Tag Archives: FAI

Former FAI CEO John Delaney and Sports Minister Shane Ross

This morning.

Sports Minister Shane Ross gave an interview on RTÉ Radio One’s Morning Ireland when he was asked if was “bailing out” the Football Association of Ireland.

In response, he said:

“I hate that sort of expression. What we’re doing at the moment is we are looking after the €2.9million which we give, which we have been giving to the FAI. We’ve withdrawn that funding and what we’re going to do there, is ensure that that gets to the small clubs.

“We’re going to absolutely ensure that that gets to the players, to the grassroots, and that it doesn’t go near the FAI because the FAI… bail-out is a very pejorative word. But it’s a basket case.

“And to ask the Government to come in and bail it out, when we don’t even know the extent of the black hole there, it’s an appalling vista and to ask us to bail it out? No. That’s not going to happen.

“We want to protect taxpayers’ funding. We also want to protect the grassroots. They’re the important people. We’re interested in football, not so interested in the FAI.

Listen back in full here

RELATED: Where was Shane Ross in 2017 when he could have done something about the FAI crisis? (Neil Cotter, The Irish Sun, October 8th, 2019)

Yesterday: Vanessa Foran: Let’s See That Again In Slow Motion

Previously: At The End Of The Day: €55,067,472

Pic: RTÉ

 


From top: John Delaney; Accountant and FAI VP Paul Cooke (left) and FAI President Donal Conway at the Football Association of Ireland Annual accounts publication for 2018 last Monday where it was disclosed that the organistaion has current liabilities of more than 55M Euro; Vanessa Foran

Before Kick Off, allow me revise my own FAI Year in Review from earlier this year.

I realised as I was running the rule over the 2018 accounts, that I had no choice but to go back into the now Revised 2017 year to try and establish the real financial story from its corrected opening position.

The first and most obvious observation in the Revised 2017 Financial Statements and Report is how stark, contrite and austere it is to the heady days of March 2019. And its rosy Audit Opinion.

In the same month the flamboyancy of the original Report of 2017 was making its splash , its Financial content was already ordered (by ODCE) to be Revised.

I get that, it’s not uncommon and the report did flag the loan from a Director.  But within a month again, April 2019 – Deloitte’s admitted (and what I had already warned) “proper accounts and records had not been kept.”

Also subsequent to the Balance Sheet date and before March 2019; a mighty Revenue Audit that caught VAT and what I consider to be the scummiest of all employer behaviours – underpayment of Employer Taxes. The expression used is “significant underpayment.” 

Yet further down into the report (detailed fully on page 38 (ii)) we find the still only estimated charge is €2,712,721.00, and the payroll taxes are attached to the former CEO’s PPS number, so at least they weren’t deducting the canteen staffs payroll and spending it on birthday parties.

And page 3 lives up to its reputation – it also reveals a number of cracks in the Governance structure, such as no Internal Audit, no Procurement Policy, and the one that takes my breath away “There was no policy or standard protocol regarding business cases, options appraisal or business justifications.”

In other words, the Board, the Council and the Staff could use the FAI’s cash to buy, pay, spend, acquire, promise, guarantee and dispose without any control mechanisms and safeguards, like purchase orders or even a tender procedure.

This would explain why their former CEO’s additional payroll benefits (see pg 38 (i) but have a stiff drink first) were never documented or fully costed or even approved.

By page 4 is what I suspected here all along, yet big pockets Deloitte’s signed off anyway “… it was noted that not all relevant audit information had been provided to the Association’s statutory auditor.”

And for how many years did Deloitte’s provide the assurance of their External Audit opinion, and the other Assurance Services to the Stakeholders of the FAI?  Answers on the back of a beermat.

Note this: the Board nor its elected Treasurer or its Finance Department or its External Auditors noticed John Delaney was costing an additional € 428,571 per year since 2014 and NOBODY thought to budget for it until 2022.

And yet it was all there, in front of the senior Management, the Auditors and the Directors.  Even today, look at what the FAI think the function of Governance is.

You’d want to be a Siberian Nomad to not be aware of the decades of messing at the top of the FAI, but John Delaney’s employment contract rolling out like this, apparently agreed and signed off without the Board having anything to do with it, is for me anyway, when the Board officially lost control of the organisation.

The established scatty environment already embedded in the FAI allowed his ego to prosper when he joined, so it was only a matter of time before the Board would be answering to a man that dictated his own terms.

It never made sense to me, and I may have commented here or there about doubting John Delaney’s claims that he would be paid likewise in the private sector, it’s sad that nobody really challenged that until it came to this point.

John Delaney brought few skills to and had no capacity to enhance the organisation.  His appointment was flawed from the start.  And people knew that then; yet here we are.

