John Delaney plans to clear FAI debts by 2020

By John Fallon

John Delaney has strongly indicated that his preference to clear the FAI’s €29m stadium debt by 2020 will today be rubberstamped by the association’s board.

Speaking ahead of tomorrow’s AGM in Cork, Delaney admitted the organisation still had creditors, including deferred income, of €70m but were on track to clear their mortgage on the reopened Lansdowne Road within the next two-and-a-half years.

A final review paper on the debt, demonstrating how it can be cleared by 2020, will be presented and having considered it, the board will say yes,” said Delaney.

“If the paper says we can and will clear the debt by then, I’ll support it. That will then go to the members at the AGM on Saturday.”

Part of that business plan will involve pitching new premium tickets to the market.

Delaney, for the first time since the ill-fated Vantage Club scheme was launched a decade ago, admitted the pricing was excessive. Ten-year tickets ranged from €12,000 to €32,000.

While the IRFU sold out their 10,000 tickets for a flat fee of €15,000 each, the FAI’s delay in offering tickets to companies and wealthy individuals just as the economy was faltering cost them dearly.

Weak uptake by the corporate sector forced the FAI to access finance at high-interest rates to fund their €74m portion of the redevelopment costs.

By the time they tried rectifying their error in 2014 in applying an 85% cut on ticket prices, the FAI had amassed debts totalling the entire net outlay for their stadium contribution.

I think the pricing was certainly too high on the bigger 10-year tickets,” admitted Delaney.

“At the AGM tomorrow, we will announce the new prices which will be significantly different to the first scheme.

“There was a very traditional model in Irish sport in selling just 10-year tickets but there is also a market for lesser years.”

Delaney dismissed the notion cut-price season tickets within the rest of the stadium — now starting at €110 — would continue to discourage customers from stumping up for the ‘wide-padded seats’ in the middle section of the venue.

“As much as the annual ticket is great value, and heading towards 16,000 sales, it is a different market to premium,” he stressed.

“We will be targeting corporate Ireland and people who want to renew their existing ticket. Some people will commit to another 10 years, some won’t.”

On top of their €29m mortgage owing to Bank of Ireland, the FAI must also repay Uefa, the European football governing body, what they branded a ‘soft loan’ of €4m.

Their total current financial liabilities are touching €40m.