TASMANIA UNITED FC A-LEAGUE TEAM FEASIBILITY STUDY
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TASMANIA UNITED FC A-LEAGUE TEAM
FEASIBILITY STUDY
FINAL REPORT (PUBLIC RELEASE)
Prepared by Stratcorp Consulting Pty Ltd
Level 1, 38 Mills Street
Albert Park Vic 3206
T: (03) 9521 6033
F: (03) 9521 6533
stratcorp@stratcorp.com.au
www.stratcorp.com.au
© Stratcorp Consulting Pty Ltd, 2009
Feasibility Study
Tasmania United FC A-League Team
DISCLAIMER OF LIABILITY
This report is a confidential document that has been prepared by
Stratcorp Consulting, Sports Marketing Concepts, the Tasmanian
Government and the Tasmania United FC Taskforce. Stratcorp has
undertaken this analysis in its capacity as advisor in accordance with the
scope and subject to the terms associated with Stratcorp’s letter of offer.
Readers should note that this report may include implicit projections
about the future which by their nature are uncertain and cannot be
relied upon, as they are dependent on potential events which have not
yet occurred. For these reasons and others, facility development is
inherently risky and frequently things do not turn out as planned. In
preparing this report, Stratcorp has relied upon information supplied by
third parties, the Tasmanian Government, and the Tasmania United FC
Taskforce and their advisers, along with publicly available information.
Stratcorp has not attempted to verify the accuracy or completeness of
the information provided. Neither Stratcorp nor its officers and
employees undertakes any responsibility arising in any way whatsoever to
any person or organization, except Tasmanian Government and the
Tasmania United FC Taskforce, in respect of information set out in this
report, including any errors or omissions therein through negligence or
otherwise however caused.
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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY..................................................................................... 5
2. INTRODUCTION ............................................................................................... 7
2.1. Clarification ................................................................................................................................... 7
2.2. Background ................................................................................................................................... 7
2.3. Football Federation Australia ..................................................................................................... 7
2.4. The A-League ................................................................................................................................ 8
2.5. Football in Tasmania .................................................................................................................... 9
2.6. Football Development in Tasmania........................................................................................ 10
2.7. Tasmania United FC ................................................................................................................... 10
2.8. Study Purpose and Objectives ................................................................................................ 10
2.9. Acknowledgements .................................................................................................................. 11
3. PLANNING CONTEXT .................................................................................... 12
3.1. Previous Plans and Reports....................................................................................................... 12
3.2. Demographic Analysis .............................................................................................................. 12
3.2.1. Population Growth and Projections ................................................................................ 13
4. SITUATIONAL ANALYSIS ................................................................................ 15
4.1. Football Participation Trends.................................................................................................... 15
4.2. Football Federation Tasmania ................................................................................................. 16
4.3. Tasmania United Football Club ............................................................................................... 17
4.4. Existing Documentation ............................................................................................................ 18
4.4.1. Football Federation Australian – A-League Expansion Market Research ............... 18
4.4.1. Tourism Tasmania – Hawthorn Football Club Sponsorship Analysis ........................... 18
4.5. FFA – A-League License Bidding Process .............................................................................. 18
5. ECONOMIC IMPACT ASSESSMENT............................................................... 20
5.1. Overview ...................................................................................................................................... 20
5.2. Media Exposure .......................................................................................................................... 20
5.3. Economic Benefits and Direct Expenditure .......................................................................... 20
6. A-LEAGUE FACILITY REQUIREMENTS ............................................................ 22
6.1. FFA Facility Requirements ......................................................................................................... 22
6.1.1. Pitch....................................................................................................................................... 22
6.1.2. Operational Rooms ............................................................................................................ 22
6.1.3. Public Refreshment Facilities ............................................................................................ 22
6.1.4. Sanitary Facilities ................................................................................................................. 23
6.1.5. Accessibility .......................................................................................................................... 23
6.1.6. Merchandise and Concession Stands ............................................................................ 23
6.1.7. Rectangular Pitch Stadium Vs Oval Stadium ................................................................ 23
6.2. Match Day Venue Options ...................................................................................................... 24
6.3. Aurora Stadium ........................................................................................................................... 25
6.3.1. Aurora Stadium SWOT Analysis......................................................................................... 26
6.4. Bellerive Oval .............................................................................................................................. 27
6.4.1. Bellerive Oval SWOT Analysis ............................................................................................ 28
6.5. King George V Oval .................................................................................................................. 29
6.5.1. KGV Oval SWOT Analysis ................................................................................................... 30
6.6. King George V Football (Soccer) Facility .............................................................................. 31
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6.6.1. KGV Football Facilities SWOT Analysis ............................................................................. 31
6.7. North Hobart Oval ...................................................................................................................... 32
6.7.1. North Hobart Oval SWOT Analysis ................................................................................... 33
6.8. Match Day Venue – Service Matrix ........................................................................................ 34
6.9. Match Day Venue Recommendations ................................................................................. 35
6.9.1. Aurora Stadium ................................................................................................................... 36
6.9.2. Bellerive Oval ....................................................................................................................... 38
7. DEMAND ASSESSMENT .................................................................................. 40
