It "had Western Sydney in its sights," but Chinese property conglomerate Jiayuan Group is "behind a bid to become the next big thing" in Australian football after it was "unveiled as the financial backer of the proposed new A-League franchise, Southern Expansion," according to Ray Gatt of THE AUSTRALIAN. Football Federation Australia "tentatively targeted" the '18-19 season for expansion of the competition but the new entity, which will encompass the St. George, Sutherland shire and Illawarra regions of Sydney, is adamant it is "ready to go now." The idea for a team in southern Sydney was "first mooted 18 months ago." The Chinese looked at buying the Wanderers but were told the club was "not for sale." The Newcastle Jets are already owned by a Chinese conglomerate, Ledman, which also owns a team in China. The Jiayuan Group is associated with Chinese businessman Shen Yuxing, also known as Shum Tin Ching. He has "recently taken an interest in the Australian market and is also backing a new company, Boyuan, that recently listed on the Australian Securities Exchange." Public TV network SBS commentators Les Murray, who is chair of the bid's steering committee, and Craig Foster, who is the steering group's head of football, "fronted the media" Sunday "to help push the case for Southern Expansion to be one of two new franchises when the A-League is eventually expanded from 10 to 12 teams." If successful, the group, which "has the support of all three" local associations, "plans to play" at Kogarah's Jubilee Oval and Wollongong's WIN Stadium (the homes of National Rugby League side St. George Illawarra Dragons) and Southern Cross Group Stadium (home of NRL side Cronulla Sharks). However, the bidders revealed a "long-term commitment to construct a purpose-built boutique stadium" to host what Murray described as a "super club." Southern Expansion -- which would change its name if added to the competition but keep the "Southern" part of its identity -- "will face strong opposition for a place in the A-League from a number of other bidders." But the people behind the bid are "confident they have a strong case to present to FFA when the time comes." The Jiayuan Group is "desperate to get a foothold" in Australian football and has already provided A$12M ($9.1M) in bank guarantees. According to Murray, representatives of the company first inquired about becoming involved in the A-League last year. Murray said, "Jiayuan is a very diversified, very large company ... The people involved don't have a football connection back home but they are passionate about the game. ... They see a football club as a business. It is a fabulous business opportunity and they see that. We anticipate a growth in value and it will be an asset for the group." Murray said that he had a meeting with FFA CEO David Gallop last week and believes "he is supportive." Murray said that the franchise wants to field a team in the W-League and one in the National Youth League next season and "vowed to invest in training facilities, non fee-paying academies and big-name marquees." Gallop said that the situation "had to be assessed carefully and that it is not all about money." Gallop: "FFA is working on a new operating and ownership model for the A-League and W-League that is designed to help, not hinder, expansion and under which new entrants and existing clubs can all benefit in terms of the value of a license" (THE AUSTRALIAN, 3/6).
FFA NOT SOLD ON VALUE: In Sydney, Dominic Bossi reported the southern Sydney expansion bid does not have FFA "salivating just yet." Gallop said, "Individual bids -- even well-funded ones -- do not address the operating and contractual costs faced by FFA and therefore they do not make expansion instantly viable on their own. There is no point in having a well-funded club working in one geographical area if other clubs are not seeing any benefit or indeed are expected to see the funding model diluted." At "the heart of the issue" is a new six-year TV deal that "does not guarantee an increase in funding from broadcasters for expansion within the first few years, despite the offer of more games and rounds." For two new teams to enter the competition, the FFA "may have to provide" an additional A$15M ($11.4M) per season, comprised of the requested A$6M ($4.6M) in annual grants for each club along with running costs of up to A$3M ($2.3M) for two new teams. The FFA cannot yet fund expansion and while it is "determined to grow the league," it suggested it "must change the model of the A-League to create more value in the competition." It is understood FFA will "relinquish considerable operational control of the competition to the clubs and their owners, with independent governance not ruled out." Of all the bids for A-League expansion tabled, it was "one of the the loudest, boldest and strongest, certainly in regards to player development and community." Murray said, "The question is not if we will come in, the question is when we will come in" (SYDNEY MORNING HERALD, 3/6). The AAP reported the proposed club, which will not have the word Sydney in its name, is "sure to be met with rigid resistance" from Sydney FC, which claims to draw a "large chunk" of its talent and fan base from the southern Sydney region (AAP, 3/5).
