Unlocking cash bonanza
FFA looks to shake up national transfer system
AN overhaul of the transfer system within Australia is on the cards, the aim being to open up revenue streams of millions of dollars for clubs in the A-League, NPL and below.
FFA chief executive James Johnson has flagged the need to unlock a development impasse that means Australian clubs receive just a fraction of the revenue that similar-sized countries around the world generate.
Amid the ongoing debate about finding fresh sources of income for the game, Johnson said new transfer rules to be implemented by FIFA could help to change the structure of the way clubs here do business for players.
Australian clubs last year received less than $2 million in player transfer fees – compared with a country like Scotland that generates at least 15 times as much – in part because transfers between ALeague clubs are forbidden.
Johnson, rewrote the rules on transfers in his role as head of professional football at FIFA, said reform was inevitable given the changes in the next one to two years.
“We’re going to have to (change),” he said. “There are changes coming at FIFA level this year, which we will have to implement, and then more to come.
“They revolve around agents – the rules around conflicts of interest and potential caps on fees – and also a new training reward system to put more money back into clubs that are developing players, through training compensation.
“The other area is loans. They aren’t regulated and some European clubs are loaning out 50 players. So there will be a restriction in the future.
“So from where I sit, it’s an opportunity to have a discussion about what rules could help the game here grow.”
The stricter rules on “training
compensation” – rewarding clubs who develop young players – will be seized upon by NPL clubs which for years have argued that A-League clubs reap the benefit of signing teenagers that they have nurtured for minimal reward.
The prospect of earning substantial revenue should also encourage A-League clubs to offer longer contracts, if they could then receive a fee even for a move within the competition.
Johnson pointed to the disparity in the Socceroos’ world ranking and where Australian clubs sit for revenue received – a ratio he said was more often roughly equal.
“In 2019, Australian clubs received $1.9 million for transfers in,” he said. “That’s a ranking of 67 worldwide, but our national team is ranked at 42.
“If we have a proper transfer system in place domestically, clubs will invest more in youth development as they will see value in holding the registration of the player. At the moment, that’s seen as a cost.”