James Johnson on how the Club Licensing System is critical to progress of Second Division

On Thursday, Football Australia released their reformed Club Licensing System Regulations that will increase standards at clubs across the top three tiers of Australian football – as a key part of broader structural reform they are engineering to take the game forward.

Reforming the Club Licensing System was an agreed responsibility Football Australia took on during its unbundling of the A-Leagues to the Australian Professional Leagues in December 2020, and is something Football Australia CEO James Johnson sees as critical to unlocking standstill issues facing the game, such as the proposed National Second Division (NSD) and Domestic Transfer System (DTS).

“We have challenges in the sport, namely around player development at the moment, and right at the very heart of the Club Licensing System are standards and requirements that really need to be reviewed on an annual basis. So we’ll continue to lift the standards in club football with a particular focus on youth development,” Johnson, who oversaw the Global Club Licensing Program while at FIFA, told Soccerscene

“That’s going to align very well with some of our other initiatives, like a Domestic Transfer System that has player development at its very core. It’s something we need to fix now; it’s something I don’t think is an opinion, it’s a fact.

“These measures – Club Licensing, a transfer system, the second tier competition – are all designed to improve the level of our players, the benefit of which we will see in the years to come.”

Club Licensing has historically been managed by the Asian Football Confederation as a means of ensuring minimum standards for clubs to compete in Asian club competitions. By taking it into their own hands, Football Australia can now raise and specify standards for clubs at not just the professional level, but the levels below it.

The regulations include certain criteria that must be met to compete and continue to compete in certain competitions, broken into five categories: Sporting, infrastructure, personnel and administrative, legal, and financial – with variations in each to reflect multiple levels of the pyramid. 

“First and foremost, this new Club Licensing System will be a set of criteria that needs to be fulfilled in order for all clubs to participate in Asian club competition, but also for all clubs in the A-Leagues to continue their ability to participate in that competition,” Johnson said. 

“The second part, the more strategic football development angle, is that it is designed to become a strategic plan for club development and enhanced governance of clubs throughout the country. It really sits right at the heart of key decisions clubs would take, and how they operate on a day-to-day basis.”

The new system is designed to cater for clubs at the professional (A-Leagues), semi-professional (NSD) and state-league (NPL) levels, providing an overarching set of standards to promote uniformity between clubs and divisions. Theoretically, it could also prepare clubs for movement between divisions if promotion and relegation were to come into effect.

Johnson sees that uniformity as vital to the game moving forward, given the three tiers will be administered by three different organisations: The A-Leagues by the Australian Professional Leagues, the mooted NSD by Football Australia, and the NPL competitions by their respective Member Federations. 

“You have to set different standards for different levels of football. As we roll out the second tier competition in the coming years, Football Australia would licence clubs to participate in that competition because it would be the competition administrator,” he said.

“The next step would be to go down the pyramid. There’d be a continual evolution of the Club Licensing System where we’d set a strategic framework that the competition administrators, the Member Federations, would ultimately work under, in order to create their own criteria for participation and access to the state level competitions.

“That framework that the Member Federations would operate under would give each region across the country a good level of specificity to develop their own criteria to access their own region.”

Concerning the level of football not currently in place – the proposed  second tier – Johnson stated the Federation had the backing of the AAFC, the representative body of the clubs looking to step from the NPL into the second tier of competition, over the new Club Licensing System.

“The AAFC are very much aligned with the direction Football Australia are wanting to go. Their interest in licensing is concerning the NSD, and I don’t think there would be any issues there provided we set the criteria as the right levels,” Johnson said.

“What we’ll get once the system is implemented is the ability to analyse clubs all around the country. We’ll be able to benchmark how clubs in Victoria are performing on and off the pitch, against teams in Brisbane or Hobart or Perth.

“One of the big values of a CLS is it’s a measuring stick that helps us understand which areas clubs around the country are strong in, and which areas they need more focus on. Ultimately, that’s how we grow club football.”

Tasked with overseeing the licensing reform is Natalie Lutz, who Football Australia hired as their Club Licensing Manager in January. Lutz has considerable experience in the field, having previously overseen the rollout of club licensing across the CONCACAF Federation. 

“Natalie knows what she’s doing, she’s very experienced, she was responsible for the roll out of a Club Licensing System in 40-odd countries in the Americas. We have her in the business now, which is why this project is evolving,” Johnson said.

