FVB
Years ago

A-league going down similar path as NBL?

News reports suggest the Gold Coast franchise may pull out of the league as its owner is unwilling to continue loosing millions of dollars each season.

The North Queensland franchise is being run by the FFA, it's taken Adelaide United a year to find new owners, Perth and Brisbane are partially owned by the FFA.

Crowds were the lowest on record this season, is the A-league following a similar path to that of the NBL in the late 90’s and 00’s? Has it expanded to rapidly, or have people lost interest since the Socceroos qualifying for the world cup isn’t a big deal anymore?

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Isaac  
Years ago

FVB, I imagine they were spending more than they were making the whole time, right? Just looked good because they were getting publicity, making great ads and getting decent crowds.

Reply #273662 | Report this post


Bill  
Years ago

The World Cup will probably boost next seasons crowd numbers as long as Australia does fairly well.

Reply #273663 | Report this post


HO  
Years ago

Have posted lots of times on this.

The world cup will not do much for crowds when the a-league launch their season in the middle of the afl/nrl finals which just takes away momentum. The world cup reminds a lot of people that most of the Socceroos DO NOT play in the a-league!

I posted last year that a-league crowds were on track for record lows and people argued with me, saying that once footy seasons were out of the way crowds would fire up - it never happened. they averaged under 10k for the regular season down on something like 13k the year before.

the a-league face some significant crowd problems.

a) Gold Coast and Townsville dragged their averages down signficantly this year and Townsville will again this year - GC may yet play is my mail
b) Melbourne crowds were down by an even bigger % than the league average - and Melbourne has always dragged their average up..... and really did over exagerate their crowds
c) Their only really growth has been Wellington - a market that they just don't really need .... so little impact commercially for rhe league or ther other clubs

Average crowds are down nearly 5000 per game across the whole season from 2 years ago.

Isaac is of course correct about spending. Add to that crowds plummeting, and bad news about club survival now the norm not the exception, and spending increasing annually (salary cap) .... you can expect sponsors to now review their position and investment both team by team and with the league. Looks like a downward spiral.

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Statman  
Years ago

If Clive Palmer does in fact pull out his GC team he will be run out of town. He must be bored with soccer as this time last year he was spruiking that GC United would win the comp and he would spend whatever was neccesary to ensure they did win...

He may be obscenely wealthy and good on him for that but his attitude is increasingly seeing him come across as a knob. The only time he is seen in public is when he is throwing his cash around, was even on the news a few months back telling everyne how he just spend 6 mil on a boat for his daughters 16th bday, then added that he didnt even like the boat but its only 6 mil so who cares. Doesnt really endear himself to the general public

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Anonymous  
Years ago

So where are the headlines sounding the death-knell of the entire sport on the basis of a few clubs folding?

Remember, 12 months ago the NBL was supposedly meant to "follow the A-League."

Now the so-called model of excellence appears more unstable than the NBL.

Essentially, Adelaide, Brisbane, North Queensland and possibly now Gold Coast have folded over the past two years.

They remain in the competition because the FFA can afford to assume control. That simply reflects the wealth of Frank Lowry, rather than the sport.

Perhaps it's time for them to "take a year off and follow the...NBL."

Reply #273716 | Report this post


Big Marty  
Years ago

All the moguls with the money are with the AFL and NRL; you can't run any sporting franchise without a major owner or sponsor with "throw away money".

You've got to keep in mind that Euroleague and NBA have billionaire owners who can blow the money and not complain when the season goes astray.

Both the A-League and NBL need to hammer advertising more and supplement finances for all the teams so that ticket prices can be lowered. Give the assistance for each franchise for a few years so the fan base can build, then remove the support and let the teams run 100% off their own funds.

Reply #273721 | Report this post


Anonymous  
Years ago

Big Marty, the A-League clubs already receive a dividend of the FFA's television deal, and benefit from a league-wide marketing campaign, yet their model's still unsustainable.

One suspects their honeymoon period with the media, in terms of unchallenged perceptions of its supposed success, is coming to an end.

Reply #273724 | Report this post


skull  
Years ago

the nbl is being built for the current financial times.

it is being put together in the middle of a GFC,as a recession proof league.

low salary cap,great entertainment and in comparison to others..... affordable for families.

value for money!!(hard to find these days)









Reply #273740 | Report this post


HO  
Years ago

Interesting Discussion.

AFL clubs and NRL clubs alike lose money before league distributions (lets call them that not TV rights distributions).

Some AFL clubs and a number of NRL clubs lose money after those distributions. Cost of labor is the single biggest expense for all of them and free agency will really hurt the AFL clubs if introduced.

If the A-league distribute then its minor. The NBL simply cannot afford to distribute and if it is getting 800k pa from TEN which someone has suggested here then it will still not be able to distribute.

The a-league's marketing campaign this year was subdued and the NBL cannot afford one.

Lowering ticket prices is not a panacea. The Dragons had very reasonable ticket prices but just could not draw could enough crowds to break even at their venue despite working hard on grassroots linkages. if all NBL clubs reduced ticket prices to Dragons levels then they would all be broke pretty quick. Townsville had outrageous ticket prices for years in their "sell-out" era and were profitable as a result.

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Anonymous  
Years ago

Found a recent interview with Ben Buckley. Here's how much the A-League distributes to its clubs:

"Our agreement doesn't expire until the end of 2013. We have to live within those means until that time. Currently we distribute $1.2m to each club from the TV deal. In addition, we pay for the travel of teams and there's income from merchandising, so the annual distribution from FFA is about $1.4m."

Source:

http://linky.com.au/pb46e

Reply #273749 | Report this post


HO  
Years ago

good get anon, it means they are giving the clubs 12 million this year out of Tv revenue of about 18 million. Thats incredibly generous for a fledgling league and if they grow the league you would reckon the distribution would shrink, not grow.

Reply #273767 | Report this post


DJ Rod  
Years ago

as i live in Townsville I've been hearing about the FURY a lot lately and I haven't found many ppl here that give a shit!

Fowler didn't do much to pull crowds here, really, it's simple... there aren't that many soccer lovers in this city.

Townsvillians love Basketball on Rugby League AND the city isnt big enough for all 3 at this stage.

They lost $4.5 million this year!

Reply #273844 | Report this post


paul  
Years ago

While the Dragons ticket prices were cheap compared to the Tigers, they were comparable to most teams. Overall in their first and last years the Dragons were close to breaking even overall on their venue, but of course you need to be making good money from your game night to be balancing your books, or even getting close.

Something most clubs need to do is make children's tickets more affordable. If you can get a child to support your club, the long term benefit far outweighs the small loss in revenue from dropping your kids ticket from $10 to $2 ala the AFL.

Given only Perth are anywhere a full stadium each week, there is no reason not to try and get more kids into the stadium, because they invariably bring parents and want merchandise.

Reply #273853 | Report this post




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