A-League Clubs Set to Weather Financial Fallout with Central Distribution CutsA-League Clubs Set to Weather Financial Fallout with Central Distribution Cuts The Australian Professional Leagues (APL) remain optimistic about the survival of A-League clubs despite a significant reduction in central distribution for the 2024-25 season. Clubs learned at a recent APL board meeting that their funding from the head office would decrease to $530,000, a drop from nearly $2 million in the previous campaign. This represents a reduction of almost 75%. The APL’s claim that clubs are not facing financial distress coincides with the assertion that none of them indicated an inability to meet the ALM minimum salary of $2.25 million. However, smaller clubs confront a significant shortfall of nearly $1.5 million without alternative revenue sources. The revelation of this cutback comes amid ongoing financial challenges for the A-Leagues. APL chairman Stephen Conroy acknowledges the reduction’s impact but maintains that clubs were aware of its potential. He also suggests that shared services with Football Australia could reduce costs in areas such as travel and content creation. Commissioner Nick Garcia remains hopeful about a deal with a new production company and the potential expansion of the competition with a Canberra ALM team from 2025-26.
George Clarke, AAP
The Australian Professional Leagues (APL) are optimistic all A-Leagues clubs will survive a fresh wave of financial turmoil after being told their central distribution will be cut by almost 75 per cent for the 2024-25 season.
Clubs were informed following an APL board meeting on Wednesday that next year’s distribution from the head office will total just $530,000, down from the nearly $2 million handed out last season.
In 2018, before the split from Football Australia, the annual club payout was almost $3.6 million.
The A-League Men’s minimum salary cap (the minimum amount of money clubs must spend) is $2.25 million and the salary cap is $2.6 million.
Wealthier clubs such as Melbourne City may be able to fill the gaps, but the smaller clubs have little financial prospect of covering the nearly $1.5 million shortfall.
Clubs have told AAP that they are bracing themselves for possible cuts in the already limited departments on and off the field.
APL chairman Stephen Conroy said the reduction in central distribution would not come as a shock to clubs, even though they expect to face significant challenges in the coming financial year.
“While clubs are clearly suffering from the scale of this reduction, no one at the meeting indicated that they were in any way struggling,” Conroy said.
“I can only report to you what they reported to us.
“They clearly weren’t dancing, but nobody said, ‘this is it, we’re closing the doors’.”
Conroy claimed no club would have any problem meeting the ALM minimum salary despite the benefit cuts coming amid a turbulent year for Australia’s elite football leagues.
APL was forced to make major cuts at its headquarters due to overspending on its digital arm KEEPUP and the burning of $140 million raised from private equity firm Silver Lake.
Conroy would not reveal whether Silver Lake would be able to recover that amount, but said the US investment firm has a “strong” interest in the direction of the A-Leagues.
Other undertakings, such as keeping Perth Glory afloat, the delay in receiving expansion fees from a Canberra ALM team and the collapse of broadcast production partner Global Advance, have also hampered the A-Leagues’ prosperity since independence from Football Australia in 2020.
The TV deal with Network Ten, which retains the rights to the competition until the end of the 2025-26 season, comes with targets the A-Leagues must meet to secure funding from their broadcast partner.
“The league was moving too fast and spending too much money,” Conroy said.
“There is simply no way to tap into a capital reserve to finance losses.”
As AAP reported last month, clubs have privately asked the FA to take a more active role in the governance of the A-Leagues.
Conroy said there was little appetite for a full reunion, but he did indicate that further alliance could be possible to reduce costs in areas such as travel and content creation.
“We’re in discussions with them about a number of work streams in terms of shared services,” Conroy said.
“They (the FA) want the competition to be successful because they understand that a strong A-League means a strong pipeline for the Matildas and the Socceroos.”
A-Leagues commissioner Nick Garcia said the APL hoped to strike a deal with a new production company and have a Canberra ALM team join the competition for the 2025-26 season.