7.1. Hobart and Launceston Catchments .................................................................................... 40
7.2. Attendance Figures ................................................................................................................... 41
7.3. Tasmania United FC Membership ........................................................................................... 43
7.4. Gate Receipts ............................................................................................................................. 44
8. COMMERCIAL OPERATIONS ........................................................................ 46
8.1. Sponsorship / Partnerships ........................................................................................................ 46
8.1.1. Partnership Identification .................................................................................................. 47
8.1.2. Asset Value .......................................................................................................................... 48
8.2. Corporate Hospitality ................................................................................................................ 48
8.3. Media & Public Relations .......................................................................................................... 49
8.3.1. Media .................................................................................................................................... 49
8.3.2. Tasmania United FC Champions ..................................................................................... 50
8.3.3. Events Strategy .................................................................................................................... 50
8.4. Community Engagement ......................................................................................................... 51
8.4.1. Community Manager ........................................................................................................ 51
7.4.2 Youth League ...................................................................................................................... 51
7.4.3 FFA and FFT Partnering....................................................................................................... 52
9. ORGANISATIONAL STRUCTURE ..................................................................... 53
9.1. Organisational Structure – Base Model.................................................................................. 53
9.2. Organisational Structure – Upper Spend Model .................................................................. 53
10. FOOTBALL DEPARTMENT ............................................................................... 54
10.1. Coaching Staff............................................................................................................................ 54
10.2. Support Staff ................................................................................................................................ 54
10.3. Playing List .................................................................................................................................... 54
10.4. Youth League and Women League ...................................................................................... 54
11. ELITE TRAINING AND ADMINISTRATION FACILITIES ..................................... 55
11.1. Facilities Benchmarking............................................................................................................. 55
11.2. Consultation – Issues and Opportunities ................................................................................ 55
11.2.1. University of Tasmania ........................................................................................................ 56
11.2.2. Tasmanian Institute of Sport .............................................................................................. 57
11.2.3. Football Federation Tasmania ......................................................................................... 57
11.2.4. Hockey Tasmania ............................................................................................................... 58
11.2.5. Launceston City Council – Aurora Stadium .................................................................. 58
11.2.6. Tasmanian Cricket Association – Bellerive Oval ........................................................... 59
11.3. Facility Options............................................................................................................................ 60
12. FINANCIALS ................................................................................................... 61
12.1. Financial Projections - Realistic ................................................................................................ 61
12.1.1. Overview .............................................................................................................................. 61
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12.1.2. Income.................................................................................................................................. 62
12.1.3. Expenditure .......................................................................................................................... 62
12.2. Financial Projections – Conservative ...................................................................................... 63
12.3. Financial Projections – Optimistic ............................................................................................ 64
12.4. Profit & Loss Forecast – Upper Spend Realistic ..................................................................... 65
13. OWNERSHIP AND GOVERNANCE ................................................................ 66
13.1. Capital Raising Options............................................................................................................. 66
14. STAGE TWO – DETAILED FEASIBILITY AND BID DOCUMENT ......................... 67
14.1. Phase 1 – Detailed Market Research and Consultation..................................................... 67
14.2. Phase 2 – Detailed Facility ........................................................................................................ 67
14.3. Phase 3 – Funding Research and Commercial Partnering Options ................................. 68
14.4. Phase 4 – Identifying Team Development Opportunities and Options ........................... 68
14.5. Phase 5 – Detailed Business Case / Feasibility Assessment ................................................ 69
14.6. Phase 6 - Prepare Bid Document and Final Report ............................................................. 70
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1. EXECUTIVE SUMMARY
In 2009, the Tasmanian Government, in conjunction with the Tasmania United
FC Taskforce, commissioned stage one of a feasibility study to explore the
financial viability of a Tasmanian based A-League team.
Stratcorp Consulting, in partnership with Sports Marketing Concepts, was
engaged to undertake this feasibility study. The study explores the financial
viability, facility requirements, as well as partnership opportunities for
Tasmania United FC in the A-League competition. The study also provides
strategic recommendations in relation to the establishment and ongoing
operation of the club.
The feasibility study clearly demonstrates demand for the establishment of an
A-League team in Tasmania and importantly that an A-League team could
be a sustainable financial entity in its own right in the short to medium term.
Preliminary socio-economic analysis indicates that the establishment of an A-
League franchise in Tasmania would deliver considerable socio-economic
benefit to Tasmania and the Tasmanian economy. Potential exposure into
the Asian market through the Asian Champions League also has the
potential to provide opportunities for Tasmania and Tasmanian businesses to
access the lucrative Asian market.
The initial demand analysis indicates that Tasmanians are likely to support a
Tasmania A-League team and that the club is likely to generate solid
membership and attendance numbers in comparison to current A-League
averages.
The report identifies that Tasmania already has adequate infrastructure to
cater for an A-League franchise. Existing facilities at Bellerive Stadium in
Hobart and Aurora Stadium in Launceston are able to meet A-League
requirements with little or no alterations to the current facilities. The
economics of the stadiums in Hobart and Launceston are also clearly
superior to other stadia in Australia which will provide a significant financial
advantage to a Tasmanian A-League team.
