Football Australia open Expressions of Interest process for National Second Tier

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Adelaide

The establishment of a National Second Tier Men’s competition has gained significant traction today with Football Australia formally inviting all interested parties wishing to participate to respond to an Invitation for Expression of Interest (EOI).

The yet-to-be-named National Second Tier, which is earmarked to commence in March 2024, will be a new national tier of football between the A-League Men competition and the National Premier Leagues, with the opportunity for promotion and relegation to be considered once mature.

The EOI process will provide Football Australia with relevant information to assess the level of interest, and to refine the strategy, vision, competition format, operation, and administration of the National Second Tier.

Furthermore, the process is designed for Australian football clubs with a deep connection and demonstrated history in Australian football to participate in a tier of football that is anticipated to comprise of an individual league in a ‘home and away’ structure with the proposed competition parameters as follows:

  • A home and away league structure with finals, comprised of between 10 and 16 teams and featuring between 24 to 36 games
  • Successful Respondents to the Application Process would be required to depart their existing football competitions for the National Second Tier
  • National Second Tier Clubs will enter into a Club Participation Agreement setting out the terms of participation, including but not limited to the following requirements:
  • Professional playing contracts for all players, with salaries paid 52 weeks of the year;
  • ‘off field’ operations run by employed staff throughout 12 months of the year;
  • Investment in and operation of a full talent development pathway within their club structure;
  • and access to a suitable high-quality match day facility 12 months of the year.

Should the level of interest not validate the required number of Clubs with the capability to formulate an independent tier of competition, the option remains for Football Australia to institute a phased ‘group based’ competition model that will utilise the National Premier Leagues competition to determine the make-up of this format of competition (the ‘Champions League’ model).

The Invitation for EOI is the first phase of what is envisaged will be a multistage process, with this phase opening today and closing on March 3, 2023.

At the conclusion of the EOI stage of the process, Football Australia intends to issue a Request for Proposal (RFP) to shortlisted parties inviting the submission of detailed proposals. Additional information through detailed Bid Documents will be provided to shortlisted parties during the RFP phase to assist with their formal detailed proposal.

This information during the RFP phase may include an information memorandum, NST related data, including financial forecasts and benchmarking, key terms of a Club Participation Agreement, and draft transaction documents.

The following subsequent phases are envisaged:  Phase 2 – Request for Proposal (April – June indicative), Phase 3 – Assessment and Recommendation (June – August indicative), Phase 4 – Completion (August – September indicative). Further information on these remaining phases will be outlined at a future date.

There will be an interactive process to assist both shortlisted bidders and Football Australia to aid the development of high quality, well considered proposals and further refining the overall vision of the NST. This structured process will occur following the release of the RFP.

More information and links to respond to the Expression of Interest invitation can be found at https://www.footballaustralia.com.au/nst-application-process.

Numerous clubs touted to be involved in the National Second Tier celebrated the announcement, including the Melbourne Knights and South Melbourne FC. The Association of Australian Football Clubs – an organisation representing National Premier Leagues clubs aspiring to join the National Second Tier who has been essential to driving the momentum towards the founding of a National Second Division – acknowledged the significance of the announcement via Twitter, expressing:

“AAFC welcomes this exciting development we’ve all been awaiting with great hope and expectation,” the statement read.

“Having advocated for, and led the discussion on our new, proper second tier, we thank FA for adopting and pursuing this most important reform.

“We will continue to work with FA and our clubs for its successful implementation for kick off in 2024.”

Football Australia Chief Executive Officer James Johnson outlined many potential respondents had already expressed their interest through a consultation phase across Australia in 2022, and more could emerge during the process.

“Developing a national second tier competition is a key component of our 15-year vision for the game and our efforts to reconnect and realign Australian football competitions. Australian football has gone on a journey of transformation over the last two years and this is the latest example of us bringing our vision for the game to life,” he said via media release.

“In 2022, we did extensive financial and competition modelling followed by a series of consultations with clubs and other stakeholders across the game.  We know from this process that there is a lot of interest in a national second tier so we expect that we will receive a strong number of responses in this first EOI phase.

