Building Australia's Football Community - A Review into the Sustainability of Football The Hon. Warwick Smith AM
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Building Australia's
Football Community
A Review into the Sustainability of Football
The Hon. Warwick Smith AM
November 2011
ISBN: 978-1-74241-070-8 Online ISBN: 978-1-74241-071-5 Publications Approval Number: 5582 Paper-based publications © Commonwealth of Australia 2009 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca Internet sites © Commonwealth of Australia 2009 This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. Requests and inquiries concerning reproduction and rights should be addressed to Commonwealth Copyright Administration, Attorney-General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca
INTRODUCTORY MESSAGE FROM THE HON WARWICK SMITH AM On 24 April 2011 the Federal Government announced a review into the sustainability of football in Australia. I am pleased to now present this final report for the consideration of government. This report has been developed over the course of the past seven months and has involved detailed financial analysis, research and consultation with key stakeholders. It acknowledges the significant achievement and advances in the game since 2003 and includes a series of recommendations designed to build on the foundation that has been established. I would like to acknowledge the contribution of Football Federation Australia to this review, the board and management of which has worked cooperatively and pragmatically with the review team. I would also like to thank the range of stakeholders who willingly gave their time as part of an extensive consultation process, whose views and insights were critical to shaping this report. The Hon Warwick Smith AM
CONTENTS
1. Executive Summary ...............................................................................................02
Key Findings........................................................................................................... 05
Recommendations................................................................................................. 09
2. Establishment of Football Federation Australia......................................................11
3. Government funding...............................................................................................13
4. National governance...............................................................................................15
5. International – on and off the field.........................................................................17
6. Grassroots football.................................................................................................22
7. National leagues.....................................................................................................25
8. Financial performance and outlook.........................................................................33
8.1 Historical performance..................................................................................33
8.2 Football Federation Australia projections......................................................33
8.3 Review of Football Federation Australia projections....................................34
Appendix – 2015 Asian Cup Local Organising Committee Governance........................ 36
01
PART 1
EXECUTIVE
SUMMARY
When the Australian Government last commissioned a review into
football in Australia, the game was in a state of dysfunction arising
from poor governance, political infighting, lack of strategic direction,
poor performances on the field and severe financial stress. Urgent
reform was required and the direction for this reform was provided
by the 2003 review into the governance and management structures of
soccer in Australia (Crawford Review).
The challenges that confronted the newly established Football Federation Australia (FFA) in
PART 1 EXECUTIVE SUMMARY
the aftermath of the Crawford Review should not be underestimated and neither should the
achievements since its formation. While challenges remain, principally financial, the game is
strong and a foundation exists for a bright future. Governance reform has largely been achieved
in accordance with the Crawford Review recommendations and constructive discussions are
ongoing about how further reform and efficiencies can be made for the betterment of the game.
Grassroots football is strong. The number of participants has grown from 1.1 million to
1.7 million between 2001 and 2009. There has been a 52% increase in the number of people
playing outdoor football between 2001 and 2009. In this period the number of 5–14 year olds
playing the game has grown by 58% and for over 15 years of age the number has grown by
A REVIEW into the Sustainability of Football in Australia
42%. In fact, the biggest challenge for participation is not how to encourage it, but how to meet
the demand.
The international teams have also enjoyed unparalleled success. The Socceroos’ Fédération
Internationale de Football Association (FIFA) world ranking has improved from 86 to 22,
with the team qualifying for the past two World Cup Finals and performing strongly in initial
qualifying rounds for the 2014 competition. The Matildas won the 2010 Asian Cup – the first
time an Australian team has won a major international tournament. FFA’s decision to move
from Oceania to the Asian Football Confederation (AFC) has been credited as a key strategic
step, opening the door to higher quality competition and opportunities to advance the game
in Australia.
The A-League is a competition of increasing quality, and the 2010–11 final, which saw Brisbane
Roar defeat Central Coast Mariners in a penalty shoot-out, has been credited as one of the
great contests across all codes in Australian sporting history. The 2011–12 season commenced
with great expectation, strong crowd attendance and high quality football. After the early rounds,
average crowds increased by 42% compared to the same point in the previous season and are up
53% on the season average; television viewing is up 74% compared to the same point in the previous
season and up 66% on the season average; and memberships are up 17% on the 2010–11 numbers.
The A-League is a competition of quality and professionalism far exceeding that of the National Soccer
League which it replaced.
These positives around the game are significant, and throughout an extensive consultation process
which elicited wide ranging views and opinions, one of the common themes that emerged was that the
FFA Board and its administration must be credited for bringing the game such a long way forward from
where it was immediately preceding the Crawford Review.
The 2022 FIFA World Cup bid requires mention. The bid to host this event was ambitious, yet strong
and credible. However, it is apparent that the failure of the bid affected the view of some as to how the
community and government should interact with the game into the future. It is important to remember
that despite the criticism FFA and the bid have received since Qatar was announced as host (and
questions remain about the integrity of the process); the bid was technically excellent and had strong,
bipartisan government support. It also enjoyed a groundswell of support from the public and sports
commentators. Other bids which were also seen to be of superior technical quality were similarly
unsuccessful. Nonetheless, the conclusion of the 2022 World Cup bid process has created opportunities
to refocus on the game domestically.
