cup; FFA Entities = Socceroos, Matildas, 50% share of FFA Cup



The Need for Financial Transparency

The FFA’s lack of financial transparency has allowed it to remain unaccountable for the costs it attributes to the running of the A-League. After extensive lobbying over a number of years, the APFCA received a “current” limited “attribution profit and loss” summary for the 2017-18 season for the Hyundai A-League. It included a seven-million-dollar headcount cost for running the League and other line items summarised combined to match all income attributed by the FFA Administration to the League – including increased television revenues. This led to the threat

A More Sustainable Commercial Model

APFCA analysis also suggests there are significant structural inefficiencies in the current model for the marketing and sale of commercial inventory associated with the A-League and its individual clubs.

Under the current commercial model, A-League inventory is split between the FFA and the A-League clubs. The FFA then negotiates commercial agreements using assets from the A-League as well as its other properties (e.g. Socceroos, FFA Cup) and allocates what it deems as a proportionate share of this revenue to support A-League operating costs. This approach lacks any form of proper reporting or transparency and has allowed the FFA Administration and Board to act unchecked and with their own priorities and interests in mind.

Moreover, independent analysis suggests that the FFA has not been achieving industry benchmarks in the sale of its allocated A-League inventory. In 2015/16, Gemba reported that the FFA achieved IP uplift of 62%. If the FFA had achieved industry benchmark of 72%, an additional $4.8m in commercial revenue would have been available to the game. This lack of performance obviously has a negative impact on the ability of clubs to optimise their own inventory sales. In short, the lack of FFA performance has been a drag on the whole marketplace.

of legal action by the APFCA to determine the real details of the FFA finances. The matter remains unresolved and the process to bring clarity has been plagued by FFA Board and Administration impediments.

Without such transparency, the FFA’s performance in managing the Australian football ecosystem cannot be properly judged, including the historical and current management of all revenue generating assets, such as the Hyundai A-League, the Socceroos and the Matildas.

Fundamentally, the APFCA believes that the FFA should not be entitled to the commercial inventory of the clubs and the League. Rather it should focus on its regulatory, developmental and other duties to the game, and allow an independent League and its constituent clubs to use their now extensive commercial capabilities to the betterment of the League and the clubs.

In line with global best practices, A-League clubs should hold their own inventory, allowing them to commercialise these assets effectively. There should also be the opportunity for clubs to ‘opt-in’ to contribute certain elements of any unsold inventory into a shared pool, which would then be marketed collectively by a newly-created, independent, dedicated marketing company for the League.

In order to facilitate this process, each club’s Club Participation Agreement (CPA) will first need to be novated, giving each club ownership over its own IP, after which clubs could grant certain commercial rights to the independent League’s dedicated marketing company on an opt-in basis. The League’s marketing company will also be mandated to sub-licence certain League-related assets to the FFA for approved purposes, such as the use of club badges to promote the FFA Cup.

APFCA Recommendation: The APFCA recommends that moving forward the revenue from the FFA broadcast deal (2017/18 to 2022/23) is distributed in proportion to the relative share of value contributed by the different properties, based on independent analysis.

NB: Under the APFCA blueprint for an independent League, all future broadcast rights for the competition (beginning 2023/24 at the end of the current deal) will be sold independently of other Australian rights e.g. National Team rights.

APFCA Recommendation: The APFCA recommends the return of all club commercial assets to the clubs and the introduction of a ‘hybrid opt-in’ model for the sale of commercial inventory associated with the League in which participating clubs generally sell their own commercial assets but have the option of assigning certain elements of their inventory to a central pool for packaging with the assets of other clubs for combined marketing and sale by a newly-created, independent, dedicated marketing company.



A Transparent Approach to Expansion

The APFCA believes that it is essential that the A-League expands in a strategic and sustainable way, as quickly as possible. Ultimately, the ambition must be to expand to numbers that will allow for a season based only on home-and-away fixtures. Such a schedule will require at least 14 participating clubs and optimally 16. The benefits of achieving a home-and-away fixture schedule are clearly evidenced by existing leagues around the world. Moreover, there will also be the additional benefits created by new derbies and rivalries. These positive developments will enhance both the international credibility and commercial viability of the League and will in turn create ongoing benefits for the whole Australian football family.

