FFA bring in two new teams to A-League and a financial windfall

The A-League will introduce two new teams and Football Federation Australia have hit the financial jackpot.

FFA chief executive David Gallop, chairman Chris Nikou and boss of the A-League Greg O'Rourke announce the successful expansion clubs. Picture: AAP

The A-League will finally expand, providing the lift it so desperately needs and Football Federation Australia the financial windfall they have been longing for following the decision to add two new teams to the national competition.

After an almost 12-month process likened to a game of snakes and ladders, FFA will reap close to a $30 million dividend after granting the Western Melbourne Group and Macarthur South West Sydney A-League staggered licences.

The national competition will be expanded from 10 to 11 teams next season when WMG, who become the 14th club in A-League history, take their place before Macarthur South West Sydney, the 15th club, joins them the following season.

It is believed WMG has paid close to $17m for the licence while MSWS have stumped up close to $13m. Once consultancy fees are taking out, FFA will end up with a decent bank balance that will alleviate some of their financial issues.

FFA chief executive David Gallop has continually said the size of the licence fees all six bidders were prepared to pay would not be a tipping point in the final decision on expansion, though suggestions emerged some bids were asked if they could increase the amount they were prepared to pay. He would not confirm nor deny the suggestion.

“It’s not appropriate to go into the negotiations we had. Some happened in the closing days and hours of where we ended up,” he said.

However, Gallop conceded that FFA needed to ensure expansion was affordable.

“It’s not appropriate for us to disclose the licence fees, but I think we made it clear from day one there was a number we needed to achieve to make sure this was affordable,” Gallop said. “We’ve achieved that number and that has been part of the snakes and ladders movements of the last week or so.”

FFA’s decision came following an exhaustive meeting of the board of directors that started at 3pm on Wednesday and went late into the night. Chairman Chris Nikou, who was elected to replace Steven Lowy last month, confirmed that two directors, believed to be Remo Nogarotto and Joseph Carrozzi, did not take part in the decision-making process because of perceived conflicts of interest.

“Two directors recused themselves from the decision-making process in caution, and that was a credit to them on the integrity issues. But ultimately the management team at Deloitte have done and extensive amount of work and the recommendation was fully adopted by the board members,” Nikou said.

In winning the bids, WMG, who will initially play out of Kardinia Park in Geelong and MSWS, who will play out of Campbelltown Stadium, beat challenges from Canberra, South Melbourne, Team 11 and Southern Expansion.

However, in giving a firm commitment regarding further expansion, Nikou gave the failed candidates hope that they would be considered when the A-League moves to 14 teams and then 16 down the track.

“I’d like to point out that this is not full stop for the expansion process. Expansion is an ongoing dialogue for us and we would like to keep the expansion issue on the agenda.

“We need to get through the significant task for 2019 which is the A-League model. That will then set the landscape for expansion after that.

“We will debrief the unsuccessful bidders, let them know the areas we think would be beneficial for them to focus on. We’ll keep dialogue with those bidders that want to be considered for the next phase and once we announce that, and the process around it, you’ll see some fresh bidders coming into the market. Brisbane, Adelaide, places like that shouldn’t be discounted.”

Nikou also confirmed a working group would look at introducing a second division. Gallop described the inclusion of WMG and MSWS as “a great step” for the competition and the sport in general.

“The board fully accepted the recommendations (made by the management team) yesterday afternoon. It’s a strong responsible decision, a decision that’s been arrived at taking into account the views of our stakeholders including our clubs, players, broadcast and commercial partners,” Gallop said. “This is going to set the A-League up for long-term sustainability in these new locations. But importantly the decisions have taken us to a point where we can ensure the new clubs are in high-quality facilities from day one.”

The decision to delay MSWS’s entry into the league by 12 months was taken for a number of reasons, notably to allow neighbours Western Sydney Wanderers some clear air for the move to their new stadium next season.

WMG’s inclusion came off the back of their commitment to build a boutique stadium using their own funding.