HKFA Investment in Football

2010-2020

Before and After Project Phoenix – The Story So Far

The situation prior to 2009• HKFA acknowledged to be poorly governed, managed and

funded• Government intervention resulted in:– Football Development Strategy (Dare to Dream)…– … which recommended the ‘Transformation’ of the HKFA

• Football Task Force established and HKFA ‘Change Agent’ appointed – Resulted in ‘Project Phoenix’ report (2010)

• PP included 33 Recommendations to ‘transform’ the HKFA; governance, management, organisation, funding and football development

• HK$60m provided for 3 year programme (2011-14)

What has been done?

Project Phoenix

Part 1 - Governance and Constitution

• All 6 Recommendations completed:– Integration of Women’s Football (previously

separate Association)– Management/Departmental Re-structure– New Board Structure (expanded and more

independent)– Constitution – New ‘Articles of Association’– Improved Communication (Board/Secretariat)– HKFA Membership Re-structured to make it more

representative in accordance with FIFA Statutes

Part 2 - Vision, Strategy & Business Planning

• All 4 recommendations implemented:– New Vision prepared– 5 year plan written; (Aiming High – Together)– Day to day management and organisation enhanced– CEO appointed to lead the transformation process

Part 3 - Organisational Development

• All 9 recommendations implemented:– New organisation structure put in place– Financial management and control improved– Development of HR function– Systems and procedures enhanced– Team briefing protocols introduced– Performance Management instilled– Public Relations function developed– Staff remuneration harmonised– Working environment benefited from investment

Part 4 - Raising the standard of Football (1)

• Rec 20 – Funding for football– Significantly increased (see later slides)

• Rec 21 – Representative Teams– More matches organised for all teams– Upward trend in World Ranking– HKRT Academy established U12-U18

• Rec 22 – New Premier League– Introduction of Club License system– Establishment of new league in 2014/15 season– Negotiation of 3 year Title Sponsorship

Part 4 - Raising the standard of Football (2)

• Rec 23 – Structure of Football– New senior league structure in place– Youth leagues expanded– New Women’s leagues and development programme– New Futsal leagues and development programme– Commercial soccer schools accreditation scheme– Expanded schools programme

• Rec 24 – Football Development– New systematic player development system– Introduction of HK Football Curriculum– Expanded Coach Education programme– New Referees Department established

Part 4 - Raising the standard of Football (3)

• Rec 25 – Eligibility for National Teams– NSA Working Party Established

• Rec 26 – Hong Kong Football Training Centre– Feasibility Study completed (6 pitches)– Funding obtained HK$133m– Land allocated (21 hectares at Tseung Kwan O)– Completion targeted for 2017

• Rec 27 – New National Stadium– Consultation completed– HKFA contributing to development process

Part 4 - Raising the standard of Football (4)

• Rec 28 – Community Facilities– Home and away system introduced for PL– Working with Govt re: improving community stadia– FIFA Pitch Improvement Programme completed

• Rec 29 – Player Status and Welfare– Player Support Unit established– Pre-season briefings held– Compulsory Match-manipulation training undertaken– Random drug testing introduced

• Rec 30 – China League– Discussion undertaken but plans on-hold

Part 4 - Raising the standard of Football (5)

• Rec 31 – Partnership Working– Enhanced relationships with stakeholders in

commercial and public sectors• Rec 32 – Targets and Measures of Success– Key Performance Indicators agreed with partners

• Rec 33 – The Way Forward– New 5 year plan written and approved– The catalyst for significant future investment

Project Phoenix Outcomes (1)

• HK$56.4m spent between Nov 2011 and Oct 2014• Parts 1, 2 and 3 (19 recs) all implemented and

involve the ‘development’ of the HKFA ‘off the pitch’• Part 4 (14 recs) all implemented or ‘on-going’ and

involve the HKFA ‘delivering’ improvements ‘on the pitch’

• Circa 30 new jobs created in Corporate Services and Technical Department which has significantly enhanced managerial and technical competence

Project Phoenix Outcomes (2)• As a result of PP and the increased staff and investment:

– Significantly more people playing football and futsal especially young people, girls and women in a more structured way

– HKRTs playing more regularly and at a higher level– The best players selected for the HK Football Academy– HK Clubs performing better in AFC Competitions– New professional league– More coaches being educated– More referees being recruited, trained and assessed– New systematic teaching methodology created through the

HK Football Curriculum– Dedicated Training Centre on the horizon

Addressing Criticisms

As with any major project (particularly one instigated by and paid for by Government),

there will always be criticisms. Project Phoenix is no exception and the

following slides address the main points of contention.

