National second division finds support within the A-League’s top brass

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As a national second division becomes inevitable, key stakeholders within the A-League agree it is crucial to the development of Australian football, forging a path for promotion and relegation to become a reality.

In the past, public perception has been that A-League clubs were hesitant to allow for their positions within the competition to be challenged, however this is quickly changing as the plans for a second division continue to evolve.

A question hanging over the breakthrough is who will handle the administration of the league. Currently, the A-League is run by the Australian Professional Leagues (APL), which is controlled by current A-League clubs.

Danny Townsend, CEO of Sydney FC and the APL, explains that while there hasn’t been any dialogue towards the APL’s role in the running of a national second division, they would willingly support the competition in any way they can.

“We are responsible for professional football in Australia, and everything below that is essentially under the remit of Football Australia (FA), and the member federations in each state. If there is a view that we could contribute or play a role in supporting the second division, either under our banner or in partnership with someone, of course, we would always look to promote football,” he said.

“At the end of the day promoting and encouraging football to be as sustainable as it can be in Australia, and if we have a role to play there we would absolutely engage with that.”

Currently, the clubs that would potentially make up a second division are represented by the Association of Australian Football Clubs (AAFC), who would likely play a large role in the administration of a national second division. Currently the AAFC, the APL and FA are the three biggest players in shaping the structure of professional football in Australia going forward.

Tony Pignata, CEO of Perth Glory, expressed support for a second division featuring promotion and relegation.

“Football needs promotion and relegation. We see it overseas in the leagues, teams are promoted, and the bottom teams are beating the top teams just to survive. It does add a lot to the game, so I think a second division is warranted and needed,” he said.

He adds that the second division will launch when Football Australia can ensure the additional clubs can handle the financial burden of professional football.

“The timing will depend on the financial viability of the league, and that’s what FA are working on at the moment,” Pignata said.

With the support of the APL and A-League clubs, the largest hurdle that faces the second division is creating a structure that is financially viable for the inaugural teams, as they evolve from semi-professional to fully professional outfits. This journey has happened in reverse previously, as the former National Soccer League clubs joined their state leagues at the A-League’s inception.

One idea currently being floated at Football Australia is a structure similar to the current Champions League format –  32 teams divided into groups of four, followed by a knockout stage. The attraction of this format is to reduce costly away days for the clubs, limiting them to just three away games, unless they proceed to the knockout stages.

Whether this would be embraced by clubs within the second division – and the A-League teams who would eventually become a part of the competition through promotion and relegation – remains to be seen. The concept is seen as a stop-gap between bringing the second division into reality and creating a sustainable professional league.

With plans for the structure of a second division still in the works at Football Australia, it is important they deliver a structure that ensures the long-term financial viability of not just the second division clubs, but also those A-League teams that are relegated.

Pignata mentions that some of the hesitancy towards promotion and relegation from the current A-League clubs is due to the potential lack of representation for a state in the Australian top division.

“I’m talking as a football purist. The only issue that the A-League clubs are raising is if Perth Glory gets relegated, and a New South Wales team gets promoted, there is no team in Perth. If Adelaide gets relegated, then there is no team in Adelaide, and that is an issue,” he said.

“But saying that, we have to make sure we don’t get relegated, and that is what you need to fight for.”

Pignata believes that for football to reach its potential in Australia, the challenges of promotion and relegation need to be embraced by the professional clubs, despite potential issues that it would present for current clubs.

“I think in years to come, that is how it will be played, and we have no fear. We shouldn’t be a closed shop. If we want to make football here in Australia as in Europe, then we need to have promotion and relegation, and clubs need to make sure they don’t get relegated.”

Relegation could potentially mean a loss of income that could prove fatal to A-League clubs. One solution to this would be cash payments to relegated teams from the first division into the second, a concept that is currently employed in major leagues around the world such as the English Premier League. These ‘parachute payments’ would protect against the financial shock of relegation, ensuring clubs aren’t forced to fold.