Expansion has been an intermittent and unfocused consideration under the current arrangements, with the FFA stating in early-2017 that the addition of two new teams would lead to unsustainable losses for the governing body over the next six years, and that expanding the competition would require significant additional investment, and that expansion would therefore not occur prior to the 2018-19 season. In 2018, the FFA Administration returned to the matter in a wholly unsatisfactory way and remarkably without first consulting either the APFCA or the PFA. This is yet another example of the dysfunction of the current arrangements.

Further expansion of the League will bring both sporting and commercial benefits. However, in order to protect the quality and sustainability of the competition, it is the view of the APFCA that viable potential licence geographies must first be identified and considered for investor groups to bid for. This requires appropriate due diligence of potential markets and the application of expertise that A-League clubs are in an unrivalled position to carry out. Good governance demands this level of preparatory work from the licensing body. Moreover, it is essential that any expansion strategy is based on a comprehensive understanding of which markets are most viable and for what reasons.

It is the APFCA’s position that potential entrants must then be carefully vetted with a focus on their financial sustainability, commercial potential, proposed infrastructure strategy and ability to build a sustainable football organisation that contributes optimally to Australian football.

The commercial realities of running a sustainable A-League club are clearly best understood by the existing A-League clubs, which have managed to sustain the League despite the commercial impediments created by the FFA Board and its Administration. It is a stark fact that FFA management and expansion policies to date have witnessed at least nine licence turnovers or failures for financial reasons.

In conjunction with the PFA, an independent League body is best placed to determine the ideal circumstances for expanding the League in a sustainable way. It is the APFCA’s belief that the value of new licences should be:

a) Predicated on extensive pre-assessment of potential markets and associated licences, including:

i. Demographic modelling

ii. Assessment of available revenue streams

iii. Cost of required infrastructure and available infrastructure

iv. The potential of planned football operations

v. The prevention of cannibalisation of existing licences;

b) Based on the market size of the intended geographic location – i.e. greater value placed on key television markets such as Sydney, Melbourne and Brisbane;

c) Benchmarked against the potential enterprise values of existing clubs so as to maintain the values and investments of existing clubs;

d) Used to offset the required annual distributions of the new entrants.

Executed correctly, the right transparent strategy can deliver a number of new clubs that are sustainable and contribute instantly to the value of the League and its existing clubs, and that will positively impact the League’s commercial activities. It is imperative that the values of existing licences are protected and enhanced by any expansion, including the licence of Wellington Phoenix, a club that has the full support of the APFCA membership.

The right strategy will also deliver a greater return on rights when the current television and digital rights deals come to an end and an ongoing increased return on the League’s commercial inventory. Ultimately, if executed correctly, the right expansion strategy will have a beneficial whole-of-game effect.

What will be critical to the success of any expansion is the input and cooperation of the PFA in order to ensure that the expansion of the professional playing group within the League is optimally achieved.

It is also the shared view of the APFCA membership that a fully-expanded League model must be achieved and sustained before the introduction of promotion and relegation can be considered. For promotion and relegation to be achieved, it is imperative that a second-tier of Australian football is established and evolved in order to create appropriate football and economic proximity between the two tiers. Only in this way can the second-tier produce promoted clubs with the capacity to compete in the A-League and at the same time receive relegated A-League clubs without catastrophic economic impact for the relegated club. The investment and time horizon for achieving a second-tier of this calibre should not be underestimated. The APFCA is committed to playing its part.

APFCA Recommendation: The APFCA recommends the development of a transparent roadmap for A-League expansion by an independent League in conjunction with the PFA, that develops optimal identified licences and evaluates bidders for those licences on a range of factors, including their financial sustainability, commercial potential and proposed match day infrastructure.



