NEW ZEALAND FOOTBALL National Competitions Review - SEPTEMBER 2015 - NZ Football
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NEW ZEALAND FOOTBALL National Competitions Review SEPTEMBER 2015 CONTENTS 1 EXECUTIVE SUMMARY 5 1.1 What Have We Been Doing? 5 1.2 Where Have We Come From? 5 1.3 What’s Happening? 6 1.4 The Head Wind Factor! 6 1.5 Where To Now? 7 1.6 Form Your Future View: Work Back From There 8 1.7 Working Towards The Future View 9 2 ANOTHER COMPETITIONS REVIEW? 10 2.1 Competitions Structures = The Engine Room 10 2.2 Whole Of Football And The Strategic Plan 12 2.3 Beyond Football 13 3 WHY AND HOW: REVIEW PURPOSE AND PROCESS 14 4 HAVEN’T WE TRIED EVERYTHING? SEEMS LIKE IT! 16 4.1 National Competition Structures 1970-2015 (Senior Men) 16 4.2 National Soccer League 1970-1992 17 4.3 Super Club League 1993-1995 17 4.4 National League 1996-1998 17 4.5 National League 1999 18 4.6 National League 2000-2003 18 4.7 Franchise League 2004 - Present 18 4.8 Taking Another Look In 2009 And 2011 And 2012 18 4.9 National Competition Structures (Senior Women And Youth) 19 5 THE MANY AIMS OF THE FRANCHISE-BASED STRUCTURE 20 6 LET’S BE STRAIGHT UP! REALITIES OF THE STRUCTURE 22 6.1 The New Zealand Football Financial Picture 22 6.2 Other Outcomes 23 6.3 What Can We Learn From Overseas? 25 2 NZ Football - National Competitions Review
7 THE EVER PRESENT HEADWIND 26 8 LOOKING ACROSS THE PITCH 28 8.1 Football People Talk 28 8.2 Why Has It Never Really Worked? 30 8.3 What Is It All For Anyway? Purpose 32 8.4 Summer Or Winter? 33 8.5 To Change Or Not To Change? That Is The Question 33 9 GUIDING PRINCIPLES 34 9.1 Let’s Not ‘Jump To Solutions’ 34 9.2 Financial Viability 35 9.3 Aspiration 35 9.4 Best Practice Standards 35 9.5 Clarity Of Purpose 35 9.6 Alignment 35 10 OPTIONS UNDER CONSIDERATION 36 10.1 Drawing A Conclusion And Drawing A Vision 38 11 FIRST THINGS FIRST 40 11.1 Structure Follows Strategy 40 11.2 Invest In Option 3 To Get To Option 1 43 Appendix A: Current National Competitions 44 Appendix B: New Zealand Football Strategic Plan 45 Appendix C: Whole Of Football Pathway 46 Appendix D: Football In Europe 48 Appendix E: Phase 4 Electronic Survey 50 Appendix F: Summary Of Survey Results 56 Overview 56 Survey Results 56 Appendix G: Phase 4 Structure Attributes 58 Imagery supplied by Photosport. Printed September 2015. Design by Sidekick Creative Ltd. © New Zealand Football NZ Football - National Competitions Review 3
Part 1 Executive Summary 1.1 WHAT HAVE WE BEEN DOING? New Zealand Football operates under the Football in New Zealand Football’s Strategic Plan specified five New Zealand Strategic Plan 2013-2015. The Strategic core goals. An optimum national competitions structure Plan builds on the national Whole of Football Plan, would make direct or indirect contributions to each of the which established a unified national framework/model five core goals. Specifically we note the underpinning of the football pathways available to players, coaches, goals under goal 3, ‘Develop the game’: referees and football administration. • Core goal 3.4: Pathways are in place that allow football participants to progress as far as possible 4 NZ Football - National Competitions Review
• Core goal 3.5: Competition structures are in place The national competitions structure directly impacts the that support participants at all levels and move the likelihood of the game fulfilling these goals. game forward A review of the New Zealand Football national • Core goal 3.6: Promotion and marketing of the game competitions structure is timely and will represent a key enhances perception and encourages participation. component for the 2016-2020 New Zealand Football Strategic Plan. The purpose of this review was to identify the preferred national competition structure that best serves the interests of football in New Zealand. NZ Football - National Competitions Review 5
Part 1 Executive Summary 1.2 WHERE HAVE WE COME FROM? Key context to understand is that in 1970 football was the first mainstream New Zealand sport to introduce a national league. Subsequently there have been many national competition structures and formats. This review finds that while they all had different characteristics and challenges, ultimately they all failed to live up to expectations in one way or another, particularly in terms of financial outcomes, profile of the game and fan/community support and attendance at matches. The various structures of the Men’s National League since 1970 are presented in Table 1 below. Table 1 STRUCTURE FORMAT PARTICIPATION SEASON ENTRY NATIONAL SOCCER LEAGUE National Club Winter Promotion relegation 1970-1992 SUPER CLUB Regional leading LEAGUE Super Club Winter Promotion relegation to National finals 1993-1995 NATIONAL LEAGUE National Club Summer Participation criteria 1996-1998 REGIONAL North Island/South Island LEAGUE Leading to North Island v Club Winter Participation criteria 1999 South Final NATIONAL Regional leading to LEAGUE Club Winter Promotion relegation National finals 2000-2003 FRANCHISE National LEAGUE (2 rounds + Franchise Summer Participation criteria 2004 - present finals series) 6 NZ Football - National Competitions Review
1.3 WHAT’S HAPPENING? One of the themes to emerge in this review with regard to the current structure was that, notwithstanding a range of challenges, a fundamental problem has been the relative lack of investment and resources commitment both in terms of centrally funded support for the competitions structure (e.g. marketing) and regionally funded organisational investment (e.g. management structures). In other words, while there are operational matters to address, it has in effect been ‘an undercapitalised product’. Another key finding is that the current Men’s National League, the ASB Premiership - while a legitimate strategy at launch in 2004 (franchise model, commercial aims etc.) - sought to achieve too many objectives such that now its exact purpose has become unclear. The current structure has resulted in some positive outcomes, for example: • OFC Champions League and Club World Cup success has provided much needed funding • Player pathways to international representative and professional football exist • It is a true national competition that has lasted 11 years and improved playing standards. There are also several problems as a result of the current structure, for example: • Poor financial outcomes including a lack of commerciality, driving significant dependence on unsecured grant funding and FIFA Club World Cup prize money • Cultural disconnect with the game including a lack of buy-in from Clubs and Franchises being too isolated • Competition a ‘Closed shop’, with no aspirational way for clubs to get promoted from beyond the regional leagues • No connect to player development pathways (i.e. clubs / schools) • Poor support throughout summer due to many other summer activities and football community not being active and in football mode • Very poor crowds • Limited to no broadcast and media coverage • Lack of NZF leadership and lack of NZF and Franchise investment (i.e. under-capitalised) • Lack of clarity on competition purpose, consistency, focus and commitment, no accountability and adherence to initial licensing criteria (creating an adverse effect on standards on and off the pitch). 