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Professional Football in Australia
John Mangan
Australian Institute for Business and Economics
University of Queensland
Covid-19 and
Professional Football
in Australia
A PERSONAL VIEW
Characteristics
of Professional
Sport in
Australia –
before COVD-
19
Media rights now more contested and sponsors more
discerning
Sports revenue function made up from attendance,
sponsorship, media rights, merchandise membership and
philanthropy
Overall per capita spending on sport and recreation has
fallen consistently over the last 5 years from $55.60 to
$49.70
Initially this has impacted in the Super - Rugby Competition
but is now starting to impact on A league, Netball and
Basketball
Market Saturation – heightened by the rapid and
unexpected growth in professional female sport
Fragility &
under-
preparedness
of clubs –
living with
COVID19
Clubs unprepared for severe shocks
No real “future fund” or contingency savings
Lack of wage insurance for players
Lack of managerial talent - ex players often
become CEO’s of clubs
Lack of skilled staff - compare and contrast
with US
By and large Australian concentration is on
domestic rather than international competition
What comes
next?
Clubs faced with excess costs - pressure on contracts
May even see the re-emergence of the part-time
professional
4 (8 including female counterparts) professional football
codes - not all will survive
Rugby union may go back to being a domestic club based
sport or seek merger with Rugby League
A league - look for sponsorship deals/player exchange with
overseas clubs - need expansion into Asia, starting with
Singapore
Media - more discerning with contracts
Structural reforms - contingency funds, wage insurance
Dire Predictions
New hygiene measures for mass event winter sports is
likely & will be costly to combat the annual flu season
(2,800 die per year from the flu)
This is another reason not to build super stadiums
The COVID19 social distancing measures could represent a
serious 'structural break' in terms of crowd attendance at
football games,
Pay-tv impact where people are more reluctant to go out to
games
Weakest sports structurally will be the most vulnerable NRL too
high cost structure, Union – declining mass support numbers
& narrow base, Female sport (new with low support base
CRICOS code 00025B
Thank you
Professor John Mangan
Director Australian Institute for Business and
Economics (AIBE)
jmangan@bel.uq.edu.au
07 3346 1630
Ad

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Covid-19 and Professional Football in Australia

  • 1. Professional Football in Australia John Mangan Australian Institute for Business and Economics University of Queensland
  • 2. Covid-19 and Professional Football in Australia A PERSONAL VIEW
  • 3. Characteristics of Professional Sport in Australia – before COVD- 19 Media rights now more contested and sponsors more discerning Sports revenue function made up from attendance, sponsorship, media rights, merchandise membership and philanthropy Overall per capita spending on sport and recreation has fallen consistently over the last 5 years from $55.60 to $49.70 Initially this has impacted in the Super - Rugby Competition but is now starting to impact on A league, Netball and Basketball Market Saturation – heightened by the rapid and unexpected growth in professional female sport
  • 4. Fragility & under- preparedness of clubs – living with COVID19 Clubs unprepared for severe shocks No real “future fund” or contingency savings Lack of wage insurance for players Lack of managerial talent - ex players often become CEO’s of clubs Lack of skilled staff - compare and contrast with US By and large Australian concentration is on domestic rather than international competition
  • 5. What comes next? Clubs faced with excess costs - pressure on contracts May even see the re-emergence of the part-time professional 4 (8 including female counterparts) professional football codes - not all will survive Rugby union may go back to being a domestic club based sport or seek merger with Rugby League A league - look for sponsorship deals/player exchange with overseas clubs - need expansion into Asia, starting with Singapore Media - more discerning with contracts Structural reforms - contingency funds, wage insurance
  • 6. Dire Predictions New hygiene measures for mass event winter sports is likely & will be costly to combat the annual flu season (2,800 die per year from the flu) This is another reason not to build super stadiums The COVID19 social distancing measures could represent a serious 'structural break' in terms of crowd attendance at football games, Pay-tv impact where people are more reluctant to go out to games Weakest sports structurally will be the most vulnerable NRL too high cost structure, Union – declining mass support numbers & narrow base, Female sport (new with low support base
  • 7. CRICOS code 00025B Thank you Professor John Mangan Director Australian Institute for Business and Economics (AIBE) jmangan@bel.uq.edu.au 07 3346 1630