Whatever happens next between all the external investigations, from Revenue, to CAB,  to the next Audit team, the very fact that he held posts that required both the very best of Fitness and Probity standards from himself, it also required he, along with his Chair, had oversight of the Fitness and Probity regime;  yet he still allowed his real cost to his employer be under reported by €428,571 a year.

But John Delaney’s finally finalised total renumeration cost is not what has the FAI in the trouble it is in today; it was his incompetence to run a high-profile multi-activity and very publicly enfranchised organisation.

He got away with year on year failures, by pandering and promises, back-pats and unhampered power building. A blind eye was cast by more than just the Board, but it is the Board that is responsible.

They failed to protect the organisation, they failed to ensure the growth and prosperity of the organisation; and they failed the primary duty of a Director, that of Independence and being Free from Influence.

They abandoned stewardship of the governing body of a sport that contributes to the identity of millions of Irish everywhere.

They were supposed to be the curators of Irish Soccer for their terms of office, yet they humiliated it by not giving it the respect and attention the FAI deserved from its Directors; they mutilated its reputation – and treated it like roadkill.

The Directors over the years they allowed John Delaney to run the organisation into insolvency, may well think they should have been able to trust the endorsement of their External Auditors, with their annual nothing-to-see-here Audit Opinions.  Wrong.

They, and I can respect the role of a Volunteer Director as I walk in those shoes, so I take no pleasure in this, they – those directors should be rightly ashamed of themselves.

For reasons I’ll not disclose, I do sincerely believe that Donal Conway is a man who held the interests of the organisation and the grassroots of Irish Soccer dearly, yet he cannot deny he allowed himself to be influenced and persuaded.

I regret this has happened to a man whose volunteerism and passion for the game he himself nurtured in so many young players will not be the legacy he deserves.

Yet despite all the above, and all around the media, and all the lads liking each other on twitter, I would not be as pessimistic about the FAI’s future and its recovery as everyone else seems to be.

I am of the view that it can trade its way out, it has a unique market and they have it all to themselves; they are still capable of earning over 45 million a year just even at a standstill, and they do get so much right outside it’s Blanchardstown Headquarters.

Therefore, I would propose an order seeking to put them into Administration but then, I’m not sure an Independent Board and an Administrator can be secured.

There are too many moving parts, conflicts and personalities in this story; Shane Ross, the Sports Council especially its Chair-for-Hire Mulvey, even John Delaney and UEFA themselves, the Players past present pro, semi-pro or the now pundits, the Fans, the Volunteers, the Clubs the Leagues the Sponsors and the Employees.

Nor can I ignore the reach of Deloitte’s and the Mainstream Media, or the goo-goo eyes of Politicians of every rank and file.

Before I go, if you are wondering why I haven’t gone into the 2018 accounts for ye; well I just didn’t bother. But at least the opening balances are presented with some confidence.

The year was hit with some exceptional one-off charges, such as the costs of the various investigations and John Delaney’s payroll costs, and you’ll see all these including his severance again in 2019.

I am also mindful that its future will be in the hands of a different CEO who will be allowed build their own team, and a Board that will be ideally experienced Independent Directors who will not be recruited from within.

Running the Governing Body of Irish Soccer is an important responsibility, so let’s make sure we get the best people to do it.

The FAI let us down, but they will always have the Irish Support,.

They just need to deserve it.

Vanessa Foran is a principal at Recovery Partners.

Rollingnews

Accountant and FAI VP Paul Cooke (left in pics 1 and 2) and FAI President Donal Conway at the Football Association of Ireland Annual accounts publication for 2018 this afternoon.

This afternoon.

The FAI published their reports and financial statements for 2017 and 2018.

They have revealed that the organisation has net current liabilities of more than €55million and that former CEO John Delaney agreed a settlement with the organisation of €462,000.

The reports and statements for 2017 and 2018 can be read here

Earlier:

FAI President Donal Conway

 

This morning/afternoon.

Football Association of Ireland tweetz:

Donal Conway is to step down as President of the Football Association of Ireland at an EGM on January 25, 2020…

Meanwhile…

Former CEO of FAI John Delaney

This afternoon.

VIa RTÉ:

The FAI has disclosed that the organisation has current net liabilities of more than €55m, following the release of their 2018 accounts.

The association has been in discussions with UEFA as well as their banking partners since the end of 2018 in an effort to provide financial stability within the organisation.

Presenting the 2018 accounts at the FAI headquarters, executive lead Paul Cooke explained how the association came to a severance settlement with former CEO John Delaney, which amounted to 462,000, including a pension payment.