1.4 THE HEAD WIND FACTOR In essence the current structure is not working in an optimal manner for any of the participating entities or the football community. There have been many previous attempts at establishing the optimum national competitions structure and many reviews undertaken on the current structure. There are a myriad of factors that lead to the various structures being less than successful; a critical factor that cannot be ignored is the inherent characteristics of the sports market in New Zealand. Football is a fast growing sport in terms of participation. However players participating in a sport should not be confused with customers paying for a sports event experience. To be successful commercially any organisation has to fulfil a consumer need by providing a product that the market will respond to and pay for. Football in New Zealand is increasingly fulfilling sporting participation needs, but it has not yet been able to fulfil customer needs in domestic competitions. This report contends that football in the foreseeable future is not likely to establish a national competitions structure that is financially viable on a commercial basis (i.e. generating operating earnings from paying customers and commercial partners with little or no reliance on grant or FIFA CWC prize money). NZ Football - National Competitions Review 7
Part 1 Executive Summary 1.5 WHERE TO NOW? The review has confirmed that there are inherent challenges in designing and successfully delivering national league competitions in New Zealand. The difficult aspect to understand is the extent to which these challenges are a function of the competition structure and associated costs, a function of poor execution, market characteristics or all of the above. What we ‘know’ is the current structure represents the highest standard of competition the game has had and has been the most stable competition since the inaugural National Soccer League. New Zealand is producing teams that are competitive on the world stage. The question to address is not ‘what competitions structure do we need’, rather it is ‘what is our strategy for domestic football competition structures?’ That is, what is the strategy to move towards a single season open competition, further raising standards and aligning with FIFA/OFC licensing criteria, embracing youth development while operating on a financially sustainable basis? After an assessment and stakeholder engagement process, four potential national competition structures were considered. These were: Option 1 National league single season, 10 teams, 27 games, single entity clubs, entry performance based Option 2 National league conference based model, 16 teams, 2 pools, 27 games, single entity clubs, entry performance based Option 3 Expansion/improvement of current structure, 10 teams, 18 games, transition to pinnacle integrated clubs, entry performance based Option 4 Regional league (i.e. current four regional competitions) with new extended finals series. These options are considered and assessed against a set of guiding principles which were confirmed after stakeholder consultation. A summary of the options against the guiding principles is provided in Table 2 below. Table 2 GUIDING PRINCIPLES OPTION 1 OPTION 2 OPTION 3 OPTION 4 Financial Viability -1 -1 0 1 Aspiration 1 0 1 -1 Best practice standards 1 0 1 -1 Clarity of purpose 1 0 -1 1 Alignment 1 0 -1 -1 Total 3 -1 0 -1 Note: 1 = likely to meet expectations, -1 = unlikely to meet expectations 0 = neither likely or unlikely Option 1, in an ideal situation, is the preferred national competitions structure. If launched and established successfully it delivers optimal clarity of purpose, alignment of the system and strategies, best practice standards and aspiration (e.g. performance based entry). Option 3, the current structure, is preferred over options 2 and 4. Option 2 is the structure with the highest number of teams. When the relatively high cost is also considered it seems logical to conclude that the probability of a suitable return (financial and otherwise) is lower than other options. Option 4 in effect represents a backward step as opposed to progression or improvement. 8 NZ Football - National Competitions Review
1.6 FORM YOUR FUTURE VIEW: WORK BACK FROM THERE This report finds that it would be unwise to ‘lurch’ to a new competition structure; given the 45 year track record and market characteristics it would be a high risk decision. Rather a mid to long term view should be adapted to achieve the vision below. The fulfilled vision would be characterised by a - Single season 10 team national league with circa 30 games per season per team - >1000 average attendances at quality venues - Revenue earning broadcast and digital coverage - The participating entities would be integrated pinnacle community clubs (some of which will be evolved from current Franchises) that have senior men’s, senior women’s, youth development and Futsal teams participating in a coherent national competitions structure. So that; - Playing standards significantly increase - More New Zealand eligible players are playing professionally - Our clubs win at World Cups and within Oceania. 1.7 WORKING TOWARDS THE FUTURE VIEW The recommendation of this report, as summarised in Diagram 1 below, is to adopt a strategic six phased approach to launching a new national competitions structure in 2019. The six phases (Refer Section 11) broadly involve investing in the current structure for improved near-term outcomes while concurrently preparing, planning, budgeting and ‘gearing up’ for a new national competitions structure from 2018/19. Diagram 1: Approach to Launching a New National Competitions Structure Preferred Outcome: 2018/19 2016/17 Preferred Structure launched Implement Phases Two to Six above - plan for well funded new structure 2018/19 Back Up Outcome: 2018/19 2015 Current structure Confirm National continues (if preferred Competitions structure unsustainable) Strategy 2015/16 Implement Phase Retrench One above - invest in Outcome: 2018/19 and resource current structure Revert back to option 4 - regional league (if current structure unsustainable) More specifically the processes underpinning the strategy 2016 to 2020 should involve: • Consolidate current structures and operation as well as prepare other potential participants for involvement • Implement the Youth Framework and youth competition structure to create a greater pool of players and to transition the junior participation bulge through the system • Develop pinnacle community club hubs which increase financial viability and capitalise on the commercialisation of Football • Develop a commercial plan for the game that includes a broadcast strategy for the Premiership. NZ Football - National Competitions Review 9
