Australian Broadcasting Corporation
TV PROGRAM TRANSCRIPT
LOCATION:
http://www.abc.net.au/7.30/content/2002/s715216.htm
Broadcast: 30/10/2002
Soccer crisis escalating
Reporter: Peter Wilkins
KERRY O'BRIEN: Australian soccer missed out on a financial bonanza when the Socceroos failed to make the World Cup finals.
Now the game's governing body, Soccer Australia, is walking the tightrope of insolvency.
Crowds have plummeted for the national league and there's no television coverage of games.
Therein lies the key to this ongoing financial crisis.
The Seven TV network wants to re-negotiate its 10-year TV rights deal with Soccer Australia following the demise of its pay tv arm - C-7.
Seven wants to focus on international matches, ignore the national league, and pay less than the original contract figure for the privilege.
But as Peter Wilkins reports, the contract wrangle not only threatens to split the sport's already-divided board -- it may even result in a strike by players.
PETER WILKINS: The most watched sporting event in Australia this year - the World Cup soccer final.
Bigger than AFL and rugby league Grand Finals, 3.5 million viewers nationally.
For lovers of the local game in Australia, bad luck.
The national league season's in full swing and you can't see a match.
BRANKO CULINA, COACH, SYDNEY UNITED: I've seen some games where they're equal to any of the games overseas.
Some of the goals that we've seen at the NSL level this year have been absolutely world class.
But unfortunately no TV coverage, no-one can see it.
PETER WILKINS: Four years ago, the then chairman of Soccer Australia, David Hill, signed a 10-year TV rights deal with the Seven Network, the richest in the game's history.
Much to the frustration of stakeholders in the game, Seven farmed out the national league matches to the ABC and to its pay TV arm C7.
With the collapse of C7, no games are broadcast at all.
BRANCO CULINA: A lot of us believe that the game deserves better.
Earlier this year, Seven sought to renegotiate the deal, downgrading the value of the contract by about $6 million.
Seven also wanted to off-load coverage of the national league games.
Soccer chairman Ian Knop is under pressure from members of his own board to walk away from the Seven deal when the board meets next Monday.
IAN KNOP, CHAIRMAN, SOCCER AUSTRALIA: We're going to be discussing it for the Seven contract.
The issues around it are complex for the sport.
But, like Channel 7 has lost their pay TV operator.
So that changes not just the implications for soccer but it changes for all the other sports that are on pay.
And so we're in a difficult position, but so is Seven.
And the board is going to be discussing those issues.
And making some recommendations to the stakeholders.
And looking at the options.
PETER WILKINS: What are the positives, though, from your perspective of going through with the Channel 7 deal?
Why do you see it as being good for the game?
IAN KNOP: It's interesting how I've been quoted as being a huge supporter of Channel 7 et cetera, et cetera.
And I haven't actually made any public comment until now.
I think, what soccer has to do is look at the best commercial options and if Seven is one of those, terrific.
PETER WILKINS: But in a bizarre twist, the Seven Network has said Soccer Australia has already agreed to the new deal and today called on the board to acknowledge this publicly.
In a letter sent to all board members, Seven executive Shane Wood, until recently an observer on the board's financial activities, says: SHANE WOOD, SEVEN NETWORK, NEW MEDIA (TRANSCRIPT): In August 2002, following months of discussion, Seven and Soccer Australia successfully renegotiated the existing agreement.
There is a binding arrangement in place between Soccer Australia and Seven.
PETER WILKINS: That contradicts several Soccer Australia board members who've told the 7:30 Report there's been no authority given to clinch such a deal.
They point out that more than $1 million is still owing under the terms of the original contract.
Why is Channel 7 withholding a payment at the moment from their contract?
IAN KNOP: Look, I don't particularly want to comment on that.
That's between Soccer Australia and Channel 7.
PETER WILKINS: But it is putting a gun to Soccer Australia's head with this withholding of the payment?
IAN KNOP: I don't particularly want to comment.
My information is that it's quite a significant amount of money -- $630,000, from June.
It's $583,000 to be truthful I don't want to comment.
PETER WILKINS: Is another payment due now?
IAN KNOP: I don't want to comment.
PETER WILKINS: This afternoon, Seven confirmed to the 7:30 Report that it has not made these payments because: SHANE WOOD, SEVEN NETWORK, NEW MEDIA (TRANSCRIPT): There was a strong sense they would not honour the agreement and Seven did not want to be in a position of throwing good money after bad.
PETER WILKINS: The players Association, with a 30 per cent stake in all media rights, is strongly opposed to the new deal.
BRENDAN SCHWAB, PLAYERS' ASSOCIATION: It will bring about the demise of the National Soccer League as we know it.
Soccer Australia will be simply unable to finance the NSL beyond the current season and the clubs won't be able to pick up the tab for next year.
PETER WILKINS: This afternoon, the Players' Association advised the 7:30 Report that a player strike was possible if any deal had been agreed upon without its consultation.
BRENDAN SCHWAB: The point of view is a preferred outcome to the Channel Seven contract.
PETER WILKINS: Without the Channel Seven money, are you insolent?
IAN KNOP: No, we're not.
PETER WILKINS: Channel Seven is disappointed at the state of political infighting in the game they see as devaluing the property.
SHANE WOOD, SEVEN NETWORK, NEW MEDIA (TRANSCRIPT): The public coverage of this in-fighting has, without doubt, been responsible for bringing the game of soccer into serious disrepute in Australia.
BRANCO CULINA: I think our biggest problem is that we're always chasing money and making decisions that will affect us later on.
It's a bit like a gambler, you know, who goes out there and is losing money and to get money continues to get themselves into deeper and deeper problems.
ANDY HARPER, FORMER PLAYER AND COMMENTATOR: Well Peter, we've got to start again, totally.
The whole thing needs to be reconstituted.
Yo don't get rid of the muck in the bowl unless you hit the flush button.
PETER WILKINS: Andy Harper is sick of the decisive politics which he feels have held the game back.
ANDY HARPER: To a point there's agreement on what needs to be done.
But as soon as someone's neck is on the block, that agreement goes out the window and we start fighting for the votes again and the football side of things is neglected year after year after year.
PETER WILKINS: It's another crucial powerplay in Soccer Australia's history.
Chairman Ian Knop, trying to reform the game by initiating a government inquiry into the sport, has alienated himself and with the Seven deal, handing them rights to the cream of the game until 2010 given detractors a reason to call for his resignation.
The inquiry findings can't come soon enough.