Independent A-League Expansion & Contraction A-League Clubs to approve league expansion through a vote

Independent A-League Expansion Strategies Independent A-League Expansion Strategies

Independent A-League Expansion & ContractionA-League Clubs to approve league expansion through a vote

7) Path to Independence


Feb-19 104

• League members (i.e. Clubs) would need to approve league expansion through vote

• Process dependent on whether contraction is forced vs. anticipated

• Consideration of mechanism by which League can take temporary ownership of a Club whilst identifying a new owner

• Financial reporting process to pre-emptively identify ‘at risk’ Clubs

• Clubs to build up $5m ‘sinking fund’ over first 3 years of the new league

• Expansion should only be approved if deemed financially sustainable for League and Clubs

• A proportion of expansion may be linked to commencement of new broadcast deals to limit financial impacts on existing clubs

• Likely to have negative financial impacts on League and Clubs

• Clubs to be equally responsible for losses, income & capital gains associated with temporary ownership of a Club by League (using sinking fund where possible)

Process Financial Implications Football Implications

Expansion

Contraction

• Risk of Australian player inflationary cost pressures and reduction in playing quality (higher # of Australian players within fixed talent pool)

• Club expansion linked to a consideration of an increased number of visa players to ensure playing quality

• Reduction in number of international players to be considered in the event of League contraction (subject to min 5 overseas players)

Independent A-League Expansion StrategiesIndependent A-League Expansion Strategies

5a) Digital Innovation: Current

Jun-17 90

Short-TermStrategic expansion criteria

Align growth markets to strategic expansion criteria

1. Commercial opportunity/market/fan base2. Ownership group3. Stadium and football facilities

Aim to create derbies, increase penetration and awareness

Long-TermPromotion and Relegation

• Fully expanded league model achieved

• Promotion and relegation of teams

• Increased competition and quality of football



Enhanced Digital Fan Engagement

APFCA analysis suggests that the A-League’s centralised platform for digital fan engagement is underperforming domestic and international benchmarks in a range of key metrics including aesthetics, personalisation, mobile functionality, page loading times and social integration. Clubs have also reported being constrained in their own

digital outreach due the limited functionality of the A-League’s centralised Content Management System, the slow pace of upgrades to the platform and the delayed introduction of important features. The speed and functionality of the system for uploading commercial inventory has also attracted widespread criticism from APFCA members.

Digital Innovation: Engagement HAL’s digital platforms lag significantly behind other sports’ digital propositions

HAL Digital Performance: Processes & Back End Processes and proposed timelines for upgrading digital platforms are too slow

Digital Innovation: EngagementHAL’s digital platforms lag significantly behind other sports’ digital propositions


Jun-17 90

Content NavigationMobile First / Responsive

PersonalisationAesthetics

Page Loading TimesSocial Integration

CMS has limited functionality (e.g. nodirect video upload)

Timelines for digital upgrades are too slow, with key features delayed to Phase 2

Commercial inventory managed by external platform, with significant delays

Product & Features (Front End)A-League digital products lack many basic features required for effective fan engagement:

Processes & Ease Of Use (Back End)Processes and proposed timelines for upgrading digital platforms are too slow:

HAL Digital Performance: Processes & Back EndProcesses and proposed timelines for upgrading digital platforms are too slow


Feb-19 97

FFA Proposed Digital Roadmap

Features

Phase 1

Phase 2

Source: SimilarWeb as at Mar-17

• Limited Club customisation options

• Budget not yet approved

• Key features delayed until Phase 2

• Timelines unclear

• Commercial inventory can take up to 48 hours to upload (reducing engagement rates)

• Very limited commercial inventory, particularly on mobile platforms (and typically ‘below the fold’)

• No direct upload of videos to the CMS (i.e. must be linked to CMS following FTP transfer)

• Upload time can be up to 45mins to front-end of website

• Lag in publishing, editing and removing content on site

Upgrade TimelinesProcesses and proposed timelines for upgrading digital platforms are too slow:

FFA Proposed Digital Roadmap

Commercial InventoryManaged by external platform, with significant delays to upload

Content Management SystemCMS has limited functionality, and is slow to perform key tasks

Source CodeCMSResponse / mobile firstNew templatesSocial IntegrationReporting DashboardPersonalisationNotifications

Source: SimilarWeb as at Mar-17



Together, these challenges in the increasingly competitive digital space have hampered the ability of the League and its clubs to attract new supporters and engage with existing fans as efficiently and effectively as possible, with the number of people consuming daily digital content associated with the League declining in the three years preceding the 2018/19 season.

