A-Leagues bosses talk Canberra expansion, growth and football’s most pressing issues

Despite recent times being flooded with financial concerns and shock job culls, expansion is still well and truly in sight for the A-Leagues. It’s key figures sit down to chat with ERIN SMITH.

SYDNEY, AUSTRALIA – OCTOBER 10: Nick Garcia, Commissioner of the A-Leagues speaks on stage during the A-Leagues 2023/24 Season Launch at Carriageworks on October 10, 2023 in Sydney, Australia. (Photo by Jason McCawley/Getty Images)

A-Leagues’ Commissioner Nick Garcia says expansion will definitely go ahead next season with the new Canberra team just weeks away from being confirmed although the APL boss refused to give specific insight into the code’s financial state of play.

Garcia, who took over the reins at the APL when CEO Danny Townsend departed last October, said the new Canberra club, which would take on the existing women’s team and a new men’s team, was just weeks away from being finalised.

“We’ve been through the whole process … we are in that extended negotiation right now with one party that we think will be really good and we hope to be making an announcement on that in the coming weeks,” Garcia said.

Garcia and independent chair Stephen Conroy sat down with Code Sports for an interview to finally talk about the state of the game, three weeks after they revealed a massive staffing restructure that made 50 per cent of its workforce redundant.

The shock jobs cull, just three years after the APL took over the competition from Football Australia and less than a year after a recruitment drive, created a wave of concern across the football community but the game’s leaders waited almost a month to talk to media and instead spoke glowingly about growth prospects without addressing some of the key questions facing their sport.

A-Leagues’ Commissioner Nick Garcia. (Photo by Matt King/Getty Images for APL)

WHERE HAS THE MONEY GONE?

One of the first big deals the APL struck was to sell a 33 per cent stake in the business to private equity firm Silver Lake in return for a $140 million cash injection.

Garcia said the money was to fund the “aggressive growth strategy”.

Just last week Central Coast Mariners owner Richard Peil revealed he didn’t know where the Silver Lake money had gone or how much, if any, of it remained. He wanted an explanation and more transparency from head office over the financial state of the game.

When asked about how the Silver Lake money had been used Garcia repeatedly quoted commercial in confidence.

“That money was brought in, as it’s been widely publicised, for the growth of the game and to fuel an aggressive growth strategy,” Garcia said.

“That growth has happened across the game, now it’s about sustainable growth going forward. It’s not something we’re concerned about.”

Three years later and the project $30 million of the investment money was reportedly channelled towards – digital platform KeepUp – has been disbanded as part of the restructure.

Garcia says a Canberra men’s side is imminent. (Photo by Jason McCawley/Getty Images)

Garcia said shutting down KeepUp was part of the new strategy putting more focus on the football and the fans – rather than building a digital footprint.

Insiders described the spending habits of the previous executive to Code Sports as crazy – with millions spent on a new logo and anthem.

Garcia came in long after those decisions and others such as the broadcast deal were made.

“I think coming into a new organisation you always think there is stuff you could do differently,” Garcia said. “But fundamentally what was done got us to where we are.

“So maybe I wouldn’t have done something and then we dropped down in some of the metrics. So where we are is where we are and I’m confident that we’ve got the right team and right structure going forward.

“We are always going to keep looking at what we’re doing, and see how we can get better and how we can better serve our fans and support our clubs better, that’s what keeps me awake at night.”

BREAKAWAY CRIPPLED BY COVID

Garcia said the unbundling did happen at an unfortunate time, right as the Covid-19 pandemic struck, which was a big blow to all sporting codes.

“In that first season there were over 100 games rescheduled across the league and we had teams living in bubbles and in different states,” Garcia said.

“We managed to keep it running and keep club distributions where they were to help clubs get through.”

Now three years on from when the first growth strategy was set Garcia said the APL was, like most codes, still dealing with some fallout from Covid-19. But the restructure was more about realigning the business with a new strategy than cost-saving measures.

“We are now three years and two months past when that growth strategy was set and the board, like any rapidly growing business, said let’s take stock and let’s review the business and where we are,” Garcia said.

“That has led to a period of consolidation and resetting. It is important to understand that in that time we did grow across all metrics, in the seven years (before unbundling) it saw consecutive decline.”

SIGNS OF GROWTH

Garcia said they had seen growth in the average attendances at games and the cumulative broadcast hours were up 27 per cent.

“We’re happy with that, now we need to keep growing that, we want to be above 25 per cent every year, that’s the kind of pathway we want to see,” Garcia said.

As part of the broadcast deal with Paramount/Network 10 the APL agreed to cover the production costs.

But when pressed as to how much this actually costs the APL each week Garcia once again hid behind commercial in confidence.

“What we are paying was done with a full market analysis, we are not overpaying, there’s been a full process with that,” Garcia said.

The A Leagues brass are seeing growth in the game. (Photo by Mark Metcalfe/Getty Images)

“The other thing as well is that we entered into this agreement knowing that was coming, so it’s all factored into the broadcast deal.

“It also allows us to control the quality of our own product as well.”

The growth of the women’s game has been an added expense – with more games than ever this season but no extra financial return from the TV deal.

However, A-League women memberships has climbed exponentially after the FIFA Women’s World Cup – climbing 669 per cent on last year.

SALE OF PERTH GLORY

On top of mounting costs from inflation and cost of living APL are also propping up Perth Glory.

Garcia said the APL were very close to negotiating the sale and finding a new owner.

“Perth is a phenomenal club right now with a really loyal fan base. We are very supportive of Perth and everything we do is about driving a sustainable Perth and we’ve had a lot of conversations with a lot of buyers and we’re in the final negotiations with one buyer, we hope to close them out soon,” Garcia said.

Perth Glory are up for sale. (Photo by Paul Kane/Getty Images)

WORKING WITH CLUBS

Conroy took on the role of independent chair four months ago.

He had to find his feet very quickly.

Conroy said he had already implemented several changes club owners had been asking for such as regular meetings.

“We’ve got greater transparency with the owners about what’s going on in the business, which I think is starting to make sure everybody’s aligned,” Conroy said.

Chair of the Australian Professional Leagues, Stephen Conroy. Photo by: NCA Newswire / Gaye Gerard

“I’m comfortable the changes that we’ve made have got the club owners, more engaged, more part of the overall organisation and working more closely with Nick and the team.

“It’s been a tough couple of months. You know, there’ve been some really tough decisions that the board had to make.

“We’ve got to have sustainable business.”

Garcia said moving forward it was more about looking at what the business wants to be and wants to deliver.

“Rather than burying our heads in the sand and charging on, this is about rechecking where we are and being clear going forward,” Garcia said.

“I’m not saying it’s going to be easy. Of course, you know, we’ve got a lot to do, but we’re very comfortable with where we are and what we’re driving forward to do.”

Originally published as A-Leagues bosses talk Canberra expansion, growth and football’s most pressing issues