A-League clubs have been offered a pay rise of $450,000 each for next season from the FFA, according to a report in the Sydney Morning Herald.
The paper said that at a Joint A-League Strategic Committee (JALSC) this week, the governing body offered the 10 clubs a dividend of $1.9 million each for 2012-13 – an increase of $450,000 from last season and within striking range of the $2.8 million salary cap.
Part of the increase, which is subject to revenues from the Socceroos World Cup qualifying campaign meeting targets, is funded by a new government-backed sponsorship. The SMH says the offer is not dependent on the new television deal, reported to be in an advanced stage of negotiation and could be worth almost double the existing contract with Fox Sports.
Clubs have been told when the new TV deal is finalised, they will no longer have to meet the costs of the salary cap.
The FFA has completed financial modelling, which allows for the increased dividend without TV revenue. However, it is understood the World Cup qualifying campaign, in which the Socceroos will play three home games in the first half of next year, is a key factor. While the FFA offer is not guaranteed, only a collapse in gate and sponsorship income from those World Cup matches is likely to adversely affect the distribution.
”Increasing the annual distribution to the level of the salary cap is the priority and we can see good progress towards that target in 2012-13,” an FFA spokesman told the SMH. ”As we’ve said before, building a financially sustainable A-League is the core strategic objective.”