Clubs know their fans and stakeholders better than anyone. In order to grow fan numbers, and therefore the game as a whole, the barrier

of underperforming FFA centralised control must be removed, with the clubs and an independent League empowered to realise the true potential of their digital outreach.

With the exponential growth of e-sports football, it is imperative that APFCA members have the ability to leverage this powerful dynamic for the growth, diversification and extension of their respective fan-bases. This is most definitely not the case under the current centralised model.

HAL Digital Performance: Page Loading Times A-League site takes longer to load vs. other comparable leagues

HAL Digital Performance: Page Loading TimesA-League site takes longer to load than benchmarks from Football and Australia



Jun-17 95Source: Tools.PingdomMethodology: Each site tested 3 times on tools.pingdom between 13.00-14.00 16/03/17

1.6 1.7

2.2

3.0

MLSEPL A-LeagueJ-League

Benchmarking Football LeaguesWebsite Load Time (Seconds)

Benchmarking Australian LeaguesWebsite Load Time (Seconds)

2.1

2.73.0

3.8

6.9

ARUNRL Big BashA-League AFL

0

1

2

3

4

5

6

7

8

0

1

2

3

4

5

6

7

8

Source: Tools.Pingdom (February 19; each site tested 3 times)

APFCA Recommendation: The APFCA recommends giving participating clubs autonomy to invest in the development and deployment of their own digital platforms, allowing increased engagement across the web and mobile apps, and allowing an independent League to create its own platform integrating and showcasing club digital platforms.



A Bigger Contribution to the Australian Football Community

Part 4

The APFCA believes that an independent League will make a bigger contribution to the broader Australian football community through the provision of sustainable funding to support grassroots football, the strengthening of elite player development pathways, and a greatly improved capability for the League to generate increased public interest in the sport.

4



Sustainable Funding for Grassroots Football

APFCA analysis concludes that an independent League will be in a position to make a significant and sustainable contribution to grassroots football and player welfare. Specifically, the APFCA proposes that an independent League will allocate a percentage of its broadcast revenue to state and regional Member Federations to support grassroots football and to the PFA’s Player Welfare Fund. A second portion of broadcast revenue will be allocated to funding

player wages under the Collective Bargaining Agreement (CBA), a third component of broadcast revenue will be allocated to cover the shared costs of running the League, and a fourth component will be allocated to a sinking fund designed to provide additional security to clubs facing financial difficulties in the future. Finally, any additional broadcast revenue and central League-related commercial revenue will then be distributed to participating clubs on an annual basis.

APFCA Recommendation: The APFCA recommends that an independent League will allocate a percentage of its broadcast revenue to state and regional Member Federations to support grassroots football and to the PFA Player Welfare Fund. The League will also create a dedicated sinking fund to provide additional security to participating clubs facing financial difficulties.

NB: The League’s payments to the state and regional Member Federations and the PFA Player Welfare Fund will constitute its licence fee to the FFA.