Australia’s bid to host the Asian Cup in 2015, Asia’s premier football tournament, was however
successful. This brings with it opportunities, both in relation to the event itself and the legacy to be
gained through broader engagement of the Australian public with the game of football.
The next four years in the lead up to the Asian Cup are central to football’s long-term prospects.
The game remains the beneficiary of special government support. This is not sustainable in a fiscal
environment where policy priorities compete for limited funding. Consequently, FFA has developed a four
year strategic plan to achieve self-sufficiency.
Financial stability must be the singular and immediate priority for FFA – to reduce the reliance on
government funding and to provide a strong base upon which a next phase of growth can be built.
This report is the basis for a move towards this sustainability. The discussion and recommendations
that follow take into account the FFA plan, and suggest appropriate enhancements for fast-tracking
FFA’s strategy.
Grassroots football is strong. The number of participants has grown from 1.1
million to 1.7 million between 2001 and 2009. The 2011–12 season commenced
with great expectation, strong crowd attendance and high quality football... the
biggest challenge for participation is not how to encourage it, but how to meet
the demand.
03For all its quality on the pitch, the A-League is still in its infancy and is the greatest financial
pressure for FFA. It is a high-cost enterprise with the establishment phase presenting financial
challenges to FFA and club owners. Revenues do not match costs – the clubs incurred aggregate
losses of more than $20 million in 2009–10 (half of this amount was discretionary spend by
clubs). Clubs are funded by private owners with FFA responsible for central operating costs and
special assistance to clubs suffering financial difficulty. Financial pressures have seen the exit
of one team and other teams change hands, with FFA responsible for providing financial support
through the transition. Despite the financial difficulties, the competition continues to attract
people willing to invest in its future by buying into A-League clubs.
More than 40% of FFA’s total revenue (which includes government support) is applied to the
A-League. Reducing costs and increasing revenues in the A-League is fundamental to the
game’s broader sustainability and to eliminate reliance on government support.
Consultations point to a ‘disconnect’ between the vast participation base and the A-League
clubs. There is work to be done by clubs and FFA to connect with the participation base and
convert this into A-League support – a key recommendation of this report. As the A-League
matures and clubs convert participation to support, reliance on the private investment of
owners, and support funding from FFA, will be reduced.
PART 1 EXECUTIVE SUMMARY
The success of the A-League is a key to the future of football in Australia. The next phase for
FFA must be a period of consolidation for the future and a focus on helping the A-League clubs
build strong and deep links with the community. FFA must execute this key element of its plan.
Costs and structures within FFA and the A-League must be examined with a view to achieving
stability and long term sustainability and to build on the product that has been developed since
2003.
It is also essential to protect and nurture the other business arms of FFA, including women’s
football, junior development and community outreach programs. Setting a clear budget and
reporting accountabilities for the A-League should minimise the risk to these essential parts
A REVIEW into the Sustainability of Football in Australia
of FFA’s business.
The review has identified a series of key findings and recommendations that when
implemented will build on the achievements of the past, reduce reliance on government support
and which should underpin a phase of consolidation. These findings and recommendations are
supported by extensive financial analysis undertaken by the review team throughout the course
of the review. FFA worked collaboratively and constructively with the review team and the open
and pragmatic approach to this review demonstrated by FFA’s Board and management is to be
commended.
In addition, the review team undertook more than fifty consultations, with a range of
stakeholders including State and Territory federations, A-League clubs, commentators and
others with past and present involvement with the game. The review team is grateful for
the time willingly given by stakeholders and the open and frank discussions that have been
invaluable in shaping this review.KEY FINDINGS
Connect with grassroots, link with community
A-League clubs must tap into the participation base to establish a connection with grassroots. The
juniors of today should be the players, volunteers, fans and football community of the future. This is
more than a marketing challenge. Winning hearts and minds is about integrating with the community,
forging a connection, formal linkages and development pathways with junior, intermediate and top tier
competitions. More than 10,000 people attended the 2011 New South Wales Premier League Grand Final
– a figure which should excite A-League clubs about the potential.
Such an approach would require close collaboration with State and Territory federations to establish
mutually beneficial arrangements, for the good of the game. FFA already requires A-League clubs and
State and Territory member federations to establish Cooperation Agreements covering a range of
matters to the benefit of both parties, as well as participants and the game more broadly. FFA, working
with club administrators, owners and member federations, must identify an optimal base model for
this Cooperation Agreement which can be tailored for individual markets. The Cooperation Agreement
must allow A-League clubs to connect with grassroots levels through the State and Territory leagues to
juniors. Clubs and member federations must be supported to implement these Cooperation Agreements.
FFA should report to government in coming months proposing options for a way forward, with a
tangible deliverable being the development of a model Cooperation Agreement for roll-out by each
A-League club and member federation. Additionally at the community level, the considerable reform
achieved through the governance measures arising from the Crawford Review should be recognised
but there is a need to continue to move forward, drive efficiencies and reduce duplication with a view
to creating a clearer line of sight from FFA down to juniors. This clear line of sight will help improve the
game and connection with grassroots, and demonstrate the accountability of FFA to its fundamental
stakeholder – football participants.
