IT seems obvious that the men putting up the cash, including Jets owner Nathan Tinkler, should have a say in the A-League.
The issue has been bubbling along for months and came to a head when Gold Coast owner Clive Palmer launched a scathing attack last weekend on Football Federation Australia’s administration of the league.
Moves are afoot to form an owners’ association at a meeting next week and Hunter Sports Group chief executive Troy Palmer will be front and centre.
To read Melbourne Age journalist Archie Fraser's opinion piece, click here.
The Jets are aggrieved on a number of fronts. They have threatened legal action against the governing body over claims Tinkler was overcharged millions for his A-League licence.
Palmer, whose club joined the A-League in 2009-10, told SBS TV on Monday night: ‘‘We paid $500,000 for our licence. Poor old Nathan Tinkler had to fork out $7million for his licence.’’
The real figure is closer to $4million.
The Jets insist they were told the fee was standard. But it has since become apparent that, at the time he bought the club, Tinkler was the only owner to have been charged a multimillion-dollar amount.
FFA responded by saying the money was an acquisition fee and not a licence fee. They pointed to the fact that, unlike Gold Coast, the Jets were an established club with a history.
A history of losing money.
Former owner Con Constantine had dropped at least $15million before running out of money to finance the club beyond August 2010.
FFA, which was already financing Adelaide, North Queensland and Central Coast and could not afford to fund the Jets over the long haul, approached Tinkler.
The Jets were insolvent, FFA had paid players’ wages for six weeks and the club had next to no sponsorship, 800 members and average crowds of 6000.
Given the dire situation, the takeover was done in days. There was limited time to conduct due diligence. In any case, Constantine’s financial records were not forthcoming.
The issue of the licence fee poses many questions. Where did the money go? Should Constantine, who built the brand and poured millions into it, have received a percentage? Why were the new owners of Perth and Adelaide, which changed hands in 2009 and 2010 respectively, not charged multimillion-dollar fees?
The A-League’s Fox Sports TV deal, which requires a team in every capital city, might have reduced FFA’s bargaining power in those markets.
The Jets are expected to wait until legal action against FFA over the Jason Culina insurance fiasco is settled before deciding whether they will pursue the fee in court. The Culina matter goes before an arbitrator on March 5.
Apart from the licence issue, there are other areas of concern for the Jets.
They are expected to return an operating loss of about $4million. Tinkler is committed to the club but does not believe the A-League’s commercial model is sustainable.
FFA seems to be listening and has begun developing a better model for consultation with owners.
It is the least they deserve.