Macarthur FC Takes Legal Action Against Football Australia Over A-League Entry Deal

A major legal clash looms between Football Australia (FA) and A-League side Macarthur FC, with the club accusing the governing body of misleading conduct and unfair dealings surrounding its entry into the national competition.

In documents submitted to the Federal Court, Macarthur's owners allege that FA violated consumer law during the A-League’s expansion to 12 teams, misleading them over financial guarantees that influenced their decision to invest.

Macarthur FC, based in Sydney’s southwest, was originally expected to join the competition in the 2019–20 season alongside Western United from Melbourne. However, the Bulls’ debut was delayed until the 2020–21 campaign, following the withdrawal of early investor Lang Walker, a billionaire property developer who sold his stake back to the club.

According to the legal claims, FA promised financial incentives, including central distributions of $3.25 million annually, in exchange for a hefty $12 million licence fee. These assurances, allegedly delivered by then-chief operating officer Mark Falvo, formed the foundation of Macarthur’s business plan and were included in the club participation agreement (CPA).

The governing body later cited financial uncertainty stemming from Foxtel’s likely withdrawal as the A-League’s broadcast partner, raising concerns over solvency.

The club’s owners claim FA had been aware since 2018 that Foxtel might not renew its deal, casting doubt on the financial model offered to new entrants. To mitigate the potential fallout, FA inserted a clause guaranteeing a minimum annual distribution of $1.2 million into the CPA—but the club argues this move underscores FA’s prior knowledge of the looming revenue shortfall.

Macarthur FC is now pursuing compensation totalling nearly $10 million, along with repayment of a $5 million loan used to sustain operations. The owners are also seeking further damages and may request to void parts of their agreement with FA.

“We’ve spent nearly five years trying to resolve this amicably,” said Krslovic. “It’s disappointing that it’s come to this, but we’ve been left with no other choice.”

The case is scheduled to be heard in court for the first time on Tuesday.

_{Featured Image Credit: Instagram / @mfcbulls}