Transfers reform could unlock millions for Australian clubs at all levels, says new FFA boss James Johnson
Amid the ongoing debate about finding fresh sources of income, FFA CEO James Johnson says new transfer rules could help to change the structure of the way clubs here do business for players.
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An overhaul of the transfer system within Australia is on the cards with the aim of opening up revenue streams of millions of dollars for clubs in the A-League, the NPL and below.
New FFA chief executive James Johnson has flagged the need to unlock a development impasse that means Australian clubs receive just a fraction of the revenue that similar-sized countries around the world generate.
Amid the ongoing debate about finding fresh sources of income for the game, Johnson revealed that new transfer rules to be implemented by FIFA could help to change the structure of the way clubs here do business for players.
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Aussie clubs last year received less than $2m in player transfer fees – compared with a country like Scotland that generates 15 times as much or more – in part because transfers between A-League clubs are forbidden currently.
Johnson rewrote the rules on transfers in his role as head of professional football at FIFA, and said reform was inevitable given the imminent changes in the next one to two years.
“We're going to have to (change),” he said.
“There are changes coming at FIFA level this year which we will have to implement, and then more to come.
“They revolve around agents – the rules around conflicts of interest, and potential caps on fees – and also a new training reward system to put more money back into clubs that are developing players, through training compensation.
“The other area is loans. Currently they aren't regulated and some European clubs are loaning out 50 players. So there will be a restriction in the future.
“So from where I sit, it's an opportunity to have a discussion about what rules could help the game here grow.”
The stricter rules on “training compensation” – rewarding clubs who develop young players – will be seized upon by NPL clubs who for years have argued that A-League clubs reap the benefit of signing teenagers that they have nurtured for minimal reward.
But the prospect of earning substantial revenue should also encourage A-League clubs to offer longer contracts, if they could then receive a fee even for a move within the competition.
Johnson pointed to the disparity in the Socceroos’ world ranking and where Australian clubs sit for revenue received – a ratio he said is more often roughly equal.
“In 2019, Australian clubs received $1.9m for transfers in,” he said.
“That’s a ranking of 67 worldwide, but our national team is ranked at 42.
“Look at a country like Scotland – they have transfer receipts of $30m-50m. We're about the level of Jordan – no disrespect at all to Jordan, that's where we are.
“We’re not up with Japan or China.”
"That to me is an opportunity. If we have a proper transfer system in place domestically, clubs will invest more in youth development as they'll see value in holding the registration of the player. At the moment that's seen as a cost.
"That should create more transfer fees in, but also a transfer system domestically, too.
"Currently there's no protection for clubs, in my view, and no incentive for clubs to develop players. It goes all the way down, it's a whole of game issue."