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Wellington Phoenix's Future Shaky After 10-Year Deal Denied

A-League side Wellington Phoenix’s future "has been challenged after Football Federation Australia denied a request from the club for a 10-year licence to continue playing in the A-League," according to Ray Gatt of THE AUSTRALIAN. The FFA board "remains concerned about the Kiwi club’s ability to make a worthwhile contribution" in a number of key metrics of its strategic outlook. The decision could not have "come at a worse time and is certain to cast more negative light on the A-League." The competition has "had a slow start to the new season with stagnant crowds and low TV ratings." As it stands now, Phoenix’s current license under the Club Participation Agreement "finishes at the end of this season." The club "can apply to renew the licence for another four years" until the end of the '19-20 season. FFA CEO David Gallop said that the board decision was “taken in the best interests of Australian football." Gallop: "The application for a 10-year extension to the license does not meet the requirements we see as fundamental to the future growth of the A-League." FFA's stance is "not something that just popped up." Phoenix, which came into the league in the '07-08 season "following the demise of the New Zealand Knights, have been on FFA's radar for several years" (THE AUSTRALIAN, 10/27). In Sydney, Dominic Bossi reported it is "understood that mainly financial figures influenced the FFA's decision to deny the club a long-term future in the A-League, with Phoenix contributing little to broadcast revenue, having a low attendance and the smallest membership base in the competition." There are also "legal insecurities hanging over the head of the club" with FIFA, the AFC, OFC and New Zealand Football all having "to agree to allow the club to cross confederations." Sources suggest FFA is "losing patience with the off-field performance of Wellington, who have failed to attract interest beyond their city limits and remain unfancied by broadcasters." Under the current model and application rejected by the FFA, Phoenix is regarded as a "financial strain on the governing body," which pays A$2.55M ($1.85M) in TV revenue to the club but receives "little in return" (SMH, 10/26). Also in Sydney, Tom Smithies wrote attention "will immediately turn to the identity of a likely new entrant, with Sutherland seeming to have the inside running." However, Wollongong Wolves "are believed to be keen to bid," while ACT Football has "consistently lobbied for a Canberra team to join the competition" (DAILY TELEGRAPH, 10/26). 

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