Part 2 Another Competitions Review? 2.1 COMPETITIONS STRUCTURES = THE ENGINE ROOM New Zealand has a proud tradition in football and is World Cup, New Zealand Football was able to invest a now firmly established as one of the nation’s highest portion of the FIFA prize-money in the Whole of Football participation team sports. There are over 500 football clubs plan, the aims and objectives of which were retention and in New Zealand and with an estimated 209,000 male and growth of football participation. female participants age 16+ and an estimated 456, 000 players at youth level (ages 5-18, registered and non- The participation growth in football depicted in Figure 1 registered) it is now positioned as the highest mainstream below can be attributed to the successful investment team participation sport. in and implementation of the Whole of Football plan, where Stage One 2011 – 2015 priorities were focused on In 2010, as a result of the All Whites qualifying for the FIFA development of junior football (age 4 to 12 years). Figure 1: The Participation Bulge (2010 v 2014 – Age Group Participation) 6400 6300 6200 5800 5800 5800 5600 5500 5000 4800 4600 4500 4400 PLAYER NUMBERS 4300 4200 4200 3700 2800 7 8 9 10 11 12 13 14 15 AGE GROUP BAND TOTAL 2010 TOTAL 2014 10 NZ Football - National Competitions Review
A positive problem of the increased participation at junior Note the Whole of Football plan refers under the pathway and youth levels is the ‘participation bulge’ coming through model to Talented Perform and Excel as Senior Football the age groups: how does New Zealand Football best comprising the Men’s National League (currently known serve and retain these participants as they transition out as the ASB Premiership), Women’s National League of junior and youth age grades? (currently known as the ASB Women’s League) and the National Futsal League. It places the Youth National One of the themes to emerge in this project was that, League (currently known as the ASB Youth League) under notwithstanding a range of challenges in the competitions the Youth category. For the purposes of this review, we structure, a fundamental problem has been the relative lack are defining national competition structure as the Men’s of investment and resources commitment both in terms National League, Women’s National League and the of centrally funded support for the competitions structure Youth National League. The ASB Chatham Cup, the ASB (e.g. marketing) and regionally funded organisational Women’s Knock Cup and the National Futsal League are investment (e.g. management structures). The focus, not within scope. perhaps necessarily, has been on cost recovery, near term survival and management of operational matters. Relative to mainstream team sports that football in The effect has been ‘an undercapitalised product’. New Zealand competes with (e.g. rugby, cricket) it is reasonable to observe that there is weakness in the area The 2014 New Zealand Football High Performance Plan of a coherent, effective national competitions structure – entitled Beyond Football and prepared by O’Connor (sometimes referred to herein as the structure). Given Sinclair - referred to the differentiating attributes of football the age grade growth evident in Figure 1 above, it would as a mainstream sport in New Zealand. This is abbreviated seem logical and timely to ensure that there is clarity and in list form below: confidence around the structure young players can aspire • Governed by the most influential international sporting to and participate in beyond school age. federation in the world (FIFA) The current New Zealand Football national competition • Considerable investment in New Zealand from the structure has been operating since 2004. It is based on a international sporting federation Franchise model in regards to the senior men, federations in regards to women and Franchise in regards to the • The world’s truly global team sport (e.g. 32 nations at youth. See Appendix A for more information. the FIFA World Cup 2014, qualified from 209 national federations) National competition structures are typically the ‘engine • The most ethnically diverse sport in terms of participation room’ component of mainstream team sports. That is, they and following are central to a national sport’s potential to connect with the communities, achieve high performance outcomes • Very accessible sport in terms of socio-economic reach and generate commercial returns. • Skill based rather than physical confrontation based We note that football in New Zealand competes with other • It is genuinely a game for people of all sizes sports at participation, development and commercial levels and New Zealand Football competes with other countries • Strong structures and systems for both male and female at high performance/elite level. participation at community level. The current structure has resulted in positive outcomes The interesting point to observe in the list above is the for football, however there are ongoing concerns, the absence of reference to national competition structures! competitive and societal environments are dynamic and have changed considerably since 2004. 1 From Dominion Post 09/2012 (re: Sport NZ survey): ‘… the surprise finding was that football had become the most popular team sport for boys and girls ….. Among boys aged 5 to 10, 73.8% reported playing football in the previous 12 months, whereas rugby was sixth (65.6%). 2 Sport New Zealand ‘Sport and Active Recreation’ survey results 2013/14. 3 Sport New Zealand Young People’s Survey 2011. NZ Football - National Competitions Review 11
Part 2 Another Competitions Review? 2.2 WHOLE OF FOOTBALL AND THE STRATEGIC PLAN New Zealand Football operates under the Football in New Zealand Strategic Plan 2013-2015 (formally ratified in 2012). The Strategic Plan (See one page summary in Appendix B) builds on the national Whole of Football Plan (see summary visual in Appendix C) which established a unified national framework/model of the football pathways available to players, coaches, referees and football administration. The Strategic Plan confirmed New Zealand Football’s commitment to player retention and confirmed the organisational values of Unity, Pride, Passion and Respect. The Purpose and Vision of New Zealand Football as outlined in the Strategic Plan are: PURPOSE: To lead, inspire and deliver football in New Zealand VISION: To achieve incredible performances on and off the field New Zealand Football’s Strategic Plan specified five core goals, these are: GOAL 1 GOAL 2 GOAL 3 GOAL 4 GOAL 5 Align the Game Organise the Game Develop the Game Succeed at the Game Expand the Game It could be argued that an optimum national competitions structure would make direct or indirect contributions to each of the five core goals. Specifically we note under goal 3 Develop the game goals 3.4, 3.5 and 3.6. These are: Goal 1.1 Goal 2.1 Goal 3.1 Goal 4.1 Goal 5.1 Key stakeholders are Resources are optimised so Increase the number and Ensure the NZ teams qualify Implement a strategy for strategically aligned that financial surpluses are quality of coaches for all World Cups and Women’s football that will expected and achieved progress