Create more formal opportunities for A-League clubs and owners to contribute to
strategic decision-making affecting the A-League
A-League club owners are significant investors in the game, absorbing considerable losses in these early
establishment years of the competition. It is important that these owners contribute to the strategic
direction of the competition and have an opportunity to influence decision-making that impacts on their
costs or ability to generate revenue. The strategic direction of the A-League is important to club owners
because of their investment, and to FFA because of the links to broader sustainability and vision for the
future of the game. The A-League also represents a contingent risk to FFA which must support clubs that
are struggling financially, and which takes ownership of some clubs when licenses are terminated until
new investors are found.
Getting the A-League and its clubs on track financially is fundamental to broader sustainability – a
critical contributor to the future of football is the success of the competition. It is in both FFA’s and
owners’ interests to see the A-League flourish. There must be an alignment of interests between club
owners and FFA, where both contribute to strategic direction and address challenges. Costs must
05be reduced – player salaries and stadia deals represent costs disproportionate to revenue.
The A-League must live, and grow, within its means.
The FFA Board established an A-League Sub-Committee (ALC) to provide a forum for
engagement between FFA and A-League club owners. However, there is scope for more to
be done to achieve a greater alignment of interests between FFA and A-League clubs. It is
recommended that FFA explore ways of further enhancing the existing ALC structure with
reference to the following key principles:
• providing the A-League club owners with a formal structured opportunity to contribute
to the strategic decision-making affecting the A-League
• developing an annual operating plan for the A-League in collaboration and consultation
with owners and a regular process for reporting against the objectives of the plan
• ensuring that ultimately decisions are made in the overall interests of the A-League
• ensuring and recognising that given the interdependence of the A-League and other
strategic pillars of the game as a whole, particularly the important role that talented
player development policy plays in the future success of the A-League, decisions
regarding the strategic direction of the A-League recognise and factor in this
interdependence
PART 1 EXECUTIVE SUMMARY
A particular point of interest throughout the review has been the specific operating model for
the A-League. Consultations revealed wide-ranging views, with some strongly advocating for a
full separation as proposed by Crawford. This has been carefully examined and is not an option
that would be appropriate to pursue at this time. The A-League relies on a stream of funding
from FFA and shares critical services. The competition is still in its relative infancy and has not
matured to the point that it could survive if separated from FFA. It is for these reasons that the
initial decision to manage the A-League from within FFA was sound. Further, integration of the
A-League recognises the interdependence of the League and the other fundamental pillars of
football in Australia – elite player development and community football. A theme of this report
A REVIEW into the Sustainability of Football in Australia
is the importance of forging stronger and deeper ties between the A-League and these other
areas. An integrated model best serves that objective.
Other areas that the review considered in relation to the A-League to enhance clubs’ financial
position and support their move to self-sufficiency included:
• connecting with grassroots
• re-examining the salary cap and marquee affordability arrangements
• stadia deals
• preconditions for further A-League expansionEstablishing the conditions for future expansion – consolidating for the future
The A-League
The A-League has expanded quickly, entering new markets with varying success. The competition
currently has ten teams. A necessary element of this consolidation phase is for the A-League not to grow
beyond this point until sustainability has been achieved, or where such a move – demonstrated through
comprehensive business planning and modeling – would significantly contribute to sustainability.
Pre-conditions should be identified that must be met before the A-League further expands and, once a
decision has been made to expand, the criteria that new franchises must meet to ensure their long-term
prospects should be set. In addition to minimum capital requirements, when the A-League does introduce
a new team to a new market, an important factor should be consideration of where the connection with
grassroots can be best achieved. For example, there is no A-League team in Western Sydney, but some
137,000 participants. This represents a significant opportunity.
Salary cap
Payments to players represent one of the biggest costs to the A-League. Annually around $32 million
is spent on player salaries (around $24 million under the salary cap and $8 million on marquee players
and additional services agreements). This figure represents over 40% of the income generated by the
A-League, compared to the Australian Football League, National Rugby League and Super Rugby where
players receive approximately 20% of the income generated by their respective leagues.
While recognising the particular challenges faced by football, where there is strong international
competition for talent, earning the right to grow must also apply to A-League player salaries. As noted
above, salaries have increased at an unsustainable rate, out of step with the income the product
generates and at a time when the Australian dollar is extremely competitive in the international player
recruitment market. At a minimum the salary cap must be frozen, but it would be appropriate to explore
options to reduce the cap. Options to adjust or remove the minimum player payment which artificially
inflates incomes must also be considered. Unless this happens, given the proportion that player costs
represent in clubs’ total cost base, A-League clubs will, in the absence of a considerable increase
in their revenue streams, struggle to move to a position of sustainability or profitability for the
foreseeable future.
It is also important that arrangements for the recruitment of marquee players do not lead to a contingent
risk to FFA. Clubs should not be recruiting players outside the salary cap unless FFA’s existing ‘capacity to
afford’ regulations are strictly applied.
A-League clubs must tap into the participation base to establish a connection
with grassroots. The juniors of today should be the players, volunteers, fans and
football community of the future.
07Roll-out of new programs
New programs and initiatives that seek to develop the game and engage the community are
important for any code. However the roll-out of new initiatives by FFA must be prioritised such
that sustainability is not compromised. The FFA Cup is a concept that has received wide support
and which supports the need to better connect with grassroots, but is one which will have a
considerable cost. Further consideration must be given to its funding and timing of implementation
– in the absence of a certain level of sponsorship and broadcast revenue it may be prudent to delay.