A key component of the development of an A-League franchise in Tasmania
will be the integration of the team into the Tasmanian community, and inturn
gaining support from both the North and South of the State. In order to
achieve this, it is recommended that the club divide its home games
between Hobart and Launceston, with six and seven games respectively.
This strategy will not only assist in developing support across the entire State,
but should also boost attendances in both the North and South respectively.
It will also allow the club to promote the fixtures as “events” rather than a full
season of matches.
To assist with community development, the study recommends that the club
employ a Community Manager whose role will be to ensure that club plays a
significant and positive role in the local community, especially in the
development of the game across the state.
The provision of a pathway for Tasmanian junior players into the senior A-
League team is also seen a vital for the development of community
awareness, ownership and loyalty to the club. In order to maximise
community support, Tasmania United FC should implement a Youth League
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team in year 1, even though it is not a FFA requirement until year three or
later. The establishment of a Youth League team that will ultimately develop
home grown players, will be integral to the integration of the new club into
the Tasmanian community.
To attract the appropriate calibre of people to manage the club effectively
on and off the pitch, the study recommends that the club be established
with a football and administration staff expenditure at the upper level in
comparison to other A-League clubs. It is felt that success in the early years
of the franchise will be integral to the ongoing success and financial viability
of the team. In order to maximise the chances of on field success, it is
recommend the football department be resourced based on a best practise
model of five coaches and four key support staff.
Further detailed research and feasibility analysis is required to add a greater
level of “rigour” to the projections made in this report and in order to give the
figures greater credibility. Detailed consultation with key stakeholders,
including potential commercial partners and financiers, socio economic
analysis, market research, development of a governance structure, and
preparation of a detailed bid document is clearly required to progress to the
next stage of securing an A-League licence for Tasmania.
It is recommended that the Tasmania United FC consortium proceed to
stage two of the process and prepare a detailed feasibility and bid
document. The FFA have indicated that until they receive a detailed
feasibility and bid document that they will not formally acknowledge a
submission from Tasmania. Given the current opportunity for the 12th license,
it is recommended that the consortium expedite the preparation of the
detailed feasibility and bid document.
It is acknowledged that given Football Federation Australia’s perceived
goals for the introduction of a 12th team, and the constrained timing, it may
be difficult for Tasmania United FC to gain the 12th license. If, however,
Tasmania United FC was overlooked for the 12th license, the FFA has
indicated that they may expand the competition to 13 or 14 teams in the
short to medium term. Formally bidding for the 12th license now is likely to
enhance Tasmania’s chances of gaining a future license if unsuccessful at
this stage.
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2. INTRODUCTION
2.1. Clarification
To enable public release of this document, certain commercially sensitive
information has not been included.
2.2. Background
Football (Soccer) has been played, in a variety of forms, for nearly 3000 years
- in Asia, then in Europe and, more recently, in Africa and the Americas.
Over 240 million people from more than 200 countries play football on a
regular basis and millions more participate as officials, administrators,
coaches, volunteers and, of course, as fans.
The Federation Internationale de Football Association (FIFA), football’s
governing body, estimates that 28.8 billion viewers watched telecasts of the
2006 World Cup. The World Cup, held every 4 years, is the single largest
sporting event on Earth, significantly bigger that the Olympic Games.
In Australia, football is the 9th most popular sport and physical activity on a
national level with a participation rate of 4.2%.
In 2007, 452,662 people played outdoor football in organised Football
Federation Australia (FFA) competitions in 2007 including 345,343 children
aged from 5 and 14. In addition, an estimated 400,000 individuals also
participated in non-FFA competitions.
Among Australians aged over 15, 931,500 directly participated as footballers
(indoor and outdoor, FFA sanctioned and non-sanctioned) in 2007.
For many years however, football has been pushed backstage by
“traditionally” Australian sports such as Australian Rules Football, rugby (both
league and union) and cricket.
Football in Australia has been described as “the sleeping giant”, and
Australia’s qualification for, and strong performance at the 2006 World Cup
Finals in Germany was widely regarded as the catalyst for an explosion of
interest in the game.
2.3. Football Federation Australia
FFA is the governing body for Football in Australia and is also a member of
FIFA. While FIFA has FFA and more than 205 other national associations as its
members, it also recognises six confederations. Each FIFA member is also a
member of a confederation. FFA is a member of the Asian Football
Confederation.
FFA is responsible for the control of football in Australia and to ensure that the
sport is conducted to the highest standards possible, whilst encouraging and
facilitating the continual growth and development of the game.
Each Australian state and the Australian Capital Territory and Northern
Territory has a local Football Federation that is accountable for the game
within their respective geographic area.
FFA’s mission statement is to be one of the top football nations, both on and
off the field, within the Asia-Pacific area, by:
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• Preparing, presenting and leveraging national teams of which all
Australians can be proud;
• Managing a highly popular National Football Competition as a distinctive
and innovative entertainment proposition for Australia;
• Building a very inclusive, mutually valuable relationship between FFA and
the Australian Football Community;
• Delivering significant, mutually rewarding relationships between FFA and
other Football bodies in our region;
• Operating in a way that entrenches financial viability and stability for FFA
and Australian Football;
• Providing the leadership to foster a unified football culture which
embraces success, diversity and universal appeal of the Game.