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Victorian LGAs receive grants for community sports facilities

Community Recovery Grants Program

The Regional Community Sports Infrastructure Fund (RCSIF) and the 2024-25 Local Sports Infrastructure Fund (LSIF) are giving regional and metropolitan communities opportunities to develop their sporting facilities. The fund aims to support all abilities and women-focused infrastructure.

The RCSIF has highlighted a focus on planning, designing, and building indoor stadiums, female facilities, aquatic facilities, and communal and all-ability facilities. This plan ensures sports participation opportunities for all community members.  

The 2024-25 LSIF allows metropolitan and regional communities to receive funds to create active recreational community projects. These include sports courts, lights, play spaces, change rooms, and skate parks. 

Additional grants of $50,000 for Victorian LGAs through RCSIF to boost community participation are also available. 

The Victorian Minister for Community Sport, Ros Spencer, spoke on the investment opportunity for metropolitan and regional communities.

“By upgrading facilities and removing barriers to entry, we are making sure even more people can get involved in local sport in their own communities,” he said via press release.

“These funds are making sure all Victorians, no matter where they live, have world-class sporting facilities.”

The comprehensive initiative is a welcome investment into a sustainable community activity area, encouraging LGAs to invest in their area. A project of this magnitude is a win for the long-term development of football in Victoria. From female to accessible athletes, they are huge and deserving beneficiaries of this project fund.

RCSIF has significant financial backing from the Regional Community Sport Development Fund and the All Abilities Sports Fund. The first round of funding invested $20 million in these Victorian communities across 26 infrastructure projects. Regional development opportunities will flourish, bridging the city-country gap in Victoria. 

Regional and metropolitan communities can apply for these investment grants as round 2 is now open for applicants. RCSIF round 2 closes on the 17th of March 2025, and LSIF round 2 closes on the 17th of February 2025. 

For more information about the programs and how to apply, visit Regional Community Sports Infrastructure Fund.

Also for the Local Sports Infrastructure Fund, click here.

Exclusive Interview with President of PLFC David Cvetkovski: How Preston Lions and the NST format are reviving Australian football’s heart and soul

The National Second Tier competition is taking on a different approach from the traditionally planned home-and-away format, with Football Australia announcing it will be a ‘Champions League’ style format starting in October 2025.

With the introduction of this format, Football Australia announced the following in regards to fixturing:

– NPL season will conclude in September before all clubs take three weeks off in preparation.

– In October, they will move in to the nationwide NST format involving the eight foundation clubs.

– There will be a group stage where the final positions will determine the fixtures for the Quarter Finals stage followed by the Semi-finals and Final which will wrap up by December.

– It will be a precursor to a full home-and-away NST.

For historic clubs like Preston Lions, one of the eight foundation clubs getting involved next season, it provides an opportunity to take that next step towards professionalism and bring back the passion that football has been missing in the top flight.

In a conversation with Soccerscene, Preston Lions President David Cvetkovski touched on several important topics surrounding the recent announcement.

He discussed the financial success of the Preston Lions, how the new format is enhancing the development of young talent, the importance of preserving the traditions of clubs founded by migrant communities, and the need to celebrate these historic ethnic clubs by bringing people together as a united football community.

PLFC’s Financial success

Preston Lions have emerged as one of Australia’s most successful football clubs, known for drawing massive crowds, strong merchandise sales, and a dedicated membership base. But what’s the secret behind their financial success, and how have they set the blueprint for other clubs moving into the NST?

Club president David Cvetkovski attributes this success to identifying and maximising key revenue streams that go beyond just match-day ticket sales.

“The key pillar of our strategy was to pinpoint the main revenue areas for football clubs—not just ours, but for all clubs,” he said.

“The success started by elevating the gameday experience for football fans, who on average might spend $20-25 dollars on a Canadian Club, chips and Kebapi roll so there’s a $25 to $55 per head potential there when the product is right.

“We then went to sponsors, we have 120+ sponsors but what’s the value proposition for them? What’s the merchandise like? Well the improvement in our merchandise sales in the last four years is incredible. What we’ve done is provide custom ranges that our merchandise team have designed the T-shirts that people enjoy. We love the fact that every Preston supporter has a Preston garment.”

Cvetkovski emphasised that match-day revenue is only part of the equation. “Every club has loyal supporters, but how can they buy that hoodie or Canadian Club or Kebapi at the right price? Because canteen and gates revenue make clubs but merchandise and sponsors elevate them” he continued.

“It’s no secret that we have the biggest attendance figures in Victorian football and with the South game, we had over 6,000 people, and we had an online portal to capture ticket sales so we’ve been innovative in driving the key revenue streams otherwise without it, you’re at risk as a club.”

