The outspoken mining magnate will start a breakaway federation, with former A-League chief Archie Fraser on board

Billionaire businessman Clive Palmer has announced the establishment of Football Australia, in an attempt to replace Football Federation Australia, which he has labelled 'incompetent'.

Former A-League chief Archie Fraser, who has been a critic of the FFA since his departure in 2010, has been named the body's inaugural chief executive officer.

Both spoke at the press conference on Thursday, which came a day after Palmer's A-League licence for Gold Coast United had been revoked by the FFA.

Palmer said the FFA had "lurched from one disaster to another, and needs to be replaced".

"The fans, players and people with a passion for football in Australia deserve better and Football Australia will be based on full transparency and corporate governance," Palmer told reporters.



"We want to ensure there is fairness in the game for all stakeholders and end the dictatorship that the game has endured under the FFA."

The FFA decided to revoke Palmer's licence after the United owner issued several withering statements criticising running of the game in Australia, with the last straw coming in the wearing of the slogan "Freedom of Speech" on their playing strips in Friday's match against Melbourne Heart.

At the press conference revealing the decision to take away United's licence, FFA chairman Frank Lowy said United had committed "three clear breaches" of the club participation agreement.

"Such disrespectful behavior, a flagrant disregard for the rules and a stated intent to continue breaking the rules made for an intolerable situation," Lowy said on Wednesday.

Palmer reacted by calling Lowy a "dictator" on Twitter, have also said Lowy is "an institution who now belongs in an institution".

He also swore to take the matter to court.

Now he has set up Football Australia, which will be an independent body aimed at overseeing football at the grassroots and senior level.

FA's charter will revolve around 'transparency and fairness' and aim to take over from FFA, which he said has been incompetent at both the domestic and international level.