Head office should set the standard and prioritise investment
FFA should continue to review its head office costs. Acknowledging work that FFA has already
done in this area, in an environment where public money is being invested in the game to achieve
long-term sustainability, the administration of the game should take a ‘lean’ approach to its own
operations. As long as FFA receives public funds, FFA head office should be required to identify,
deliver and report on cost reductions. Plans to increase the workforce should be put on hold,
with any salary increases funded via further efficiencies. More efficient approaches to travel and
other procurement should be explored. Maintenance of core activities and programs would be
expected.
FFA should also prioritise its spending on national teams and look to reduce associated travel and
PART 1 EXECUTIVE SUMMARY
support costs within the constraints of its formal obligations to AFC and FIFA. This is a complex
task that requires balancing short, medium and long-term objectives and ensuring the future of
the game by building a platform for continued national team success through development of the
next generations of Socceroos and Matildas.
Broadcasting and anti-siphoning arrangements
The measures outlined above provide a pathway to sustainability for FFA. However, any
discussion about long-term sustainability must also contemplate broadcast value which
represents approximately a third of the FFA revenue base. FFA has a high-quality product to offer
A REVIEW into the Sustainability of Football in Australia
the market, between the Socceroos and an ever-improving A-League. The current broadcast
arrangements provide a package which includes the A-League, Socceroos Asian Cup qualification
matches, Socceroos friendly matches and Socceroos World Cup qualification matches. This
content is currently available exclusively to Fox Sports under existing broadcast contracts.
The extent to which World Cup qualification matches are affected by new anti-siphoning
legislation (which proposes to list these matches) is a critical consideration, which will impact
future broadcast values. Recognising that the government’s announcement of proposed listing
noted that the details and timing was subject to negotiation, there is a case for government to
take into consideration the state of the game’s evolution when determining its policy settings
in relation to anti-siphoning. Minimising changes to the status quo in the short to medium
term, enabling FFA to package World Cup qualification matches with the A-League and other
Socceroos matches for the purposes of its current and next broadcast deal, would enable FFA to
maximise broadcast revenue and decrease reliance on government support.RECOMMENDATIONS
The combination of reform and hard work by FFA, with a period of consolidation and collaboration
with its key stakeholders and other strategic measures, holds the game in good stead for the future.
Government has made significant investment in the game to date, and should protect that investment by
requiring FFA to deliver the reforms proposed in this report.
Recommendation 1: A-League clubs should develop stronger and deeper links to grassroots.
This should be achieved through:
1.1 FFA, working with stakeholders, should develop a blueprint for Cooperation Agreements (as
required by the club participation agreements and Member Federation Charter) between
A-League clubs and member federations to promote community engagement and both oblige and
enable A-League clubs to forge deep connections with State leagues and juniors
1.2 Disbursements to A-League clubs should be provided and increased at the level planned, to the
extent this can be afforded, with disbursements linked directly to clear performance measures
including establishing links to the community
Recommendation 2: FFA should explore ways of further enhancing the existing A-League Committee
structure, having regard to the following key principles:
• providing the A-League club owners with a formal structured opportunity to contribute to the
strategic decision-making affecting the A-League
• developing an annual operating plan for the A-League in collaboration and consultation with
owners and a regular process for reporting against the objectives of the plan
• ensuring that ultimately decisions are made in the overall interests of the league
• ensuring and recognising that given the interdependence of the A-League and other strategic
pillars of the game as a whole, particularly the important role that talented player development
policy plays in the future success of the A-League, decisions regarding the strategic direction of
the A-League recognise and factor in this interdependence
09Recommendation 3: Until the A-League is self-sufficient, measures supporting clubs’ drive to
sustainability should be explored as follows:
3.1 Salary cap reforms including options to freeze or reduce the cap and remove the
minimum salary
3.2 Strict application of the ‘capacity to afford’ approval criteria for marquee player
qualification to ensure that the risks remain with the owners, for example via balance
sheet and profit and loss tests, or bank guarantees
3.3 A review of stadia deals and options to reform stadia costs
Recommendation 4: The A-League should remain at ten clubs until it is sufficiently
strong financially, or where expansion could be demonstrated to significantly contribute to
broader sustainability.
Recommendation 5: Any changes in ownership of existing A-League clubs should reflect the
importance of extensive community and grassroots links and, where appropriate, have broadly
based ownership structures.
Recommendation 6: FFA should continue to invest in the non A-League components of its
business, including grassroots and women’s football, and protect these business lines from the
PART 1 EXECUTIVE SUMMARY
risk of A-League losses.
Recommendation 7: Within the constraints of its formal obligations to AFC and FIFA, FFA
should prioritise its support for national teams, noting the need to balance short, medium and
long-term objectives.
Recommendation 8: FFA should identify, deliver and report on cost reductions to head office.
Plans to increase the workforce should be put on hold, with any salary increases funded via further
efficiencies. More efficient approaches to travel and other procurement should be explored.
Recommendation 9: The roll-out of new initiatives or programs should be prioritised, with
A REVIEW into the Sustainability of Football in Australia
specific consideration of the funding for and timing of the implementation of the FFA Cup. In the
absence of an appropriate level of sponsor and broadcast commitment, serious consideration
should be given to delaying implementation.
Recommendation 10: The review considers governance reform is an important area for
improvements that have the potential to deliver tangible benefits for football stakeholders,
especially at the grassroots. Accordingly it recommends reform continues to be explored initially
through the current joint governance review being undertaken by FFA and its member federations.
