The Football Association of Malaysia today hit back at criticism of the way it plans to distribute the media rights income from its 15-year advisory deal with the MP & Silva agency.
In January, the agency agreed to act as the association’s global adviser for all media and commercial rights for club competitions in a deal worth about RM1.2bn (€252m/$287m). The deal begins in 2016 and comprises worldwide media rights covering the Super League, the Malaysia Premier League, the FA Cup, the Malaysia Cup, and the Piala Sumbangsih match. As part of the deal, the agency and the association created the Football Malaysia Limited Liability Partnership.
Datuk Hamidin Mohd Amin, secretary general of the FAM, today said that the final income distribution percentages were yet to be finalised but defended the association’s broad strategy.
Tunku Ismail ibni Sultan Ibrahim, president of Malaysian Super League champion Johor Darul Ta’zim, had earlier called on football’s world governing body Fifa to investigate the association, claiming the body was holding back broadcast revenues from clubs and was failing to tackle corruption in the domestic game.
He told the Reuters news agency: “By right, in every league in the world every club participating should have 90-95 per cent of the broadcasting rights that would help them to have their own youth development project, improve infrastructure and have a quality team.”
“But the problem is FAM only give 22 per cent to the teams, so each team will only get RM1m, while FAM enjoy the chunk of RM47m. By right, it should be given to the clubs. What FAM are doing is basically stealing the money from the clubs and the world have to know that. It is wrong.”
The 31-year-old, who is the Crown Prince of Johor, added: “Maybe Fifa should question them or something like that as it is not healthy. Nobody is interested in moving forward or bringing football to another level but everything is interested in their own sake and position. Most of the clubs are handled by politicians and they all want to play safe.”
Datuk Hamidin Mohd Amin said that the association required 40 per cent of the income to operate effectively: “Based on the previously announced proposal, 30 per cent would be given to the teams, 20 per cent to Football Malaysia LLP for operational costs and management of the competition, and 10 per cent for the development of football in the court, coaching and player. The remaining balance of 40 per cent remains the property of FAM as the holder of the intellectual property rights for the M-League (Super League).
“So why should FAM get 40 per cent of the breakdown? Because the FAM basically requires an average annual expenditure of RM70m as an association to manage the national teams… and organise competitions.
“Based on the turnover of RM70m per year, FAM will only get RM28m, so FAM actually has to find a balance of RM42m to cover the annual expenses amounting to approximately RM70m. The basic proposal to distribute this revenue is almost like the concept adopted by Fifa in the distribution of revenue from the World Cup. Accordingly, the breakdown of the proposed acquisition FAM is reasonable and appropriate in comparison with the current situation.”
He also hit back at claims that the FAM had failed to tackle corruption.
“The association is always serious about integrity issues and established an FAM Integrity Committee in 2010 and then asked each state football associations to set up committees in 2013,” he added. “To say that the FAM should be investigated by Fifa… is unfounded. In addition, FAM also appoints internal auditors and external auditors to audit the financial records of the association.”