Trap era apathy reflected in latest FAI accounts
Revenues slipped for the second year on the spin and delegates will be informed at the FAI AGM in Athlone on July 26 that the association’s debt levels are still above €50m.
According to annual accounts for 2013 seen yesterday, overall income declined to €36.7m, representing a 19% reduction over a two-year cycle.
Although the FAI reported another surplus, this time €8.9m, grants to affiliates were cut to €1.12m from €1.36.
An enormous debt burden to Irish football remains despite a successful refinancing deal struck late last year.
By transferring lenders from Danske Bank to US investment house, Corporate Capital Trust, a one-off write-down of €11.7m was accrued.
As against last year’s debt pile of €63m, the FAI have liabilities of €50.3m arising from the bank accord.
The revelation in February by John Delaney, the FAI’s chief executive, that the haircut on borrowings could facilitate extending their debt-free deadline beyond 2020 appears to be provided for in the latest figures.
According to a new section from last year in the analysis of net debt, entitled “amount due after five years”, the FAI will still owe €25.5m heading into 2019.
The failed Vantage Club premium ticket sales project forced the FAI to incur significant borrowings to pay their €72m portion of the Lansdowne Road redevelopment costs in 2010.
Delaney admitted at the 2012 AGM in Donegal that they were only meeting interest commitments on the borrowings. So far, including the €5m from last year confirmed in the accounts, over €17m has been forked out to service the loans. There was an additional €5m spent at the outset on ‘breaker fees’ with Goldman Sachs related to the stadium.
Such a financial predicament highlights the need for Martin O’Neill and Roy Keane to not only deliver Euro 2016 qualification but also full-houses at Lansdowne Road along the campaign trail.
Given that the stadium was, at best, merely at half-capacity for the last home game against Turkey in May and the knockdown season ticket prices available for the qualifiers and the friendly against England next June, it would appear the €8m bonus due from reaching the France-hosted finals will be the most integral part towards financial stability.
Confirmation that a 10% shaving off Delaney’s controversial salary was implemented is confirmed by the accounts stating he earned €360,000 over the 12 months.
In total, salary costs fell from €10.64m to €9.55m, including €1.13m for redundancy and payroll restructuring costs which may encompass a severance outlay to Trapattoni arising from his sacking in October.
There is another potential financial headache brewing for the FAI next year. International Sports Group (ISG), agents for the Vantage Club premium scheme, and the FAI are due to lock horns in the High Court in February surrounding a dispute over a €1m severance deal agreed between the parties in 2010.
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