Melbourne Victory shareholder, Joe Mirabella, was introduced to football at an early age when he was taken by his father to watch his beloved Juventus in the Victorian State League.
Following a playing career where he reached reserve grade status, Mirabella became president of the club in 1990, served on the board of Football Victoria in 1991 and 1992 and became a shareholder of Melbourne Victory when the A-League commenced in 2005.
He is one person who puts his money where his mouth is, through his highly successful trading company, Mirabella International, which currently has a 12.5% shareholding in Melbourne Victory after it was diluted from 19% when 777 acquired its majority interest in the club.
Mirabella’s motivation to see football succeed in Australia is clear for all to see but he is also realistic there are many challenges facing the game.
In this interview with Roger Sleeman, Mirabella discusses all things A-League, the proposed National Second Tier competition, the future of Melbourne Victory and his hopes for the progress of the game.
ROGER SLEEMAN
What motivated you to seek a financial stake in the A-League?
JOE MIRABELLA
There’s a family connection here as we put our money into the State League and N.S.L. and it was my late father who encouraged us to buy shares in Victory at the start of the A-League.
He was a true believer in Frank Lowy who was tough but craved success for the game so it was a natural process for me to be involved at Victory when Lowy came back to the game at the start of the A- League.
Personally, I have a love affair with the game and it’s my dream the game will reach its true potential in the not too distant future.
R.S.
The A-League experienced many years of success.
In hindsight, was it a wise move to unbundle the League from the F.A.?
J.M.
It was a big mistake by the owners of the A-League clubs and the removal of Steven Lowy was catastrophic.
The Lowy family had the ability to negotiate with government and keep the League on a good financial footing so they should never have been removed from power.
My statements supporting this view are recorded in the Melbourne Victory records.
R.S.
What was your reaction to the removal of over forty employees from the APL in January?
J.M.
It had to happen because the league was bleeding money with clubs facing insolvency.
Critically, there should never have been so many employed in the first place.
R.S.
Are you confident in the current executive management overseeing the APL?
J.M.
Not impressed at all and they’re doing nothing except talking since Stephen Conroy came to power as Independent Chairman.
When Conroy took up his position, he had three tasks to perform.
(1) Advise the clubs that none of them could be directors of the APL and an independent board would be installed for the benefit of the game.
(2) An enquiry be undertaken to account how the $140 million from Silver Lake was spent, e.g.$40 million to Keepup and subsidies for Perth Glory to stave off bankruptcy.
(3) A comprehensive review of the television deal with Ten and Paramount.
None of these tasks have been achieved.
R.S.
What was your take on the reduction of funding to the A-League clubs from $2 million to $530,000 per season announced in May?
J.M.
I knew it was coming and told Stephen Conroy he should go back to basics like the NSL model.
I suggested no levy or licence fee should be charged even if it meant the $530,000 contribution to the clubs was reduced.
Also, that prize money should be allocated for the minor premiership and end of season playoffs and the salary cap removed.
There should also be an increase in the League to sixteen teams to create economies of scale and the clubs should be encouraged to build their asset base to provide income streams and consequent financial stability.
R.S.
What is your opinion of the proposed National Second Tier competition?
J.M.
I can’t see it going ahead and believe the FA always knew this under the current plan.
If it goes ahead, they’ll send the clubs bankrupt.
Without promotion and relegation it’s not sustainable because without this carrot there’s no incentive for the clubs.
R.S.
What is your view of the current Paramount television deal?
J.M.
It’s not successful with subscriptions right down, and with revenue to the clubs only paid on pro rata subscriptions, it’s not an ideal situation.
R.S.
Melbourne Victory was always a flag bearer of Australian football.
Where do you see it now, and in the future?
J.M.
We have to look at the financial situation first because there’s no olive tree in the backyard.
The deal for 777 to buy out the club within five years doesn’t look promising because the club doesn’t have sufficient assets to make a wholesale purchase attractive.
The company also has the weight of the Bonza airline liquidation to contend with and recently their proposed purchase of Everton F.C. has failed.
Consequently, 777’s ability to buy the balance of Victory’s shares which will cost them $40 million seems remote.
Therefore, the only way Victory can stay afloat in the long term is for bank finance to be raised.
However, the question is without sufficient asset backing, who is going to guarantee the bank loans because the existing shareholders certainly won’t.
R.S.
How do you see the future of the A-League?
J.M.
Most of the clubs, except for the Wanderers and Sydney FC, have financial constraints but with new ownership at Perth Glory and Newcastle there is hope on the horizon.
All clubs need is to increase their asset backing and diversify their revenue streams so they can live within their means.
Promotion of the league is also tantamount to its long term stability.