In addition, FFA is bidding to host the 2018 and 2022 FIFA World Cup Finals.
Domestically, FFA manages the National competition, the Hyundai A-
League, and intends to increase that competition from the current level of
10 teams to at least 12 teams, with the possibility of 13 or 14 teams, over the
next few years.
2.4. The A-League
In 2005, in a deliberate strategy to increase mainstream appeal of football,
FFA created the A-League comprising of 8 teams representing cities in 5
Australian states and New Zealand. This new domestic national competition
is now known as the Hyundai A-League.
On 26 August 2005, a significant day in Australian football history, the first
match of the Hyundai A-League was played.
The A-League has consistently grown in popularity since its inception and this
is reflected by the measurably increased club memberships, crowd numbers
and TV ratings that the league is attracting, together with increasing sports
betting turnover.
Average match attendance has risen consistently during the first three
seasons from 11,627 in the 2005/2006 season to 15,350 in season 2007/2008.
Club memberships have increased from 23,218 in 2005/06 to 52,490 in
2007/08; an increase of 126% from the inaugural season.
Fox Sports is the official telecast sponsor of the A-League and, after the
successful first season, signed a seven year broadcast rights deal worth $130
million.
Average viewership per game has increased from 40,350 in 2005/06 to 69,699
in 2007/08; a 73% increase from the first season. The 2008 A-League finals
series attracted an average of 130,000 viewers per match and more than 3
million unique viewers watched Fox Sports’ A-League 2007/08 season
coverage.
On 2nd May 2008 the Hyundai Motor Company Australia extended their
naming rights partnership to the completion of the 2011/12 season.
Other major A-League sponsors include Reebok, Nike, Optus, Qantas,
Powerade, Ballantines, Zurich, Foxtel and Sky Sport (NZ).
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The growth of the A-League in its first three seasons demonstrates an ability
to support expansion, with comprehensive evidence of support from both
the public and corporate sponsorship.
The original A League consisted of 8 teams and then expanded to include
Gold Coast United and North Queensland Fury.
The A-League now consists of the following 10 teams:
1. Adelaide United FC
2. Central Coast Mariners FC
3. Melbourne Victory FC
4. Wellington Phoenix FC
5. Newcastle Jets FC
6. Queensland Roar FC
7. Perth Glory FC
8. Sydney FC
9. Gold Coast United
10. North Queensland Fury
The current intention is to add two more teams starting August 2010. Whilst a
provisional 11th license has been granted to a Melbourne consortium known
as Melbourne Heart, it is expected that the 12th license will be decided upon
in the not too distance future.
With the addition of a further two teams into the league and therefore a 12
team competition, the A-League format will be a 27 round season including
13 home game fixtures for each club.
Following the introduction of the 11th and 12th license it is FFA intention in
short-medium term to “investigate” further expansion of the competition via
the introduction of 13th and 14th franchise licenses.
2.5. Football in Tasmania
Football has long been one of Tasmania’s most popular sports. Football
Federation Tasmania currently lists 27 officially sanctioned senior and junior
competitions comprised of 30 senior clubs, 7 junior associations, 128 senior
teams and 121 junior teams. In total over 14,000 Tasmanians are registered
footballers.
In the 12 months to April 2003, 22.3% of boys aged 5 - 14 were involved in
football. In addition, girls’ football is currently the fastest growing area within
the game with 4.9% of Tasmanian girls now choosing to play soccer. In 2007,
a total of 12,187 children were playing football in Tasmania, compared to just
7,500 for Australian Rules Football and 4,400 for cricket.
Football Federation Tasmania works closely with the education department
to promote junior competitions and to ensure that schools have a high
representation of football teams.
Not only is football popular to play but there is also a large supporter base.
Two A-League pre-season cup matches have been held in Tasmania, both
were between Melbourne Victory FC and Adelaide United FC. The first was
held in 2006 and was watched by 6,834 spectators and the second, held in
2007, saw 8,061 spectators attend the match. This was the largest pre-
season crowd amongst all regional centers across Australia, including
Townsville and the Gold Coast centres.
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2.6. Football Development in Tasmania
In 2007 football was included for the first time in the Tasmanian Institute of
Sport (TIS) curriculum. This was a significant advancement for the sport in
Tasmania as it provides talented young players an opportunity to be
recognised for national underage teams in addition to selection into the
Australian Institute of Sport’s program.
Football Federation Tasmania (FFT) has restructured their player
development programs to coordinate with the TIS with the aim of assisting
those players who are capable of playing at a higher level to realise their
potential.
The TIS will select a squad of junior representatives that will train with the TIS
program alongside FFT’s State squad, giving more players an opportunity to
be involved in State programs and to continue their football development
within Tasmania.
Development and pathway programs within Tasmania are significantly
assisting in the growth of football. It is believed that these programs will lead
to a greater number of Tasmanian footballers playing at a higher level and
could potentially provide the core of a Tasmanian team.
2.7. Tasmania United FC
In April 2008, a group of Hobart business men formed a Task force to explore
the possibility of the State bidding for the 11th or 12th license in the Australian
A-League. Later in that year, the group incorporated under the name of
Tasmania United FC.
