K-League’s beneficial partnership with La Liga: A blueprint for the A-League?

The A-League reported last week that Australia’s international transfer revenue has increased by a staggering 1344% over the past three years.

With 2023/24 recording transfer revenue of $16.5 million and 2024/25 reaching $16.9 million, these figures represent a significant improvement compared to the 2022 season, which recorded just $4.17 million in revenue.

This growth coincides with recent data from the A-League showing that the 2024/25 season has seen 39% of A-League minutes played by under-23 players, compared to just 18% in the 2023/24 season and 13% in the 2022/23 season.

This indicates that this season alone has seen a 26% increase in overall minutes played by young players since 2022.

The result of this rise in youth talent is evident with Australia qualifying for the Under-20 Men’s World Cup for the first time in more than a decade and, just last week, lifting the trophy at the Under-20 Asian Cup.

The A-League’s recent success in youth playing time is directly intertwined with the rise in transfer revenue.

This increase in youth participation has emerged as a silver lining from tough times in the league.

In the most recent “Off the Pitch” podcast from Soccerscene, guest speaker Gary Cole, current president of Football Coaches Australia, provided his professional insight into one of these situations.

He explained that the COVID-19 crisis and the financial constraints placed on A-League clubs forced them to look inwards for talent.

Another recent catalyst has been the reduction in funding from the Australian Professional Leagues.

With funding decreasing from $2 million to $500,000 in 2024, clubs have faced difficult financial decisions regarding their budgets.

Players from club academies or even NPL clubs are far more cost-effective for club budgets than more expensive signings.

Additionally, their selling and transfer value provides a huge boost to club revenues.

These events are not coincidental but are catalysts for the rise in homegrown talent testing their skills and showcasing their quality on the big stage.

It demonstrates how, during tough times for the league, supporting youth development has become a key part of the league’s success and represents a profitable and dynamic opportunity for the future.

This opportunity to produce and showcase players to increase Australian youth football standards and therefore transfer value is a proven strategy in football.

Ajax’s Academy is renowned for developing class players and has for many years been a funnel for building their academy graduates and selling players for a profit.

In South America, Brazilian and Argentinian clubs such as River Plate, Boca Juniors, Fluminense and Flamengo have been persistent sources of footballing talent.

Selling stars like Vinicius and Julian Alvarez to Europe for significant financial benefits while still maintaining a healthy domestic talent structure and international success.

Importantly, the common factor in these successful systems is regular first-team minutes at their clubs and even on the international stage.

The evidence from A-League transfer revenues is fitting this pattern.

One must point out that, though this is a great revenue source and a way to place Australian football on the map, this focus can have an adverse effect on the domestic scene.

Football fans are passionate about their clubs, and nothing brings out more pride than watching one of their own prospects grow and play for them.

To use academy players primarily as revenue-building prospects can undermine the important place they have at the club and the overall goal of academies.

This could potentially alienate fan bases, impacting popularity and therefore the quality and financial interests of the league.

Transfer revenue should not be the central response to the league’s current financial burdens.

Being realistic about the position of the A-League in the international football hierarchy is crucial, though ambitions for the league to climb cannot be sidelined.

The rise in player transfer revenue presents an enticing prospect for investment and brings increased popularity.

Players themselves also have their own dreams and aspirations that must be taken into account, which can also encourage transfers and revenue.

Currently, the A-League has the unique opportunity to give its promising young players the chance to play top-level football while producing significant revenue and attracting sponsorship.

Australians playing overseas and at home, puts Australia on the map and solidifies our rise in the footballing scene.

If the focus on homegrown talent is managed well, Australian football will reap huge rewards.