A-League cuts: Mariners owner Richard Peil laments ‘worst broadcast deal on the planet’

Richard Peil has opened up about the cause and effect of funding cuts that threaten to cripple A-League clubs. The Central Coast Mariners boss chats to ERIN SMITH about what’s next in the saga.

Central Coast Mariners boss Richard Peil is wondering how he will pay the bills next season with the ‘worst broadcast deal on the planet’ forcing the APL to make significant funding cuts to clubs.

The Mariners, a low-budget club, just won the AFC Cup this week and will play in the A-League Men’s semi-final against Sydney FC this weekend, after winning the premiership last weekend.

Instead of celebrating, Peil is questioning how deep he will have to dig into his own pockets next season.

The APL, shackled by its broadcast deal with Network 10/Paramount+, is expected to slash its central distribution fund, derived from TV rights and commercial revenue, by 50 per cent to $1 million.

The issue caused a divide among the board, who were unable to reach a decision on Tuesday afternoon.

The APL haven’t confirmed how big the cut would be, just that it was “one area under discussion”.

Mariners coach Mark Jackson with chairman Richard Peil celebrating the AFC premiership just last weekend. Picture: Scott Gardiner/Getty Images

An APL spokesman said there was no formal timeline on when a decision had to be made, but it was expected to happen in the next few weeks.

It isn’t the first mess the APL has found itself in -forced to axe half of its workforce earlier this year along with its digital arm KeepUp.

Peil says that while the cuts will have a significant impact at the APL it was not the fault of the current leadership team.

“I do have confidence in the current people that are in the building of the APL,” Peil said.

“Tough decisions are going to have to be made.

“I feel a bit sorry for the guys that are having to make these decisions, these guys that are there are actually doing a bloody good job, especially Stephen Conroy – he’s doing a great job.”

Part 3 of the special investigation into the state of football for @codesportsau looks at the A Leagues.
A close examination of what got the APL into this deeply concerning situation, and what gets the clubs out of it. https://t.co/s4TckrMaNZ

— Adam Peacock (@adampeacock3) May 7, 2024

The current broadcast deal, signed with Network 10/Paramount + following the league’s breakaway from Football Australia at the end of 2020, requires the APL to foot the bill for all production costs.

It is the reason there is such a huge divide between the broadcast quality of the men’s and women’s matches – the APL simply doesn’t have the budget to send a full crew to the latter.

Fans have also had issues with the broadcast, quality aside. Prior to this season they were unable to pause or rewind the live stream.

Mariners celebrate being crowned AFC Premiers. Picture: Scott Gardiner/Getty Images.

CODE Sports understands the APL received as little as $5 million in cash from its TV rights deal this season, announced three years ago as a $30 million per year deal, after production costs were factored in and penalties around benchmark subscription rates not met.

Peil said the broadcast deal arrangement had caused the league many issues.

“I’d like to see a worse broadcast deal on the planet, I don’t think you would find one,” Peil said.

“It’s a ridiculous deal.”

While the board is yet to make a decision, Peil said if the 50 per cent cut went ahead he would have to dig into his own pocket to fund the difference.

“Where there is a will there’s a way but even at 50 per cent it’s going to be a tough period for us,” Peil said.

“Fifty per cent is substantial. I hadn’t budgeted for that and when I decided to take the club on there was no indication there was going to be distribution cuts.”

While clubs are free to use the funds for anything, the majority use it to pay their players.

Next season clubs have to spend a minimum of $550,000 on their women’s team and $2.25 million on their men’s team.

Next season each club will need to invest a minimum of $550k into their women’s teams. Picture: Jason McCawley/Getty Images.

“We want to make the Asian Champions League and we know we have to strengthen our squad to be competitive,” Peil said.

“If I’m losing a million dollars there and I want to put an extra half a million in our players’ budget it is all of a sudden $1.5 million that five weeks ago I hadn’t planned for.”

While Peil has faith in the current APL leadership he said at some point Football Australia have to step back in – even if it was to just help grow the women’s game.

Peil said he had put $700,000 into Central Coast’s revamped women’s team – who were knocked out in the semi-finals.

“Football Australia are the beneficiaries of developing female players, the clubs aren’t,” Peil said.

Peil said if he spent $50,000 on a 17-year-old male player – paying his wage and developing him – he could potentially make back $1.5 million on the transfer market.

“If I spend $50,000 on a 17-year-old female player the reality is there is no transfer. I think the record for a women’s transfer is $150,000. The transfers in the women’s game just aren’t there.

“I’ve put $700,000 into the women’s game in my first season and I’m never going to get that back. There’s no mechanism for me to benefit from that. Whereas Football Australia benefits from us developing players because they can make money off the Matildas.”

Originally published as A-League cuts: Mariners owner Richard Peil laments ‘worst broadcast deal on the planet’