Don’t blame Clive Palmer – Gold Coast United was doomed from day one

The decision taken by Football Federation Australia to revoke the Gold Coast United licence should come as no surprise. GCU owner Clive Palmer has been highly critical of the FFA in recent weeks. He slammed the league’s management then went on to breach the league’s participation agreement by removing…

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With so few fans, Gold Coast United was never going to make it. AAP/Dave Hunt

The decision taken by Football Federation Australia to revoke the Gold Coast United licence should come as no surprise.

GCU owner Clive Palmer has been highly critical of the FFA in recent weeks. He slammed the league’s management then went on to breach the league’s participation agreement by removing the major sponsor’s name from the players' shirts, replacing it with a slogan that read “Freedom of Speech”.

This was apparently a response to FFA advice he was demonstrably disloyal to the league by claiming it had done nothing to assist GCU in sustaining its operations.

Suddenly, good will between Palmer and the FFA vanished in a couple of rush-of-blood-to-the-head decisions.

Who is to blame?

Palmer threw a lot of money into GCU AAP/Dave Hunt

But this stoush is a sign of something much deeper than who is to blame for the dismal performances of GCU over recent times.

It is really about the economic viability of FFA in its current form, and its capacity to support a national league where nearly every club is battling to break even, and its national spread is dependent on the generosity of franchise owners.

Clive Palmer is a case in point. For all his bravado and off-the-top-of-the-head pronouncements on the league’s governance and management, he has sunk a lot on money into a team that was never going to be viable. The idea that Gold Coast could ever break even by having a team roster of full time professionals and attracting 4,000 fans to its weekly fixtures was pure fantasy.

But Clive Palmer should not be blamed for the current crisis. In fact he should be applauded for his risk-taking ability, and his preparedness to give it a go in full knowledge he was throwing his capital into a bottomless financial pit dug by FFA.

Doomed to fail

Gold Coast United was never going to make a profit for its owner, and because of its limited resource base, it was never going to attract the big name players, or secure the best credentialed coaches. It was never going to attract a large fan base, especially in the light of NRL team the Gold Coast Titans‘ solid supporter base and the Gold Coast Suns’ 2011 crash-bang entry into the AFL with a massive promotional edge in recruiting Karmichael Hunt and Gary Ablett.

It should also be noted that the early demise of an A-League franchise is not new. Townsville was touted as a team of enormous potential a few years ago.

But it became clear early on that the franchise was not going to survive unless it was able secure not only a remarkably generous corporate partner, but also an exceedingly wealthy benefactor-come-owner who would be quite comfortable throwing away money in order to keep a big name national league franchise in a frantically aspirational town somewhere in northern Queensland.

Shaky ground

The current fracas between Palmer and FFA highlights the economic fragility of the A-League. It might, on paper, have a nice spread of teams across the big cities. It has certainly secured a number of highly skilled players. It now has a few nice stadia in which to play its games with some solid coverage on Fox Sports, and it has managed to build up some good corporate partnerships. But it is also an exceedingly unbalanced competition from a financial perspective.

Gold Coast isn’t the first club to go, and it won’t be the last. AAP/Dave Hunt

Once Melbourne – in the form of the Victory and Heart – is taken out of the equation it all falls bit flat.

Perth and Adelaide will never become commercial drivers of the A-League’s vision to become the major football competition in Australia.

Brisbane has been captured by rugby league, with the AFL riding on its coat-tails, northern Queensland and the Gold Coast no longer have the confidence to support an A-League team any time soon, and a western Sydney franchise will take a lot of time and money to establish.

All that is left is a belt around Sydney comprising three teams, none of which have captured the hearts and minds of as many fans as first imagined. This is not a good foundation for building the soccer brand, and matching it with the big-boys of the AFL and NRL.

A sign of things to come?

The A-league is clearly a loss leader, but it is has difficulty doing what loss leaders are supposed to do, which is to capture a solid share of the market, and make it bigger sooner rather than later.

And if the A-League cannot secure a lot more support over the next few years, it will be just a matter of time before the whole commercial edifice comes under serious challenge, or even worse, collapses into a massive pile of sporting rubble.

Join the conversation

5 Comments sorted by

  1. Guido Tresoldi

    logged in via Twitter

    So is the article saying that basically any national Association Football competition in Australia is a lost cause? Association Football may not be the 'most followed' code in Australia, but it has a following, and this following deserves a competition.

    I agree that overall the strategy of the FFA after its initial couple of years was not well targeted. However there are ways to make a 'minority' code to be successful. One example is the MLS in the USA. The majority of the teams now play in…

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  2. James Mahon

    Student

    North Queensland Fury were a foundation club were they?

    "A-league is clearly a loss leader" with no mention of the history of or potential for growth in advertising, TV rights and crowds? Which parts were undervalued? Which parts have seen increase or decline? Which parts looks set to grow soon? Is the entire league a loss leader for the game or were the first X seasons structured as loss leaders for the league long term? Does it just need more support (crowds + viewers) or can current levels of support be leveraged to a sustainable model in the near future. Will each team need X support to survive, or will centralised revenue eventually reach levels required for survival?

    This article is not Conversation standard.

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  3. Michael Block

    Idler

    GCU has 2 problems: an owner who doesn't understand football and who seems to neither run his club to maximise profit nor on field success although you could make a reasonable case that GCU has performed above expectations on the field. Remember this team beat Fulham FC in a practice game before they'd even played their first HAL game. Palmer has been unable to capitalise on this and has driven fans away with his understandable efforts to save money. This leads to the second issue.
    Skilled Stadium is difficult to get to with limited public transport options. Stadium costs are outrageously high and this resulted in Palmer capping crowds at 5000 to avoid higher stadium and traffic management fees. How on earth did due diligence by Palmer and FFA think that this would be viable?

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  4. Marshall Clark

    Australian National University

    I agree, this article is not of a very high standard. The general message is: "you're going die anyway, so best not to get out of bed and save everyone the inconvenience".

    The author gives himself away when he drops the names of 2 AFL players compared to 0 A-League players (and who on earth if Karmichael Hunt???), and forgets (or perhaps never knew) that Gold Coast has attracted many quality players, including several international players, not to mention Jason Culina, who was previously playing…

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  5. Michael Maloney

    Supercheap Self Storage

    I have always been a fan of soccer, though with no strong affiliation of liking to a particular team, but seeing this news, I just hope that the Gold Coast United is able to maintain and survive its dilemma and issues since last year. It has been a year since then, and I am not sure what happened already. Some of my co-workers at the storage facility are die hard fans of soccer and have been talking about this endlessly. I enjoyed watching the game together with them, but recently we have been watching more of rugby than soccer. It is always a night of drinking and shouting at the screens.

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