through the group make it a top tier sport stages option Goal 1.2 Goal 2.2 Goal 3.2 Goal 4.2 Goal 5.2 The Strategy for football is Best practice financial Environments and facilities Implement a National High Implement a strategy for understood and embraced systems and processes for are in place that enhance Performance program for Futsal that will make it a top by all stakeholders monitoring and reporting the football experience talent identification and tier sport option are in place development Goal 1.3 Goal 2.3 Goal 3.3 Goal 4.3 Goal 5.3 Best practice governance Implement IT solutions that Increase the numbers and Develop coaching structures To organise the FIFA U-20 World policies and consultative integrate the game in areas quality of referees and that support the needs Cup to the highest international processes are in place of coaching, competitions facilitators of the high performance standard, deliver an outstanding and member management program experience to all participants, and showcase New Zealand football and this country Goal 1.4 Goal 2.4 Goal 3.4 Goal 4.4 Clubs, service providers Best practice administrative Pathways are in place that Develop refereeing structures and NZF are strategically systems and processes allow football participants that support the needs aligned to deliver quality are established across the and progress as far as of the high performance services game possible program Goal 3.5 Competition structures are in place that support participants at all levels and move the game forward Goal 3.6 Promotion and marketing of the game enhances perception and encourages participation The national competitions structure directly impacts the potential and likelihood of the game fulfilling these goals and is central to both establishing and achieving goals from 2016 and leveraging off the successes and growth of football in New Zealand. 12 NZ Football - National Competitions Review
2.3 BEYOND FOOTBALL In relation to Beyond Football, the New Zealand Football High Performance strategy, we note the five key strategic pillars identified for the fulfilment of the overall goal of ‘winning at World Cups’, as depicted in Diagram 2 below. COACH DEVELOPMENT INVESTMENT IN COMPETITIONS RESOURCES ALIGNMENT STRATEGIC PLAYER PARTNERSHIPS WINNING AT DEVELOPMENT WORLD CUPS Diagram 2 In terms of mainstream team sports in New Zealand, it is reasonable to state that football is New Zealand’s only truly global game; one of the consequences of this is that many of the very best players (who New Zealand Football want to be available for national teams) are likely to secure professional contracts to play overseas. Whereas in rugby, netball and cricket (notwithstanding the IPL) the best New Zealand athletes generally underpin the strength and profile of domestic competitions, in football this is not the case. However, aligned and effective competition structures remain critical to football in New Zealand, both as development stepping stones for the very best athletes, for community reach and competitive participation opportunities for senior players (particularly the ‘participation bulge’ evident in the junior and youth age groups). Given the background and context outlined in 2.1 to 2.3 above a review of the New Zealand Football national competitions structure is timely and will represent a key component for the 2016-2020 New Zealand Football Strategic Plan. NZ Football - National Competitions Review 13
Part 3 Why & How: Review purpose & process The purpose of this review was to identify the preferred long term interests of football in New Zealand. The national competitions structure that best serves the process of review is summarised in Diagram 3 below. Diagram 3 PHASE 1 PHASE 2 PHASE 3 PHASE 4 Review national Identify Assess Undertake competitions basis of outcomes consultation history and current 2004+ of current processes with context structures structures stakeholders PHASE 7 PHASE 6 PHASE 5 Identify preferred Establish Establish ideal competitions decision purpose and structure and criteria and aims of the form a strategy options structure 14 NZ Football - National Competitions Review
Phases 1 to 3 were undertaken by New Zealand (i.e. in each Federation for Federation and Club Football management with support from advisory personnel, plus a Franchise CEO’s forum) to share the firm O’Connor Sinclair. There was select information outputs from Phases 1 to 3 and to test initial findings available to complete these phases, to form initial views of New Zealand Football as to the inherent issues and and to prepare for Phases 4 to 6. Phases 4 to 6 were led potential future competitions structures. by O’Connor Sinclair with support from New Zealand Football management. Having completed Phases 1 to 6 New Zealand Football was in an informed position to address Phase 7: that Phase 4 commenced with an electronic questionnaire is to identify the preferred competitions structure and completed by 52 of the 102 organisations that received form a strategy in relation to that structure. This report it (refer Section 8). New Zealand Football and O’Connor outlines that preferred structure and strategy (including Sinclair then hosted 8 workshops across New Zealand the underlying rationale). NZ Football - National Competitions Review 15
Part 4 Haven’t We Tried Everything? Seems Like It! 4.1 NATIONAL COMPETITION STRUCTURES 1970-2015 (SENIOR MEN) The Sir Winston Churchill quote ‘The longer you can look When the inaugural National Soccer League was launched back the farther you can look forward’ is instructive for New in 1970, it became the first national league for any sport Zealand Football when reviewing national competitions in New Zealand. Sections 4.2 to 4.7 below summarise structures. Such a review is strategic and necessarily long the various national competitions structures since 1970. term in scope. These are presented in summary form in Table 3 below. Table 3 STRUCTURE FORMAT PARTICIPATION SEASON ENTRY NATIONAL SOCCER LEAGUE National Club Winter Promotion relegation 1970-1992 SUPER CLUB Regional leading LEAGUE Super Club Winter Promotion relegation to National finals 1993-1995 NATIONAL LEAGUE National Club Summer Participation criteria 1996-1998 REGIONAL North Island/South Island LEAGUE Leading to North Island v Club Winter Participation criteria 1999 South Final NATIONAL Regional leading to LEAGUE Club Winter Promotion relegation National finals 2000-2003 FRANCHISE National LEAGUE (2 rounds + Franchise Summer Participation criteria 2004 - present finals series) 16 NZ Football - National Competitions Review
