Football Federation Australia is forecasting a loss of $7.3 million for the 2020/21 financial year after losing $1.814 million in 2019/20.
The COVID-19 pandemic hit FFA hard, with the loss of crowds and a significant reduction in the A-League broadcast deal stripping the governing body of millions of dollars.
The net deficit for the 2019/20 financial year was $1,814,000.
A year earlier, FFA recorded a net surplus of $435,000.
As of June 30, FFA had total assets of $44.319 million and total liabilities of $39.788 million, equating to net assets of $4.531 million.
Their net assets were $6.436 million a year earlier.
Worryingly, the biggest financial hits are still to come.
FFA has budgeted for a drop in revenue from $106.4 million in 2019/20 down to $82.7 million in 2020/21.
A big proportion of that drop in revenue is a result of the renegotiated broadcast deal.
FFA’s broadcast deals netted $50.8 million in cash last financial year, but that is budgeted to fall to $29.7 million in 2020/21.
The current deal to broadcast the A-League ends next season and it remains to be seen what the next deal will look like and how much it will earn.
The FFA’s forecast $7.3 million deficit position for the 2020/21 financial year consists of a $1.3 million deficit for FFA and a $6 million deficit for the various leagues, including the A-League and W-League.
The significant losses from the leagues includes a $5.1 million budgeted deficit relating to the hub resumption of the 2019/20 A-League season, which was postponed from the 2019/20 financial year due to COVID-19.
There were some positives to come out of a difficult 2020, including the successful bid for the 2023 FIFA Women’s World Cup, and qualification for the Tokyo Olympics in both the men’s and women’s categories.
Meanwhile, the ‘unbundling’ of the A-League – which will see clubs take control of the league – could be finalised before Christmas.
That could ease some of the financial strain on FFA and allow individual clubs to lead the drive to attract foreign investors.