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WHAT ROLE THE taxpayer will play in supporting the future of the FAI will have to be “very, very carefully considered”, according to Finance and Public Expenditure Minister Paschal Donohoe
His comments come as government sources today poured cold water over reports that a government bail out to save the FAI is a done deal.
It had been reported that a provisional agreement had been reached between the Football Association of Ireland and the government.
Senior government sources have told TheJournal.ie that there have been no talks of a package between government officials and the FAI, stating that it is “too premature for any such idea”.
The association has current liabilities of €62 million and made a loss of €8.9 million in 2018. They believe that 2019 will also be loss making perhaps up to €4m.
The FAI recently asked Sports Minister Shane Ross for a government bailout of €18 million as they seek a refinancing package with their bank to secure their future.
Four outsiders, including a chairperson of the new board, were due to be installed in August 2019, however the controversy over the association’s finances caused further delays.
It is understood that the appointment of the four independent directors will happen by the end of the week. Sources stated that this must happen before any talks can begin over the financial restructuring of the Association.
“No detailed discussions at all about money” have occurred since the FAI asked for €18 million, with sources stating that any briefings that a deal is signed off on is not accurate.
When asked about the matter this afternoon, Donohoe said he has disussed the issue with the Taoiseach and also had a number of meetings with Minister Shane Ross on the status of the FAI and its future.
Donohoe said to see what has happened in the FAI has “has hugely disappointed and indeed angered me”.
Ross and government officials will be open to new dialogue, and the funding freeze may be ended with the FAI once the new directors are in place, it is understood.
However, no such meeting is on the agenda or fixed in the diary as of yet.
The appointment of the new directors will “open the door to new talks and it will certainly change the atmosphere”, said the source when asked if a future announcement about government money could be on the cards once the FAI has seen a changing of the guard.
Donohoe said today:
“Minister Ross and I have not discussed what the future role of government could be in relation to this, but we will be doing so, and he has indicated that to me. What Minister Ross has said is that even before we get to that point, we need to see independent directors in place, and we need clarity and assurances regarding where the organisation stands.”
He said he agreed with Ross, that the government “cannot be in a place of providing any kind of support, or considering providing any kind of support for an organisation, unless key questions are answered and we know where we are”.
“Minister Ross also said that he does not want to be in a place where public funds is made available. He has also said that he has concerns regarding what the consequences could be with both examinership and liquidation. We will in the coming weeks begin to engage on this issue even more. But before that can happen these independent directors need to be appointed, because we and minister Ross needs clarity regarding the future of governance,” said Donohoe.
It is understood that officials from Uefa, the European soccer’s governing body, will travel to Ireland next Tuesday, where a meeting with the government, Uefa, and the association’s bank, Bank of Ireland, will take place.
Uefa will also meet with the FAI as well as the banks, it is believed.
The organisation has already underwritten the FAI’s finances to the tune of over €20 million.
“Money will come into those talks” with Uefa, it is believed, where both sides “will explore each other’s positions”.
Senior sources state that Uefa have and will most likely put in a lot more money to keep FAI afloat.
“That will be important as they are key players,” said the source, but added that both parties will search for a solution.
It is understood the matter will be discussed further at the first Cabinet meeting of 2020, which is taking place in Marino in Dublin on Thursday.
Before Christmas, Taoiseach Leo Varadkar said that the taxpayer won’t bail out the FAI.
He ruled out writing a blank cheque for the FAI:
We don’t want to be in a situation where we are somehow asking the taxpayer to bail out the FAI and take on their debts and liabilities and maybe their pensions too. We’re not going to do that.
Donohoe said today that he is an avid soccer fan, and can see the impacts the sport has on communities around Ireland, including his own in the north inner city.
“At the same time, I am absolutely aligned with Minister Ross and the comments the Taoiseach has made that we cannot be in a place where the taxpayer is being asked to play a role in supporting an organisation when we still have such big questions regarding its future status,” he said.
Donohoe said a way must be found to ensure that “young boys and girls that are out playing soccer” can continue in their success.