In mid August 2008 the group were briefed by the FFA on the A-League
licence bidding process and have since worked towards the development
of a formal bid document.
To date the following tasks have been undertaken:
• The creation of a suitable entity to pursue the vision of a Tasmanian A-
league team; and
• Procurement of appropriate funding to enable the commission and
development of a professional feasibility study;
The Taskforce is currently is the process of indentify potential partners to assist
with the funding of a stage two study, including a detailed feasibility study
and bid document.
2.8. Study Purpose and Objectives
The purpose of the feasibility study is to provide preliminary feasibility
assessment of a Tasmania based team in the national A-League
competition.
The preparation of the feasibility study needs to take a holistic approach and
clearly outline the projected financial performance of the proposed team of
the first 5 years of operation.
The study is based on a comprehensive identification and assessment of the
current and projected levels of demand for an A-League team,
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Together with typical components of a feasibility study, specific objectives of
the project were to:
1. Demonstrate and outline the financial viability of a Tasmania A-League
team;
2. Demonstrate a business case for the introduction of a Tasmanian A-
League team;
3. Indentify potential match day venues as well as elite training and
administration facilities;
4. Identify partnership and sponsorship opportunities as well as potential
funding partners; and
5. In line with statements above, outcomes include (but are not limited to):
Macro and micro environmental analysis;
Identification and analysis of demand;
Financial plan, including 5 year projections;
Models that present and test a number of relevant business
scenarios;
Advice on issues and strategies to improve sustainability and
business viability of the team;
Identification and review of funding and partnering opportunities;
and
Identification and review of management structure and options
2.9. Acknowledgements
Stratcorp Consulting would like to acknowledge the contribution of the
following personnel for their input into the Tasmania A-League Team
Feasibility Study:
• John McGirr, Chairman of the Tasmania Untied FC Taskforce
• Craig Martin, Executive Director of Sport and Recreation Tasmania
• Ben Tatterson and Gary Gray of Sports Marketing Concepts
• John O’Sullivan, Chief Commercial Officer, Football Federation Australia
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3. PLANNING CONTEXT
The study has been carried out with consideration of the following policy and
planning inputs:
• Strategies and planning reports; and
• Demographic profile of the region.
This Section outlines the key information from these planning factors and how
each impacted on the study.
3.1. Previous Plans and Reports
The following table provides a summary of the previous plans, reports and
planning documents relevant to the Feasibility Study:
Document / Policy Key Issues Relevant to the Feasibility Study
Sport and Recreation Tasmania The five goals outlined in the strategy plan are:
Strategic Plan 2005
1. Sport, recreation and physical activity highly valued
by all Tasmanians.
2. A sport and recreation sector that provides diverse
opportunities for participation.
3. Clearly established career pathways and
education/training opportunities within the sector.
4. Facilities and environments that meet diverse
community needs.
5. A sport and recreation sector characterised by
professionalism, innovation and excellence.
The strategy indentifies the need to facilitate sport and
recreation opportunities to increase economic benefits
to the state, as well as support and promote the delivery
of elite services.
Football Federation Tasmania The three goals outlined in the strategy are:
Strategic Plan 2009 – 2013
1. To ensure that football remains vibrant and viable at
a club and association level in Tasmania.
2. To further develop and maintain a state sport
structure demonstrating leadership and clear
direction.
3. To increase the Tasmanian profile and representation
at a National level.
The element of key relevance to the study is the support
for sports representation at a National level including the
A-League.
3.2. Demographic Analysis
The following section presents the demographic profile of Tasmania and its
29 local government areas.
Tasmania's population is distributed in three main regions - South around the
capital city Hobart, North-east centered on Launceston, and North-West
which features the cities of Devonport and Burnie.
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3.2.1. Population Growth and Projections
After a period of decline in the 1990s, Tasmania's population returned to
growth in early 2001, with the population growth rate being near the national
average.
In the past decade, Tasmania’s population grew by almost 3.3 per cent,
from 474,443 in 1996 to 489 922 in 2006. The State experienced a 0.6 per cent
population decline between 1996 and 2001, but this trend then reversed and
Tasmania’s population grew by more than 3.8 per cent in the five years to
2006, which is a relatively fast growth rate for Tasmania.
Change 2003
Tasmania 2003 2004 2005 2006 2007 2008
- 2008
Population 477,679 482,799 486,380 489,922 493,341 497,529
Annual growth 5,120 3,581 3,542 3,419 4,188 19,850
Annual growth rate 1.1% 0.7% 0.7% 0.7% 0.8% 4.2%
Table 1 - Tasmania Population Growth 2003 to 2008
Table 1 above provides the following:
• During the period from 2003 to 2008, Tasmania experienced population
growth of approximately 4.2% (19,850).
• In June 2008, Tasmania's population reached a record level of 497,529.
560,000
550,000
540,000
530,000
520,000
510,000
Population
500,000
490,000
480,000
470,000
460,000
450,000
2006 2011 2016 2021 2026
Figure 1 - Tasmania Population Projections
Figure 1 above is summarised as follows:
• Tasmania’s population is expected to reach approximately 550,000 by
2026.
