Why the A-League is on the brink of financial disaster

With a betting scandal dominating headlines it can also be revealed that the A-League is on the brink of financial disaster with plans to slash funding to clubs.

Australia’s top tier soccer competition is on the brink of financial disaster, with the A-League planning to slash its funding to clubs by 80 per cent.

The game’s owner, the Australian Professional Leagues (APL), is threatening to only give clubs $500,000 next season as it tries to plug a $100 million funding hole.

That would be $2 million short of what clubs were promised – almost equal to each men’s teams salary cap.

The distributions were discussed at an A-League meeting earlier this month but a final decision was reserved until after this season’s grand final.

The funding brawl comes as liquidation firm KordaMentha revealed Newcastle Jets has been sold after an eight-month search.

Socceroo legend Robbie Slater said the future of some clubs would be put at risk by the A-League’s shortfall, which was caused by its broadcast deal with Channel 10 and Paramount Plus.

“This has been the most difficult year in the history of the A-League,” Slater said.

“This broadcast deal is the worst in history for football. Who signed this deal? There’s KPIs about subscriptions, and they have had to pay for their own TV production.”

The Central Coast Mariners celebrate last year’s grand final win. Picture: Scott Gardiner/Getty Images)

Despite promising to make soccer Australia’s number one sport, Ten punted its live coverage from its main channel to Ten Bold, which Slater said was damaging the game.

“They say it’s OK because it’s on free to air but it’s on Ten Bold. Some TVs don’t even get Ten Bold,” he said.

“The reality of this TV deal is that the distribution to clubs could be as low as $500,000. They were promised this year $2.4 million.

“I don’t know if clubs will fold but it’s going to make it very difficult.

“The question is who signed this deal? And where did the $140m from Silver Lake go? But they never say anything.”

Robbie Slater.

Five A-League insiders, who spoke on condition of anonymity, said the elite competition was in a perilous state.

Only Melbourne Victory, Melbourne City, Sydney FC and Western Sydney Wanderers had secure futures, an insider said.

There was a concern that other clubs could follow the path of Perth Glory, which went into receivership in July last year, owing $12 million.

Businessman Ross Pelligra paid $1 for the club in February.

The league was adding a new team based in Auckland, New Zealand, next season despite being on a financial cliff.

A senior club figure said they were being kept in the dark about the A-League’s plans.

“They are going to have to cut costs or increase revenue,” he said. Another senior club insider said A-League players were being overpaid, with some described as “donkeys” earning $400,000 a year.

An A-League spokesman said in a statement: “As part of our ongoing, planned strategic and commercial review, the APL Board met a few weeks ago to review a number of our financial metrics and key leagues issues. Club grants were one area under discussion.

“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”.

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Originally published as Why the A-League is on the brink of financial disaster