David Cvetkovski at the 2024 Preston in Business launch event. (Image credit: Preston Lions Football Club Facebook)

NST format improving player development

The introduction of the new NST format is providing clubs with greater flexibility to secure player contracts and create optimal conditions for their development.

While Australia continues to produce top-tier talent, the path to recapturing the golden generation of 2006 lies in ensuring that the NST system allows players to focus on football full-time.

Cvetkovski highlighted how this change will transform clubs like Preston and others, offering younger players more opportunities to shine on the biggest stages.

“From a footballer’s perspective, I have to usually contract them for 26 weeks in VPL1, next year in NPL1  would’ve been 26 weeks + potentially three finals so 29 games, but with the NST I’ve been able to contract and take better care of both our young and mature footballers,” he said.

“They’re now being contracted for 40 plus weeks of games but they also need to do 8 weeks of preseason so it’s over 40 weeks. This makes football richer, not only financially, but us being able to play younger kids.

“40% of our team is under 23 years of age. The A-League this weekend had heaps of kids involved because of the budget reduction and this  is fantastic for the game. How do we create a platform for kids to play and let these kids find out at 22, 23 or 24 that they are still a baller.

“Look at Jordy Bos who played through the City academy, broke through at 18 almost 19 and played a few years before making a move to Belgium and now he’s playing for the Socceroos at 21. We need 17 Jordy Bos’ in the Australian team, that’s a generation! and Preston are following the same path,” he concluded.

Return of cultural heritage

During the transition from the NSL to the creation of the A-League, many of today’s NPL clubs boasted a proud history of players and staff representing their cultural heritage with passion.

These clubs served as symbols of identity, reflecting not just individual families but entire communities, offering a sense of belonging through football.

Cvetkovski is committed to preserving these traditions at Preston, ensuring that the club’s strong Macedonian roots remain a core part of its identity as they move forward whilst also encouraging the other NPL clubs to work together to achieve the same goal.

“It is the first time in a while, that we have signed 6 or 7 Macedonian boys to stay true to our heritage, the response from supporters, sponsors and members has been incredible and I’m encouraging other clubs like Avondale, Knights, Heidelberg, South [Melbourne] etc to do the same,” he said.

“You can’t get away from South’s Greek community or Marconi’s Italian community and this makes the fabric of the game richer.

“People ask why is Preston so successful? Because we stay true to our community in one sense, yes, we’re Australian but how good is the multicultural landscape of Australian football!

“I want to work together with our rivals, who are also our friends, so that when Preston plays away at these grounds, they make money.

“There’s no secret to enjoying a game. We go there, have a few drinks and something to eat on a Friday or Sunday night out and watch a good game, it’s entertaining. We’re in the entertainment business at the end of the day.”

Cvetkovski at Preston vs Pascoe Vale 2023 (Image credit: Preston Lions Football Club Facebook)

Uniting the many cultures in Australian football

These historic ethnic clubs, built by migrant communities with a deep love for football, are making a significant return to the mainstream.

They represent the foundation upon which the beautiful game in Australia was built, and the generational loyalty fans have for their local clubs and communities is finally being recognised again.

Cvetkovski passionately spoke about the importance of uniting all cultures in the top flight of football, regardless of background, to celebrate the shared love of the game and foster a sense of community across the sport.

“There’s opportunity to respect the cultural backgrounds of the clubs. I think we went too far towards cleansing the game but the migrant story of Australia is something that should be celebrated,” he said.

“My best friends are Greek, Italian, Croatian,  Bosnian, I don’t care, do I? I’ll sit in any coffee shop; I don’t care where I sit. Let’s bring that friendship to football.

“The new way of thinking is making it about the game, removing any political agendas and making football the star.

“The South [Melbourne] game there was no animosity, there was nothing but celebration of football between two communities who traditionally are rivals.

“They realise now they have a lot more to lose if they get it wrong versus working with each other to make it right,” he concluded.

David Cvetkovski with Football Australia (Image credit: Preston Lions Football Club Facebook)

Football Australia is beginning to recognise that the true beating heart of the game lies with these foundation clubs, which have not only survived but thrived since the dissolution of the NSL.

Their passion, rich history, and deep-rooted respect are unmatched in Australian football and this announcement signals an exciting new era for fans across the country.

If the South Melbourne vs Preston match earlier this year is any indication, the spirit of the game is well and truly alive, bringing back the sense of unity and pride that Australian football has been missing.

More on the details of the newly announced NST here.

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