A-League clubs cop huge funding loss, forced to cover $20M loss, as APL continues to bleed cash

The cash-strapped A-League has forced its clubs to cover a $20 million loss as the struggling competition continues to bleed cash.

The cash-strapped A-League has forced its clubs to cover a $20 million loss as the struggling competition continues to bleed cash.

Clubs have been told they will only get $530,000 next year from the A-League, down from $2 million this season, so it can “break even”.

The league has been plunged into financial peril following a disastrous broadcast deal with Network 10 that has hidden the game on its secondary Bold channel.

A-League independent chair Stephen Conroy was desperately trying to sell the slap in the face to club owners on Wednesday.

Former APL CEO Danny Townsend in late 2023. Picture: Mark Evans/Getty Images for APL

Conroy said the governing body was running the ruler over all its costs, even the bus drivers who ferry players to games.

“We’ve reduced our staff by half, we’re in negotiations with a TV production company, we’re looking at our air travel partners, our coaches, the buses for players,” he said.

“We’re reviewing every single cost in the business.”

Club owners will be forced to find cash from their own pockets to cover the league’s salary cap, which is $2.25 million per season.

The A-League has squandered a $140 million cash injection from private equity firm Silver Lake just three years ago.

Much of that cash was spent on its Keep Up, which promised to be a revolution for the sport but became an own goal.

The Network Ten deal has also hit the league’s bottom line, with the league agreeing to pay the $12 million annual broadcast production for the sport.

A-League Commissioner Nick Garcia insisted that the game had been growing since it split from Football Australia. Picture: Matt King/Getty Images for APL

Those costs blew out when their chosen company Global Advance went bust in March, forcing them to sign an 11th hour deal to keep the game on television.

Conroy said he had met with Channel 10 last week and that the A-League wanted to negotiate a new deal beyond the current deal due to expire at the end of next season.

That broadcast deal was trumpeted to deliver $40 million a year when it was announced in 2021, but sources say it only actually delivered $5 million this season.

The A-League promised to supercharge when it broke away from Football Australia, but now it has been in talks with them on how to share costs.

A-League Commissioner Nick Garcia insisted that the game had been growing since it split from Football Australia.

And he guaranteed the future of the women’s league despite the cuts to club distributions.

Female players have been demanding full-time wages, with up to 10 players moving to a second-tier competition in the United States because they were offering better pay.

Mariners chairman Richard Peil has been an outspoken critic of the league’s administration. Picture: Scott Gardiner/Getty Images

Central Coast Mariners owner Richard Peil sent a letter to members last week informing them the financial future wasn’t looking great if the cuts go ahead.

“I don’t quite know just yet exactly how it got to this point and where all the money has gone, but I’m committed to finding out and ensuring accountability is enforced,” Peil said in an email to Mariners fans.

“The state of the league unfortunately means that our club’s distribution is likely to be reduced by over $1m for this upcoming season.”

Conroy said he expected there would be changes on the A-League board.