The government and the FAI have agreed to a new Memorandum of Understanding (MOU) regarding funding support for the period 2024 to 2027.
Following the FAI’s financial collapse in 2019, the Government and the FAI agreed to an MOU in January 2020. The MOU included a total funding package of €30.8 million for the period 2020-2023, underpinned by 163 recommendations and conditions. The revised MOU has 16 conditions.
They include a number of governance and financial reporting obligations, the continuation of the board balance of 50 per cent Independent Directors and a 40 per cent minimum gender balance, and the publication of a new customer/stakeholder charter in line with those provided already by state bodies.
There is recognition that the FAI’s finances remain in a difficult position and will continue as such for a number of years until the hosting of Euro 2028. This should have a positive impact on their finances. In light of this, the Government has agreed to provide continued enhanced funding to the organisation.
During the lifetime of the previous MOU, the FAI also received significant financial backing by the Government, with over €67.4 million in public funding provided to the FAI through various funding streams. A key one of these was the grant towards football development, which was pegged at 5.8 million across each of the years. That figure will rise to six million from now until 2027.
Football has also benefitted under the Department’s capital funding schemes, including the Community Sport Facilities Fund (previously named the Sports Capital and Equipment Programme) and the Large Scale Sport Infrastructure Fund.
Between 2020-2024, a total allocation of €71 million was awarded to football-specific projects (excluding multi-sports projects) under the Community Sport Facilities Fund and a total allocation of €52.4 million was awarded to football-specific projects (excluding multi-sport projects) under the Large Scale Sport Infrastructure Fund.
In the intervening years under the previous MOU, the FAI has made significant progress on reforms. Under the new MOU, the Government has agreed to provide a continuation of funding for the association’s football development programmes, providing €6 million per annum for the period 2024 to 2027, provided there is compliance with the MOU’s conditions.
Additional once-off funding for football development of up to €1 million will also be allocated this year, across a number of areas including grassroots and underage football, women’s football, safeguarding and referees’ development.
“If the FAI had been allowed to fail following its financial collapse, the consequences would have been catastrophic for Irish football at every level, from our international teams to grassroots and schools football,” said Minster Catherine Martin.
“The previous MOU not only provided the association with financial stability but also brought about the necessary governance reforms to allow it to rebuild itself as a fit for purpose governing body. Of the 163 recommendations and conditions set out in the previous MOU, the FAI has either completed or partially completed 159 of them. This new MOU will allow the FAI to further progress its corporate governance reform agenda, while at the same time giving it the financial support needed to continue to develop football across the country.”
“It is clear that the FAI’s finances remain in a difficult position and will continue as such until 2028 at the earliest, when the hosting of Euro 2028 should have a significant positive impact on the financial outlook of the organisation,” added Minister of State Thomas Byrne.
“The Government has decided to approve a new Memorandum of Understanding with the FAI in order to ensure that the organisation’s valuable work in developing Irish football can continue. If state funding for the FAI was reduced at this point in time, I believe this would prove counterproductive to the association’s efforts to develop football across the country, and I am also conscious of the negative impact that any reduction in state funding might have on our participation targets.”
“As a government, we are committed to supporting Irish football. Our commitment to Irish football is underscored by the record capital allocations to the sport in 2024 alone, totalling over €100 million, as announced recently under the Large Scale Sport Infrastructure Fund and the Community Sport Facilities Fund.”
“In announcing the new MOU with the FAI today, I also want to acknowledge and commend the significant reforms that were implemented by the FAI during the period under the previous MOU. I welcome the agreement of this new MOU which will provide a total of €24 million to the FAI over the next four years and will help ensure the further development of Irish football.”
The Board of the FAI issued a statement welcoming the new MOU:
The Board of the Football Association of Ireland welcomes the new 2024 Memorandum of Understanding (MOU). This has been agreed following months of positive engagement with Minister Catherine Martin, Minister Thomas Byrne and the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.
