James Kitching sets up new sports consulting firm after two-year stint with FIFA

Sports regulation specialist James Kitching has returned to SA to kick off a new consulting firm following a two-year stint with FIFA in Zurich.

After a stint working in the corridors of power at FIFA headquarters in Zurich, sports law and regulation consultant James Kitching has returned to Adelaide to set up a new specialist advisory firm.

Mr Kitching spent two years with FIFA, dividing his time between Adelaide and Zurich amid the challenges of navigating Covid-19 travel restrictions.

As the governing body’s director of football regulatory, he managed five departments and about 60 staff, overseeing all aspects of the game’s regulatory framework.

It seems like a dream job for the football-mad fan, but the effects of the pandemic and the arrival of second child Evie, in December, prompted the decision to return home.

However Mr Kitching’s ties with FIFA have not ended, agreeing to stay on as a consultant, and acting as its representative on the board of the soon to be established FIFA Clearing House.

Mr Kitching was one of the architects of the clearing house, an independent financial institution created to centrally manage player transfer payments, and ensure clubs at all levels of a player’s development are compensated in accordance with regulations.

James Kitching has returned to Adelaide to set up a new consulting firm. Picture: Mark Brake

It’s a proud achievement, and one that he hopes will deliver much needed revenue to local feeder clubs in Australia.

“Our research and data at FIFA showed there should have been approximately $US350m-$US400m from the transfer system redistributed to clubs which trained players from the ages of 12 to 23 or 12 to 21, and only $US50m-$US70m of that was declared on an annual basis,” he said.

“The clearing house system is designed so that every single penny in the transfer system flows through the clearing house, and the first thing we’ve done is set up an automated system for this kind of payment.

“It’s going to bring international financial regulatory standards to the football industry ... and will also indirectly require clubs to clean up their governance structures.”

That’s particularly important in the A-League, where five of the 12 clubs - including Adelaide United - are foreign owned, and the financing of clubs is often obscured.

“There’s not anything necessarily wrong with foreign ownership, it’s just like any other industry really,” Mr Kitching said.

“But it’s about being transparent on who owns clubs, what your sources of funds are and what your intentions are. Because at the end of the day clubs, whether owners like it or not, only exist as much as the fans buy in.”

Securing FIFA as his first client, while a major coup, also restricts the types of clients and work Mr Kitching can pursue in football.

And so he is also looking outside the world game for opportunities to advise clubs, leagues and other sporting organisations on regulation, governance, legal and strategy matters.

A five-year stint in Kuala Lumpur working within the Asian Football Confederation means he has strong networks across the region, where he has previously provided consulting services.

Closer to home, Mr Kitching is confident the A-League can overcome the poor crowds, falling TV audience and waning interest that has underlined the current season, and believes US private equity firm Silver Lake’s recent $140m investment in the top flight leagues could be a game-changer for the game.

Replacing the current salary cap with an alternate cost control framework, fast-tracking the introduction of promotion and relegation, and creating a culture that focuses on player development are key developments that could help turn things around, Mr Kitching said.

“The investment by Silver Lake is a positive - they’ve got an opportunity now, unlike other sports, to use that money and hopefully use that wisely,” he said.

“The easiest way for clubs to drive more revenues is to invest in development and to understand where you are in the football eco-system.

“We’re an exporting country with exporting clubs, and that has benefits all over - you drive development, you sell registrations, players get opportunities in bigger leagues and the money flows back and you reinvest it.

“We’re smaller compared to the other codes in terms of money, and we’re competing for the same corporate dollars, the same fields, the same government grants and support, etc.

“But one revenue stream which can never be touched by the other sports is in the football transfer system.”