Deloitte appointed as lead advisor for Hyundai A-League two club expansion

Football Federation Australia is gearing up for its 2018-19 expansion which will see two new teams enter the A-League. Applications are currently open and the FFA is hoping to draw investors from Europe, North America and Asia. The FFA board will make a decision on the applications in October this year.

Big Four professional services firm Deloitte will advise Football Federation Australia on the expressions of interest and oversee the league expansion. Deloitte will be involved in mediation between the bidders and the FFA whilst providing information to applicants, managing questions, facilitating meetings and conducting due diligence on proposals received.

There have been 10 applications for the spots so far, with more considered to be still in the pipeline. Whilst it is unknown where the new clubs will be based, according to SBS’s The World Game; Melbourne, Sydney and Brisbane are all likely contenders. 

The A-League currently has 10 teams since the Western Sydney Wanderers joined the league in 2012. There are currently two teams each from Melbourne (Melbourne City FC and Melbourne Victory) and Sydney (Sydney FC & Western Sydney Wanderers) whilst Brisbane Roar FC are the only ones to call the Queensland capital home. The two new clubs will be a part of the 2019-20 A-League season.

FFA chief executive David Gallop commented in relation to the expansion, “we can already see that there is genuine interest in the market, encouraged by the recent sale of Adelaide United which demonstrated that A-League club licences have grown significantly in value over time.”

“With Asia Pacific the fastest growing economy in the world we’re delighted to be assisting FFA with this process to expand the league and continue to grow “the World Game” Down Under. We have done a lot of work on the fundamentals behind successful expansion of the A-League and we are confident that we will receive some high quality bids as part of this process.”

"But it's important to remember that this is an interaction with the market and the market will have its own views. We must do all we can to ensure that sound business principles and more generally the best interests of football are considered and applied.”

Deloitte is a market leader for professional services in sport through its specialist subsidiary, Sports Business Group – a network of strategic consultants who provide commercial, financial, regulatory, taxation and general business knowledge to assist their clients globally.

“Deloitte have considerable expertise in this area and specific expertise through their Manchester office in football investment which is why we have engaged them. We will ensure that all potential investors are aware of the process,” said Gallop.

Deloitte Partner Aaron Black commented on the firm being chosen for the job, “Deloitte has a long standing history and a global pedigree advising local and international sports on their most strategic opportunities.”