4.2 NATIONAL SOCCER LEAGUE 1970-1992 The National Soccer League was a club based competition The league operated from 1970 until it was disbanded played during winter in a home and away format with in 1992 primarily because it was not financially viable to promotion relegation. In 1970 it comprised eight teams continue. There had been, evidently over a long period , playing 14 games. The number of participating teams poor spectator support, therefore low gate receipts and increased to 10 in 1971 (18 games), 12 in 1977 (22 games) there was lack of television exposure. Even the success and 14 in 1987 (26 games). Over the inaugural season and profile of the All Whites in 1982 did not lead to approximately 64,000 fans paid to attend the matches at sustainable improvements in this regard, as referred to an average of 1,140 attendees per game. below. ‘The euphoria over New Zealand’s achievement in qualifying for the World Cup in Spain carried over to the national league - 32,000 more people attending games in 1982 than in 1981. But public interest quickly waned and clubs struggled with ever increasing costs’. Barry Smith (football historian). 4.3 SUPER CLUB LEAGUE 1993-1995 The Super Club format was designed and launched with the However the regional format meant lower playing aim of reducing participant and league costs while increasing standards, leading to poor spectator attendance. It was this marketability to spectators, broadcasters and sponsors. It low attendance, combined with clubs’ inability to meet strict was played in winter and involved three regional qualifying facilities, promotion and marketing criteria (and the inability leagues of 10 teams (18 games) followed by an eight team, of New Zealand Soccer to enforce criteria) which ultimately one round national league and four team playoff. resulted in the Super Club format being disbanded in 1995. 4.4 NATIONAL LEAGUE 1996-1998 A club based national league was reintroduced in 1996, It was discontinued primarily because of mounting debt, comprising 10 teams (18 games) for the first two years with prospects worsening due to a lack of sponsorship and 11 teams (20 games) in 1998. It was played mainly in and dwindling crowd support and media profile. summer on a home and away round robin basis and was Clubs favoured returning to a winter league given the invitation based whereby clubs had to meet criteria, for practicalities of operating a club 12 months a year. example financial and venue/location criteria. 4 Barry Smith (football historian) article NZ Football - National Competitions Review 17
Part 4 Haven’t We Tried Everything? Seems Like It! 4.5 NATIONAL LEAGUE 1999 A club based North and South Island league structure was introduced in 1999. The North Island Soccer League (NISL) involved 12 teams and the South Island Soccer League (SISL) comprised of eight teams. It was discontinued because there proved to be too many teams (esp. South Island) and so the standard of football was poor and the cost of delivery was unaffordable. 4.6 NATIONAL LEAGUE 2000-2003 The club based national league structure was reintroduced in 2000 comprising 10 teams (18 games). The teams were drawn from a regional structure being four teams from Northern League, three from Central League and, three from the South Island League. The National League was played mainly in winter on a home and away round robin basis with playoffs and, unlike the 1996- 1998 National League, it involved promotion/relegation. It was discontinued because the league wasn’t achieving a range of critical objectives. 4.7 FRANCHISE LEAGUE 2004 - PRESENT In 2004 the Franchise structure was launched and it continues to operate in 2015. This League involves New Zealand Football awarding three-year licences to compete in the competition (no promotion relegation). It was to be played in summer. Until 2007 it involved three rounds however from 2008 it reduced to 2 rounds in order to lower costs. In the Men’s National League there are nine teams including seven Franchise teams in the League playing 16 home and away games, which result in two semi-finals and a final. Manawatu was removed from the competition in 2013 and the Wanderers (a New Zealand Football youth team) joined the League in 2013/14 and the Phoenix Reserve team joined in 2014/15. The Men’s National League is the top domestic competition for amateur players and operates in the summer, October to March period, with a September pre-season and a two week break at Christmas. Franchises are required to have 50% or more of their match day squad as New Zealand qualified and eligible for New Zealand Football national teams. 4.8 TAKING ANOTHER LOOK IN 2009, 2011 AND 2012 While the current Franchise League started well, and by 2009 had resulted in Auckland City FC attendance at the FIFA Club World Cup twice, there were established challenges and concerns particularly in relation to financial pressures. In each of the years 2009, 2011 and 2012 there was a New Zealand Football review process which sought to identify the problems and present solutions for improved future outcomes. Broadly each review confirmed some of the traditional issues with the national competition structure (poor crowds, lack of television broadcast and media profile, poor financial outcomes) and also found that the current Franchise based structure with a summer season remained appropriate. The reviews variously sought to make improvements through recommendations such as: • Improving management structures and practices in some Franchises • Addressing the poor to non-existent relationships between the Franchises and the Federations • Improving New Zealand Football commitment, resourcing and support of the League and the Franchises • Seeking compliance with competition criteria • Improving the capitalisation and commercialisation of the League. One of the matters raised in stakeholder consultation (Refer Section 8) was to ask to what extent these review recommendations had been progressed such that there were improved outcomes. The answers could be characterised as ‘not much improvement, maybe Franchise/Federation relations improved’. 18 NZ Football - National Competitions Review
4.9 NATIONAL COMPETITION STRUCTURES (SENIOR WOMEN & YOUTH) In the current Women’s National League there are seven Federation based teams and one New Zealand Football Development under 17 team playing seven games in a single round competition with a final. The season is October to December. The history of the structure is summarised in Table 4 below. It is worth noting that the changes made to achieve the current structure are an outcome of, and as specified in, a review conducted in 2010. Table 4: Women’s Football National Competitions YEAR FORMAT SEASON PARTICIPANTS 1976-2000 One week tournament Regional Associations 2001 One week tournament Federations 2002-2009 National Women’s League, 1 round, semi-final (2v3) and final Summer – 3 months Federations 2010-2013 National Youth Women’s League, Northern and Southern Summer – 3 months Federations + Conferences home and away, SFs and Final an NZF selection 2014 National Women’s League, 1 round, semi-final (2v3) and final Summer – 3 months Federations + and NZF selection In the Youth National League there are 12 under 20 teams, playing 11 games in a single round. This is a pathway or development competition played over the months October to December. The history of the structure is summarised in Table 5 below. Youth football (13 to 17 years) is the priority focus of Stage 2, 2014-2018 of the Whole of Football Plan. Ultimately the aim in Stages 1 and 2 has been to grow the game and to then ‘push the bulge’ through to senior football (18 years+). Table 5: Youth Football National Competition YEAR FORMAT SEASON PARTICIPANTS 2004-2007 National Youth League, 1 round Summer – 3 months Federations Franchises + 3 youth National Youth League, 1 round, has previously 2008- now Summer – 3 months and 1 NZF selection had semi-final / final teams from 2013 Table 6: below outlines the three national competitions within the overall structure. COMPETITION FORMAT SEASON PARTICIPANTS National 2 rounds Summer Franchise + finals One round, Summer Federations + semi final + final and NZF selection Franchises + 3 youth One round Summer and 1 NZF selection teams from 2013 NZ Football - National Competitions Review 19
