Ticket offer for SSIA stadium backers

RUGBY authorities are prepared to make thousands of tickets to international games available to Special Saving Incentive Account (SSIA) investors who pledge their savings to the construction of a €500m, 65,000-seater national stadium.

The novel scheme is being studied by Finance Minister Charlie McCreevy and Arts, Sport and Tourism Minister John O’Donoghue.

Financial and management consultant Eddie Hobbs envisages the establishment of a wrapper unit-linked fund secured on the assets of the stadium, which would be bought back by the State over a specified time period.

Mr Hobbs says a key attraction to investors is the possibility of securing tickets to major sporting events.

Irish Rugby Football Union chief executive Phillip Browne said they will need financial support from the Government to construct a new national stadium for rugby and soccer.

“If the Government decide, in principle, to raise their contribution through the SSIA scheme, then making tickets available for rugby internationals to individual investors is a detail that can worked out,” said Mr Browne.

“If we are talking about a new 65,000-seater stadium, then we have a blank page and anything can be considered,” he said.

Mr Browne said the IRFU envisages raising part of its contribution through the sale of 10-year tickets to rugby internationals.

Mr Hobbs said a Government guarantee on SSIA investments pledged to a stadium would help provide an equal or better return to investors than from existing SSIA products.

“The only risk is if the Government make a mess of things and the stadium is not completed as planned,” said Mr Hobbs.

He says there are 1.2 million SSIA investors, but just over 4% need to be attracted to raise €500m at the SSIA average of €130 per month.

Financial services group Friends First say there are no obstacles to implementing the scheme using SSIA investments.

Friends First general manager, group planning and marketing John Cunningham said the policy proposal from financial and management consultant Eddie Hobbs to fund a national stadium from SSIA funds was a very workable proposition.

“It is a viable proposition. The industry can do it from a logistical point of view; it is not a pie in the sky proposition, far from it. It’s a fantastic proposal that could be applied in other areas also,” he said.

Mr Cunningham said Mr Hobbs’ suggested solution to the financing of a new national stadium was: “Deliverable, transparent and a way to give ordinary punters direct access to the public private partnership.