FAI reveals liabilities of €55m (RTÉ)

Rollingnews

Earlier

At 1pm.

The Football Association of Ireland is expected to publish its accounts for 2018, as well as revised figures for 2017 and 2016.

Details of former CEO John Delaney’s severance package are also expected to be among the figures.

They figures were supposed to be published yesterday but on Wednesday the FAI announced that they’d be published today instead.

Also on Wednesday, mobile phone firm Three announced that it will be ending its partnership with the FAI when their current deal expires next July.

Further to this…

The Irish Independent reports:

Irish football is being told to prepare for a “bomb” when the FAI’s accounts are presented today, with debts of over €50million expected to be revealed.

The association’s former CEO, Bernard O’Byrne, has warned that possible new sponsors will stay away from a “toxic” FAI until more changes are made at board level.

FAI expected to reveal debt ‘bomb’ of more than €50m at today’s presentation of accounts (Aidan Fitzmaurice and John Fallon, Irish Independent)

Previously: Three Mobile

“John Delaney Could Run Anything”

For The Last Time, It Was A BRIDGING Loan

“We Were Told ‘There’s No Story Here'”

Rollingnews

UPDATE:

This evening.

Three have announced that they will be ending their partnership with the FAI when their current deal expires next July.

“The Board and the commercial team here at the FAI would like to thank Three Chief Executive Robert Finnegan and his colleagues for their support of Irish football,” said FAI President Donal Conway.

“In their ten years as proud backers of Irish football they have been Ireland’s number one supporter and we will always be grateful to them for their financial and personal support.

“We look forward to a successful eight months ahead with Three on board as we countdown to the Euro play-offs in March and the UEFA EURO 2020 games in Dublin next summer.”

Statement released by the Football Association of Ireland this evening after Three Ireland announced it would not be renewing its sponsorship of the FAI when its current deal expires in July 2020.

Three Ireland will not be renewing sponsorship deal with FA (Irish Examiner)

FAI thank Three for Sponsorship (FAI)

Meanwhile…

Ah here.

Thanks Paul Flynn

 

 

 

This morning.

The Football Association of Ireland writes:

“The Board of the Football Association of Ireland has today begun the process to co-opt members to a number of committees as per the recommendations of the Governance Review Group report.”

The FAI is seeking to co-opt members to committees covering Football Management, Underage and Player Development, International and High Performance, Domestic Competitions  and Club and League Development.

All better.

FAI seeks applications for new committees (FAI)

Co-leaders of the Social Democrats Róisín Shortall and Catherine Murphy

This afternoon.

Politicians are returning to the Dáil after the summer break with Leaders’ Questions set to begin at 2pm.

Meanwhile, on the plinth…

Meanwhile…

Watch Dáil proceedings live from 2pm here

Pic: Gavan Reilly

A European bailout?

Aw ref.

Sport Ireland has ‘no difficulty’ with minister’s statement on FAI president (RTÉ)

From top: Ireland Under-19s during their 5-0 win over Romania in  the UEFA European Under-19 Championship Elite Round in March; Luke Brennan

How healthy is Irish underage soccer?

Answer: A little bit too healthy.

Before heading off to a respectable semi-final exit in the Toulon tournament, the Irish under-21 team beat the senior team 2-1. The funny thing about that, is that most of the talent on the under- 21 team comes from the under-19 team.

If they were able to keep their own players, the under-19 team would most likely beat the under-21 team.

For this reason, the Irish under-19 team head off to compete in the European finals in Armenia this month as victims of their own success.

Eight of their top players have been held back from competing by their UK clubs.

Nathan Collins (who was rumoured to be the subject of a £7M move to Man Utd. earlier this summer) has been held back with a guarantee of more first team football with Stoke City, in order to develop him as a player (or more likely to fatten him up with first team action to attract more offers).

Luca Connell has made his big move to Celtic, first team action is not guaranteed, but it is most likely that potential Champions league qualifier action will hold him back from the trip to Armenia.

Conor Coventry has been held back by West Ham, travelling with the first team to Switzerland to see if he is good enough to provide cover for Declan R**e – and he is.

Jason Knight, the box to box teenage sensation from Cabinteely is off to Florida with Championship side Derby for a pre-season tour with new manager and ex- Barcelona midfielder Phillip Cocu; an experience in itself.

Lee O’Connor is being held back at Manchester United, after his outstanding performance at the Toulon tournament, they may more greatly prize him as an asset.

Adam Idah has signed a professional deal with newly promoted premiership team Norwich, with the guarantee of first team training and the hope that appearances will follow.

Similar assurances were given Aaron Connolly at Brighton, who is the other multi-award winning goal-scorer which Ireland now have representing them in the Premiership.