The APFCA proposes that an independent League will allocate a percentage of its broadcast revenue to state and regional Member Federations to support grassroots football and to the PFA’s Player Welfare Fund



Source: PFA Research ‘Player Career Path’

Player Pathways – Australian Men’s Youth Players Every minute played by an Australian U18 Men’s Player happens domestically

Player Pathways – Australian Men’s Youth Players Every minute played by an Australian U18 Men’s Player happens domestically

6) Contribution to Football

Aug-17 6Source: PFA Research ‘Player Career Path’

Minutes played by Australian U20s Men’s Players in Australia vs Total

U20 in Aus U20 Total

• FIFA Regulations in relation to transfer of minors is highly likely to contribute to U18 minutes happening domestically

• This highlights importance of A-League giving young players opportunities to develop

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

15 - 16 yrs 16 - 17 yrs 17 - 18 yrs 18 - 19 yrs 19 - 20 yrs

Stronger Elite Player Development Pathways

The current framework for elite youth player development in Australia is fragmented and inefficient. The FFA and multiple state and regional bodies run their own youth development programs, while A-League clubs are highly restricted when it comes to the direct recruitment and development of youth footballers.

This is a significant missed opportunity given the amount of promising youth talent that is available in Australia. According to PFA

These restrictions complicate the player development pathway and effectively raise the average age at which promising young players enter the elite development programs of Australia’s professional clubs. Anecdotally, this leaves youth footballers with a bigger ‘hill to climb’ once they join a professional club in order to reach A-League standard and begin pressing their claims for a first team spot.

As a result, the outcomes produced under this model appear to be trending in the wrong direction. Research published by the PFA in 2017 revealed that the number of Australians playing professional football globally had declined for the previous five years (after rising for 8 consecutive years before that). In Europe, the number of Australians playing professional football was significantly lower than it had been a decade earlier. In Asia, the number was significantly lower than it had been only five years earlier.

research published in 2017, practically every minute of professional football played by Australians under the age of 18 takes place domestically. However, under the current arrangements, A-League clubs specifically can sign only 6 first-time professional youth players on “scholarship contracts” at any one time, with salaries capped according to age.



Source: PFA Research ‘Player Career Path’Note 1: Year refers to end of season year – e.g. 2004 refers to 2003/4 season


Player Pathways: Australian Men’s Players Number of Australian Men’s Players in professional competitions is slowly declining

Player Pathways: Australian Men’s Players in Europe Number of Australian Men’s Players playing in Europe is declining

Player Pathways: Australian Men’s PlayersPlayer Pathways: Australian Men’s Players



Aug-17 1Source: PFA Research ‘Player Career Path’Note 1: Year refers to end of season year – e.g. 2004 refers to 2003/4 season

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Other Australian Players HAL Players

No. Australian Men’s Players in global professional football competitions

Inception of the A-League

After rising for 8 consecutive years,slow decline over last 5 years

50

100

150

200

250

300

Player Pathways: Australian Men’s Players in EuropeNumber of Australian Men’s Players playing in Europe is declining



No. Australian Men’s Players in European Big 5 Leagues

0

5

10

15

20

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EPL Ligue 1 Bundesliga Serie A La Liga




Source: Internal Analysis

Player Pathways: Australian Men’s Players in Asia Number of Australian Men’s Players playing in Asia has decreased since 2012

Improve Youth Player Development Pathways Strengthen youth pathways through academy investment and larger squads

Player Pathways: Australian Men’s Players in AsiaNumber of Australian Men’s Players playing in Asia has decreased since 2012

3) Better Football


No. Australian Men’s Players in Asia

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013 2014 2015 2016

China Japan South Korea

Improve Youth Player Development PathwaysStrengthen youth pathways through academy investment and larger squads

6) Contribution to Football

Jun-17 100

Context Proposed Changes

Source: Internal Analysis

• Clubs allowed 6 Players on “scholarship contracts”

- Limited salary allowed depending on age

- Salaries capped at c.$16.5k for 16 year olds and c.$34k for 20 year olds

- May not have held professional contract

• Current Operating and Funding Model not maximising ‘value for money’

• Clubs sign more Players on scholarship

- More players experience elite level football

- Less likely to “miss” young talented players

• Operating and Funding Model to provide greater opportunity for Player development

- Sell Players to maximise investment

- Clubs devote greater attention to development

- Higher quality Players in the A-League

- Increased training compensation / solidarity benefits for NPL clubs

The APFCA believes that the transition to an independent League will give professional clubs greater autonomy to bolster their in-house elite youth development programs, expand their national recruitment activities, and offer promising young players a clearer and more stable pathway into high-level youth football, and ideally then the A-League and W-League, and potentially an international career. This is an outcome that will produce long-term dividends for players, clubs and Australia’s national teams.