Recommendation 11: In light of the centrality of World Cup qualification matches to the value
of broadcast rights, as far as possible within the broader context of communications policy, the
government should minimise changes to the status quo in the short to medium-term (capturing the
current and next broadcast deal), enabling FFA to package World Cup qualification matches with
the A-League and other Socceroos matches, thereby decreasing reliance on government support.PART 2
ESTABLISHMENT OF FOOTBALL
FEDERATION AUSTRALIA
By December 2001 Soccer Australia, as it was then known, faced some serious financial problems with
debts exceeding $2.5 million. The company was under capitalised, had already sold off significant future
commercial property rights (which subsequently failed to produce the financial returns envisaged), was
struggling to support its seven national teams in international competition and had borrowed significant
funds from at least one of its member associations.
The National Soccer League was also in financial crisis. An earlier independent report commissioned by
the Board of Soccer Australia had questioned a number of management and financial practices within
the Company.
Soccer Australia had effectively stopped performing as a national sporting organisation. Rather, its main
focus was on the running of the National Soccer League and trying to pull together a few national teams
for international events. There was little focus on developing community soccer. It was ineffective in its
relationship with its member bodies, which in response showed little respect for Soccer Australia.
Over the period of ten years preceding the release of the Crawford Review’s report, Soccer Australia
and its predecessor, the Australian Soccer Federation, had eight Chairmen, two Presidents and six Chief
Executive Officers. Four separate enquiries had been undertaken into the administration and finances of
the national body. Many relationships had developed at all levels within the sport, from club through to
the national levels, which raised issues of personal interest over the interest of the sport.
At 30 June 2002, members’ equity in Soccer Australia was a negative $2.6 million. Of the nine major
State and Territory federations, only three had members’ funds in excess of $100,000, two were
technically insolvent and two were in a state of organisational dysfunction. Relationships between some
of the State and Territory federations were less than cordial.
In the period of 26 years in which the National Soccer League had been in operation, 43 teams had
participated incurring losses aggregating some $140 million over the period. During 2002–03, soccer’s
seven international teams participated in only eleven events.
In September 2002, Senator the Hon Rod Kemp, the Federal Minister for the Arts and Sport,
announced the terms of reference for an independent review of soccer to be chaired by Mr David
Crawford. During November and December 2002, forums were held to capture input from relevant
stakeholders. The review received over 230 written submissions and conducted 74 stakeholder meetings.
11During this period there were several changes to the chairmanship, board membership and
management of Soccer Australia resulting from Board resignations and elections at the 2002
Annual General Meeting.
On 7 April 2003 the review report was released. The ‘Report of the Independent Soccer Review
Committee into the Structure, Governance and Management of Soccer in Australia, April 2003’
(Crawford Review) made 53 recommendations affecting all aspects of soccer in Australia.
The first step towards effective implementation of the recommendations was the appointment
of a new (interim) Board of Soccer Australia chaired by Mr Frank Lowy. It was recognised
that the Board needed to be given sufficient time, without the threat of external challenge,
PART 2 ESTABLISHMENT OF FOOTBALL FEDERATION AUSTRALIA
to effect change.
The true financial position of Soccer Australia was not known at the time the new Board was
appointed. It inherited a $1.7 million debt and projected trading losses of around $13 million
over the next three years. The Soccer Australia Board determined that the only responsible
position was to form a new national body and wind-up Soccer Australia. The Australian Soccer
Association Ltd took over from Soccer Australia in October 2003, and was later re-named
Football Federation Australia (FFA). It was supported by way of a special grant and loans of
$13 million from the government.
The new Board and management committed to a contractual arrangement with
government to implement the Crawford Review’s recommendations. A number of
refinements and modifications were made throughout the process of implementing the
review’s recommendations.
A REVIEW into the Sustainability of Football in AustraliaPART 3
GOVERNMENT FUNDING
Since the establishment of FFA in 2004, the government has provided more than $150 million in support
of football in Australia. FFA has received $122 million of that funding including $16 million from the
Australian Sports Commission for High Performance and Sports Participation programs, $57 million of
special assistance funding, $7 million for early work associated with hosting the 2015 Asian Cup and
$42 million for the 2022 World Cup bid.
Figure 1: World Cup bid and Asian Cup funding
25
Asian Cup World Cup bid
20
15
$ million
10
5
0
2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12
Discussions are underway with FFA to determine the appropriate level of government support for the
operational costs over the next three years associated with hosting the 2015 Asian Cup.
13Figure 2: Government funding to FFA since 2004
16
Special assistance ASC funding
14
12
10
$ million
8
6
4
2
0
2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12
While FFA recorded a modest cumulative surplus over the last eight years, the results in
individual years have varied. In 2006–07 and 2009–10, the years when special assistance
funding wasn’t provided or was provided at a reduced level, FFA recorded operating losses.
Significant pressure is placed on FFA’s finances when individual A-League clubs experience
PART 3 GOVERNMENT FUNDING
financial difficulties and when licenses are relinquished.