There are several issues that Football Australia, the AAFC, and the APL will be required to resolve before a national second division becomes a reality. Unlike in the past, it is clear there is the will and desire for a national second division like never before.

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Securing Our Football Future: Football Australia’s $3 Billion Plea

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Image Credit: Football Australia Website

In a landmark display of solidarity, Australia’s football governing bodies have united to submit a joint, ambitious proposal to the government ahead of the next federal election, claiming that this proposal is crucial to ensuring the game’s survival.

The sport’s new national agenda, outlined in Securing Our Football Future, calls for more than $3 billion in funding at all governmental levels to cover urgent facilities improvements, grassroots growth, elite development, and Australia’s global aspirations.

The message is clear: without urgent and significant investment, football runs the risk of losing a generation of players at a time when participation in the sport is rising at an unprecedented rate in Australia, especially among women and girls.

A Blueprint for Sustainable Growth

At the centre of Football Australia’s recommendations is the urgent need to bridge the “change room facilities gap”, a rolling 10-year federal program totalling $1.56 billion. Despite football being one of the country’s most played club sports, many community facilities are still outdated, inaccessible, and unsuitable for the increasing number of female players.

Over the next five to ten years, the agenda also requests $1.2 billion from state, territory, and municipal governments to repair vital infrastructure, like drainage and lighting systems, which have been highlighted as significant obstacles to increasing participation in a safe and inclusive manner.

Other key proposals include:

  • $50 million investment in a new national football headquarters to house both Football Australia and the Australian Professional Leagues
  • Funding support for three new state football headquarters and upgrades to five existing ones
  • Backing the redevelopment of Perry Park in Brisbane as a key football venue ahead of the 2032 Olympic Games
  • $1 million seed funding for the launch of the Australian Championship, the long-awaited National Second Tier
  • Strengthened support for sports diplomacy, international tournament bids, and social programs linked to football’s community impact
  • Updates to regulatory frameworks, including visa categories for players, urban planning laws, and stadium policing standards

Grassroots Strain: Participation Outpacing Facilities

Following the Matildas’ historic FIFA Women’s World Cup campaign, grassroots participation has skyrocketed across the nation. However, the infrastructure required to sustain this expansion has fallen dangerously behind.

More than 2,000 community facilities are required to be upgraded, according to a detailed national audit conducted by Football Australia and the state federations. Of these, 7,848 proposed projects were needed to satisfy “minimum standard” requirements.

Football NSW CEO, John Tsatsimas, emphasised the urgency in New South Wales, where football has the greatest participation rates of any sport.

“Football is the most popular sport in New South Wales, yet many facilities are outdated. Investment in modern fields, lighting, and female-friendly amenities is essential to support our growing football community. Government funding will ensure safe, inclusive spaces for all players, driving participation and talent development,” he said via Securing Our Football Future.

The challenge is even more acute in Victoria, a state that is experiencing rapid population expansion in suburban corridors.

Football Victoria Acting CEO, Dan Birrell, warned that without immediate investment, the sport risks losing young players.

“Children are being turned away due to a lack of suitable playing fields and facilities. Government investment in modern, accessible pitches and club infrastructure is essential to creating more opportunities for children, fostering community connections, and ensuring football remains inclusive and accessible for all,” he said via Securing Our Football Future.

Strengthening the Domestic and International Game

The Securing Our Football Future agenda goes beyond community football to focus on the game’s larger ecosystem, from strengthening Australia’s standing on the international football scene to expanding the A-League.

In order to assist the league’s expansion and stability, key professional clubs, including Macarthur FC, Melbourne City, Melbourne Victory, Western Sydney Wanderers, and Perth Glory, have all pushed for regulatory changes. These include reforms to high-performance funding, simplified visa categories for foreign athletes, and urban development plans to promote improved access to stadiums and training facilities.

APL, Executive Chair, the Hon. Stephen Conroy, highlighted the importance of building on the momentum of the A-Leagues in showcasing local and international talent.