Troy Parrott occupies his own stratosphere. Should he justify the hype, and there is nothing to suggest he can’t, he will be a once in a generation player that will repay the faith that Mauricio Pochettino intends showing him.

Indications are that he will be named in their summer squad for a trip to Singapore. A chance to prove that he is deserving of a first team place at 17 years of age.

Now that is a lot of quality to be missing out on, surely they can’t compete without eight of their starters?

Well, all but Luca Connell and Jason Knight were unavailable in the qualification process. It didn’t stop the U-19s beating Romania 5-0, Azerbaijan 3-1 and Russia 2-0.

They have quality and confidence in depth.

Adam O’Reilly looks every bit the flinty ambitious midfielder from Cork with an eye for goal that we’ve been missing these last few years.

Ryan Cassidy looks like the player that Robbie Keane wanted to be. Good enough for Liverpool, if he ever makes his dream move to there from Watford.

Where is all this quality coming from? Everywhere.

We may even have to re- assesses the Ross O Carroll Kelly stereotype; the under-19 right back Andy Lyons went to Blackrock College.

When I heard Greystones-born Simon Power interviewed after the under-21 game, he sounded like he just scored a try for Clongowes.

We also have the Reghbas, the Eboseles, the Afolabis, the Omobamideles. All welcome and a great addition. I’m great believer in the theory that the more you represent, the more you can be. The many faces of a new Ireland, with a new team to prove it.

A football team should represent changes in a society, all changes.

I hope it’s true, I hope the change is coming from all corners. I hope also that part of the change is that Irish people are beginning to realise that the best way to support the national team is to support their local team.

Attendances are up 15% at League of Ireland matches this year. No reason why that can’t happen every year.

It’s part of the reason why, when UCD’s highly rated teenage winger Neil Farrugia was offered a move to Man City, he choose to move to Shamrock Rovers instead.

Farrugia earned 600 points in his leaving certificate and is a gifted Biomedical Science student; he has options. The idea of turning out for a team that had an attendance of 6,414 in a recent derby game with Bohemians is also something which wasn’t always on offer in Ireland.

I think Irish football has a lot to gain from the rising affluence in Irish society. Along with increasing the genetic diversity, it means that there is a few quid to pay for a physio, have the video analysis gear, or think a bit more about diet.

When I was young, sports teams were managed by whoever’s dad had a car and could drive to matches. That wasn’t so long ago. Now we are an affluent nation, with cars, a few quid, well organised leagues and people with a few spare hours to volunteer and run them. These things make a difference.

I think every type of diversity is useful, even our sporting diversity. It may well be why Ireland punches above our weight in sport. Consider that Soccer competes with Gaelic football, Hurling, Rugby and the rest for it’s playing pool.

No other European country has such diverse sporting interest and there is a growing acceptance that a range of sports may be better for development than a relentless Tiger Woods style focus on one sport. Perhaps diversity is the reason for success, rather than a hindrance to it.

Go diversity, Go Ireland.

Luke Brennan is an Ireland born, Portugal-based writer, entrepreneur and sports fan.

Uefa Under-19 Championships

Previously: Green Shoots (Or: Why I Think We Might Win The 2030 World Cup)

Former CEO of FAI John Delaney (second from right) on his way to an Oireachtas committee hearing last month

More as they get it.

Rollingnews

Minister for Sport Shane Ross; letter from FAI to Mr Ross

Minister for Sport Shane Ross is currently addressing the Oireachtas sports committee.

He’s just said the entire FAI board is to step down.

He said:

“This move is to be welcomed and it is hopefully the first step on the road to rebuilding trust in this important NGB. Considering the issues over which most of this board has presided and those issues being obvious even before the various investigations have started, it is clearly time for a regime change.”

He also said no new capital payments will be made to the FAI until he is satisfied with the new measures put in place.

UPDATE:

Deloitte audit of FAI; chair of the committee Fergus O’Dowd, CEO of Sport Ireland John Treacy, Social Democrats TD Catherine Murphy

UPDATE:

Mr Treacy tells the committee that no other organisation that receives grant funding from Sport Ireland has had a form H4 filed against them to the CRO.

In response to a question about this from Fine Gael TD Noel Rock, Mr Treacy said:

“Not that we’re aware of. Never heard of it before. So we’re hearing about this for the first time. We heard about it this morning.”

UPDATE:

Asked if funding will be restored to the FAI before the year is out, Mr Treacy said: “Well, there’s a lot of work to be done.”

He said there is a mechanism to fund on a monthly basis “but that’s an issue when all the various bits and pieces have been done”.

Watch live in link above

Pic (letter): Ruth Coppinger

Pic (audit): Gavan Reilly

Meanwhile