APL to ‘consolidate’ operations as financial problems lead to redundancies
Horror crowds across the A-League’s Unite Round in Sydney compounded financial issues which have prompted huge job cuts to streamline operations.
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The A-League is in financial turmoil, with the Australian Professional Leagues undergoing an “organisational restructure” that has led to mass redundancies on the back of horror crowds at last weekend’s Unite Round in Sydney.
The APL, which has run the A-League men’s and women’s competitions for the past three years, has confirmed staff cuts in an attempt to “consolidate” the business, with up to 50 per cent of the staff having been made redundant.
As part of the cost-cutting measures, KeepUp, the APL’s digital and content arm which is understood to have cost the organisation $40 million, will cease to exist.
However, the A-League’s separate competition website, which started this season as under the broader KeepUp banner, will continue in some form.
In a statement without attribution to A-League commissioner Nick Garcia, the APL stated a need to “create efficiencies through consolidation” as poor crowds continue to be a problem for the men’s and women’s competitions.
“In the three years since unbundling (with Football Australia), APL has implemented a strategy that has seen a period of rapid growth across our business,” an APL statement said.
“With the original three-year strategy coming to an end, a planned full strategic and commercial review has taken place over the last several months.
“The review has identified significant opportunities to create efficiencies through consolidation and this necessitates an organisational restructure that is now underway.
“APL’s priorities remain the same – to deliver commercial growth and sustainability by creating the most exciting competitions possible for our fans – with strong teams producing great young players across Australia and New Zealand.”
Club owners are divided as to whether the A-League men’s and women’s competitions should remain under the APL’s control or return to be run and governed by Football Australia.
However, it’s understood FA isn’t interested in regaining control of the nation’s top men’s and women’s competitions, which continue to be marred by low crowds.
Last weekend’s “Unite Round” – in which all 12 A-League men’s and women’s matches were played in Sydney – attracting a cumulative attendance of less than 48,000 people.
However, the seems an inflated figure, with the APL having included crowds at the weekend’s double-headers as separate attendances when adding up the numbers.
For example, the 8147 people who attended the Melbourne Victory and Central Coast Mariners’ 1-1 men’s draw in the first match of Saturday’s double-header at Allianz Stadium, weren’t included in the 11,918 crowd figure for Adelaide United’s 4-3 win over Sydney in the later match at the same venue despite the likelihood that spectators from the first game would have stayed for the second match.
And despite the popularity of the Matildas after their stunning run to the World Cup semi-finals, only one of six A-League women’s matches last weekend attracted more than 2000 people. The total attendance for those games was just over 11,000.
However, Garcia was confident of a stronger “Unite Round” next year.
“This is just the start of a unique tradition in our game,” Garcia said.
“We’ve already begun planning for Unite Round next season, and will take on feedback from fans, clubs, players and partners, as we look to build on this success in years to come.”
The 2023-24 #UniteRound was attended by 47,425 at an average of 3,952 per match (12% of capacity).
— sportsindustry (@footyindustryAU) January 15, 2024
Sundays reported matches #ALM Roar/Jets 3,948 at Allianz #ALM Glory/Phoenix 1,632 at Commbank #ALW Wanders/City 1,515 at Combank #ALW WUnited/SFC 4,039 at Allianz #ALW… pic.twitter.com/bGSC51uS7w
There have serious been questions raised about its broadcast deal with Network 10/Paramount +, with sagging ratings have failed to meet required targets needed for the total sum of broadcast deal to be paid to the APL.
There was also significant fan backlash over the decision to sell the grand final to the New South Wales government (taking hosting rights away from the top-placed team), a decision which was reversed after just one year and replaced by “Unite Round”.
The APL has also been forced to fund the struggling Perth Glory, with the Newcastle Jets have required the financial assistance of other club owners to remain afloat.
Despite the APL’s financial problems, the men’s league will expand next season with the addition of a second New Zealand team, while a Canberra club is also expected to be part of the 2024-25 men’s competition.
“We are in advanced negotiations about the Canberra licence,” Garcia said.
“We are working towards a further update in the coming weeks, and it is our ambition that this new club is part of the 2024-25 season.”
Originally published as APL to ‘consolidate’ operations as financial problems lead to redundancies
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