Battling A-League clubs face filling seven-figure hole as APL board fails to make funding cuts call

Cash-strapped A-League clubs face filling a seven-figure hole as the APL board failed to make a call on funding cuts linked to a tanking TV deal.

The APL’s funding cuts to clubs have been put on hold with the board unable to reach an agreement.

As reported by CODE Sports, the Australian Professional Leagues (APL) board was expected to reduce the central distribution fund, derived from TV rights and commercial revenue, to $1 million or possibly even less for the 2024-25 season during a board meeting held on Tuesday afternoon.

It is at least a 50 per cent cut.

But the board couldn’t reach an agreement on the proposal — so the issue will sit on the table until the next meeting.

CODE Sports reached out to every A-Leagues club asking for their thoughts on the matter and the impact it would have but clubs refused to comment, instead asking for questions to be directed to the APL.

The board includes executives from several A-Leagues clubs.

The APL issued a statement late on Tuesday night, following the board meeting. It was attributed to a spokesman, not the A-Leagues’ Commissioner Nick Garcia or Independent chair Stephen Conroy.

“As part of our ongoing, planned strategic and commercial review, the APL Board met to review a number of our financial metrics and key leagues issues,” the spokesman said.

The A-League Women’s salary cap is set to rise next season. Picture: Asanka Ratnayake/Getty Images

“Club grants were one area under discussion today. The Board did not reach a resolution in its meeting.

“As there has been no agreement on this item any club grant values reported are purely speculative. The APL Board will issue a statement when it reaches a resolution on this matter.”

The APL has had financial issues this year – forced to axe half of its workforce and its digital arm KeepUp. In further cost saving measures it cancelled the annual awards night – instead announcing award winners during half time of the grand final.

The money from the central distribution fund can be used by clubs for anything – but ultimately it helps pay the players.

Central Coast’s Christian Theoharous is knocked by Adelaide United’s Harry Van der Saag. Picture: Getty Images

Under the current CBA, the minimum a club must spend on its men’s team is $2.25 million, with the cap set at $2.6 million.

Women’s teams’ minimum salary cap is increasing from $500,000 this year to $550,000, while the maximum is $600,000.

With the APL likely to take $1 million away from each club, every outfit will need to source an extra $1.8 million for the 2024/25 season.

It is a big blow for already cash-strapped clubs.

Getting a player from under-5s to elite football in Australia is costly and confusing. @adampeacock3 examines parent payments, hidden transfer fees and the rooting out of poisonous coaching in the high-stakes search for stars.

READ ▶️ https://t.co/yqOhhDqzAapic.twitter.com/59oCSmm6sH

— CODE Football (@codefootballau) May 6, 2024

Clubs will have to find other ways to source the needed funds or spend less on marquee players who fall outside the salary cap.

The cost-cutting measures highlight the major issues with the broadcast deal – where these funds are mostly derived from.

It is understood the APL took as little as $5 million in cash from its TV rights deal with Ten/Paramount +, after production costs were factored in and penalties factored in for subscription rates not being met.

The production costs could be even higher next season with APL forced to break ties with start-up company Global Advance who went into administration earlier this year.

APL signed a contract with NEP, who CODE Sports understands were originally turned down as they cost more than Global Advance, until the end of the season.

The APL is yet to officially confirm if NEP have been contracted for future seasons.

Originally published as Battling A-League clubs face filling seven-figure hole as APL board fails to make funding cuts call