The €6 million per annum outlined in the new MOU will enable the Association to continue to support and develop Ireland’s most participated sport through to the end of 2027.
The 2024 MOU outlines 16 recommendations and conditions from Government which is a substantial reduction from the 163 in the previous agreement. This is a strong reflection of the FAI’s hard work and commitment to the MOU since 2020, and we look forward to partnering positively with Government in the coming years.
Along with this week’s announcement of record amounts of funding to LOI clubs through the Large Scale Sport Infrastructure Fund (LSSIF) and the recent allocation of €45.8m through the Community Sport Facility Fun (CSFF), this 2024 MOU is further reinforcement that Government sees the value in investing into Irish football.
The conditions that the FAI will have to adhere to in the new Memorandum of Understanding can be read here:
1. Continue to provide that 50% of Board Members (including the independent Chairperson) will be independent directors.
2. The FAI will complete any outstanding/unfinished MOU items from the 2020-2023 MOU.
3. Protect the gains made and continue implementation of GRG and KOSI 2019 recommendations i.e. there will be no material deviation from those governance standards without prior consultation with, and approval by, Sport Ireland, for the duration of the new MOU.
4. Remuneration of the Chief Executive will be in line with government pay guidelines and shall be no greater than the remuneration of officers in the grade of Secretary General (this condition excludes any individual salary level applicable to only a single Secretary General).
5. Complete an independent internal audit review of internal financial controls annually in line with state body requirements i.e. in Q1 2025 (for 2024), in Q1 2026 (for 2025), in Q1 2027 (for 2026) and in Q1 2028 (for 2027). The FAI will submit the full report (along with confirmation of its Board’s consideration of same) to Sport Ireland by the end of Q1 in 2025, 2026, 2027 and 2028.
6. Submit a comprehensive annual Chairperson’s report to Sport Ireland which will then evaluate and report to the Minister. The report will cover the items set out in point 3 above. The submission dates to be defined with Sport Ireland but typically within one month of financial statements being closed.
7. Complete an independent external review of Board effectiveness no later than the end of Q2 2025 and again by the end of Q3 2027 and submit findings to Sport Ireland by 30 June 2025 and 30 November 2027 respectively.
8. Continue to adhere to the Governance Code for Sport.
9. Maintain 40% gender balance at Board level and implement same at Committee level by the end of June 2026 and at General Assembly levels by the end of the term of the MOU.
10. Past Board members who served pre-2019 shall continue to be ineligible for membership of FAI Board and Committees.
11. Provide that 2 of the 6 Members (or an equivalent ratio if the Committee size is amended) of the FAI’s Nominations Committee will be nominees of Sport Ireland for the duration of the new MOU.
12. Provide complete and transparent financial reports to Sport Ireland that allow for the monitoring and oversight of the FAI’s financial and cash flow position by the end of each quarter for the duration of any new MOU period.
13. Quality Customer/Stakeholder Service: In their dealings with the public (and wider membership across all facets of Irish football) the FAI commits to Quality Customer Service and will publish a “Customer charter” (supported by a customer action plan) by Q2 2025. This will outline the nature and quality of service that which customers/stakeholders can expect from the FAI (similar in format or standard to State Body requirements).
14. Cascade good governance (and structures) down to FAI leagues & affiliates: a. comprehensive review of league/affiliates governance to be completed, including a review of grassroots league structures to deliver stable and geographically logical leagues for women, men and children (Terms of Reference of the Review and timelines to be provided to Sport Ireland/Department). Plan of action to be developed and submitted to Sport Ireland/Department. b. Supports and training and resources to be provided by the FAI to improve governance within the football pyramid.
15. Provide for the appropriate development of football pathways in a consistent and coherent manner nationwide, with a view to enhancing participation opportunities and ensuring greater inclusivity and access for children within Irish football.
16. Encourage and assist the football community, through its network of clubs and affiliates, to engage with all public funding opportunities, including, but not limited to, the Community Sport Facilities Fund and the Large Scale Sport Infrastructure Fund.
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