A REVIEW into the Sustainability of Football in AustraliaPART 4
NATIONAL GOVERNANCE
Overall, the key recommendations of the Crawford Review in relation to the governance of football
have been implemented. This has been the result of FFA and member federations working hard and
with newly established good will, to drive the reforms. There are still shortcomings, for instance a
number of Standing Committees have not been implemented within particular jurisdictions and there
are still inefficiencies in the system, resulting from multiple levels of administration. However the overall
improvement in the governance and management of football appears central to the achievements
highlighted elsewhere in this report.
The Crawford Review recommendations held direct implications for the constitution of the national body.
A new national constitution was commissioned by the Crawford Review committee and the Australian
Sports Commission for consideration by the FFA Board.
The FFA constitution closely aligns FFA with its State and Territory members (members). It also
provides for consistency in objects; adoption of common rules, policies, regulations and by-laws;
the establishment of State and Territory national standing committees; agreement of the members to
comply with the provisions of the national constitution; the requirement for members to provide copies
of their membership databases to FFA; and the requirement for members to have and to amend their
constitutions in line with the FFA approved model constitution for members.
Under the FFA constitution, the initial voting members were FFA’s Directors rather than the nine
existing State and Territory federations which were interim members. Membership was to be offered
to the accepted State and Territory federations after they complied with the requirements of the Crawford
Review’s recommendations, particularly in relation to the adoption of constitutions which complimented the
FFA constitution. The pace of change within each State and Territory reflected the various attitudes, power
plays and local complexities. The changes invariably required the amalgamation of previously separate,
and in some cases combative, State and Territory federations including State leagues and junior, amateur,
women’s and Futsal associations. Initially members of the review committee, then increasingly FFA with
assistance from the State departments of sport and recreation took responsibility for addressing the
complexities associated with restructuring and the adoption of compliant constitutions.
The Australian Capital Territory was the first federation member to adopt a compliant constitution
(January 2004), followed by Queensland (February 2004), Tasmania (March 2004), Western Australia
(July 2004), Northern Territory (September 2004), Northern New South Wales (September 2004),
South Australia (April 2005), Victoria (April 2006) and New South Wales (March 2007).
15Consolidation of Football Administration
Duplication of administration and misalignment of purpose is generally evident where
unaffiliated bodies operate outside a recognised peak body. Amalgamating these bodies,
consolidating resources and sharing direction improves sustainability and is both encouraged
and actively supported by federal, State and Territory governments. Since 2003, FFA and
its member federations have brought unaffiliated bodies ‘into the fold’. Although there are
examples where unaffiliated groups do not maintain formal ties to FFA or its member bodies,
substantial progress has nevertheless been made.
It appears likely that a range of factors are contributing to progress in this area, including:
• an improved governance framework
• enhanced management capability at FFA and State and Territory level including
improved communication and negotiation capabilities
• greater trust and goodwill
Ongoing Reform
Recently FFA and its member federations have agreed to a national charter which outlines
PART 4 NATIONAL GOVERNANCE
the roles and responsibilities of each body across the areas in which the parties interact. This
includes football development, women’s football, interaction with A-League clubs, commercial
activities, marketing, media and communications. A common theme of the review consultations
was acknowledgement that relationships have improved between the State and Territory
federations and FFA, but there is still room for improvement. The need to further develop
consultative processes and the sharing of resources to maximise efficiencies were particular
areas of interest.
Role of the States / Unitary Models
A REVIEW into the Sustainability of Football in Australia
National sporting organisations were originally put into place primarily to manage national
team programs and liaise with international federations. As stated previously, this federated
structure has created layers of administration and management. Each layer has its own
responsibilities, such as member relationships, investment, workforce development and
service delivery. Duplication of responsibilities such as strategic planning, reporting, financial
management and marketing, create inefficiencies.
A number of sports have investigated the implementation of unitary structures that attempt to
overcome these inefficiencies. The desire of peak bodies to assess performance and improve
the way the governance model impacts on the desired outcomes of the organisation is to
be encouraged. The review notes that ongoing discussions between FFA and the State and
Territory federations are occurring and considers that opportunities to reduce duplication,
improve efficiencies and increase consistency should continue to be explored.PART 5
INTERNATIONAL -
ON AND OFF THE FIELD
The move to the Asian Football Confederation
For many years, Australia was part of the Oceania Football Confederation. On 1 January 2006, after
a concerted lobbying campaign, FFA became a member of the AFC. Membership has afforded the
opportunity for higher quality and more consistent preparation of national teams in a rapidly growing
economic and football region. The move has also provided FFA with a greater opportunity to enhance
its credentials and influence in world football. It does however increase the cost demands on FFA as
a result of greater team activity in a context where all bar one of its teams (the Socceroos) are
non-revenue generating.
Australia’s off-field prominence in the AFC is shown by Australia’s representation on ten major AFC
Committees. This includes Chairman Frank Lowy on the Associations Committee, Board Member Moya
Dodd as an AFC Vice-President and Chair of the Women’s Committee, CEO Ben Buckley as a member of
the Competitions Committee, FFA staff member John Boultbee on the Junior Competitions Committee,
FFA staff member Kelly Cross as Deputy Chair of the Technical Committee, FFA staff member Lyall
Gorman on the Professional Leagues Committee, FFA staff member Kyle Patterson on the Marketing
Committee, FFA staff member Jo Setright on the Disciplinary Committee and Melbourne Heart FC
Chairman Peter Sidwell as a member of the Professional Clubs Committee.