APFCA Recommendation: The APFCA recommends that professional clubs should be a granted greater autonomy in relation to their youth player recruitment, training and development activities in consultation with the FFA and state and regional bodies. Specifically, the APFCA proposes that the existing limit of 6 “scholarship players” per club should be expanded or removed to allow each A-League club to recruit a full senior Academy squad of players.



Coordination Between A-League, W-League and National Youth League (NYL)

It is the view of the APFCA that the A-League, W-League and National Youth League (NYL) are inextricably linked and that all three competitions will benefit from operating under the same independent structure while continuing to meet AFC and FIFA requirements. It is notable that eight out of ten A-League clubs compete in all three competitions and an even higher nine out of ten compete in the National Youth League (NYL).

In the event that the NYL becomes independent, the APFCA proposes immediately commissioning a thorough review of the League in order to determine the optimum model for the future of the competition. It is envisaged that any potential changes to the NYL will seek to provide greater opportunities for promising young Australian players and broaden the pool of local talent exposed to professional scouting and recruitment networks, and could potentially include lengthening the season and inviting local NPL teams to participate in the competition.

In the event that the W-League becomes independent, the APFCA proposes that the League will be expanded as a matter of priority for both sporting and commercial reasons. The APFCA believes that the ultimate aim must be to have a W-League team at every A-League club.

According to the PFA, the W-League currently has a shorter season than its key international benchmarks and the average wages received by its players are among the lowest in professional football. This is indefensible given the strategic importance of the W-League to the long-term growth of football in Australia. A commercially liberated W-League is the first step in rectifying that situation.

Domestic LeaguesEight clubs have teams in all three competitions

1a) Background:

Jun-17 11

10 Current A-League Clubs

N/A

N/A N/A N/A N/A

N/A

In the Independent A-League every Clubwould participate in all three competitions

W-League

NYL

AdelaideUnited

BrisbaneRoar

MelbourneCity

MelbourneVictory

NewcastleJets

PerthGlory

SydneyFC

W.S.Wanderers

WellingtonPhoenix

C.C.Mariners

MacarthurSouth West

WesternMelbourne

Expansion Clubs

CanberraUnited

8 clubs participating in all three competitions

A-League

Domestic Leagues Eight clubs have teams in all three competitions



Source: PFA Research ‘A Roadmap for Women’s Football in Australia’

Source: PFA Research ‘A Roadmap for Women’s Football in Australia’

Improve Youth Player Development Pathways The W-League has a shorter season length than league benchmarks

W-League: International Benchmarks W-League has the lowest average salary in professional football

Improve Youth Player Development PathwaysThe W-League has a shorter season length than league benchmarks



Feb-19 2Source: PFA Research ‘A Roadmap for Women’s Football in Australia’

0

10

20

30

France Korea Japan Sweden Germany USA England Australia

Season Length (Months) Matches

Season Length and Number of Matches Increasing the season window andnumber of matches would bring W-League into line with benchmarks

Increasenumber of

matches

Lengthenseasonwindow

W-League: International BenchmarksW-League has the lowest average salary in professional football


Aug-17 3Source: PFA Research ‘A Roadmap for Women’s Football in Australia’

0

4,000

8,000

12,000

16,000

England France Germany USA Sweden Australia

Average Annual Salary $AUD Increasing number of professional female footballers with an uplift in salary would bring W-League into line with benchmarks

Independent A-League tohave 6 representatives inFFA Membership body of 17

Among a range of potential measures to enhance the competition, expanding the competition will immediately enable the W-League to introduce a more competitive home and away format (up from 14 games), in which each team will play every other team twice over the course of the season. The APFCA believes that this will significantly improve the competitive format of the League for players and supporters and increase its commercial value to broadcasters and sponsors, whilst increasing professional football opportunities for Australian women.

