The Football Association of Ireland saw a drop in turnover for a second year running in 2013 though it did confirm in the annual accounts published yesterday that overall debt levels fell from €63 million to €50.5 million.
This was achieved through a one off write down via a transfer of the debt from Danske Bank to US Investment firm Corporate Capital Trust.
The accounts suggest that half of this debt will be paid off over the next five years, leaving €25 million still owing on the Aviva Stadium redevelopment heading into 2019.
The most crucial element of the accounts will be to increase revenues through success on the field of play and qualification for the Euro 2016 Finals in France. The qualification campaign starts for this in September when Ireland travel to Georgia on Saturday 7th. The only home game in 2013 sees Gibraltar visit in October before away matches in Germany and Scotland.
Boost
2015 will bring more of a revenue boost with home qualifiers against Poland, Scotland, Germany and Georgia between March and October. There will also be a popular friendly against England taking place next year.
Turnover last year fell to €36.7 million resulting in a drop in grants to affiliates from €1.36 million to €1.12 million. The 2012 figure of €39.6 million was itself impacted by their being only one competitive home fixture, despite qualification for the Euro 2012 tournament in Poland and the Ukraine.
The drop then over two years has been almost 20%, a reflection on the disappointment of performance on the pitch towards the end of the reign of Giovanni Trapattoni. Such is the capricious nature of sport in an ultra competitive marketplace such as Ireland where allegiance transfers easily between one sport and another at the high level.
In strong economic times this can be absorbed as fans have greater disposable income but that past two years have been the opposite and success for Dublin GAA as well as Leinster and Munster Rugby and the Irish national Rugby team has had an impact.
Brazil
On the plus side, interest in international football has been revived by a successful World Cup in Brazil and the possibility of Germany being World Champions when Ireland host them next October 12 months will ensure greater interest.
A bonus payment to all national associations will mean a windfall payment for the FAI of a little over €500,000 payable now and in the early days of 2015 and is indicative of the benefit of the FAI being part of the much larger UEFA and FIFA families. This is a benefit that is exclusive to the FAI in Irish terms, at least on such a scale.
Later this month the Association is expected to launch the first renewal of ten year tickets at the Aviva Stadium and the higher profile of the game as well as the box office appeal of Martin O’Neill and Roy Keane might lead to a more optimistic outlook on what that will produce.
The naming rights windfall from the Aviva deal passes the half way point this year meaning a renewal of that begins to loom on the horizon.
Sponsors
There will be some comfort at least that long time sponsors 3 are now bigger players in the Irish market since the takeover of O2 though the taking out of the latter does also represent a challenge in terms of maintaining the FAI’s appeal in a tighter high end sponsorship market.
Most importantly, the bidding to become a partial host of the Euro 2020 Championships will inject confidence and cash so long as that proves to be a winner when the host cities are announced on September 19th.
