Football Australia to slash 20 per cent of workforce as CEO makes damning admission
Football Australia is bracing for another major financial loss, triggering a sweeping internal restructuring that will see it lose more than 20 per cent of its workforce – and CEO Martin Kugeler admits the game has failed to contain the Matildas’ rise and success at the home World Cup in 2023.
While Kugeler, who announced a record deficit of $8.5 million in last year’s accounts, faces the financial reality of the organization, worse figures will be announced at the FA’s annual general meeting next Thursday.
Kugeler did not talk about the details of the latest loss, other than to say that the latest loss was “more significant” than the previous one.
“We are not where we need to be on the financial side,” Kugeler said Tuesday. “This is what we need to address. We have to live within our means. We have to establish an organization and structure that will support taking advantage of the opportunities in front of us.”
The FA has not confirmed staff numbers but sources who are not authorized to comment publicly due to the sensitivity of the situation suggest the number is less than 200. Whatever the figure, the potential loss of at least one in five workers follows a push for “proper assessment” after the 2025 General Assembly, which suggests the initial cuts did not go far enough.
It is less than three years since Australia hosted the FIFA Women’s World Cup and comes weeks after the conclusion of the AFC Women’s Asian Cup, two major tournaments expected to usher the sport and the FA into an era of commercial prosperity.
Instead, despite record attendance numbers and the emergence of the Matildas as a premier national sports brand, the Australian Professional Leagues, which run both the FA and A Leagues, have been forced into dramatic cost-cutting to stay afloat.
The good news is that the FA and APL have reached agreement over historic debts between the two organizations relating to product betting fees and refereeing costs received from gambling companies. The last AGM was marred by confusion over the nature of the FA’s $8.5 million loss; $4.1 million was attributed to expected credit losses; Sources at the time said it was due to APL debts which the FA did not expect to be paid.
Resolving these issues at least gives Kugeler a firmer domestic foundation on which to build as he and finance director Adam Santo seek to restore the FA’s cash position.
“Two significant losses and increasing losses year on year is frankly not a sustainable or acceptable situation,” Kugeler said.
Kugeler, who took office as the FA’s chief executive in February, said it would be “unfair” to criticize his predecessors, but acknowledged football had suffered a collective failure to turn these opportunities into financial results.
“Have we, as Football Australia, made the most of this tournament? We will join this call, which we probably haven’t made,” he said.
Kugeler refused to answer a question about whether he was aware of the magnitude of the FA’s problems before taking office.
Workers at the FA were being summoned to meetings on Tuesday to learn their fate. Kugeler said layoffs were a last resort and that the decision was made only after reducing expenses on travel, projects and other external costs.
He said the squad overhaul would reshape the FA around “growth and innovation”, with plans to invest in digital products, analytics, fan engagement and commercial strategy even as staff numbers are reduced.
“This is not just a reduction or layoff. It is also about investing in new roles for our strategy going forward,” he said.
“It’s an exciting time ahead with the Women’s World Cup in Brazil, but also [2028] The Olympics… of course this year in the Socceroos, our national teams will be on the global stage and at this point we need to take advantage of it better than in the past.”
Kugeler said the job cuts would not directly affect the Socceroos’ preparations for the World Cup, their search for new heads of men’s and women’s football to serve under the FA’s executive vice-chairman and chief football officer Heather Garriock, and would not hinder negotiations with Socceroos coach Tony Popovic for a new contract.
Kugeler confirmed publicly for the first time that the FA’s preference was probably to keep Popovic for the next four-year World Cup period.
“Negotiations with his manager are continuing,” he said. “Obviously, he is focusing on the preparations for the World Cup. We want Tony Popovic to continue as Socceroos coach. “I got the impression he wanted to continue as Socceroos coach.”
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