APFCA Recommendation: The APFCA recommends that an independent League body should operate the A-League, W-League and National Youth League (NYL), including the organisation and execution of the respective competitions and management of financial distributions. The APFCA also recommends the expansion of the W-League as a matter of priority.



The APFCA Blueprint

The APFCA calls for the transition to an independent A-League based on the following 18 principles in readiness for the 2019/20 season:

1. The APFCA recommends an orderly transition to an independent, autonomous and self-governing A-League, in readiness for the 2019/20 A-League season.4

2. The APFCA recommends that the FFA should be fully aligned with FIFA Statutes and best international practice and this should extend comprehensively to the contractual obligations between the FFA as the Member Association, APFCA members and Australian professional players. In particular, the APFCA recommends that as part of the formation of the independent A-League the FFA is aligned fully with Article 15.d of the FIFA Statutes.

3. The APFCA commits that an independent League will provide transparent financial reporting aligned with best practice and will continue to advocate the same for the FFA for the benefit of all of its stakeholders.

4. The APFCA recommends as part of the transition to an independent League, the revision of the contractual obligations imposed upon clubs and players through the CPA, SPA and the CBA and the creation of a formal, contractual, direct working relationship between the APFCA and the PFA.

5. The APFCA commits that an independent League will consult directly with the PFA on a range of matters impacting its members, including, but not limited to, collective bargaining agreements, salary cap policies and a Code of Practice for the League, improving disciplinary policies and procedures, and partnering on community and commercial programs.

6. The APFCA commits that an independent League will evolve its relationships with the Federations to support the development and promotion of the game nationally, as well as in their respective states and territories.

7. The APFCA membership recommends retaining at least the current limit of five overseas players per A-League club with a commitment to ongoing evaluation of this limit in the context of League expansion (in which more clubs will be competing for the same amount of local talent).

8. The APFCA recommends an expansion of the limit on allowable substitutes in A-League matches from 5 to 7, with these additional two spots on the bench to be reserved for Australian players aged 23 or younger.

9. The APFCA recommends the ongoing recognition of FIFA Windows and better coordination and cooperation between an independent Leagues body and the FFA around the development of National Women’s and Youth sides.

10. The APFCA recommends that loans and transfers should be allowed between A-League clubs during current trading windows, with an agreed limit of 3 inward or outward loans per club in any given season, noting that the existing salary cap provides the League with built-in protection against excessively inflationary wage pressures.

11. The APFCA recommends the establishment of a Professional Game Match Officials body in Australia, primarily funded by the League, that is mandated to train and develop professional referees and non-professional assistant referees for the competition. The APFCA also recommends recruiting experienced officials from other countries as “guest referees” and/or consultants to work with and mentor Australia’s most promising refereeing talent.

12. The APFCA recommends that moving forward the revenue from the FFA broadcast deal (2017/18 to 2022/23) is distributed in proportion to the relative share of value contributed by the different properties, based on independent analysis.5

13. The APFCA recommends the return of all club commercial assets to the clubs and the introduction of a ‘hybrid opt-in’ model for the sale of commercial inventory associated with the League in which participating clubs generally sell their own commercial assets but have the option of assigning certain elements of their inventory to a central pool for packaging with the assets of other clubs for combined marketing and sale by a newly-created, independent, dedicated marketing company.

14. The APFCA recommends the development of a transparent roadmap for A-League expansion by an independent League in conjunction with the PFA, that develops optimal identified licences and evaluates bidders for those licences on a range of factors, including their financial sustainability, commercial potential and proposed match day infrastructure.

15. The APFCA recommends giving participating clubs autonomy to invest in the development and deployment of their own digital platforms, allowing increased engagement across the web and mobile apps, and allowing an independent League to create its own platform integrating and showcasing club digital platforms.

