Australian Premier League

FOR THE FANS DECEMBER 2002 Copyright - PFA Management Limited (2002) FOR THE FANS DECEMBER 2002 TABLE OF CONTENTS 1. THE FINAL FRONTIER 1 1.1. A Lifetime Opportunity – To Create a New Quality Premier National Competition 1.2. Australian Premier League 2. APL STRATEGY 3 2.1. The APL "5 Pillars" Strategy (a) The 1st Pillar – Quality (b) The 2nd Pillar – Atmosphere (c) The 3rd Pillar – Community (d) The 4th Pillar – Local Brands (e) The 5th Pillar – Visibility 2.2. Quantitative Support for the APL "5 Pillars" Strategy 2.3. Perth Glory – a Living Model of the "5 Pillars" Strategy 2.4. Future Opportunities (a) International Strategy (b) APL Expansion 3. THE MARKET FOR SOCCER IN AUSTRALIA 5 3.1. Critical Mass 3.2. A National Television Audience 3.3. Participation 4. THE MARKET FOR THE AUSTRALIAN PREMIER LEAGUE 7 4.1. Overview 4.2. What the Market Can Sustain (a) National Summary (b) Equality of Commercial and Sporting Opportunity (c) APL Team Location 4.3. Target Markets 5. APL GOVERNANCE AND STRUCTURE 11 5.1. APL Governance 5.2. APL Structure (a) League Shareholder (b) Club Shareholders (c) Soccer Australia Limited (d) State and Territory Soccer Associations (e) FIFA and the “Good of the Game” AUSTRALIAN PREMIER LEAGUE 6. APL FINANCIAL SUMMARY 13 6.1. "5 Pillars" Financial Strategy 6.2. Key Drivers of the APL Revenue Streams (a) Attendances (b) Broadcast/Media Audiences 6.3. Financial Summary (a) Overview (b) Timeframe 7. CONTACT PARTICULARS 16 LIST OF FIGURES Figure 2.1 – APL "5 Pillars" Strategy Figure 2.2 – Reasons for Not Attending National Soccer League, Nationally and in Perth (%) Figure 2.3 – NSL vs. Overseas Team Support Figure 3.1 – Watch Soccer on Television, (’000’s) Figure 3.2 – Peak Ratings by Market, Key Sports Events 2002 Figure 3.3 – Peak Television Audiences, Australian National Soccer Teams and 2002 FIFA World Cup Final (millions) Figure 3.4 – Total Registered Players for Boys Aged 5 to 14 Figure 3.5 – Total Soccer Players, (’000’s) Figure 4.1 – Interest in APL Concept (%) Figure 4.2 – Interest in APL Concept by State (%) Figure 4.3 – Interest in APL Concept – Existing NSL Supporters (%) Figure 4.4 – Desired APL Team Participant & Customer Base Figure 4.5 – APL Team Participant & Customer Base – Sydney Figure 4.6 – APL Team Territories – Sydney Figure 4.7 – APL Team Territories - Melbourne Figure 4.8 – APL Team Participant & Customer Base – Melbourne Figure 4.9 – APL Team Participant & Customer Base – Adelaide Figure 4.10 – APL Team Participant & Customer Base – Brisbane Figure 4.11 – APL Team Participant & Customer Base – Perth Figure 4.12 – Psychographics of Potential APL Supporters Figure 5.1 – APL Organisational Structure Figure 5.2 – Australian Premier League Limited - Constitutional Structure Figure 6.1 – "5 Pillars" Financial Strategy Figure 6.2 – Independent Media Rights Valuation 1. THE FINAL FRONTIER 1.2. Australian Premier League Soccer is the final frontier of Australian sport. The Australian Premier League will be a totally new premier national soccer competition initially consisting of 10 APL Teams to be owned and By achieving sustainable success on and off the field and, in the next 20 fielded by APL Club Shareholders. years, winning the FIFA World Cup, Australia would finally conquer that frontier. In so doing, soccer will uniquely enhance the rich sporting her- Unlike the current National Soccer League of Australia (NSL), the itage and tradition that underpins Australia’s powerful sense of national Australian Premier League will be established as a well-capitalised busi- identity. ness. This structure will ensure that the game is visible, of high quality, well resourced and extremely well managed. The APL will be governed by The establishment of an independent, quality and fully professional pre- a highly able and respected group of independent commissioners who will mier national soccer competition is fundamental to the attainment of that constitute the APL Board of Directors and be known as the APL vision. As the game’s economics are driven by club soccer and not nation- Commission. Like the most successful professional team sports in the al team schedules, it is also fundamental to the realisation of soccer’s United States and the Australian Football League, the APL Commission commercial potential, both in Australia and with our Asian and regional will be vested with the power to act in the best interests of the game with- neighbours. out regard to club politics. Most importantly, the creation of that competition is critical if the game’s Indeed, as a start up venture, the APL has embraced the opportunity to most important stakeholders – the fans – are to truly embrace Australian adopt an optimal League structure that will be the envy of traditional pro- soccer. fessional team sports. Every decision regarding the APL model has been made objectively and is based on extensive and empirical analysis of the 1.1. A Lifetime Opportunity – To Create a New Quality Premier Australian market place and the