“Some of these clubs have a rich history in Australian football and aspire to grow and compete at a national level. The national second tier will now provide a platform for these aspirational clubs and to be a part of a connected football pyramid in the long term.

“With football booming in Asia, our national teams competing strongly on the world stage and as the largest team participation base in Australian sport, this is the right time to create a national second tier.

“We look forward to the process we have now launched and working collaboratively with all stakeholders and interested parties in building a successful National Second Tier and kicking the league off as early as March 2024.”

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Episode 4: “You could have sold it out twice”: Peter Filopoulos on why unification is the way forward

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PETER FILOPOULOS sees Saturday’s Australia Cup final between Melbourne Victory and South Melbourne Hellas as a ‘unification event’ that must be harnessed as a window to the future – rather than a means of stirring up old division – if Australian football is to progress.

“This game sold out organically, and having run marketing, corporate affairs and communications at Football Australia previously, I don’t think they would have needed to spend one single dollar on marketing,” Filopoulos told Soccerscene Unfiltered.

“You could have probably sold it out twice! This tells me it’s the sort of product the fans want; it’s authentic and taps into the new and the old, and demonstrates culture as a real asset. You couldn’t have scripted it better.

“If I was in a decision-making position at the A-League, I’d be looking very closely at why fans have responded in such an emphatic way.”

Filopoulos has seen it all across his near-35 year career in sports administration, which by his calculation has been split evenly inside the Australian football tent and outside it – but when outside, always with at least one eye glancing back.

Fifteen years across AFL clubs Hawthorn & North Melbourne as that code moved from a financially traumatic 1990s into a wealthier new millennium; five years at Football Australia: ‘easily the most transformative period for Australian football in its history’; stints with Etihad Stadium and even a period ‘completely out of my comfort zone’ at Swimming Australia.

There’s been crisis management, stepping in as Perth Glory CEO after the 2015 salary cap scandal; he’s seen the A-League’s boom times under the Lowys & Fox Sports’ 2018 broadcast deal; he’s enjoyed the euphoria of the 2023 Women’s World Cup in Australia and New Zealand.

But all stems back to the National Soccer League and South Melbourne Hellas, and his bold decision to take on the Club’s inaugural general manager position in December 1993, aged just 25.

“I wasn’t ready… but what it taught me is when an opportunity is presented to you, just say ‘yes’ and work out how to do it later. I’ve used this throughout my career, and that was one of those instances where I threw myself in the deep end.

“I had my career mapped out, and was working quite happily in accounting. But I was a passionate fan and having grown up at the old Middle Park, it was a natural ‘yes’ – and I was young enough to take a risk.”

With today’s A-League financially ailing and great clubs of yesteryear enjoying what Filopoulos terms a ‘renaissance’ – and agitating as vociferously for a return to the top flight as at any point since the demise of the NSL – he feels it is again time for bold leadership, and a little risk.

“You can have all the ambition in the world, and in being part of a club, you’re a custodian. But as I’ve always seen it, you need a sustainable commercial model: sound ownership, sound facilities, revenue, etc…

‘But you also need to understand how to tap into that asset of culture. What we’re seeing with the Australia Cup final is a result of culture, right? You need to create it amongst your fans, and know who your fans are, and tell them what you’re striving for. Bring them along on the journey!”

Catch the full chat with Peter Filoupolos on Soccerscene Unfiltered: from ‘eyeballing’ Frank Arok and backing Ange Postecoglou, overcoming resource challenges at Football Victoria, to the rise of the Matildas, and plenty more…

Manchester City must pay the ultimate price for financial cheating

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Image Credits: Shutterstock

Manchester City’s financial scandal has reached boiling point. On the 29th of September, an independent commission found City guilty of all charges relating to serious breaches of the league’s financial rules across nine seasons, from 2009/10 to 2017/18. The commission also upheld three of four charges concerning the club’s failure to cooperate with the Premier League investigation.

