Soccer Australia In Controversial Cull of Four NSL Teams
A landmark decision by the Board of Soccer Australia to ensure the viability of the National Soccer League in the coming season and the future of soccer in this country was laid down today.
The Board, in a unanimous decision, has adopted the findings of the independent Review Committee for a 12-team competition for the 2001/2002 season.
This far-sighted decision sees the coming of age of the NSL and soccer in Australia. It will provide the platform for widespread confidence in the ability of the game to compete at all levels with other football and sporting codes. It will provide a competition in which players, commercial partners, sponsors, broadcast media partners, clubs and the fans can confidently rely and commit.
The previous Board of Soccer Australia established an application process and criteria for admission in the 2001/2002 league – agreed to by all participating NSL clubs. This process, which was developed in consultation with Ernst and Young Professional Services and independent legal counsel, ensured all decisions reached were transparent, based on fair, objective and measurable criteria and were reviewed by an independent and unbiased appeals tribunal.
Today’s decision concerning the structure of the NSL and number of participating teams has been based on transparent, fair and objective criteria.
The Board’s decision will not please everyone, however the time has come for change. Strong leadership and a comprehensive, totally transparent and fair process were required for the immediate and long-term sustainability of the game in Australia.
Every team was aware of the application process, recognised its requirements and agreed to it. This decision is based on an open approach to reach a point where soccer’s future is secure.
In collaboration with the NSL, clear, measurable objectives were set using recognised accounting standards for determination of financial viability, which became the basis for the ‘going concern’ test.
Those teams deemed to have met the ‘going concern’ criteria were then given provisional ranking.
Under the consulting guidance and advice of Ernst and Young and Browne & Co., the process – which was agreed by all teams – ensured clubs were kept informed of progress and provided with the ability to appeal their ‘going concern’ assessment or provisional ranking.
Soccer Australia confirmed no board member was involved during the review process and the final decision was made in accordance with the agreed process. It had been resolved that the Board would accept the recommendations of the Review Committee.
Any decision not to accept the recommendations of the Review Committee would have exposed the directors to allegations of making decisions other than on the basis of proper criteria.
At a time when soccer in this country is on the cusp of a major revival this Board is determined to ensure a viable 12 team competition – with all participating teams meeting the going concern criteria.
Eleven Australian clubs and one New Zealand team (as agreed between Soccer Australia, the Oceania Football Confederation and FIFA) have had their applications for the 2001/2002 season accepted.
These are: Adelaide City Force, Kingz FC, Marconi Stallions, Melbourne Knights, Newcastle United, Northern Spirit, Parramatta Power, Perth Glory, South Melbourne, Sydney Olympic, Sydney United and Wollongong Wolves.
Four teams from the 16 which entered the 2000/2001 season will not be included in the NSL for the upcoming 2001/2002 season.
Canberra Cosmos failed to meet the criteria set under the ‘going concern’ test, in particular whether the club was ‘in the reasonable opinion of Soccer Australia likely to remain a going concern’. This decision was upheld by the Independent Soccer Australia Appeals Tribunal in April 2001.
Whilst Brisbane Strikers met the ‘going concern’ criteria the club failed to rank ahead of any other Australian teams for the eleven available positions. This decision was upheld by the Independent Soccer Australia Appeals Tribunal in April 2001.
Eastern Pride and Carlton failed to complete the 2000/2001 season due to financial difficulties.
The Board of Soccer Australia extends its deepest sympathies to those clubs, players and fans who will not be participating in the NSL next season.
Both Queensland and the ACT have strong soccer heritages and large participation bases. The Board stresses in the strongest possible terms that teams from the ACT and Queensland will be invited to reapply for future seasons.
From a professionally-run 12-team competition in 2001/2002, we will forge a strong base from which to grow a national NSL. It is our intention to find ways to expand the number of teams in the future. As a priority, consideration would be given to including financially stable teams from unrepresented regions.
Soccer Australia confirmed it would apply an ongoing and stringent ‘going concern test’ to all teams participating in next year’s and future NSL competitions.
The Soccer Australia Board comprises: Tony Labbozzetta (Chairman), Greg Woods (Deputy Chairman), Les Avory, Cheryl Bart, Joe Brondolino and Bill Walker. Please note that Mr Labbozzetta did not participate in the review process, citing the possibility of a perceived conflict of interest arising from his position as President of Club Marconi.
The Review Committee comprises: David Woolley, CEO Soccer Australia and Stefan Kamasz, NSL General Manager.
For further information, please contact:
Soccer Australia
David Woolley, Chairman
Tel: +61 2 9267 0799
Fax: +61 2 9267 2559