• From 2006 to 2026, Tasmania’s population is expect to grow by
approximately 12%
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10 000
9 000
8 000
7 000
6 000
Persons
5 000
4 000
3 000
2 000
1 000
0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80
Age (years)
--------- 2006 ---------- 2026
Figure 2 - Tasmania Age Structure Projection
Figure 2 above demonstrates the following:
• Tasmania experiences a decline in the number of people in the 18 to 30
year old age bracket. This is due to the tendency of young people to
leave the state.
• Over the next 20 years it’s projected that the will be an increase of
people being aged between 60 to 80 years old.
Tasmania currently has the second highest median age of all states and
territories behind South Australia. Given the tendency for young people to
leave the State and an under-representation of women of child-bearing
age, Tasmania has aged faster than the other jurisdictions in recent years
and is likely to overtake South Australia as the jurisdiction with the oldest
population in the near future.
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4. SITUATIONAL ANALYSIS
The following section provides an overview of the current situation and
explores all information relevant to the feasibility study.
4.1. Football Participation Trends
In 2006, national football participation reached 697,400, which was a
significant increase from the previous year.
No. of Particpants National No. of Particpants Tasmania
Year
(Nationally) Participation Rate (TAS) Participation Rate
2001 551,300 3.7% 8,800 2.4%
2002 693,200 4.5% 7,700 2.1%
2003 669,300 4.3% 10,000 2.8%
2004 659,200 4.2% 10,800 2.9%
2005 641,300 3.8% 10,900 2.9%
2006 697,400 4.2% 14,500 3.7%
Table 2 - Football Participation1
Table 2 above and Figure 3 below highlight the following key considerations:
• 14,500 people participated in a form of organised or non organised
football in Tasmania in 2006.
• Participation in Tasmania experienced significant growth between 2001
and 2006.
• In 2006, football in Tasmanian had a participation rate of 3.7%, which is
only slightly less that the national rate of 4.2%
5.0%
4.5%
4.5% 4.3%
3.7% 4.2%
4.2%
4.0% 3.8%
3.7%
3.5%
Participation Rate
3.0% 2.8%
2.9% 2.9%
2.4%
2.5% 2.1%
2.0%
1.5%
1.0%
0.5%
0.0%
2001 2002 2003 2004 2005 2006
National Participation Rate Tasmania Participation Rate
Figure 3 - Participation Rate – National v Tasmania
1 Source: Australian Sports Commission; Participation in Exercise, Recreation and Sport – Annual Reports.
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4.2. Football Federation Tasmania
Football Federation Tasmania is the controlling body and administrator of
football participation in Tasmania. Participation rates in Tasmania have
steadily increased over the past 8 years.
FFT Membership 2001-2008
16000
Registered Members
14000
12000
10000 Junior Players
8000 Senior Players
6000 Total
4000
2000
0
2001 2002 2003 2004 2005 2006 2007 2008
Year
Figure 4 - FFT Registered Participants
Figure 4 is summarised as follows:
• In 2008, FFT membership reached a total 13,614 (11,661 juniors and 1,953
adults);
• During the period from 2001 to 2008, FFT membership increased by 58%
(5,020);
• Total membership experienced a slight decline (387) from 2007 to 2008.
2007 Registrations FFT FFV FFA
Juniors 12,187 31,828 345,343
Adults 1,814 9,310 107,319
Registration total 14,001 41,138 452,662
% junior 87% 77% 76%
% senior 13% 23% 24%
Table 3 - National Registration Comparison
Table 3 is summarised as follows:
• In 2007, the FFT proportion of junior registrations to senior is approximately
10% higher than FFV and FFA.
2007 Registration - % of population TAS VIC AUS
Population total 493,341 5,205,216 21,072,452
Registration total 14,001 41,138 452,662
Registration - % of population 2.84% 0.79% 2.15%
Table 4 - Registrations Per Capita
Table 4 is summarised as follows:
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• Registration per capita in Tasmania (2.84%) is slightly higher the National
rate (2.15%) and considerably high than Victoria (0.79%).
4.3. Tasmania United Football Club
The Tasmania United vision was first established in early 2007 when six
passionate Tasmanians met to discuss football and, more specifically, to
explore the concept of a Tasmanian A-League team.
To date the following tasks have been undertaken:
• The creation of a suitable entity to pursue the vision of a Tasmanian A-
league team; and
• Procurement of appropriate funding to enable the commission and
development of a professional feasibility study;
The following is a summary of the consultation outcomes:
Issues Opportunities
The suitability of current Tasmanian facilities The development of a website has
to host A-League matches. generated interest and an avenue for
support of Tasmania United FC.
There is not a rectangular pitch facility
suitable to host A-League fixtures. Townsville, Central Coast and Adelaide have
been recognised as a similar model to the
An established training and administration
Tasmanian vision.
base in either Hobart or Launceston does not
currently exist. The Taskforce has identified that there may
be potential for a significant investment from
The Taskforce is unsure as to which model of
an international Sheik.
ownership/governance would be most
appropriate. Opportunity to seek government backing
based on the previous support towards a
Limited financial resources without the
Tasmanian based AFL team.
support of government.
