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SMH article on an BB discussing the owners of the A-League..
Roar prove the stakes are getting higher in quest to be Asia's best
The A-League dead? Couldn't be further from the truth. There's money behind the competition. Serious money. Around $18.6 billion. Yep, that's billion. The seventh season of the A-League kicks off tomorrow with the 10 clubs owned by some of the richest people on earth.
Today, champions Brisbane Roar will be formally handed over to a company owned by one of Indonesia's richest men. It could be the tip of the iceberg in terms of Asian investment. The first tangible evidence of the game's greatest asset - it's connection to the world's fastest growing economy.
Right now, the A-League is relative small fry compared to the AFL, the NRL, and Super Rugby in terms of TV revenue and sponsorship dollars, but it's somehow managed to attract a rich list other codes can only envy. Old money, new money, and more money. And this despite the league losing, collectively, around $25 million a season. So what are they investing in? Football Federation Australia boss Ben Buckley has a simple answer. Potential.
''They see the power of the world game,'' he says.
That power has ebbed in recent seasons as the A-League has stuttered through an expansion phase that coincided with the collapse of the global economy and a failed World Cup bid during which the FFA took its eye off the ball. But the buzz is back.
That buzz has been picked up by rich investors who see enormous opportunities. True enough, four clubs - Newcastle Jets, Brisbane Roar, Adelaide United and Wellington Phoenix - have gone through painful changes of ownership in the past 18 months. But that hasn't spelt the doom some predicted.
''Yes, there have been changes of ownership, but every time that's happened, there's been a change for the better,'' Buckley says. ''It's a point people often miss.''
A-League coaches may be restricted to a modest $2.8 million salary cap, but the clubs themselves aren't restricted in what they spend. The A-League is now a $120 million per year operation.
At the top end, Melbourne Victory and Sydney FC spend between $10m and $12m annually. At the bottom end, Central Coast Mariners and Wellington Phoenix spend around half that. But all clubs are losing money and stemming the flow of red ink is the priority for the next couple of years. But it's what happens after that which most excites Buckley.
''This is the best, most stable, ownership group we've had,'' he says. ''We had the initial bubble when the A-League kicked off [in 2005], that plateaued and we've learned some hard lessons along the way. Now we're at the start of the next upward trend.
''The collective acumen of the ownership group we have now is a fantastic launching pad. It's up to us [FFA] to tap into that.''
Rich people, of course, tend to be demanding, and uncompromising. Just ask Branko Culina, who was on the receiving end of Nathan Tinkler's axe four days out from the start of the season. Diversifying the ownership structure of clubs away from all-powerful single owners will help avoid such erratic behaviour. It's something FFA is working towards, but it's going to take time. In the meantime, Buckley is happy to work with what he's got.
''It's not just about money with these people,'' he says. ''There's the corporate networks they have, the government networks they have. But, most of all, it's their drive to be successful in whatever they do.
''Collectively, that's a powerful basis to support a maturing league. Success breeds success, and we're lucky to have so many successful people on board.''
It's not all one-way traffic. Tony Sage admits his ownership of Perth Glory has allowed him to expand mining interests in west Africa and South America. Clive Palmer has leveraged a nickel processing deal with New Caledonia on the back of his ownership of Gold Coast United. Speculate to accumulate.
The latest investment, by the Bakrie Group in Brisbane Roar, is a big step towards breaking down even more doors. ''It's the first evidence of us connecting with Asia through football, and we hope it's the forerunner to more investment,'' Buckley says. ''What it tells us is the reputation of the A-League is growing internationally.''
Asia. The promised land, where huge money is poured into football, and where leagues in Japan, South Korea, China and Saudi Arabia are growing at a rate which will one day threaten Europe's claim to be the epicentre of the world game. China, for instance, boasts one of the highest-paid players [Dario Conca] in the world.
The A-League will never compete with the big Asian leagues on the money scale but, with significant investors behind the clubs, it has the means to keep improving.
''We've already proven we can be competitive in Asia without having to break the bank,'' Buckley says. ''We've got the technical knowledge, the administrative knowledge, to do well with what we've got. Adelaide United showed that. But that doesn't mean we're not ambitious. We're striving to be the premier competition in Asia, and with the acumen and resources of this group of owners, you can see that happening. Why not?''
Read more: http://www.smh.com.au/sport/a-league/roar-prove-the-stakes-are-getting-higher-in-quest-to-be-asias-best-20111006-1lbqb.html#ixzz1a3RU0K8d