Part 5 The Many Aims of the Franchise-Based Structure New Zealand Soccer commissioned a review of the 1. Development of the game National League in 2003. The major findings strongly recommended the cessation of the National League 2. Top class facilities structure and the commencement of a new eight team, 3. Coach education three round Franchise structure (i.e. the current Men’s National League). 4. Medical Education The Franchise licencing criteria was broadly based on 5. International player development the UEFA Club Licencing System (i.e. criteria related to legal, financial, facilities and personnel). Franchises were 6. International talent identification to be separate entities from the Federations. They would 7. Financial stability of participants be 51% owned by private investors, the balance offered to Clubs. 8. Profile media-sponsorship-public The paper identified 13 areas where the Men’s National 9. Professional administration and League was not meeting New Zealand Soccer expectations personnel or aims. The objectives for any New Zealand Soccer managed national competition were set out as follows: 10. Development of referees 11. A team capable of competing in the FIFA World Club Championship 12. A stable long term competition 13. Consideration needs to be given to the Chatham Cup and regional competitions. 20 NZ Football - National Competitions Review
The new Franchise structure was launched in October Creating the new Franchise based national league was 2004 and in the initial period there was a positive response not necessarily the wrong decision. There may well have in the market and in the football community (e.g. television only been three options: coverage, professional administration, reasonable crowds). 1. Retain status quo Given the two decades of perpetual financial struggle for 2. Disband the national league the game in relation to the various iterations of national altogether competition structure formats, it is understandable that 3. Be bold, aim for commercial based New Zealand Soccer formed a view that it needed to be model bold and transition to a model that sought to operate on a viable commercial basis. Football was growing globally Of these, evidently option one was not considered – there including in New Zealand, the local sport broadcast had been continual financial failure since 1970 and many market had been boosted by the launch of Sky Television structural changes made in attempting to rectify that with in the early 1990’s and there were several sectors (e.g. no success. This is instructive for two key reasons: banking, telcos, breweries, automobiles) that were investing in sports partnerships. Rugby had transitioned 1. The current Franchise based national league structure to professionalism (including in New Zealand) only eight has many of the same failings as previous structures, years earlier with the formation of Super 12 (and netball however it would be wrong to make harsh judgements later launched the ANZ Championship in 2008). from the side-line of hindsight 2. In envisioning the future national competition structures, it is important to be aware of the past outcomes and to refrain from the temptation to ‘swing and hope’ just to ensure there is a national league. 6 New Zealand Soccer was rebranded New Zealand Football in 2007 7 The last sentence in the 2003 recommendation paper is highlighted in capitals and reads ‘UNDER NO CIRCUMSTANCES CAN THE NATIONAL LEAGUE CONTINUE IN THE CURRENT FORMAT’ NZ Football - National Competitions Review 21
Part 6 Let’s Be Straight Up! Realities of the Structure 6.1 THE NEW ZEALAND FOOTBALL FINANCIAL PICTURE The financial outcomes for the last two seasons of the ASB Premiership are summarised below. Figure 3: Figure 2: 2014-15 ASB 2013-14 ASB Premiership Premiership Financial Financial PRIZE MONEY Summary Summary PRIZE MONEY OTHER OTHER OTHER OTHER OTHER TRAVEL AND OTHER TRAVEL AND COMP. EXPENSES COMP. EXPENSES ENTRY FEES ENTRY FEES AIRFARES AIRFARES REVENUE EXPENSES REVENUE EXPENSES TOTAL REVENUE TOTAL EXPENSES TOTAL REVENUE TOTAL EXPENSES $547,872 $474,836 $830,832 $500,323 (*Note: neither financial summary includes overheads (salaries and wages, annual leave provision, motor vehicle expenses etc.). While Figure 3 above shows a New Zealand Football surplus leads to an approximate break-even outcome. The prior year of circa $300,000 for 2014/15, this is not a typical outcome. represented in Figure 2 is closer to the more typical outcome. The prize money of $329,949 is the New Zealand Football Due to the dependency on Club performance for this revenue, portion of the money resulting from Auckland City Football prize money is not used for budgeting purposes. Club’s third placing at the FIFA Club World Cup 2015. The approximate New Zealand Football costs of operating the More typically, the New Zealand Football portion of the prize National Youth League and the National Women’s League are money earned is between $65,000 and $75,000, which $325,000 per annum and $150,000 per annum respectively. 22 NZ Football - National Competitions Review
6.2 OTHER OUTCOMES One of the issues to emerge in the review process was the best numbered in the low hundreds of attendees (often lack of quality data against which to assess the success less than that, for example in one game a figure of 17 or otherwise of the national competitions structure. There paying spectators was reported). Attendance of circa 1000 has been no process of oversight, detailed evaluation paying spectators would represent a bumper crowd and still and reporting against objectives of the competitions and fall below that average attendance in the inaugural 1970 Franchise KPIs. This relates also to broader information and season. outcomes for example accurate player registration numbers and reliable information on how many New Zealand The concerning insight to note is that there are over footballers are on professional contracts internationally. 