Too much money spent on Staffing

• It’s true that a large percentage of money was spent on human resources but:– That was always the intention because the HKFA was under-

resourced and as a result lacked managerial and technical skills– Human Resources are essential to deliver change and to

expand activities and programmes– With the new investment generated under Aiming High –

Together, the staff appointed under Project Phoenix now have the resources necessary to enhance football development activity

– Existing HR levels are considered broadly adequate to deliver the new Strategic Plan and therefore the percentage of money spent on HR will reduce

Money has not gone to Professional Football Clubs• It’s also true that Project Phoenix money has not gone directly to

Premier League clubs but:– It was never meant to; it is difficult to direct public money to private

individuals and commercial entities– ‘District’ clubs have received 3 x the funding they previously received from

Government outside Project Phoenix (it is doubtful that this would have happened if it hadn’t been for PP)

– Premier League Clubs have benefitted indirectly from PP in a number of ways:• 4 x the amount of prize money available thanks to sponsorship• The Club License system enables them to play in AFC competitions• The HKFA development structure will provide more and better players for clubs in the

future which should create more commercial opportunities• The HKFA Competitions Department organises most things for them• The HKFA spends over HK$1m on marketing and promotion of the league

– The HKFA subsidizes the Premier League by around HK$4m per annum. It can only do this because the external funding it receives is directed to other activities

– There is an onus on clubs to work with the HKFA to enhance Professional football in Hong Kong. This cooperation is not always apparent.

Results are too slow• Some observers expect more immediate and tangible

results:– Initially investment inevitably focused on internal change –

governance, management, structure etc– However, the HKFA is a very different organisation as a result of

PP and now has the resources (staff and money) to implement change ‘on the pitch’. The foundations have been laid.

– Football is a very competitive sport played by virtually every country in the World. Even with more resources, systems and structures in place it takes time to develop competent footballers. Hong Kong is playing ‘catch-up’.

– Experience shows that in countries that have been through a similar transformation, the reality is that real results often take ten years to come to fruition; it needs to be recognised that we are closer to the start of the journey than the end.

Project Phoenix Conclusion

Perhaps the most important thing about Project Phoenix is that the momentum created has

convinced stakeholders that the HKFA is serious about change and enhancing football.

More hard work remains to be done and indeed we are still at the start of the journey.

Project Phoenix has been the catalyst for further improvements that will be delivered through the

implementation of Aiming High – Together.

Aiming High - Together

The additional funding generated will enable the HKFA to implement further change and development in a

structured way. The following charts show the level of annual

investment in certain activities and programmes before Project Phoenix and by comparison, after Project

Phoenix.This is the money that will be available for the

implementation of Aiming High – Together (2015-2020)

Income(Revenue from all sources)

Before Project Phoenix After Project Phoenix -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

289% Increase

Expenditure(All costs)

Before Project Phoenix After Project Phoenix -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

324% Increase

External Funding (Annual)Income from non HKFA Sources

Before Project Phoenix After Project Phoenix -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

GovernmentHKJCEAFF/AFC/FIFASponsorship

503% Increase(HK$m14.4>72.3)

High Performance FootballAll HK Representative Teams and Academy

Before Project Phoenix After Project Phoenix -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

StaffingProgrammes

397% Increase

Senior Men’s TeamTraining and Competition

Before Project Phoenix After Project Phoenix -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

StaffingProgrammes

293% Increase

AcademyMale Youth Training and Competition

Before Project Phoenix After Project Phoenix -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

StaffingProgrammes

422% Increase

Youth DevelopmentTraining Programme and Leagues

Before Project Phoenix After Project Phoenix -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

StaffingProgrammes

308% Increase

FutsalHK Teams, leagues, training etc

Before Project Phoenix After Project Phoenix -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