The Premier League says City used sham commercial arrangements and disguised owner funding to inflate revenue and reduce costs by more than $1.7 billion (£900 million). Abu Dhabi United Group funded $1.58 billion (£830.69 million) that appeared in City’s accounts as sponsorship money from Abu Dhabi companies. The commission concluded that City’s accounts concealed the true financial position from auditors and regulators.

The 115 charges cover inaccurate financial information, player and manager payments, financial rules and the investigation itself. City has lodged its appeal against the guilty verdict, but for such a serious sporting scandal, attention has already turned to the potential punishments. In a Premier League era where foreign investment is king and revenues have skyrocketed, we should be asking questions. How did Manchester City get away with this for so long, and how can the punishment act as a deterrent to keep the reputation of football’s biggest league intact?

The hack that exposed the story

The most uncomfortable part of this saga is how the authorities discovered it and how most likely City never would have been exposed. In 2018, German publication Der Spiegel published leaked internal City emails and documents obtained through Football Leaks. Rui Pinto, the Portuguese hacker behind Football Leaks, supplied material that alleged City had disguised owner investment as sponsorship revenue and manipulated arrangements to satisfy financial regulations.

The Premier League investigation began in December 2018. City were formally charged in February 2023, after a four-year investigation, and the hearing finally began in September 2024. That timeline is nothing short of extraordinary; eight years between the leaks being exposed and charges being brought to Manchester City does significant sporting damage.

Man City won eight major titles during the alleged period, including three Premier League titles. Recalling titles in any sport leaves a sour taste in any sports fan’s mouth. The fans of opposing sides given titles feel robbed of the special moment, and Manchester City fans could feel rightfully deceived. But it goes beyond even this as we look at who Manchester City signed during those seasons. Players such as Ilkay Gundogan and Kevin De Bruyne played vital roles in City’s later titles beyond the 2017/2018 season. Would they have joined if this had been uncovered earlier? It’s impossible to say, but it shows how City’s early investment from 2009/10 still contributed to their titles in the 2020’s.

The Premier League’s credibility

That delay is not just embarrassing for City; it damages the Premier League. The league is the most competitive and commercially powerful domestic competition in football. Its rules are supposed to create a framework in which clubs compete on sporting merit while remaining financially sustainable. If a club can allegedly distort its accounts by hundreds of millions of dollars and the process takes years to reach a verdict, despite City’s potential obstruction, every other club has a reason to question whether the system works.

The irony is obvious: if Football Leaks hadn’t shared what they found on Manchester City through its hack, the scheme never would have been uncovered. If financial rules were designed to stop clubs gaining an unfair competitive advantage, then the Premier League may need to change how it investigates how its clubs’ finances are being managed. If anything should be gained from this, it may be that financial regulation needs to be improved as the Premier League and its clubs spend billions.

As for Manchester City, punishment cannot simply be a fine that becomes another operating cost.

Relegation is the only serious answer

If the verdict survives the appeal, Manchester City should be removed from the Premier League and those three aforementioned league titles removed. A fine would be inadequate and, depending on what points deduction City got, would punish the club in one season while leaving the historical record largely intact. Nottingham Forest received a four point deduction for a charge of Profitability and Sustainability rules in 2023-2024. City’s 114 charges will see much greater punishment then that.

Even if City are relegated they would almost be guranteed to be promoted the next season so even that feels like a slap on the wrist. Despite their investment during the nine seasons being questioned their five titles subsequent to that period will be expected to remain in their hands. My solution is to relegate City to the Championship without the potential of promotion for three seasons, one for each title won during that time.

City fans will call that harsh but their is strong reason to come down hard and that’s because this is bigger than Manchester City. Foreign ownership has brought huge investment into English football, but investment cannot mean exemption from the rules. Owners, executives and clubs must know that the Premier League’s financial regulations carry consequences that cannot be negotiated away.

The league has a choice. It can impose a manageable punishment and move on, or it can demonstrate that competitive integrity matters more than the commercial power of its biggest clubs. If City’s appeal fails, the answer should be clear: relegation, a reckoning over the titles and a message to every owner that the Premier League’s rules are not optional.

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