FFA, clubs offside in battle over finances

FOOTBALL Federation Australia has shut down talks on a new A-League operating model in retaliation to the clubs’ threats of legal action seeking to force the governing body to reveal its finances.

Clubs were to set meet FFA today to discuss the slated new framework against the backdrop of a bitter fight over power and finances. However, it’s understood chairman Steven Lowy pulled the pin yesterday and suspended correspondence indefinitely.

It came after the 10 clubs, acting collectively under the Australian Professional Football Clubs Association, issued Lowy with a seven-day ultimatum to open his books or face court.

Frustration on both sides has mounted as FFA repeatedly rejects the clubs’ demand of what they believe is their rightful share of the TV deal – a minimum $4 million each in revenue per year. After rebuffing FFA’s latest offer of $3.55 million – the most it said it could afford – the clubs requested a full forensic audit of head office’s books over the past three years to understand where money had been spent.

Last Friday, they told Lowy he had a week to comply or agree to the $4 million figure before they launched formal legal proceedings.

FFA added it would have shared relevant financial figures during the process of developing the competition’s new operating model.

But in a sign the relationship between the two parties has broken down irredeemably, the Australian game appears set to be overshadowed by a legal battle just as FIFA arrives on its doorstep to sort out governance reform.

A joint FIFA/AFC delegation will visit next month to try to broker a compromise over deadlocked discussions for an expanded congress before the November 30 deadline, when the sport’s world ruling body will establish a normalisation committee to disband the board and remove Lowy.

As the domestic mess approaches the point of combustion, expansion has been put on the backburner.