Australia’s ‘A-league’ has grown considerably in recent years, yet still lurks in the shadows of the AFL and NRL – unable to attract the sponsorship and audience of the country’s major sporting codes.
Despite this, the A-league has attracted a swathe of foreign investors who view the league as a small, burgeoning market, ripe for foreign investment and growth.
But exactly how deep these investments run throughout the league remains unclear.
A recent investigation by the ABC’s Four Corners revealed that almost half of the clubs in the A-league are owned by foreign investors – each with a peculiar backstory.
The program exposed the foreign entities funding Melbourne City, Sydney FC, Brisbane Roar, as well as the unknown Dutch consortium backing Adelaide United.
Last seasons premiers Melbourne City (formerly Melbourne Heart) were famously snapped up in 2014 by the City Football Group, (CFG) the sports investment company headed by Sheikh Mansour bin Zayed Al Nahyan, a member of Abu Dhabi’s royal family.
Manchester City chairman Khaldoon Al Mubarak (left) pictured with owner Sheikh Mansour bin Zayed Al Nahyan (centre) and vice-chairman Simon Pearce (right)
CFG own a majority stake in a range of clubs around the world – its flagship team Manchester City is a footballing giant on the English and European stage.
Manchester City chairman Khaldoon Al Mubarak and vice-chairman Simon Pearce, aside from their football interests, are both senior advisers to the Abu Dhabi government.
Al Mubarak also serves as an adviser to the Crown Prince and de facto ruler of Abu Dhabi, Sheikh Mohammed bin Zayed Al Nahyan, who is deputy supreme commander of the nation’s military.
‘Sportswashing’ accusations levelled at foreign investors
The United Arab Emirates have long been criticised by humanitarian organisations for human rights abuses, as well as the ‘soft power’ strategy employed by the government to portray the country as a progressive nation.
Amnesty International has called for urgent action in the A-league, accusing the City Football Group and its owners of ‘sportswashing’: using the positive publicity garnered by the success of their clubs to rehabilitate their nation’s image.
Melbourne City is one of several CFG clubs, including Manchester City, that are being used to promote next month’s World Expo in Dubai.
The Bakrie Group seized control of the Brisbane Roar in 2011.
Brisbane owners linked to match-fixing scandal
Brisbane Roar is fully owned by an Indonesian conglomerate known as the Bakrie Group, who have extensive mining, banking and agriculture interests.
Their purchase of the Roar in 2011 marked the first time an A-league club would be fully owned by a foreign entity.
The head of the Bakrie family is Aburizal Bakrie, an Indonesian politician and former chairman of the infamous Golkar political party, widely known for its history of corruption.
The Bakrie Group own Brisbane Roar through an Indonesian holding company, Pelita Jaya Cronus.
A director at the company and former acting chairman of the Indonesian soccer association, Joko Driyono, was charged in 2019 for interfering with evidence in a police investigation into match-fixing in Indonesian football.
Joko Driyono is a director at Pelita Jaya Cronus, the holding company of the Brisbane Roar.
Driyono served an 18 month prison sentence and has since been released, resuming his position on the board of directors at Pelita Jaya Cronus.
It is uncertain as to whether competition regulator Football Australia is aware of how closely connected Driyono is with Brisbane Roar, or if they are aware of his connection to the club at all.
Exactly how much money foreign investors have injected into the A-league isn’t publicly available
Football Australia relinquished control over the A-league last year, handing commercial control back to the clubs.
The wealthy business owners and global consortiums with controlling interest in clubs were given direct say in how the competition and their teams would be financed.
There are currently no figures which track investments into teams, and A-league clubs operate as private companies who aren’t required to disclose financial statements.
This leaves an obscure and often complex paper trail which poses a significant challenge to transparency and accountability in Australian football.
In Short:
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.
The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.
The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.
Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.
The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.
Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.
The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.
Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.
Economic Pressures
Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.
In Short:
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.
U.S. stocks rose to record highs on Friday due to lower-than-expected inflation data and positive corporate earnings.The S&P 500 and Nasdaq achieved their largest weekly gains since August. The Dow saw its biggest jump from Friday to Friday since June.
The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.
Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.
Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.
This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.
The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.
Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.
Market Trends
Advancing stocks on the NYSE outnumbered decliners by 2.18 to 1. The S&P 500 had 34 new highs, with the Nasdaq recording 124.
Trading volume was 19.04 billion shares, lower than the average of the past 20 days.
In Short:
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.
This coming week, earnings reports from companies including Tesla and Netflix are anticipated to impact U.S. stock performance.
Investors are also awaiting delayed U.S. inflation data, which could test market stability as it remains near record highs.Recent trading activity has shown increased volatility, influenced by ongoing U.S.-China trade tensions and concerns regarding regional bank credit risks. The CBOE volatility index has seen a rise, indicating increased market uncertainty.
The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.
Market Volatility
Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.
Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.
The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.