soccer industry throughout the world. National Competition Each APL Team will enjoy exclusive territorial rights for marketing and The opportunity to create the Australian Premier League (APL) has been game development purposes, which will be contractually protected. It is recognised following extensive empirical market research, which has iden- intended for the APL Commission to appoint the 10 APL Teams following tified an untapped market for high level soccer in Australia.1 That research a public Expressions of Interest process. suggests that by correctly positioning, structuring and capitalising the APL, an elite national soccer competition can be created that will attract The APL Teams will be located as follows: the necessary crowds, media audiences and, in turn, commercial revenues to underpin a sound business model. • one in each of Perth, Adelaide and Brisbane; • 2 in Melbourne; The market research is consistent with the massive television ratings • 3 in Sydney; and recently seen in Australia for the 2002 FIFA World Cup and Australia’s • 2 further will be selected from other markets in Australia or efforts to qualify. It is also consistent with the game’s enormous levels of New Zealand, based on business merit. junior participation, which see soccer’s participant base of some 600,000 greatly exceed other football codes, such as the rugby codes and The APL Teams will not be representative of any particular ethnic group Australian Rules football. and will draw their supporter bases from the broader Australian community – estimated at around 6 million people by the 2002 Sweeney Sports The growing determination of Australians for soccer to realise its potential Report. on and off the field recently culminated with the announcement by the Australian government of a major review into the governance, structure and Every APL Team will have strong ties with the grass roots communities management of the game. The review, to be conducted by the Australian they represent and serve. The various APL Teams will be required to run Sports Commission (ASC), will finally see the game adopt the standards and manage children’s clinics, elite programs for talented children and of professional sports administration for which Australia is internationally coaching courses, as part of their geographic responsibilities and market- renowned. ing initiatives. The best coaches and the highest profile players will play an integral part in delivering these programs. Furthermore, the effective- With the ASC’s report to be handed down in May/June 2003, it is now ness of these programs will be enhanced through strategic relationships opportune to commence the work on the establishment of a new and elite between the APL, each APL Team, Soccer Australia and State and Territory national competition that will play a fundamental role in tapping the iden- Soccer Associations, which will be enshrined into the APL’s constitutional tified market for high level soccer in Australia. structure. The APL Teams will be required to play their home and away matches at specially prepared boutique stadiums with capacities of between 10,000 to 15,000 people. While this is designed to create an exciting, "close to the action" atmosphere, the APL will also ensure that the stadiums meet the high expectations of the sporting public. 1Open Mind (2001), PFA Management Limited (2002) AUSTRALIAN PREMIER LEAGUE 1. To this end comfort, safety and access to good quality, reasonably priced food and beverages will be key deliverables of the various APL Teams at each stadium where the APL is played. Supporters will be given the choice between reserved seating in the grandstands or budget priced admission in the terraces – for those that prefer their soccer in this form. Each stadium will also be required to comfortably accommodate the sponsors and corporate partners of the League and each APL Team, to provide excellent networking opportunities and to maximise each partner’s commercial investment. It is envisaged that the APL will attract the top 60 to 65% of the players currently playing in the NSL, together with leading players presently with- in Australia’s well credentialed elite player development system. In addi- tion, the APL will assist all APL Teams in recruiting 50 Australian soccer players presently pursuing their playing careers in Europe. A collective bargaining agreement with the Australian Professional Footballers’ Association (PFA) will fund player education, welfare and retirement programs to maximise the attractiveness of the Australian playing career path. The strategic location of each APL Team, coupled with strict financial poli- cies managed by the League, will ensure the relative equality in the spend- ing power of each Team. To further ensure that all founding APL Teams have access to quality players and an even competition is guaranteed from the beginning, the collective bargaining agreement with the PFA will also include a salary cap.

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