Hawthorn Football Club has demonstrated
The North and South divide in Tasmania
strong support for an elite supporting club in
could be a limiting factor in the realisation of
Tasmania.
the A-League vision.
University of Tasmania may support a
Alternate bids may be looked upon more
commercial partnership in light of the
favourably than Tasmania.
possibility of exposure in the Asian market via
The development and selling of the A- Asia Champions League.
League team may be restricted by
Tasmania United is a vision of a united
perceptions developed by the AFL.
Tasmania and opportunity to capture the
Preferred training and administration base is North and the South.
likely to be Hobart.
Facility proposals and funding could be
Match day facility may be restricted to leveraged on the 2018 - 2022 World Cup bid.
Launceston (Aurora Stadium).
State election in March 2010.
Site options and alternate match day
Potential for shared facilities with local
facilities need to be considered to service
football clubs if funding is forthcoming.
both the North and South supporters.
Notional commitments have been received
for community and commercial partnerships.
Iranian National coach has expressed
interest in the Tasmanian concept.
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4.4. Existing Documentation
4.4.1. Football Federation Australian – A-League Expansion Market Research
Note: Certain commercially sensitive information has not been included in
this section.
4.4.1. Tourism Tasmania – Hawthorn Football Club Sponsorship Analysis
Note: Certain commercially sensitive information has not been included in
this section.
4.5. FFA – A-League License Bidding Process
The project team has engaged with and interviewed the FFA, specifically
with the FFA’s Chief Commercial Officer, John O’Sullivan.
The FFA has indicated that the A-League team license bid process is a
somewhat fluid process without a predetermined deadline. It is however,
critical that all prospective bidders undertake a thorough and detailed
feasibility assessment and business case to support any bid document.
The FFA has also indicated that a decision on the 12th A-League license will
be made in the not too distance future.
At this stage, Tasmania United FC’s interest has been noted by the FFA
Board, however without the lodgement of a formal bid document, it cannot
be formally considered.
The FFA Board supports the expansion of the national league and therefore
may consider the option of a 13th and 14th team license.
The following section provided a summary of the information that is to be
submitted with A-League license application:
Company Shareholdings
Entity and investor information
Demonstration of sufficient working capital funding
Proof of investors assets for working capital funding
Investor backgrounds (specific details on foreign investment)
Club Details
Organisation structure including Board of Directors
Club name and logo
Proposed license territory
Proposed host sporting venue
Nominate season competition entry for A-League and Youth League
teams. From 2009/10 the club may also be required to field a National
Women’s League team.
Any concessions requested (i.e. later Youth League team competition
entry)
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Strategic Business Case
5 year Strategic Plan
5 year Financial projections (to be completed in the standard FFA
template attached)
Commercial and Marketing
Market research to support a license in your market
Committed local business support
Club launch marketing and promotional plan (including budget)
Community engagement plan (including MOU with State Federation)
Football Operations
Club philosophy
Coaching appointments (or targets)
Football strategy for A-League, Youth League and Women’s League
Approach to player recruitment
In addition to providing the aforementioned information, it is recommended
that Tasmania United FC implements a comprehensive communications
strategy to build awareness, support and advocacy.
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5. ECONOMIC IMPACT ASSESSMENT
5.1. Overview
It is projected that a Tasmanian A-League team will have significant positive
impacts on the Tasmanian economy in terms of additional activity and
employment.
Although not part of the scope of this study, some assumptions and estimates
have been made with regard to two key areas:
1. Media Exposure – Branding
2. Economic Benefits and Direct Expenditure
The following section provides a summary of both these key areas. It is
however recommended that a detailed market research and economic
impact assessment be undertaken as part of the Stage Two of the feasibility
study and business case development.
5.2. Media Exposure
The Tasmanian Governments sponsorship of the Hawthorn Football Club is a
very recent example of how media exposure can directly correlate with
economic activity and Tourism.
The Repucom study, commissioned by Tourism Tasmania, clearly highlighted
the awareness generated by branding of an elite sport, and inturn the
positive impact on the local economy via Tourism.
An A-League team in Tasmania would generate and foster national and
international awareness of Tasmania as a destination.
The following are key considerations when determining the media exposure:
1. The average TV viewership of an A-League game is 63,974;
2. The total TV viewership for the 2007/08 season was 2.6 million people.
The A-League also receives widespread national and international media
coverage, as well as provides direct links to the Middle East and Asian
markets via the Asian Champions League Competition. Exposure for
Tasmania and Tasmanian businesses into the Asian market is likely to having
a significant economic impact on the Tasmanian economy. Further analysis
of this impact is recommended in stage two of the project.
5.3. Economic Benefits and Direct Expenditure
The projections outlined in this report estimate that a Tasmanian based A-
League team would have an annual expenditure of approximately $8
million, including employment of 22 staff and 23 players. It is assumed that
the vast majority of this expenditure would be directed into the Tasmanian
economy.
Using a conservative multiplier of two, it can be estimated that this injection
could create up to $16 million in economic activity, as well as long term
economic benefits.
