Three state FA's in dire straits as privatisation of M-League looms

The three bodies grappling with financial problems are Selangor, Kelantan and Perlis, three states used to winning major titles in Malaysian football.

This scenario does not augur well the Malaysian League (M-League) which is set to be privatised in 2018.

On Friday, Selangor Football Association (FAS) president Datuk Seri Mohamed Azmin Ali quit the post with immediate effect.

Mohamad Azmin, who is also the Selangor Menteri Besar, accused FAS of failing to come out with a strategic plan as wanted by the Football Association of Malaysia (FAM).

The FAM decision to fully privatise the M-League in 2018 is timely to raise the standard to be on par with Asian football giants Japan and Korea.

Can all the football associations and clubs take the challenge in the next 12 months?

Football Malaysia Limited Liability Partnership (FMLLP) chief executive officer Kevin Ramalingam said teams should adapt to changes to avoid a shock.

"This transformation will take place in 2017 and over the next four to five years," he said in an exclusive interview with Bernama Saturday.

Conditions for club licensing would be tightened where each competing team has to meet the criteria to avoid problems.

FMLLP would introduce the '60 per cent rule' which would see a sponsor allowed to bear not more 60 per cent of the club's entire expenditure.

"If a club wants to accept a sponsorship, it has to look for the remaining 40 per cent from other sources such as from sale of tickets and souvenirs.

"The condition is to ensure each team has the supporting funds as a safety net for at least three seasons should the main sponsor pull out," he said.

Ramalingam said among the conditions for club licensing is the mandatory establishment of a marketing division in the team.

"For long term solution, we could see greater drives from commercials by the team's marketing division.

"If the team is more successful with its commercial, then they would be able to spend more. This is the focus of FMLLP," he added.

Each team will also be required to put out a three-year financial plan.

"At least they could see the direction of the team and will not be shocked with the expenditure when a new season begins," he said.

The requirement will be implemented in stages as the M-League moves towards full privatisation in 2018.