16. The APFCA recommends that an independent League will allocate a percentage of its broadcast revenue to state and regional Member Federations to support grassroots football and to the PFA Player Welfare Fund. The League will also create a dedicated sinking fund to provide additional security to participating clubs facing financial difficulties. The League’s payments to the state and regional Member Federations and the PFA Player Welfare Fund will constitute its licence fee to the FFA.

17. The APFCA recommends that professional clubs should be a granted greater autonomy in relation to their youth player recruitment, training and development activities in consultation with the FFA and state and regional bodies. Specifically, the APFCA proposes that the existing limit of 6 “scholarship players” per club should be expanded or removed to allow each A-League clubs to recruit a full senior academy squad of players.

18. The APFCA recommends that an independent League body should operate the A-League, W-League and National Youth League (NYL), including the organisation and execution of the respective competitions and management of financial distributions. The APFCA also recommends the expansion of the W-League as a matter of priority.

4. Under the APFCA Blueprint, the FFA will still retain ‘football-wide responsibilities’ throughout Australia, FFA representatives will be granted observer status on the board of the Independent League, and the FFA will retain influence over certain decisions related to the League.5. Under the APFCA Blueprint for an independent League, all future broadcast rights for the competition (beginning 2023/24 at the end of the current deal) will be sold independently of other Australian rights e.g. National Team rights.



Proposed Legal Framework

In preparation for the transition to independent Leagues, based on the principles above, the APFCA has also developed the following preliminary legal framework for the new entity (“Independent League Entity”) that will need to be established to own and operate the Competitions:

• The Independent League Entity will be a private limited company governed by its own Constitution and a licence agreement negotiated as per the FFA Congress “New Leagues Working Group Resolution” passed on the 2nd of October 2018.

• Each participating club will hold a single and equal share in the Independent League Entity with the same rights under the new entity’s Constitution.

• The FFA will also hold a single “Golden Share” in the Independent League Entity. However, the FFA will hold a different class of share (with different rights under the new entity’s Constitution) to those owned by participating clubs. See below for proposed details of the “Golden Share.”

• Participating clubs, the FFA and the Independent League Entity will be required to enter into a shareholders agreement setting out the terms that will govern their relationships as shareholders in the new entity, and the terms on which the new entity and its subsidiaries will be managed.

• All participating clubs will have equal voting rights and the following actions (inter alia) relating to the Independent League Entity will require the approval of at least 75% of participating club shareholders:

- the issuance of any new shares;

- the disposal of any club shares by any shareholder;

- the buyback of any club shares;

- the payment of any dividend or distribution;

- the adoption of an annual business plan and budget;

- the appointment or removal of a director;

- the appointment or removal of the chairperson of the board;

- any action that will result in the entity incurring expenses or establishing a fund in excess of $200,000;

- any use of the proposed sinking fund by the entity to assist a participating club shareholder that is in financial difficulty;

- any variation to the competition rules and regulations of the Independent A-League;

- any agreement or arrangement with the PFA;

- any agreement in relation to any broadcast, digital or sponsorship rights;

- any expansion or contraction of the Independent A-League;

- the potential introduction of a promotion and relegation structure for the Independent A-League;

- certain decisions impacting the W-League, National Youth League or any other competition run by the Independent A-League Entity.

• Participating club shareholders will have the power to approve or reject – with reference to agreed criteria – the potential third party purchase of any participating club’s share in the Independent League Entity, including via the purchase of a controlling interest in a participating club shareholder.

Proposed FFA Golden Share

The APFCA envisages that any changes to the independent League relating to the following matters MUST be approved by the Special Shareholder (The FFA):

Special share criteria Change in definition of “Special Share Shareholder”.

Directors Number of Directors, appointments and re-appointments.

Rules Adherence of rules common to the League and other leagues in Australia and Adherence to FFA rules.

Winding-up Contraction of the League.

Naming Change of Company Name.

Members Criteria for membership

FIFA “Windows” and Coordination and enforcement of international match dates International matches

FFA Cup Obligation of each club to enter the FFA Cup

Ownership Multiple club investments


apfca blueprint for an independent future · this document (“the apfca blueprint”) articulates...

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