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Every home game should be boycotted until Delaney hands back his pension..
@David Garland: how would that help. It would only make things worse.
@finbarr walsh: It wouldn’t but it might put a bit of pressure on the FAI and show that the fans won’t stand for things to continue the way they are/were. For all the talk from the FAI of changing not a lot has and they continue on with their old tactics of silencing criticism in public forums and avoiding questioning from the government (unless in private and they’re looking for a handout)
@Damien Hawe: Just to add on that though. Realistically there’s probably not a lot that could be done about the Delaney situation as Delaney would probably bring them to court and get that (and probably more) and it would cost the FAI a fortune in legal fees. Better to take the loss, give him some money and completely shut him out of the organisation.
@finbarr walsh: Yea sure just keep going to the games and putting your money into Delaneys back pocket.. Every ticket that is sold or jersey bought goes straight towards his pension..
@finbarr walsh: Drop in an ocean unfortunately, the 500k+ that was squandered on Delaney should never have been paid out but it was cost them more in legal fees to get it back, the money is gone but at least FAI has finally got rid of the tool, hopefully a few more will follow him out.
Govt will bail them out , just like they bailed out the banks and RTE .
@Eug J Cummins: I suspect you’re right . There’ll be some kind of government help. Personally I think fai should go to the wall
What happens to Delaney pension if FAI fold?…does he lose his pension
What happens if someone bails them out like our government…does he keep his pension?
@Dan: So the greedy Board can’t pay themselves their inflated undeserved pensions .Can you imagine the panic around the trough Then comes a request for 18 mil What you think that would be prioritised for?
Dont be fooled, government will bail them out using the peoples money as per usual, disguised under some sneaky legal wording!
Uefa should be bailing them out. After all, didn’t they tell the government not that long ago to keep their nose out of FAI business.
If the Government bail them out, they may as well get millions and burn it. A complete waste.
If it was the GAA ! Yes Delaney was a chancer and chalatan. But numerous Sports Ministers hobnobbed with him and journos. Many at his 50th bash. Commentators like Eamon Dunphy who must have known what went on. For years Delaney refused to take questions at AGMs. While living on the hog for over 8 years, staff got no rises and pensions were raided.
So get rid of the development officers, schoolboy leagues and the struggling teams in the league of Ireland. Is that what you want.
Get real, a debt of 6o million is less than one player in the premiership. They are looking for support to reform and some guarantee for borrowings.
We bailed out the Banks and developers.
A properly run FAI is well worth saving.
New CEO, new board and proper corporate governance and a change of auditors.
@David Glynn: but it’s not the gaa, because that’s a well run sports organization
@Ronny Phelan: What about Hickey and the Olympics and his banking help from his butty Douglas in then Irish permanent. Gaa got huge support for redevelopment of Croker which like Aviva support is not begrudged.
Do you seriously think that if GAA was in trouble the rural TD mafia would not force a bail out.
FAI deserves support under a new regime. Not money but support through bank guarantees.
Then they need to go after Delaney and his cronies to see if money can be recouped of foot of financial reports for malfeasance Ronny.
@Ronny Phelan: cough county boards cough Galway, cork…. sure the ga is great…. can do no wrong
I wonder who leaked this. It couldn’t possibly be a ploy to pressure the government into handing over money. A lot of sneaky underhand stuff has been tried already.
The FAI is an NGO. It is a private sector entity. As such it must look to the private sector for a private loan, one they will be obliged to repay. The people of Ireland refinanced the banks yet where is their share dividends. ? Surely we won’t allow this to happen again.? Or have we simply given up hope. ?
Shouldn’t be bailed out. Let them collapse for all the obvious reasons. It’ll stop the ludicrous payments to Delaney. It’ll force a rebuild of the organisation from the ground up and finally stop the corruption being sweeped under the carpet. Lets be honest irish football isnt going to lose much in the short term. The teams not exactly top of rankings.
Only people I’d fell sorry for is the low level employees how lose jobs thanks to the likes of Delaney management team and directors.
Let it burn.
have your say