“Football infrastructure, facilities and stadia are not keeping pace with the huge grassroots participation, and the growing pathways and professional game in Australia. It’s hoped this initiative will help unlock the investment the participation base and potential of the game deserves,” he said via Securing Our Football Future.

Meanwhile, the establishment of the Australian Championship — a brand-new National Second Tier league — is seen as a vital component that will provide a direct pathway between grassroots and professional football.

At the elite level, continued support for the Subway Socceroos and CommBank Matildas is still essential, as is deliberate funding for initiatives like Bridge to the World, which aim to give Australian players additional opportunities abroad.

A Critical Moment

Although several members of the football community applauded the federal government’s recent $200 million grants program called Play Our Way, leaders contend that, especially considering the size of the participation surge, it does not adequately address the urgent needs of grassroots infrastructure.

Football Australia CEO James Johnson emphasised that the sport’s rapid growth must be matched by urgent infrastructure investment.

“Our surge in participation has put football at a tipping point where our growth is outpacing our infrastructure. All levels of government need to act to address the facilities gap to give grassroots players an opportunity to participate and support our current and emerging talent to compete on the world stage,” he said via Securing Our Football Future.

The message from football’s unified leadership is straightforward: the sport’s current momentum, which is based on generational accomplishments, runs the risk of halting without immediate, significant investment.

Securing Our Football Future provides a road map for not just preserving the game but also fulfilling its full potential as Australia’s inclusive, diverse, and grassroots global sport.

The time to act is now.

To read through the full Securing Our Football Future 2025 policy proposals, click here.

New board appointments and regulatory reform announced by APL

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Image credit: PxHere

The Australian Professional Leagues (APL) have announced the appointment of two new Club Directors to the APL Board, as well as updates to the salary cap structure which will be implemented from the 2025/26 season.

At an Extraordinary General Meeting held earlier today, Club Unitholders voted to appoint John Dovaston, Chairman of Melbourne Victory, and Kaz Patafta, Chairman and CEO of Brisbane Roar, as new Club Directors to the APL Board.

Both bring a strong mix of football, business, and governance experience to the table, drawn from their work both within and outside the sport.

The rest of the Board — including the Chair, a Silver Lake Director, the FA-appointed Director, and three existing Club Directors — remains unchanged, as they were not up for election.

After consulting with the Board, Club Unitholders, and club reps, the APL also announced it will introduce a new financial sustainability framework for the A-Leagues, to be rolled out over the next three seasons.

The focus will be on revamping the salary cap system.

The current setup which includes a $2.55 million soft cap and six types of salary exemptions was originally designed to support financial stability and competitive balance, but it’s no longer delivering as intended.

Starting from the 2025/26 Isuzu UTE A-League Men season, a $3.5 million hard cap trial will be introduced.

Then, in 2026/27, a $3 million hard cap (plus one marquee player) will be enforced. Clubs that exceed the cap will face financial and sporting penalties.

For the 2025/26 season, clubs will still operate under the current salary cap rules and exemptions, with the trial period acting as a transition to the new system.

A broader financial model, based on each club’s revenue will be finalised with input from clubs and the PFA and introduced in the 2027/28 season.

Executive Chair, Stephen Conroy, highlighted the need for change when it came to the current salary cap structure as well as the benefit of the new reform.

“Following consultation with clubs over the last twelve months, it was determined that the current spending structure, which has been in place since 2005, was no longer fit for purpose,” he said in a press release.

“We are doubling down on strategies that are already working; investing in our product and highlighting our fantastic homegrown talent. 

“The implementation of these reforms over the coming years is designed to ensure a competitive balance and to build long term foundations for growth that helps unlock the full revenue potential of each club.

“The APL Board firmly believe this is the model for long term success, giving clubs time to assess and plan before a new model is agreed to for season 2027/28 based on global best practice, that can deliver greater outcomes for talent development and a better football product.ˮ

The APL’s latest moves mark a significant step forward for the future of the A-Leagues, with new leadership on the Board and a clear plan to overhaul the financial structure of the competition, the league is positioning itself for long-term stability and growth. 

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