659,000 football participants (according to the Sport New Zealand Sport and Active Recreation and Young Persons There were of course many opinions and observations survey results 2013/14) with requisite volunteers and local based on experience but usually there was a lack of supporters. Yet the national competitions structure including substantive, quantitative support information. There would the flagship Men’s National League does not appear to appear to be, as outlined in Sections 7 and 8 below, attract the support of the football community. It is logical to almost unanimous agreement in regards to the challenges ask why more of these football participants do not attend and outcomes national competitions participants have Franchise games before seeking answers to broader to manage. Universal agreement on the optimum future market challenges. structure was, maybe naturally, given the diversity of organisations and people, not so obvious. The Men’s National League is not broadcast live and this, combined with low crowd numbers, means (among On game attendances we are informed anecdotally that other reasons) that the Franchises are not all securing paying spectators for the Men’s National League are at sponsorship partnerships, as summarised in the first column in Table 7 below. Table 7 Surplus in last Surplus if ACFC Franchise/Team9 Naming Rights ASB Qualified for financial year FIFA prize (2015) Partner10 Premiership FIFA money absent Auckland City FC x x6 x7 Waitakere United x x5 x1 WaiBOP United x x x (excl. Fed $ injection) x x Hawkes Bay United x (excl. Fed $ injection) Team Wellington x x Canterbury United x Southern United x x Total out of 7 4/7 4/7 0/7 2/7 2/7 Franchises Key = achieving X = not achieving 8 There was live streaming of the 2015 Finals and a Men’s National League game played at Eden Park as a curtain raiser to a Phoenix Hyundai A- League match was broadcast at a small cost to New Zealand Football. 9 This table excludes the Wellington Phoenix Development team and the Wanderers FC as they are separately funded non Franchise entities. 10 Naming Rights Partner for our purposes means a commercial sponsor (not gaming trusts or public funding) paying cash for the association (not in kind or contra). NZ Football - National Competitions Review 23
Part 6 Let’s Be Straight Up! Realities of the Structure 6.2 OTHER OUTCOMES cont... Positive points to note with regard to the Men’s National League include the fact that the current Franchise based structure has endured longer than any structure since 1992, and while there are perpetual financial challenges, no Franchise has lost its licence due to financial failure. However the structure as it is currently configured does not appear to be supported by the football community through gate receipts and it is not supported commercially (i.e. heavy reliance on unsecured grant funding and FIFA CWC prize-money). Franchises are not developing operational earnings and yet again the national competitions structure is proving to be not financially viable for most of the participating entities. Seeking financial viability (or aims to that effect) has been an underpinning driver stated subsequent to 1970 in every review and every transition point from a previous structure to a new structure including the current Franchise structure. In terms of the specific objectives stated by New Zealand Soccer in 2003 as requirements of any national competitions structure it manages, these are listed in Table 8 below and rated as mainly achieved or mainly not achieved. Table 8 New Zealand Soccer National Competition Objectives (2003) Achieved/Not Achieved 1. Development of the game 2. Top class facilities x 3. Coach education x 4. Medical Education x 5. International player development (as stepping stone for young players) 6. International talent identification 7. Financial stability of participants x 8. Profile media-sponsorship-public x (improving) 9. Professional administration and personnel x 10. Development of referees 11. A team capable of competing in the FIFA World Club Championship 12. A stable long term competition x 13. Consideration given to the Chatham Cup and regional competitions (Retained: operates in winter after Men’s National League in summer – 2 season issue) Total out of 13 Objectives 6/13 Key = mainly achieving X = mainly not achieving 24 NZ Football - National Competitions Review
6.3 WHAT CAN WE LEARN FROM OVERSEAS? Given the unique characteristics of the New Zealand market for football, it is necessary to be cautious when seeking insight from national competitions in other markets. However, we did reference the European Club Licencing Benchmarking Report 2011, where we considered the data beyond the huge numbers relative to New Zealand, and made some football based context observations. These are tabled in Appendix D. It needs to be noted that the Report is from 2011 and it is based on UEFA controlled competitions; therefore it represents the pinnacle of mature professional and commercial football in Europe, which is a huge contrast with amateur national competitions in New Zealand. However some of the characteristics and features of the UEFA report are useful for consideration in this review. In particular we note the following: • There are 53 UEFA member associations (i.e. national football organisations) whose clubs participate in UEFA competitions • National competitions in the members associations are predominantly club based, predominantly traditional round-robin formats • Most of these competitions have ‘open’ formats with promotion relegation and there is a regular turnover of participating clubs as a result • There is considerable investment in and enforcement of licencing standards and there are many instances of clubs qualifying for UEFA competitions on sporting grounds, but being denied access on licencing or financial fair play grounds (e.g. clubs in 2012) • 63% of clubs reported operating losses and in aggregate 44 of the member association clubs spent more than they earned • One in seven clubs were questionable as ‘going concerns’ in their audit reports • The revenue profile was 62% broadcast and sponsorship and 19% gate: they cannot rely on gate revenue. The main outgoing was employees including players at 65%. The typical football competitions model in Europe is club based, round-robin formats with promotion relegation and enforced requirements of clubs that include extensive non-playing performance criteria (e.g. financial). These features and/or versions of them can be applicable to the New Zealand context. It is interesting to note that even in the rarefied air of UEFA level professional and commercial football, financial performance is often poor. NZ Football - National Competitions Review 25
Part 7 The Ever Present Headwind As part of Phase three of the review (i.e. assessing Football with input from O’Connor Sinclair, identified the outcomes of current structures) and in preparation for key challenges inherent under the current structure. These Phase four (stakeholder engagement), New Zealand are summarised in Diagrams 4, 5 and 6 below. Diagram 4 Dual season 12-month long demand on players adversely affects quality structure (e.g. pre season/preparation), health (no break for players/ + = administrators) and creates duplication of effort/cost. A prolonged period of training/match experience in one appropriate length season within a single competition and a single entity would improve playing/ coaching standards. Would also increase the opportunity of developing the brand of Absense of a the competition and participating entities and maintaining profile single season throughout the season. long structure The dual season structure creates inherent limitations standards and therefore development. It would appear in ensuring effective and aligned playing and coaching that the structure does not serve players, coaches, administrators and fans in an optimum way. 26 NZ Football - National Competitions Review