The move to the AFC helped to integrate football in Australia with the fastest growing economic region
in the world – the Association of Southeast Asian Nations (ASEAN) region. This has already led to
increased exposure for Australia and major events hosted, or to be hosted, in Australia, such as the 2007
AFC Conference and Gala Awards, the 2008 FIFA Congress and, most significantly, the 2015 Asian Cup.
There are downsides to AFC membership, in that commercial rights such as broadcasting, hospitality
and merchandising associated with certain AFC games and tournaments are not distributed to
participating teams. However, by being part of the AFC, there have been more frequent, significant and
meaningful Socceroos games played in Australia each year, generating increased revenue in this area of
its business for FFA.
World Cup qualification rates for Australia’s junior teams declined upon entry to the AFC, however this
trend is improving as Australia adapts to the requirements and nuances of playing regularly against
Asian opposition. Australia’s recent successes on the international field include the Australian women’s
team winning the Asian Cup in 2010 and reaching the quarter finals of the World Cup in 2011; and the
Socceroos finishing runners-up in the Asian Cup in 2011.
17The 2022 FIFA World Cup Bid
It is neither within the remit of this review, nor productive, to go into detailed analysis of
the World Cup bid and its outcome. It was a disappointing result for FFA, government and
the Australian public. However, in the context of the position of Australia in world football
it is worth noting that although the bid was unsuccessful, the fact that Australia was even
considered a viable contender is an indication of how Australia’s influence and credibility has
grown within the world football community. Australia’s bid was technically excellent and built
on Australia’s reputation for hosting outstanding major events. The bid enjoyed bipartisan
support at all levels of government and a strong groundswell of community support. It was the
process, and not the quality of the bid, that undermined Australia’s chances.
As is inevitable following a controversial outcome, criticism was directed at FFA, the bid and
government’s involvement. Research undertaken for the purpose of the review has identified
that some commentators who were supportive of the bid prior to December 2010, are
PART 5 INTERNATIONAL - ON AND OFF THE FIELD
subsequently highly critical. The failed World Cup bid has affected many people’s view about
how the public and government should engage with the game into the future and is yet another
challenge for FFA to contend with.
On the field
The approach taken by FFA since 2003 has seen a significant increase in the number of
international matches played, both in Australia and overseas. The Socceroos played 39 fixtures
between 1999 and 2003 and of these matches, only nine were played in Australia. However
between 2006 and 2010, the Socceroos played 61 games, of which 20 were on home soil.
Home fixtures are important in terms of the revenue they generate through crowd attendances,
corporate sponsorship and higher television ratings. Home matches are also highly regarded
in terms of building the profile and brand of the players, team and the sport generally which in
turn increases commercial opportunities.
A REVIEW into the Sustainability of Football in Australia
The Australian public also gets to see the Socceroos higher profile overseas-based players
representing Australia more often as a result of the larger and more meaningful competition
program that FFA now has in place. Leading players seem more willing and able to represent
Australia, enhancing the profile and marketability of the sport.
The move to the AFC, and the higher quality opposition, has resulted in a poorer overall
win/loss record. From 1999-2003 Australia won 59% of its fixtures compared to 49% between
2006 and 2010. However, arguably this poorer record does not reflect that victories against
tougher opponents in Asia are far more meaningful and, irrespective of the result, the fixtures
themselves far more important to the achievement of longer term goals.
The overall improvement in the performance of the Socceroos and Matildas over the last eight to
ten years is clearly evidenced by the teams’ FIFA world rankings. The Socceroos’ world ranking
between 2000 and 2011 has improved from the mid 80s to the low 20s. The Matildas’ ranking of
9th in July 2011 was their highest since the inception of the women’s rankings in 2003.Figure 3: Socceroos’ world ranking (1997–2011)
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0
10
20
30
40
Ranking
50
60
70
Trend Ranking
80
90
Figure 4: Matildas’ world ranking (2003–2011)
2003 2004 2005 2006 2007 2008 2009 2010 2011
8
9
Trend Ranking
10
11
Ranking
12
13
14
15
16
19The high cost of national teams
It should be noted that while successful, the maintenance of national teams participating
regularly in the AFC (and FIFA/Olympic) competitions is very expensive. FFA is responsible for
up to 12 national teams depending on the annual competition schedule:
1. Socceroos 5. U20 Women (Young Matildas) 9. U13 Women
2. Matildas 6. U17 Men (Joeys) 10. Beach Soccer
3. U23 Men (Olyroos) 7. U17 Women 11. Paralympic
4. U20 Men (Young Socceroos) 8. U13 Men 12. Futsal
Over the last four years, these teams in total have averaged just over 200 fixtures per year,
with a high of 268 games in 2008 and a low of 152 matches in 2010. FFA’s forward budgets
indicate that approximately $30 million per year will be spent in this area which represents
approximately 40% of operating expenditure.
PART 5 INTERNATIONAL - ON AND OFF THE FIELD
Within the national teams program, the sole income generating brand that is the Socceroos
carries the cost of supporting the entire sport at an international level. Sponsorship and other
income raised revolve around the Socceroos and must be spread across the other national
teams. In a discussion about self-sufficiency of football in Australia, clearly there is a balance
to be struck between maintaining an extensive, high cost, national teams program to drive
longer term success and prioritising investment to ensure sustainability and reduce the level
of government assistance. With the exception of the point that follows, this review does not
make a judgement about how support for national teams should be prioritised, but considers
that until sustainability is achieved prioritisation must occur noting the need to balance short,
medium and long term objectives.