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In relation to tourism activity, specific to interstate visitor for matches, the
following scenarios have been developed, based on the projected annual
attendances, for consideration:
1. Anecdotal evidence on the average number of interstate travellers for
Melbourne Victory matches:
2. A low to medium range based on Tasmania being a tourism destination
(i.e. other regional areas are not generally considered destinations);
3. A mid to high i.e. half way between Melbourne Victory and Hawthorn FC
average interstate visitors per match; and
4. The average number of interstate visitors’ attending Hawthorn FC
matches at Aurora Stadium.
Average
Interstate Visitors per Match Annual Annual spend per Economic
Attendance Visitors day Average stay Impact
Melbourne Victory Average - 1.63% 160,612 2,618 $ 220 3.2 $ 1,843,055
Low to mid range - 8.7% 160,612 13,973 $ 220 3.2 $ 9,837,164
Mid to high range - 15.8% 160,612 25,377 $ 220 3.2 $ 17,865,194
Hawthorn FC - 30% 160,612 48,184 $ 220 3.2 $ 33,921,254
Note: Average spend and average stay figures are based on the figures used in the Repucom Report
Table 5 – Economic Impact
It is recommended that further market research be undertaken as part of
stage two of the feasibility study to accurately assess the economic impact
of a Tasmanian based A-League team.
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6. A-LEAGUE FACILITY REQUIREMENTS
6.1. FFA Facility Requirements
The A-League requires clubs to play their matches at venues that have
facilities of the highest quality and that meet the following minimum
standards.
6.1.1. Pitch
The preferred pitch dimensions are fixed at 105m long and 68m wide.
No club is authorised to alter the dimensions of its pitch without the prior
written consent of the A-League.
The A-League may at any time require a club to obtain and submit to the A-
League Operations Manager a report by an independent expert certifying
its pitch dimensions.
Each club shall take all reasonable steps to maintain its pitch in good
condition throughout the season. The A-League may require a club to take
such steps as it may prescribe from time to time if it is not satisfied that the
pitch is being maintained to an adequate and acceptable standard.
The preferred turf length is 25mm.
6.1.2. Operational Rooms
Each venue should provide rooms to be used for the following operational
purposes:
• Home team dressing room;
• Away team dressing room;
• Match Officials room;
• Anti-Doping control room;
• Athlete medical room;
• Ball persons room;
• Host Broadcaster commentary position;
• Host Broadcaster hosting position;
• 2 x radio commentary boxes;
• Press box;
• Photographers room;
• Media conference room;
• Match day office with telephone, photocopier, fax and modem plugs;
• Sports presentation room.
6.1.3. Public Refreshment Facilities
Selling points for food and beverages should meet various State Health
Regulations at all times and easily accessible.
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Selling points must be evenly spread around the stadium so that provision is
made for all sectors, bearing in mind that spectator movement from one
sector to another may not be possible.
6.1.4. Sanitary Facilities
Each Venue shall provide clean and hygienic toilet and washing facilities for
male and female spectators and for disabled spectators in accordance with
legislation and government standards.
These amenities should include adequate washing facilities with soap, hot
and cold water and a continuous supply of towels and/or hand dryers and
should be kept in that condition throughout the day.
6.1.5. Accessibility
Each club shall provide sufficient and adequate facilities for supporters and
patrons with disabilities in accordance with legislative and government
standards.
6.1.6. Merchandise and Concession Stands
Merchandise and selling stands inside and outside the stadium, whether for
food, beverages, match programmes etc. should not be situated in any
position where queuing customers would obstruct the flow of other
spectators.
The aforementioned standards are to be used as generally guide and further
specific information can be obtained by referring to the Hyundai A-League
Operations Manual.
6.1.7. Rectangular Pitch Stadium Vs Oval Stadium
Although FFA’s preference is for rectangular pitch stadia facilities specifically
designed for rectangular pitch sports it is not mandatory that A-League
games be played in rectangular pitch stadia.
There are a number of current A-League clubs that currently play A-League
games in oval stadia.
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6.2. Match Day Venue Options
As part of the feasibility study a number of match day facilities have been
considered in line with A-League requirements, as well as specific criteria in
relation to national and international standard facilities.
The criteria used for assessment includes but is not limited to the following:
1. International / National Competition Standard;
2. Event Infrastructure and Manangement;
3. Grandstands and Public Seating;
4. Corporate and Media Facilities; and
5. Public Concessions and Amenities.
The project team has considered a number of facilities throughout Tasmania
based on information provided by the State Government and other
stakeholders, as well as site visit and interviews with the facility
owners/managers. A SWOT analysis has been undertaken for each of the
considered facilities (refer below).
The following information provides a summary of the considered match day
facilities for a Tasmanian A-League Team:
Venue City Comments
Aurora Stadium Launceston Currently hosts 4 to 5 AFL matches per annum.
Estimated capacity of 21,000.
Bellerive Oval Hobart Capacity crowd is estimated at 16,000. Recently
developed Southern and Northern Stands.
King George V Oval Glenorchy 1500 seats. Built in 1957 and redeveloped in 1982.
New $2.5 million grandstand being developed.
King George V Glenorchy Home of Football Federation Tasmania. Includes
Soccer Pitch main pavilion and grandstand.
Built in 1921 and redeveloped in 1988. The ground
North Hobart Oval Hobart
has hosted Youth League representative matches.
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