Wednesday, January 19, 2011

Fans the losers in private ownership

Tony Sage is the epitome of the passionate sports supporter.

Not only does Sage have an emotional investment in his beloved Perth Glory but he has made a financial one as well. A big one. We're talking huge bucks here. The kind of cash that is made through digging minerals from the WA dirt.

But while Sage has forked out an estimated $6 million to prop up WA's A-League team over the past three years, his side haven't been able to turn that support into success on the pitch.

Sage is an astute deal maker. He has negotiated with some of the shrewdest mining executives here and in Asia. He knows a bum offer when he sees one.

And what happens to WA's premier soccer team when Sage decides enough is enough? That day might be closer than you think, especially if the Glory can't rebound.

Sure, Sage has signed a 10-year deal with the FFA to operate the Glory. Yet as he pointed out to thewest.com.au last year, "But that doesn't mean I can't sell the shares at some point".

He also told The West's soccer guru Jonathan Cook last month that "If (a minimum of) 9000 fans turn up (each match), I'm here for the long haul".

But what if they don't? What happens to the Glory is Sage decides it's time to cut his losses? Where do the poor old fans sit? Can the club they support disappear?

Sage's position puts the spotlight on privately-owned sporting teams. In Australia, it is far more economically efficient to stand in the middle of Hay St and throw your dollars into the air. After all, owning a sporting club means chucking money away.

WA philanthropist Jack Bendat is believed to lose about $750,000 a year on NBL champions, the Perth Wildcats.

Should Bendat and Sage, heaven forbid, suffer financial stress or simply determine they are no longer having fun being a sporting cash cow, who picks up the pieces?

Sure, the FFA will want an A-League team in Perth. But they are already pinching pennies after plunging millions into a World Cup bid.

The NBL would probably have to let the Wildcats fall over unless there are other businessmen willing to throw good money after bad. The basketball league couldn't afford to prop up another hoops side.

The AFL tried private ownership with West Coast, Sydney and Brisbane Bears. All three failed so miserably that financial rescues were needed to save each team.

While there is criticism of the structure of the WA Football Commission, the organisation must be heralded for its ability to control every aspect of the code in WA. The WAFC hold the two AFL team licences but also run the WAFL, umpires, country football, amateurs, women's and juniors footy.

The WACA have a similar arrangement for cricket and to a lesser extent so does Rugby WA, which controls the Western Force.

The structure of football, cricket and rugby in WA ensures the faithful fans keep ownership of the games they love. Their passion isn't beholden to one person. Their dreams won't be destroyed by one person's exit.
Private ownership might be the world trend. While entrepreneurs have raised the stakes of clubs, their control means the average supporter can't have a say in the running of their team or the organisation that controls it.

And when things go wrong, as we have seen in overseas soccer, it is those loyal fans that are left to cry over the fallen pieces.

Follow Ross Lewis on twitter - @R_Lewis_thewest

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