'A-League expansion about more than money': Why Canberra can succeed


Former Canberra A-League bid leader Ivan Slavich has urged the FFA to evaluate bids on more than just their financial capacity as fears grow about the process becoming a blind auction for expansion.

The new Canberra bid team is confident its holistic bid will trump cashed-up rivals and billionaire backers from Sydney and Melbourne as the FFA prepares to make a decision on December 12.

The Canberra A-League bid are one of the favourites ahead of the December 12 announcement.

The Canberra A-League bid are one of the favourites ahead of the December 12 announcement. Credit:Eamonn Tiernan

It's understood the FFA has increased the price tag on expansion, after Canberra was one of three bids to commit around $10 million. The three clubs were told by FFA to up the ante if they want to compete with their rich rivals.

The minimum bid the FFA will consider is believed to be around $13.6 million because the existing clubs are given $3.4 million per annum from the broadcast deal, which doesn't expire until 2023.


Expansion teams could come into the league next year and the FFA don't want the new sides relying on a slice of the broadcast deal, which has already been divided.

It is understood some bids have pledged as much as $20 million and the FFA would put any additional money into a contingency fund to be used if the teams run into financial trouble.

Canberra haven't made the highest licence fee offer but its strengths are based on a community-ownership model, being the only "ready to go" bid for quick expansion, ACT government support and partnerships with overseas clubs.

The FFA board will meet on December 12 to decide which two franchises will be successful and added to the A-League. Canberra is considered a dark horse because of its financial capacity, but is understood to be rated highly by FFA insiders.


Slavich, who led Canberra's unsuccessful bid 10 years ago, called on the FFA to come good on their vision of expanding the game but fears the capital could be priced out.

"The [A-League] will split their current fan bases [in Sydney and Melbourne] if they expand there but if they go for Canberra they’re going to pick up a whole new audience," Slavich said.

"Money is a major consideration for bids because at the end of the day money solves all the problems, coaching problems, paying players, being able to whether the storm of any financial difficulties.

"But for me it needs to be more than just a money consideration. It has to be ensuring the million-odd people who live in the region have a team to go for.

"It’s ridiculous that we’ve got the national capital not represented in the national competition.

"We've got league, union, women’s soccer, basketball, baseball and more. It seems ridiculous the most popular sport in Canberra is not represented at an elite level for men."

One worrying sign for the capital's bid was the Wollongong Wolves decision to form a partnership with Sydney FC, just two weeks after aligning with Canberra.

On the surface it appeared as though the Wolves were baulking at Canberra's expansion chances. But it's understood the Wollongong-Sydney connection had been in the works for months and will not affect the relationship between the Wolves and Canberra.

While Canberra has heavyweight overseas backers, it's not in position to compete with some billionaire-backed rival bids. But the team is confident the new-look FFA board will see the bigger picture and not go for a cash grab.

Perth Glory owner Tony Sage confirmed operational costs of an A-League club are around $12 to $13 million which means bids must prove they can generate around $10 million annually. This is because they'll be given back $3.4 million of their licence fee annually for the next four years.

The $10 million would come from sponsors, memberships, merchandise, grants, investors and tax-deductable donations through the Australian Sports Foundation. The ACT Brumbies for example turn over $20 million annually.

Canberra are the only bid with government support after the ACT sports minister Yvette Berry committed $1.2 million annually. This is a major factor considering most A-League teams lose $1 to $2 million annually.

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