Smith Report Released

Recommendation 1: A-League clubs should develop stronger and deeper links to grassroots.
This should be achieved through:

1.1 FFA, working with stakeholders, should develop a blueprint for Cooperation Agreements (as required by the club participation agreements and Member Federation Charter) between A-League clubs and member federations to promote community engagement and both oblige and enable A-League clubs to forge deep connections with State leagues and juniors

1.2 Disbursements to A-League clubs should be provided and increased at the level planned, to the extent this can be afforded, with disbursements linked directly to clear performance measures including establishing links to the community

Recommendation 2: FFA should explore ways of further enhancing the existing A-League Committee structure, having regard to the following key principles:

� providing the A-League club owners with a formal structured opportunity to contribute to the strategic decision-making affecting the A-League
� developing an annual operating plan for the A-League in collaboration and consultation with owners and a regular process for reporting against the objectives of the plan
� ensuring that ultimately decisions are made in the overall interests of the league
� ensuring and recognising that given the interdependence of the A-League and other strategic pillars of the game as a whole, particularly the important role that talented player development policy plays in the future success of the A-League, decisions regarding the strategic direction of the A-League recognise and factor in this interdependence.

Recommendation 3: Until the A-League is self-sufficient, measures supporting clubs� drive to sustainability should be explored as follows:

3.1 Salary cap reforms including options to freeze or reduce the cap and remove the minimum salary

3.2 Strict application of the �capacity to afford� approval criteria for marquee player qualification to ensure that the risks remain with the owners, for example via balance sheet and profit and loss tests, or bank guarantees

3.3 A review of stadia deals and options to reform stadia costs

Recommendation 4: The A-League should remain at ten clubs until it is sufficiently strong financially, or where expansion could be demonstrated to significantly contribute to broader sustainability.

Recommendation 5: Any changes in ownership of existing A-League clubs should reflect the importance of extensive community and grassroots links and, where appropriate, have broadly based ownership structures.


Recommendation 9: The roll-out of new initiatives or programs should be prioritised, with specific consideration of the funding for and timing of the implementation of the FFA Cup. In the absence of an appropriate level of sponsor and broadcast commitment, serious consideration should be given to delaying implementation.

Recommendation 10: The review considers governance reform is an important area for improvements that have the potential to deliver tangible benefits for football stakeholders, especially at the grassroots. Accordingly it recommends reform continues to be explored initially through the current joint governance review being undertaken by FFA and its member federations.

Freeze football spending, review suggests
Michael Cockerill
December 1, 2011 - 1:15PM

The federal government has effectively demanded Football Federation Australia rein in spending before it decides exactly how much funding it will offer the game over the next four years.

The Smith report into the governance, management and sustainability of the game has finally been released, much to the relief of the FFA.

The FFA has effectively been paralysed in terms of major policy initiatives during the seven months it's taken for Warwick Smith, the chairman of the Australian Sports Commission, to complete his strategic review.
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Smith has produced 11 major recommendations, which will now be considered by the government before funding of the game up to, and including, the 2015 Asian Cup is decided.

This week the FFA announced an $800,000 loss for the 2010-11 financial year, and chairman Frank Lowy has already implied the organisation is ready to tighten its belt in return for more taxpayer support.

Among the key recommendations from the report are:

� freeze the A-League salary cap;

� review A-League stadium deals;

� prioritise the national teams program, something that could impact on junior national teams and beach and indoor teams;

� reduce costs at head office with a freeze of salaries and a freeze on new jobs;

� delay the establishment of the FFA Cup until sponsorship and television revenue is secure.

The federal government - both Labor and Liberal - has bankrolled football with more than $150 million in taxpayer funds since the FFA was formed, under Lowy, in 2004.

Both levels of government, state and federal, have already committed to $61 million in funding for the 2015 Asian Cup, but any support beyond that now remains in the hands of the politicians.

Perhaps the best news for the FFA is the recommendation that the federal government quarantines the Socceroos from the forthcoming anti-siphoning list for the short to medium-term, which Smith concedes could have a major impact on the value of the next broadcast deal, which is scheduled for 2013.

Federal Minister for Sport, Senator Mark Arbib, remained coy about any outcome, saying: "The government will consider the report and its recommendations over the coming months."

FFA chief executive Ben Buckley is scheduled to provide a response to the report shortly