SINGAPORE — Barely five months after winning the historic Football Association of Singapore elections, the FAS' new council finds itself grappling with its biggest challenge to date, as funding for the S.League could be substantially reduced next season.

TODAY understand that the budget for next year's S.League could be set at just S$8.5 million, which is almost half of its current annual sum of S$16 million.

The annual subsidies allocated for Singapore's only professional sports league comes from the Tote Board, although Sport Singapore (SportSG), the national governing body for sports, is in charge of disbursing the money.

It is understood that the FAS had initially prepared a proposal for next year's S.League based on a reduced budget of around S$11 million, and will be presenting these plans to the Ministry of Culture, Community and Youth (MCCY) sometime this month.

TODAY understands that one of the core tenets of the proposal is an added focus on youth development, with the aim of having more young players featuring in the S.League on a regular basis.

TODAY also understands that the FAS held a meeting with the S.League clubs on Friday evening (Sept 8) to brief them on these plans as part of an update on next year's potential funding.

Responding to TODAY's queries, a FAS spokesman said: "It is premature at this stage to talk about the funding from Sport SG as discussions are still ongoing.

"We are gathering feedback from stakeholders on the proposed plans for the S.League so that we can provide Sport SG with all the relevant views as they contemplate the desired outcome for the S.League."

A SportSG spokesperson added: "Discussions are ongoing with FAS on the future plans for the S-League. Until an agreement is reached, it will be premature to talk about the funding."

Local S.League clubs - Tampines Rovers, Home United, Geylang International, Warriors FC, Hougang United and Balestier Khalsa - currently receive about S$800,000 in annual subsidies.

The expenditure of a local club averages around S$1.2million to S$1.5million.

A S.League club official, who declined to be named, said he was "shocked" at the potentially drastic decrease in the S.League budget.

"It's unrealistic to expect clubs to operate on almost half the annual subsidies that we're getting at the moment," the official said.

"This will be the start of a vicious cycle if it goes through. Without the necessary funding, it'll be even harder to improve the standard of the S.League, or to increase interest in the league. In fact, both of these (aspects) might get worse.

"This then gives a further excuse to reduce the funding even more the year after. If this continues, it won't be long before the S.League becomes semi-professional or is dissolved completely."

Albirex Niigata general manager Koh Mui Tee added: "We do a lot of outreach activities, in particular with Yuhua. We want to continue these activities, but potential funding cuts might make this difficult for us to do so."

The expected reduction in funding will strike another serious financial blow to local clubs, who are still grappling with recent rule changes regarding the jackpot rooms.

Clubhouse operations are another substantial source of income for S.League clubs here, and account for on average 30 percent of a club's operating expenditure.

Two months ago, the Ministry of Home Affairs (MHA) announced a slew of measures to tighten regulations on clubhouse operations.

This includes the progressive reduction of the quota of jackpot machines over the next two years. The operating hours of jackpot rooms — currently not restricted — will also be limited to between 10am and 11pm.

Access to jackpot rooms in clubs will also be tightened.

From November, the minimum age will be raised from 18 to 21 — in line with that of the two casinos here — and only individuals who have bene club members for at least one year will be allowed in. Members will also not be allowed to bring guests into the jackpot rooms any more.

Other social safeguards clubs have to put in place include a ban on advertising and promotions relating to jackpot machines within and outside the clubs. The rule also applies to Internet advertising and promotion.

Another S.League club official, who requested to remain anonymous, believes the expected funding cut, coupled with the new jackpot rules, will see clubs struggle financially in the coming years.

"I expect it's going to be a lean few years for us," the official said.

"Sadly, this will likely mean pay cuts, or worse, retrenchments of staff and the release of players, who will likely find it hard to source for new clubs here.

"Hopefully the authorities will step in and help the S.League, which I believe plays a very important role in the local footballing ecosystem.

"If you make it harder for one to become professional footballers, like what this cut in funding is doing, then how can we expect to increase our talent pool? No one will want to pursue football as a career.

"Improving local football is not just the role of the S.League clubs or the FAS alone. It takes the effort of everyone, from Sport SG, to MCCY, the Tote Board, corporates, to the fans, the media...everyone needs to be pulling in the same direction to help Singapore football.

"But this recent development shows this is not the case, and I fear Singapore football will not just stagnate, but go backwards if something is not done."