The first thing to remember when looking at the bleak picture of the FAI Accounts published last night is that they relate to 2019 and do not take any account of the major hit that Covid-19 has had on the finances of all sporting bodies.
The figures were finally approved by the FAI Board yesterday having been signed off by new auditors Grant Thornton.
The cold hard figures show 2019 as having produced a loss of €5.1 million, on top of the restated €7.7 million recorded for 2018.
This comes off revenue which in 2019 was €42.6 million, making it now only half the financial size of the IRFU.
As recently as the accounts for 2016, The FAI’s turnover was €50 million to the IRFU’s €76 million.
Match revenue was down from €12.2 million to €8.1 million, though, with this representing only 20 per cent of overall revenues, the hit of empty stadia is less of a crushing blow than it is for the IRFU in particular, and the GAA to a lesser extent.
Commercial Revenues
Commercial revenue also dipped from €17.9 million to €15.6 million and the loss of Three and others from the Association in 2021 will present a hole that needs to be filled quickly.
The Government stop on funding impacted too, with grant income in the year down from €2.9 million to €1.3 million. €366,000 was lost from the funding for Central and Regional Development staff, €317,000 from grassroots funding, 314,000 from Player Development and €47,000 from the Women’s National Team.
Delaney Departure
One of the most startling figures is that of the Executive Director’s emoluments which in 2018 were €994,668 and last year fell to €397,557. There was also confirmation of the €462,000 settlement made with former CEO John Delaney. €90,000 of this was in termination of his employment with the balance made up in pension entitlements.
Certainly enough to pay rent on an apartment in London or wherever the former CEO may now choose to live.
Watershed Year
Writing in the Chairpersons Report Roy Barrett says that “No matter how you present it, 2019 will always be remembered as a watershed year for Irish football and for all those who serve the game as players, officials, volunteers, supporters, sponsors, parents and guardians across every
village, town and city in Ireland.”
“This is my first opening address to an FAI Financial Report as chairperson of the Board of the Football Association of Ireland and it is fair to say that the attached 2019 accounts reflect a tumultuous year off the pitch for our game.”
“Many column inches have been written about the events of 2019 surrounding the FAI and you don’t need me to itemise them again as we digest the financial implications of the winds of change that blew through the Association with the departure of the Chief Executive Officer, a major change at board level, a thorough evaluation of how we do our business and an examination of how we handle funds from the State and from the many sponsors who are our lifeblood.”
He then adds that “As directors, we owe it to all our stakeholders to ensure our Association and our game never endures a year like 2019 again. As chairperson, I promise you I will do my best to fulfil that aim and I know each of my fellow directors shares that sense of purpose.”
“Every boy and girl in this country deserves an FAI that serves them well. They deserve international teams they can aspire to and be proud of. They are entitled to dream of a career in our domestic leagues. They demand fair play and respect from Irish football’s ruling body and we must deliver that now.”
“Let the events of 2019 close the curtains on the past. Let us plan for a future full of hope and prosperity for our game.”
That final wish may yet be overly optimistic with the 2020 accounts likely to tell another story of major challenges but at least the ship is now steadied.
Meeting Obligations
The money secured by Government funding and through loans from the Bank of Ireland means that the Association was able to meet its financial obligations and that the errors of the past can be made up over a period of time, as opposed to with the death of the governing body.
Funding from UEFA will also be critical with the potential revenue from new streaming platforms, as well as traditional broadcast rights, being more valuable now on paper even than they were a year ago.
New sponsors need to be secured for the League of Ireland and the International teams, two high ticket items in a still soft and bruised commercial marketplace but deals are being done and soccer still retains a universal appeal.
The traditional CEO’s Report has always been a ‘Director’s’ report at the FAI outlining the events of the year, including highlights in grassroots and underage football that carry on regardless of the headlines at the top of the game.
65 of the 164 recommendations on Governance that the FAI has committed to have been implemented so far and this is a number that Sport Ireland, in particular, will want to see accelerating through the next year.
With particular reference to the events of 2020, the Directors say that “The Association has considered a range of financial scenarios as it continues to navigate through the public health
crisis and have put in place measures to manage the current cost base and increase liquidity.”
“In addition, the Association has applied for vital funding through the Irish Government and Sport Ireland’s Covid 19 Grant Scheme and has been granted €13m, of which €2m relates to clubs underneath the FAI’s stewardship.”
“As a result of this financial support, the Board of Directors is confident the Association can continue to trade throughout this period of uncertainty and remain a going concern.”
The games continue but as a document, this is a stark testament to what goes on in making that happen.
Sport for Business Partners
