A-League hopefuls Southern Expansion are offering to pay a seven-figure sum to Sydney FC as compensation for encroaching on their territory and threatening the Sky Blues' core membership base in the city's south.
Should the Sutherland Shire-based bid gain entry into the competition, they will propose paying a $1 million "structural adjustment package" to rivals Sydney FC, who have staunchly opposed the inclusion of the group as part of A-League expansion.
Chris Gardiner, CEO of the Southern Expansion consortium, and bid chairman Morris Iemma.Credit:Peter Braig
Southern Expansion chairman Morris Iemma said his team was seeking to address Sydney FC's concerns that a new team would cannibalise the football market by offering the club a significant cash payment to cover any potential loss of Sky Blues supporters to the new side.
Iemma said the offer of a one-off cash deposit to Sydney FC had been included as part of the Southern Expansion bid proposal to the FFA and Deloitte and suggested Southern Expansion were disappointed not to have received any response from the Sky Blues.
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"Am I surprised? No," Iemma said. "I'm more disappointed because there's so much potential… we had it [compensation] in there as part of our formal bid. FFA were quite keen and interested. Weve received no word back from Sydney FC. Theyve dismissed it. We know its fallen by the wayside but we dont know the reason why."
Sydney FC declined to comment when contacted by the Herald, though club sources say there has been no direct communication from Southern Expansion on any matter and that the Sky Blues have been made aware of Southern Expansion's intention to offer compensation only through third parties.
It is understood Sydney FC will not accept any cash payment from Southern Expansion and the Herald understands the Sky Blues are in no mood to enter negotiations with the group over any form of potential compensation, irrespective of the offer.
Thirty per cent of Sydney FC's membership resides in the city's south, with more than 5000 members based south of Mascot. There are also many long-term fans who are not registered members and the club has no doubt the region is the club's single biggest area for supporters.
To allay Sydney FC's concerns, the Southern Expansion bid, which is backed by Hong Kong-listed property development company JiaYuan, is also prepared to offer funds towards their rivals' marketing budget.
The Herald understands a third party approached Sydney FC to informally offer the club a seven-figure settlement sum to be paid by Southern Expansion for the purposes of marketing. Club sources say the Sky Blues rejected the informal offer.
Iemma confirmed the bid's offer to contribute towards Sydney FC's marketing budget, saying: "We said to the FFA we would be happy to contribute to joint marketing efforts, promote the game, promote derbies, but they [Sydney FC] werent interested. We just fell back to offering the structural adjustment package because they werent interested."
The news comes after a heated war of words this week between Southern Expansion and Sydney FC, sparked by the 19,000-strong crowd that attended Sunday's 'Big Blue' at Jubilee Oval in Kogarah, the heart of the territorial war.
Southern Expansion chief executive Chris Gardiner said the fact Syndey FC was able to attract such a healthy attendance proved why the A-League needed a permanent team in Sydney's southern suburbs.
In a press release put out immediately after Sydney FC's 2-1 defeat to Melbourne Victory, Gardiner suggested the region was disconnected from the A-League.
"Over 40,000 football participants are not yet connected to the A-League or a club, theyre hungry for games at their local stadia with their own team," Gardiner said.
Those comments prompted a strong rebuttal from Sydney FC chief executive Danny Townsend, who dismissed Southern Expansion's claims as "pretty embarrassing" in light of Sydney's bumper crowd in Kogarah.
Sydney FC on Tuesday signed an MOU with Wollongong Wolves concerning player development and chairman Sydney FC Scott Barlow said the Sky Blues would consider playing some games out of WIN Stadium while Allianz was being redeveloped.
A decision on A-League expansion will be made by Football Federation Australia on December 12.
Dominic Bossi is a football reporter with The Sydney Morning Herald.
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A-League hopefuls Southern Expansion are offering to pay a seven-figure sum to Sydney FC as compensation for encroaching on their territory and threatening the Sky Blues' core membership base in the city's south.
Should the Sutherland Shire-based bid gain entry into the competition, they will propose paying a $1 million "structural adjustment package" to rivals Sydney FC, who have staunchly opposed the inclusion of the group as part of A-League expansion.
Chris Gardiner, CEO of the Southern Expansion consortium, and bid chairman Morris Iemma.Credit:Peter Braig
Southern Expansion chairman Morris Iemma said his team was seeking to address Sydney FC's concerns that a new team would cannibalise the football market by offering the club a significant cash payment to cover any potential loss of Sky Blues supporters to the new side.
Iemma said the offer of a one-off cash deposit to Sydney FC had been included as part of the Southern Expansion bid proposal to the FFA and Deloitte and suggested Southern Expansion were disappointed not to have received any response from the Sky Blues.
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"Am I surprised? No," Iemma said. "I'm more disappointed because there's so much potential… we had it [compensation] in there as part of our formal bid. FFA were quite keen and interested. Weve received no word back from Sydney FC. Theyve dismissed it. We know its fallen by the wayside but we dont know the reason why."
Sydney FC declined to comment when contacted by the Herald, though club sources say there has been no direct communication from Southern Expansion on any matter and that the Sky Blues have been made aware of Southern Expansion's intention to offer compensation only through third parties.
It is understood Sydney FC will not accept any cash payment from Southern Expansion and the Herald understands the Sky Blues are in no mood to enter negotiations with the group over any form of potential compensation, irrespective of the offer.
Thirty per cent of Sydney FC's membership resides in the city's south, with more than 5000 members based south of Mascot. There are also many long-term fans who are not registered members and the club has no doubt the region is the club's single biggest area for supporters.
To allay Sydney FC's concerns, the Southern Expansion bid, which is backed by Hong Kong-listed property development company JiaYuan, is also prepared to offer funds towards their rivals' marketing budget.
The Herald understands a third party approached Sydney FC to informally offer the club a seven-figure settlement sum to be paid by Southern Expansion for the purposes of marketing. Club sources say the Sky Blues rejected the informal offer.
Iemma confirmed the bid's offer to contribute towards Sydney FC's marketing budget, saying: "We said to the FFA we would be happy to contribute to joint marketing efforts, promote the game, promote derbies, but they [Sydney FC] werent interested. We just fell back to offering the structural adjustment package because they werent interested."
The news comes after a heated war of words this week between Southern Expansion and Sydney FC, sparked by the 19,000-strong crowd that attended Sunday's 'Big Blue' at Jubilee Oval in Kogarah, the heart of the territorial war.
Southern Expansion chief executive Chris Gardiner said the fact Syndey FC was able to attract such a healthy attendance proved why the A-League needed a permanent team in Sydney's southern suburbs.
In a press release put out immediately after Sydney FC's 2-1 defeat to Melbourne Victory, Gardiner suggested the region was disconnected from the A-League.
"Over 40,000 football participants are not yet connected to the A-League or a club, theyre hungry for games at their local stadia with their own team," Gardiner said.
Those comments prompted a strong rebuttal from Sydney FC chief executive Danny Townsend, who dismissed Southern Expansion's claims as "pretty embarrassing" in light of Sydney's bumper crowd in Kogarah.
Sydney FC on Tuesday signed an MOU with Wollongong Wolves concerning player development and chairman Sydney FC Scott Barlow said the Sky Blues would consider playing some games out of WIN Stadium while Allianz was being redeveloped.
A decision on A-League expansion will be made by Football Federation Australia on December 12.
Dominic Bossi is a football reporter with The Sydney Morning Herald.
