THE Newcastle Jets' new owners admit the drastic reduction in funding from the governing body is far from ideal but have accepted it as a case of short-term pain for long-term gain.
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A-Leagues chairman Stephen Conroy confirmed the worst-kept secret in sport on Wednesday when he said "we're having to significantly cut our cloth" because of financial constraints, which will mean smaller grants for each club next season.
According to multiple media outlets, the grants will be slashed from $2 million per club last season to $530,000.
A-League clubs have a salary cap of $2.6 million for their men's team and $600,000 for their women, and before the pandemic were receiving annual grants of $3 million.
Jets executive director Maurice Bisetto, a representative of the Maverick Sports Partners group which recently acquired Newcastle's franchise licence, said the consortium was well aware that the grants would be reduced, before even entering into takeover negotiations.
"This year's distribution might be sub-optimal, but I would anticipate certainly no worse next year, and then in subsequent years improvements going forward," Bisetto told the Newcastle Herald.
"The clubs will need to take a hit this year, and some clubs will be better placed to manage it than others.
"Player contracts, as an example, are locked in, so there's not much scope there to wind any costs back.
"So it's really about trying to find additional revenue streams or more revenue, or hopefully growing your memberships and ticket sales with good marketing and promotion."
Bisetto was confident that the Jets, who had been operating on a shoestring budget for more than three years under the previous interim ownership, would be in a better position than most clubs to cope with the shortfall.
But he said it was a reminder of how essential it will be to forge close connections with the community.
"We've had to take a step back to take two steps forward," he said.
"The reduction in distribution just makes it even more important for the greater Newcastle-Hunter community to really get on board and support the Jets."
He said the early signs have been encouraging since the club changed hands last month.
"The response since the [takeover] announcement has been really positive," he said. "We definitely see a lot of green shoots, and we have to keep it going now."
AAP reports: Socceroos coach Graham Arnold has floated the return of a Gold Coast A-Leagues outfit in addressing the domestic league's health ahead of a historic World Cup qualifier in the city.
Clubs were informed on Wednesday next year's distribution from head office would total just $530,000, down on close to $2 million handed out last season and a far cry from the near $3.6 million figure in 2018.
The A-League salary floor - the minimum amount clubs must spend - is $2.25 million and the salary cap is $2.6 million.
While wealthier sides such as Melbourne City will be able to plug the gaps, it leaves the smaller clubs facing a bleak financial outlook to cover the near $1.5 million shortfall.
Clubs have indicated they are bracing for the prospect of making cuts to already slim on-field and off-field departments.
The Socceroos will play a maiden fixture on the Gold Coast, opening the third round of their qualification campaign at Robina Stadium against Bahrain on September 5.
"The domestic league is so important for the Socceroos and Matildas," Arnold said on Thursday.
"National teams are only as strong as their domestic leagues.
"Up to the age of 16 we are as good as anywhere in the world.
"That age between 17-20, 21 - that's when the kids need more help and more development."
Arnold coached Central Coast when Gold Coast United featured in three top-league seasons between 2009-2011.
"I would have loved to have seen them stay in the A-League," Arnold said.
"The crowds were fantastic and that was in 2011, 2012. Can you imagine the crowds today?
"We've got the facilities, everything that's required. It just needs the backing of someone to get back into the A-League."
Australia, unbeaten in six second-round qualifying games, must finish in the top two of a pool featuring Bahrain, China, Indonesia, Saudi Arabia and world No.17 Japan to earn automatic qualification for the 2026 showpiece.
"It's a wonderful opportunity to inspire 15,000 registered kids that play football here in this region and expose those moments in life to those kids," Arnold said of the Bahrain fixture.
"First time here and a World Cup qualifier; a very, very important game, a fantastic rectangle stadium."
Arnold said the squad's depth and belief gave him "goosebumps".
"Japan are a strong nation, ranked 16 (sic) in the world for a reason and growing, but we're only six, seven places behind them," he said.
"It's about going out with that mentality and believing in yourself and the boys know exactly what I want.
"My expectations and goals, I've already set to the players, is to top the group.
"That's what we're here for."
The 2026 tournament will be co-hosted by Canada, the US and Mexico and expands from 32 teams to 48 for the first time.
