FAI Council votes in favour of rescue package

Exactly 12 months after the FAI descended into a sustained period of upheaval, their financial future has been secured.

All of the 60 voting FAI council members emphatically backed a package worth €52.5m that will safeguard the employment of low to middle workers at the association for at least 18 months.

The ballot had to be taken by email after a planned meeting at the Castleknock Hotel today perished due to the coronavirus concerns.

Fears over job security had been raised only four months ago when outgoing President Donal Conway spoke of “consequences” for staff from the shocking revelations contained in their annual accounts.

Two sets of yearly figures had to be restated and together with the latest version showing liabilities of €63m, a period of austerity loomed.

That all changed once the FAI started appointing independent directors, including Roy Barrett, who led negotiations about a bailout with Sports Minister Shane Ross.

Uefa and the Bank of Ireland were also involved, with the latter acting as the lender under a deal brokered on January 30.

Not a cent from the pot agreed six weeks ago could be drawn down until approval was received from the council and the enlarged committee were made fully aware beforehand of the ramifications in the event of a rejection. Next week’s monthly pay-run to staff relied on it.

Outgoing FAI President Donal Conway

The package will see the FAI’s €28.5m mortgage extended until 2030, after which the remaining €15.7m balance is to be refinanced.

In addition, an upfront €14m loan is being supplied for cashflow purposes, to be repaid from 2022-2028 at €2.5m per annum directly from a new centralised deal for television rights. That will gross the FAI around €10m per year.

There is also the option until December 2021 of increasing this particular stream by €10m under what’s termed a Revolving Credit Facility (RCF).

All the indications are that this line of finance will be accessed to allow them to settle a mounting list of creditors.

This includes approximately €5m in legal fees arising from ongoing probes into legacy issues, another €6m owed to Sports Direct for a botched deal to replace Umbro as kit supplier and smaller debts to referees, hotels and League of Ireland clubs.

Under the terms of the deal supported by the FAI council, the association will still owe around €24m to the bank.

Barrett said: “With our new banking facilities ratified by our Council, we can now progress with Sport Ireland to the reinstatement of government funding and the enactment of a new constitution that meets the needs of all stakeholders and supports the positive development of the game in Ireland.”

In return for governance reforms, Ross not only vowed to reinstate State funding but doubled its annual grant to €5.8m until 2023. Another €7.64m of State support is earmarked for the license fee payable to Lansdowne Road stadium company, a sum repayable from 2024 at zero interest.

Whether Ross succeeds in clearing out the ‘old guard’ from the 79-strong FAI council won’t be known until at least April 30. That’s the date flagged for an emergency general meeting to enact the necessary rule changes.