Football Australia faces financial crisis, cuts 20% workforce

Football Australia is cutting more than 20% of its workforce as financial pressure mounts across the organisation, as reported by HRD.

Chief executive Martin Kugeler confirmed the layoffs as part of a major restructure focused on growth and innovation.

The overhaul will include investment in digital products, analytics, fan engagement and commercial strategy.

According to The Sydney Morning Herald, fewer than 200 employees are expected to be affected.

Staff were informed on Tuesday and called into meetings regarding their employment status.

Kugeler said the redundancies came only after Football Australia reduced spending on travel, projects and other external costs.

"It's not only a reduction, a redundancy. It's also investing in new roles for our forward strategy," Kugeler said as quoted by The Sydney Morning Herald.

Financial trouble

Football Australia is expecting a bigger financial loss than last year. The numbers will be revealed at the annual general meeting next Thursday.

"We are not where we need to be on the financial side," Kugeler said as quoted by The Sydney Morning Herald.

"And that's what we have to address. We have to live with our means. We have to establish an organisation and a structure that will support taking advantage of the opportunities that we have ahead."

World cup impact

Kugeler admitted Football Australia failed to fully benefit from the momentum created by the FIFA Women’s World Cup.

"Have we capitalised, as Football Australia, the maximum out of that (women's World Cup) tournament? We'll probably agree on this call that we haven't," he said as quoted by 9News.

However, the organisation now plans to focus on future global events, including the Women’s World Cup in Brazil and the 2028 Olympics.

"We have got an exciting time ahead of us with the women's World Cup in Brazil, but then also with the 2028 Olympics … obviously the Socceroos this year, our national teams will have exposure on the global stage, and that's where we need to capitalise better than in the past," Kugeler said.

Teams unaffected

"The discussions are ongoing with his agent," Kugeler said, as quoted by the Herald. "He's obviously focusing on the preparation of the World Cup. We would like Tony Popovic to continue as Socceroos coach. I've got the impression that he would like to continue as Socceroos coach."

Football Australia said preparations for the Australia men's national soccer team World Cup campaign will not be affected.

The Australia women's national soccer team will also continue preparations for upcoming international friendlies.

Talks are also continuing over a new contract for Socceroos coach Tony Popovic.

Football Australia said preparations for the Australia men's national soccer team World Cup campaign will not be affected.