It is worth noting that FFA is required to invest heavily in the women’s (including the Matildas)
national team program compared to the men’s program (including the Socceroos) because
the Matildas are not able to match the commercial revenue generated by the Socceroos. The
growth in women’s participation and the continuing excellence at the elite level suggest this
A REVIEW into the Sustainability of Football in Australia
particular investment is worthwhile. To the extent national teams are required to be prioritised,
and with consideration of the importance of strengthening elite women’s sport and providing
pathways from grassroots to elite levels, government should encourage continued investment
in women’s football.
High performance program
The high performance program (of which the international competition program is one
element) that is currently being implemented by FFA to produce better footballers is overall
more structured, sophisticated and better resourced compared to the program that existed
eight years ago. However, it is widely accepted amongst experts that the processes and
systems to produce international sporting success take many years to come to fruition.
While the achievements of the recent past are significant, the current high performance
program is designed to take football in Australia to the next level. This may take eight to
ten years to realise.Some of the notable improvements to the high performance program that are likely to bring long-term
benefits include:
• increased number of State institute and academy programs
• introduction of a National Football Curriculum
• recruitment of staff responsible for the technical development of players at national and State
and Territory level
• implementation of a skills acquisition program for 8-12 year olds
• Small Sided Football program to improve the technical ability of young players
• AFC-approved, elite coach development courses
Similar to other program-based examples highlighted in this review, the improved governance structure
and greater level of national consensus and alignment have contributed significantly to these long-term
initiatives. A noteworthy level of support and understanding is apparent within member bodies for these
activities. The philosophical shift to producing superior technical and tactical footballers is one that is
particularly dependent on a nationally led and supported approach.
The Socceroos’ world ranking between 2000 and 2011 has improved from the
mid 80s to the low 20s. The Matildas’ ranking of 9th in July 2011 was their
highest since the inception of the women’s rankings in 2003.
21PART 6
GRASSROOTS
FOOTBALL
Historically, a key strength of football in Australia has been its large grassroots participation
base. Over the last eight years, this trend has continued, aided by the development and
implementation of a number of key strategic activities led by FFA.
The number of Australians playing football has continued to grow with an increase of
approximately 45% in the number of people playing outdoor football between 2001 and
2009. The number of children (aged 5–14 years) has grown by almost 20% between 2001 and
2009. For those aged 15 years and over, participation has increased by 60%. Indoor football
PART 6 GRASSROOTS FOOTBALL
participation has trebled for children (5–14 years old) between 2001 and 2009.
Figure 5: Total participation in outdoor football – over 15 age group
900 880
856
850
Trend Participants
800
Thousands of people
750
693
700 676
683
669 659
650
614
A REVIEW into the Sustainability of Football in Australia
600
551
550
500
2001 2002 2003 2004 2005 2006 2007 2008 2009
In 2010, outdoor football had the second largest club-based participation in Australia (after
golf) based on participation at least once per year. Outdoor football has the higher regular
participation rate for club-based activity; an estimated 95,000 persons aged 15 years and
over participated in this activity in a club environment on average three times per week.
Interestingly, outdoor football club-based participation fluctuated during 2001 and 2007, but
began to increase in 2007, following implementation of FFA’s community-based initiatives.
The increasing trend has continued through the period 2007 to 2010.Figure 6: Sports participation (2001–2009)
2.0
1.7 2001 2009
1.5
Millions of people
1.1
1.0 0.9 0.9 0.9
0.7 0.7
0.5
0.5 0.4
0.3
0.2
0.1
0.0
Football (total) Netball Basketball AFL Rugby League Rugby Union
Facilities
There are reports that in some areas the sport is unable to keep pace with burgeoning demand.
This issue was raised in a number of consultations across multiple jurisdictions. By way of an example,
Football Federation Victoria reported that around 6,000 players are turned away annually, primarily
because of a lack of facilities.
A facility audit by FFA in 2009–10 highlighted some of these issues including the challenges faced by
local government authorities in meeting demand and developing additional facilities commensurate with
participation growth. The increase in the length of the football season (‘season creep’); non-traditional
forms of the game being played in the summer; and the simple increase in teams, has many facilities
operating at or near capacity. This is also impinging on facility maintenance programs which become
compromised and, combined with the high level of usage and extended periods of adverse weather
patterns, results in the problematic quality of football fields. Media articles in Tasmania have also
recently highlighted this issue.
The increasing trend towards the replacement of natural surfaces with artificial pitches has proved
successful in several jurisdictions, however it should be noted that this strategy requires a high level of
capital investment. There are a number of other strategies identified by FFA’s examination of this issue
that are worthy of further exploration by local and State authorities.
Growth in women’s and girls’ football between 2000 and 2009 was the largest of Australia’s major
sporting codes. During this time, 200,000 more females began playing football. Facilities data gathered
by FFA indicated that this surge in demand:
“has not been adequately supported from a facility perspective. Many Councils and football clubs
have reported a lack of facilities to cater for the needs of women, particularly specific change
rooms and associated amenities at a senior level. Given the rate of growth, Local Government
Authorities and football (generally) are prioritising the upgrade of existing or the development of
new female change room facilities.”
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