New company to replace 'broke' Soccer Australia

SYDNEY, Sept 26 (AFP) - The long-awaited resuscitation of Australian football formally began on Friday with the announcement of a new company to replace the stricken Soccer Australia organisation.

The new body, known as Australian Soccer Association Limited, will receive 15 million dollars (10 million USD) financial assistance from the Australian government to implement the recommendations of a government-backed inquiry.

BizVantage – Beyond the news: when knowing counts.
Try the free, no-hassle 6 month trial!

Frank Lowy, who will head the new board, said at a press announcement on Friday that the previous Soccer Australia was in effect 'broke' and unable to manage the activities of the game in Australia.

The course was taken for a new entity after expert advice confirmed the existing company would be insolvent by November.

The federal government has offered a funding package of 9 million dollars (6.1 million USD) over three years, and a loan of 6 million dollars (4 million USD) commencing from the establishment of the new governing body.

Lowy said the new body provided an opportunity to start rebuilding football in Australia with a "clean sheet".

"We can now begin a fresh relationship with the soccer community, players, administrators, governments and potential sponsors," Lowy said.

"We need to restore credibility and attract sponsors and other commercial partners to get money flowing into the game."

Lowy said that world governing body FIFA had advised that it would recognise Australian Soccer Association Limited as the controlling body for football in Australia.

The much-needed reorganisation also has the support of the Australian government, the government funding arm Australian Sports Commission and the Australian Olympic Committee.

Another key objective will be the development of a strategic plan for the ailing National Soccer League, which is seen as the cornerstone for the rejuvenation of the professional game in Australia.

The new entity will work towards ensuring the national competition clubs are financially sound, can increase the quality of the competition and encourage overseas-based Australian players to return home and play in a new reformed national league.

Around 150 NSL players are playing professionally with overseas clubs.

Lowy, one of Australia's richest men with extensive retail property interests, has some of Australia's leading corporate identities with him on the board, including Australian Grand Prix boss Ron Walker and advertising guru John Singleton.

rsm/rcw03

Fbl-AUS