Yes, it was great to see Wexford Albion sitting nearby the other night. I’m not sure how big a story this is. Sledge’s mate in the Indo got 3 or 4 days’ mileage out of it but they still had over 30,000 (I think it was announced as 40,000) at a game against Andorra. That’s as much, if not more, as the old stadium held and Delaney has been on record as saying their break-even sales level for ‘Vantage Club’ tickets was around 6k (if I’m not mistaken) and they’re pretty close to achieving that. It certainly would seem to make commercial sense to reduce the prices and sell more of the tickets though.
a piss poor interpretation of an article that tries to make news of something thats been in public domain for a few years. the reality is that the FAI are in the same position as an appartment owner in that they own the building but not the land its on- why would the IRFU give up their land- its a win win for both parties. the IRFU hold onto their land while the FAI co own an asset with a useful life of 60 years which they will pay off in 10- thy the have 50 years of revenu generating.
They own 50% of a company that owns the Aviva Stadium building which leases the site from the IRFU. They get 50% of the revenues from the stadium. Is simple enough for you mbb?
the IRFU and FAI both co-own a company called NSL, and they both pay that co. for the right to use the stadium.
They both earn from concerts etc through NSL, and both pay small fees to ‘rent’ it, essentially from themselves.
this is been completly driven by the editor of the indo.My understanding is that after the Indo had to back down on the Limerick Barca story as a result of a legal letter from the FAI, DMD was told to ‘get’ the FAI by the front half of the paper. Which he did last week.
the reality is that Some company said to the FAI ‘we can give you €75m for your corporate seats’. First time the FAI had heard of them. FAI said ‘get a letter from your bank proving you are good for it and at that point we will let you tender’. Company never came back and folded a few weeks later.
So are you saying its not a good deal for the IRFU? That was all that I said after all, they’re cute cunts who never take a bite out of a stone wall.
im saying its a win win
Yes I agree with you that the FAI are fucked.
I am surprised this didn’t get a mention earlier
Home » Ireland » News Agenda »
The Irish Times - Friday, March 8, 2013
Sports Council feared it could be caught offside by financial woes at FAI
The Football Association of Ireland’s financial woes have not been helped by results on the pitch, which reached a new low last October with the 6-1 drubbing of the Republic of Ireland by Germany.
’
JOE HUMPHREYS
Concern about financial difficulties in the Football Association of Ireland (FAI) prompted the Irish Sports Council to get legal advice on how to “ringfence” its funding from the association’s creditors, official documents show.
It is understood one option considered by the council in 2011 was paying the FAI’s annual grant in monthly instalments.
Another proposal involved setting up a bank account into which the €3 million annual grant would be paid.
Fears that the FAI’s exposure to bank debt over the redevelopment of the Aviva stadium escalated two years ago when it emerged the association was repaying only interest on the loan.
Documents released under the Freedom of Information Act show the council’s board discussed in March 2011 “the necessity for the executive to ensure that any [council] funding allocated to the FAI be ringfenced and protected from any claims by a creditor should the FAI end up in financial difficulty”.
Legal advice was subsequently sought and, while not released under the Act, The Irish Times understands this advice set out two options: restructuring the grant payment schedule to as many as 12 instalments a year, or setting up a separate bank account that would be protected from creditors in the extreme case of the FAI becoming insolvent.
Instalments
At the time the FAI received its grant in two instalments of 75 per cent up front and 25 per cent on submission of audited accounts.
The council subsequently decided to pay its grant in two tranches of 50 per cent each over the course of a year.
This arrangement was extended last year to the GAA and the IRFU. The three organisations are the top recipients of funding from the council, receiving €8.3 million together in 2012.
The documents show FAI chief executive John Delaney was asked to appear before the council in November 2011 to be questioned about the association’s finances and development plans. Mr Delaney told the board he “was comfortable with the FAI’s ability to meet its debt obligations over the coming years and did not feel this sense of comfort was in any way aspirational”, according to board minutes.
Asked about his salary, which then stood at €400,000, Mr Delaney said this “was set by his board and was dependent on his ability to secure commercial contracts for the FAI and as with everyone else he has his own personal obligations”, the minutes recorded.
Mr Delaney agreed to a €40,000 cut in salary last year.
Auditors
There were previous tensions between the two bodies over the FAI’s decision to refuse the council’s internal auditors access to copies of board minutes, the documents also show.
In April 2010, the council’s chief executive John Treacy wrote to Mr Delaney expressing “regret that access to information that had been agreed . . . in an advance of audit was subsequently withdrawn”.
Mr Delaney replied that copies of board minutes could not be supplied to the auditors “because these were strictly confidential and had highly sensitive commercial information in them”. He added this information was unrelated to the projects supported by the council, which were mainly grassroots programmes, regional coaching and developing the women’s game.
However, Mr Delaney said to prove the FAI “maintained the highest level of corporate governance” its director of finance had shown “physical evidence” of minutes and agendas on his laptop to the auditor.
“In particular, he showed her the specific reference in the board meeting minutes where the board approved the association’s annual budget and that it received a monthly detailed financial report.”
“I wish to assure you we did not withdraw any previously agreed access to information,” Mr Delaney added.
Tetchy exchange
There was a further tetchy exchange last April when Mr Delaney queried a cut in the FAI allocation from €3.35 million in 2011 to €2.99 million in 2012.
Mr Delaney wrote saying a “10 per cent reduction was discussed” with the council, whereas the figures showed a 10.7 per cent decrease. “Can you advise if this increased cut is an error or the actual figure?”
In reply, the council said the 10 per cent reduction applied to underage participation funding, while the women in sport funding had been reduced by 22 per cent “which was considerably less than the overall reduction of 40 per cent in the council’s budget for this fund. As a result, the figures which you received . . . are correct.”
How much were they fined for the 6-1 defeat mentioned in the intro?
This must be one of the worst financial decisions in the history of Irish sport
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This north county cocktake chap was v bullish on Irish football back then
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Good post. The FAI should have got you in to solve their financial woes
Someone a little blue about the woeful viewing figures for the rogbee
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Sarah Keane has had her eye wiped here
I think @Bandage would be a good fit for this. Knowledgeable on the sport to a 3/4 pint level, a good man to walk the twin tightropes of governance and morality.
packie bonner acting the dick
https://www.dailyrecord.co.uk/sport/football/dermot-desmond-pitched-celtic-multi-30543677.amp