Diagram 5 Lack of clear The structure set out to achieve many objectives. It has not purpose achieved most. It now is unclear exactly why the competition exists. + = The answer to the ‘why’ question varies widely depending on the stakeholder circumstance (e.g. Federation/Franchise, main Metro/ small Metro/rural). The format doesn’t meet FIFA’s objective for open formats that allow for promotion and relegation. It is a closed league and lacks linkage Isolated - lacks to other domestic competitions, this limits youth development and linkages/ community connection/identity. coherency The current structure was designed with good intentions different views as to the purposes the competitions serve. however it also was trying to achieve many aims. Many of The Men’s National League is ‘closed’ which is contrary the initial expectations have not been fulfilled and as the to FIFA objectives and it also lacks effective linkages to structure has evolved different participants have formed other parts of the football structure which is contrary to New Zealand Football needs in player development. Diagram 6 Poor fan attendance Proving unsustainable for the majority of participating entities. + Reliance on unsecured grant funding and FIFA World Club Cup = prize money to remain solvent. Poor operating Little evidence of self-driven revenue, the competition is threatened revenues/lack of by minor shifts in fortune. income diversity Operational standards have been relaxed due to financial + constraints. It is not televised and therefore there is low exposure and leveragability for the competition. No broadcast coverage The current structure was in part created to establish a and private equity investment. This has not materialised competitions structure that would be able to develop and the effect is that, regardless of many positive outcomes commercial sustainability through generation of revenue achieved under the current structure, the same issues in earning properties, underpinned by broadcast revenue relation to poor fan engagement, no broadcast revenue and little commercialisation continue. NZ Football - National Competitions Review 27
Part 8 Looking Across the Pitch 8.1 FOOTBALL PEOPLE TALK A key part of the review was to engage with stakeholders workshops there were 113 attendees, plus New Zealand in the game of football across New Zealand. There was a Football management in the Franchise Chairs/CEO’s two-part process to this; firstly an electronic survey (See meeting. The workshops were introduced by New Zealand Appendix D for the survey and Appendix E for a summary Football’s Cam Mitchell and facilitated by Brendon of the results) and then a series of meetings involving O’Connor of O’Connor Sinclair. Franchise, Federation and Club personnel. The format of the workshops was broadly to frame-up The results of the electronic survey highlighted strong discussion in the context of the New Zealand Football support for change. Of the 52 respondents, 67% strategic plan, to ask attendee’s views as to the positive considered that the current two season model should not and not so positive aspects and impacts of the current continue. 80% of respondents thought that a singular national competitions structure, to discuss guiding model with a national final should be considered. principles and success factors for any future structure and to test ideas and concepts for the future structure. The workshops were conducted in late May 2015 in Auckland (Franchise Chairs and CEO’s), Dunedin, Most importantly we wanted to understand the extent to Christchurch, Wellington, Palmerston North, Matamata, which the stakeholders in the game considered there was North Shore and Auckland (Federation/Clubs). Across all a need for change. Table 9a Frequency THE POSITIVES (from 8 Themes meetings) OFC Champions League and Club World Cup success which has provided much needed funding (all agreed) 8 Player pathways to international representative and professional football (all agreed) 8 True national competition, has lasted 11 years, improved playing standards 5 Raised profile – increase media coverage in summer 4 A vehicle to support the development of the Wanderers / NZF U20’s and the Phoenix Reserves 3 Better fields in summer which increase the standard of play 3 Fills the summer gap in the Football calendar 3 Development of coaching and referee standards 2 Improved facilities 2 Aligns with the rest of the world leagues, international windows and OFC Champions League 2 The standard in NZ has never been higher – regularly win the OFC Champions League, 2 competing in the ‘5th’ FIFA World Cup (i.e. it is a genuine FIFA World Cup) 28 NZ Football - National Competitions Review
Table 9b Frequency THE NOT SO POSITIVES (from 8 Themes meetings) Financial outcomes very poor, dependence on grant funding/CWC prize money, lacks commerciality/viability 8 Cultural disconnect; 8 • Football people are passionate about and associate with their club, not franchises. No buy in from Clubs, Franchises too isolated • Closed shop, no aspirational way for clubs to get promoted, pathway from NRFL to clubs is not clear • No connect to player development pathways – clubs / schools • Many other summer activities, football community not in active football mode • Lack of identity with and connection to the league Very poor crowds 8 No broadcast coverage/poor media coverage/product not fit for TV 8 Lack of NZF investment and leadership. Lack clarity on comp purpose, consistency, focus and commitment, no 8 accountability and adherence to initial licensing criteria (adverse impact on standards on and off the pitch) Season is not long enough/not enough games to develop players 4 Product disconnect; 3 • NWL / NYL and Men’s National League fixtures not aligned, Sunday games difficult for amateurs esp. when travel • Odd kick off times, late kick off or venue changes, no consistency – NWL / Men’s National League fixtures clash Uneven competition – there has only ever been two winners 3 12 month season for players, burn out incl. administrators 3 Facilities are not up to standard, continual access issues to fields/facilities under typical Councils summer/winter 2 allocation processes Only two teams from Auckland, 1/3 population, national reach makes it very expensive, is this required? 2 Coaching development compromised by – not enough Kiwi coaches 1 CWC success can have adverse impact on opportunities for local players and NZ qualified players, wanders inclusion 1 takes best young players out of clubs It is not working – let it crash 1 NZ Football - National Competitions Review 29
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