FEASIBILITY STUDY

Feasibility Study



Feasibility Study

EXECUTIVE SUMMARY

In 2009, the Tasmanian Government, in conjunction with the Tasmania United FC Taskforce, commissioned stage one of a feasibility study to explore the financial viability of a Tasmanian based A-League team. Stratcorp Consulting, in partnership with Sports Marketing Concepts, was engaged to undertake this feasibility study. The study explores the financial viability, facility requirements, as well as partnership opportunities for Tasmania United FC in the A-League competition. The study also provides strategic recommendations in relation to the establishment and ongoing operation of the club.

The feasibility study clearly demonstrates demand for the establishment of an A-League team in Tasmania and importantly that an A-League team could be a sustainable financial entity in its own right in the short to medium term. Preliminary socio-economic analysis indicates that the establishment of an ALeague franchise in Tasmania would deliver considerable socio-economic benefit to Tasmania and the Tasmanian economy. Potential exposure into the Asian market through the Asian Champions League also has the potential to provide opportunities for Tasmania and Tasmanian businesses to access the lucrative Asian market.

Background

Football (Soccer) has been played, in a variety of forms, for nearly 3000 years - in Asia, then in Europe and, more recently, in Africa and the Americas. Over 240 million people from more than 200 countries play football on a regular basis and millions more participate as officials, administrators, coaches, volunteers and, of course, as fans. The Federation Internationale de Football Association (FIFA), football's governing body, estimates that 28.8 billion viewers watched telecasts of the 2006 World Cup. The World Cup, held every 4 years, is the single largest sporting event on Earth, significantly bigger that the Olympic Games. In Australia, football is the 9th most popular sport and physical activity on a national level with a participation rate of 4.2%. In 2007, 452,662 people played outdoor football in organised Football Federation Australia (FFA) competitions in 2007 including 345,343 children aged from 5 and 14. In addition, an estimated 400,000 individuals also participated in non-FFA competitions. Among Australians aged over 15, 931,500 directly participated as footballers (indoor and outdoor, FFA sanctioned and non-sanctioned) in 2007.

ECONOMIC IMPACT ASSESSMENT

Overview

It is projected that a Tasmanian A-League team will have significant positive impacts on the Tasmanian economy in terms of additional activity and employment. Although not part of the scope of this study, some assumptions and estimates have been made with regard to two key areas: 1. Media Exposure - Branding 2. Economic Benefits and Direct Expenditure The following section provides a summary of both these key areas. It is however recommended that a detailed market research and economic impact assessment be undertaken as part of the Stage Two of the feasibility study and business case development.

Media Exposure

The Tasmanian Governments sponsorship of the Hawthorn Football Club is a very recent example of how media exposure can directly correlate with economic activity and Tourism. The Repucom study, commissioned by Tourism Tasmania, clearly highlighted the awareness generated by branding ...