GAA investments lose €250,000

MUNSTER GAA chiefs lost almost €250,000 in investment trading last year, annual accounts show.

Provincial council treasurer, Dan Hoare confirmed last night that the GAA body was hit by the downturn in global investment markets last year, but said he was hopeful that the investment would rebound in 2003.

The Council made a "substantial" cash investment in 2000 before Mr. Hoare's time as treasurer but suffered losses on the investment of €244,795 last year. In 2001, just over €14,000 was lost.

Delegates are likely to quiz Munster Council officials on the policy of investment speculation at its annual convention next week in Adare.

Financial experts say there is nothing surprising about GAA bodies speculating in the investment market, but warned that the policy involved "a harder sell to its natural constituency, which is frequently more interested in bricks, mortar and pitches for the local club."

Officials in the three other provincial councils confirmed they that had opted against, or were not in a financial position to invest in the global markets.

Connacht secretary, John Prenty said the Council was involved in a long-term small investment scheme through the banks, which involved little risk.

Leinster and Ulster officials said they did not have the financial reserves to invest beyond their core activities, though one official confirmed that they had been approached about investment opportunities by the banks, but had rejected the overtures on the basis that the markets were "too volatile."

Munster treasurer, Mr Hoare, a tax consultant by profession confirmed that a "substantial investment was made in 2000 in anticipation of a better return."

He added: "The downturn in investment markets has seen the value of the investment temporarily go down, as was the trend for a lot of other companies last year." The investment was ratified by the Munster Council three years ago.

The Munster Council's end of year figures were bolstered by a series of Championship replays in 2002, but losing almost a quarter of a million euro on investments shaved its end of year profit to a mere €37,000 from total income of €5.7m.

In his annual report, Munster secretary, Donie Nealon warns that the harsh financial climate will necessitate a serious review and possibly cutbacks in certain areas of expenditure.

He added: "Careful budgeting and prudent management of our finances must become a priority in order to maintain the status quo."