No float but Glory kicks on

Perth Glory Football Club hosted a razzamatazz launch early this month to tell its fans and everyone else that the club is back, and better than ever, as a participant in the Hyundai A-League, the new eight-team national competition that will kick off in August.

Chief executive Jeff Dennis believes Glory will benefit from the “tremendously bright new era” for the code under the leadership of Westfield chairman Frank Lowy and former Australian Rugby Union chief executive John O’Neill.

“Quite clearly there has been a long break since our last game and a lot of uncertainty … on what shape or form the club would continue, or if it would continue,” Mr Dennis said.

“Now this is putting it in concrete, this is the start, it’s happening right now.”

One thing that isn’t happening is a stock market float, which had been scheduled to occur in March.

The float was scrapped after reports that Glory and Perth’s Super 14s rugby union team were fighting over naming rights at Members Equity Stadium, which will be the home ground for both clubs.

Mr Dennis said the two events were not related.

“We have got naming rights and we are half-way through negotiations to increase the term.

“That has no bearing whatsoever with the float. We don’t see it as a question mark, our position is quite clear.”

Mr Dennis said the club had an open mind on future ownership, currently shared between Chicken Treat chairman Nick Tana (75 per cent) and David Rodwell (25 per cent).

He said Glory wanted to get “runs on the board” with regard to the new national league and use of the stadium and clarify the value of the naming rights and catering rights.

“There is quite a lot of, not so much uncertainty, but there is not a lot set in concrete,” Mr Dennis said.

While he acknowledges Glory’s financial potential is unclear, Mr Dennis believes any risk is on the upside.

He said a key factor was the national leadership of people such as Frank Lowy and John O’Neill, who had a rare capacity to attract support from other individuals and businesses around the country.

“The potential for this game that we’ve all been speaking about for so many years, finally everyone can see that it’s being realised because of the people involved.”

Mr Dennis said Glory’s budgeted income this year was about $5 million, with most coming from sponsorships and hospitality ($2 million) and ticketing and membership ($2 million).

The ticketing budget is based on the conservative assumption that average attendance will be 11,000 at each home qualifying game.

That figure is above last year’s 10,000 average but is below the average since the club’s inception of 12,397.

“I agree with you, eleven (thousand) is conservative, I would like to think it will be between 13 and 15 (thousand),” Mr Dennis told WA Business News.

He said the potential to trade players to international clubs provided further upside, with players having been sold in the past for up to $1 million.

There is also the potential for extra games in Asia and the introduction of an FA Cup-style knockout competition in Australia.

The Glory is not banking on gaining financial contributions from the national league but Mr Dennis said that was likely to change.

“At the moment there is not any significant amount but we have every confidence that in the not-too-distant future that will happen, and that will be quite a turning point.”

He added that Glory subsidiary Allia Holdings would generate further income from the management rights, naming rights and catering rights to Members Equity Stadium, though he said it was too early to prepare a meaningful estimate.

Concerts, rugby matches (league and union) and other events all offered potential for more income.

Mr Dennis said the club, which has won two premierships since being founded in 1995, recently commenced negotiations with sponsors and “the early signs are encouraging”.

It has re-signed Western QBE, DVG Automotive, Coca Cola and Harvey Fresh and is confident other long-term supporters, such as Peters & Brownes, Healthway, WA Newspapers and Tip Top Bakeries will sign up again.

Mr Dennis said a television deal with Fox Sports would help soccer lift its profile.

He accepts Glory is not in the same league as AFL teams with free-to-air TV coverage and also acknowledges Foxtel has low penetration in Perth (17 per cent).

However, he emphasises that footage of all Glory games will now be available for the evening news.