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International Football

Football Federation Australia Warns Expanding A-League Would Be 'Disastrous'

Football Federation Australia "warned that expanding the competition by another two teams under the current A-League model would be disastrous for the game, unsustainable and would result in significant losses over the next six years," according to Ray Gatt of THE AUSTRALIAN. The "grim warning" came as the head body announced it will begin "detailed work" with A-League and W-League clubs this week to "develop a new ownership and operating model for both leagues." FFA CEO David Gallop said that an analysis of the sport’s financial position found that the "rapid growth of the game in general" and expansion of the national competitions "will require significantly more capital investment" and that "changing the ownership and operating model would create a more attractive opportunity for current and prospective investors." There are "as many as 10 proposed bids" for new licenses, including Tasmania, Geelong, Brisbane, South Melbourne, Dandenong-Casey and Wollongong Wolves (THE AUSTRALIAN, 2/28). In Melbourne, Michael Lynch reported FFA Chair Steven Lowy recently talked of "attracting private equity investors to put money into the league to help fund its development." Gallop said, "The FFA's analysis found that expanding the A-League by two teams under the current model would result in net losses over the next six years. This is because grant distributions to the new clubs, and the increase in costs to FFA for operational matters such as transport would be greater than the additional revenue the clubs would generate through broadcast arrangements and sponsorships" (THE AGE, 2/28). In Sydney, Tom Smithies reported in a move that "will be seen as attempting to head off the possibility of a breakwaway by the existing clubs into an independent A-League," Gallop acknowledged the "need to protect the value" of existing licenses in which the current owners have invested. FFA admitted that "even defining criteria for prospective new clubs would take months to produce," after initially promising to give details to the consortiums bidding to join the league by February (DAILY TELEGRAPH, 2/28).

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