StaffingProgrammes

9,337% Increase

Women’s High Performance FootballHK Representative Teams

Before Project Phoenix After Project Phoenix -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

StaffingProgrammes

Infinite Increase

Women’s Football TotalHKRTs and Leagues

Before Project Phoenix After Project Phoenix -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

StaffingProgrammes

Infinite Increase

CompetitionsOrganisation of leagues and cups

Before Project Phoenix After Project Phoenix -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

StaffingProgrammes

177% Increase

RefereeingTraining, education and assessment

Before Project Phoenix After Project Phoenix -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

StaffingProgrammes

2,008% Increase

Coach EducationOrganisation of training and qualifications

Before Project Phoenix After Project Phoenix -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

StaffingProgrammes

240% Increase

Schools Programme

Before Project Phoenix After Project Phoenix -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

StaffingProgrammes

527% Increase

Human ResourcesAll HKFA staffing costs

Before Project Phoenix After Project Phoenix -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

512% Increase

Human Resources Cost Ratio% of expenditure spent on staff

Before Project Phoenix After Project Phoenix -

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Other InvestmentInvestment in Staff

Total 10 year External Funding (HK$million)Capital and Revenue from ‘stakeholders’ (excluding commercial partners)

0

100

200

300

400

500

600

HKJC FTC

HKJC Football Dev Partnership

HAB (Aiming High)

Extra LCSD Subvention

Project Phoenix

514.4 HK$m

% External Funding Spent as @ Aug 2015‘The Best is yet to come’!

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Un-spentSpent

82.4% yet to be spent

Aiming High - Together

What does the future hold in store?

Mission Statement

“To transform football in Hong Kong through a systematic and integrated strategic plan, so that

players can become competitive against the best in the world and so that all organisations, systems,

processes and resources are consistently focused on producing an environment which helps and

motivates individuals, teams and clubs to reach their potential in their chosen area of football whether it

be playing, officiating, coaching or managing.”

Prerequisites for SuccessThe critical success factors that will enable football to flourish include: • Governance and Leadership; inspirational and influential people at the

top of football organisations• Resources; people, equipment, facilities and money aligned to deliver

the strategic plan• Philosophy; one agreed Hong Kong style of play and a system for

continuous delivery and review • Players and Opportunity; a large talent pool with technically competent

footballers playing in a competitive environment with a fully professional League at the apex

• Coaching; the bedrock for success is people who understand the style of play and have the skills, knowledge and ability to teach and to motivate

Twelve Key Goals1. Develop a consistent style of play that yields better standards at all levels and introduce

this style of play throughout Hong Kong football 2. Improve coach education through the development of a syllabus and the organization

of courses that reinforce the Hong Kong style of play3. Develop a ‘high performance’ football culture through the establishment of youth

Academies at National and Professional Club level4. Achieve higher AFC/FIFA ranking for all Hong Kong teams (senior, youth men’s,

women’s)5. Become more competitive at international competitions in both men’s and women’s

football (Asian Cup, East Asian Games, Asian Games, Olympics, World Cup etc) 6. Significantly increase the number and quality of players, coaches and officials 7. Improve the quantity, quality and accessibility of football facilities across Hong Kong 8. Encourage more people to play football more often and to a higher standard9. Introduce a more competitive structure for Hong Kong leagues and cup competitions,

including a fully professional ‘Premier’ Football League with home venues, commercial revenue and higher levels of spectators

10. Make football a career that young players can aspire to with effective player welfare11. Continue the transformation process into a world class Football Association in terms of

governance, organisation and management12. Seek to become more financially sustainable through prudent financial management

and the generation of commercial income streams

Goals Delivered through

• The implementation of:– 15 Policy Statements– 14 ‘Game Changers’ each with a number of

specific recommendations, actions, resource requirements and outcomes

• Monitored via 18 Key Performance Indicators

Conclusion• The Government initiated plan for the revitalisation

of football in Hong Kong is well under way• The first part of the transformation process (Project

Phoenix) has been completed• Improvements on and off the pitch are apparent

but need to be consolidated • Additional resources have been secured• Aiming High – Together will drive the development

of football through to 2020• The cooperation and coordination of all football

stakeholders will determine success