At The End Of The Day: €55,067,472

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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:

42 thoughts on “At The End Of The Day: €55,067,472

  1. V

    50 million!!!

    Some land mines they were if Deloitte’s didn’t step on them when on site for their audits for Years ending 2016 and 2017

    And wtf was their Treasurer and Financial Controller/ Director at if they didn’t bring these matters to the attention of the Board and External Auditors

      1. V

        I’d be afraid to say Bruddar

        But any FC worth the title would complete a Creditors Rec (conciliation) every month when taking their Trial Balance to accounts for Board for the period

        And traditionally
        Well the way I was trained anyway
        At year end especially they would be particularly diligent because Accruals and Prepayments would be heavy weight items on the Balance Sheet, and of particular concern to the External Auditors.

        And they both interfere with reported profit – either for the year just gone or the following year

        So ideally
        The external auditors would have to be satisfied they were accurate, and would even contact certain Creditors to confirm outstanding balances.

        To avoid Enron type stuff really

          1. V

            Or maybe they received “satisfactory responses” to matters in their Management Letter

            Who knows ╮(. ❛ ᴗ ❛.)╭

            At a guess – if I’m allowed

            I suspect there were guarantees provided that were not documented

      2. wearnicehats

        This debt bomb has been sitting in the accounts for years. The difference is that the amount due to creditors over time has been getting closer and closer

        For example, in 2017 the FAI had net current liabilities of €21million.

        A net current liability is when you currently owe people money. So the amount of money you owe is the value of your assets less how much you owe other people within one year

        The amount of money you owe people further down the line is not included in your net liability but it is included in your bottom line net assets

        So in 2017 they had €21million net current liability to creditors but had a further €35 million due in the next “2-5 years” (not to say that that €34m of that wasn’t maybe due in 2019) So their realtime total creditor base was €54 million back then. So as time goes by Net current liabilities will rise. In this case they rise sharply, Have to see the net asset value figure.

        1. b

          essentially what has happened is the debt borrowing for the stadium that was due in the medium term has now come due in the short term as they have breached certain debt covenants

          there’s no massive increase in new debt, only that it has got hugely riskier and harder to service after the huge losses and payoffs to Delaney, O’Neill, Keane et al

          there’s serious questions to answer how the package that delaney had was not disclosed in accounts until now

          1. wearnicehats

            You’re correct of course “b”. The net asset value has only dropped by €10k (not that it’s really much cop given that 67% of its assets are non-tangible anyway)

            Delaney’s package (fnarr) pales in to insignificance compared to the eye watering €2.5 million in “Exceptional Professional Fees” included in the revised 2017 accounts to deal with the mess (falling to a meagre €325k in 2018) Accountancy pays for some!

  2. Otis Blue

    Are we being asked to believe that this debt was incurred without impropriety or illegality?

    Actions must have consequences. So what’s it be for Delaney, the board members, Sport Ireland and the auditors?

    1. Spaghetti Hoop

      +1
      I am not shocked nor surprised at the revelations. More concerned with the consequences and accountability. Enlighten me, financial people.

  3. class wario

    I’m genuinely fascinated as to what the main players in this expected the endgame to be? Keep sweeping this stuff under the carpet and ride off into the sunset? It’s very possible this could have all gone under the radar if not for the work of Mark Tighe et al earlier this year.

      1. Liam Deliverance

        +1 – Mark Tighe

        @Class Wario – Its unfathomable for most people, this carry on, how would you sleep at night, you or I wouldn’t but for these blackguards I guess it’s not a problem. Its the same culture as the blackguards in government, keep on filling your pockets until you’re found out and by then it’s too late, tracks covered, a bit of scandal and then you can resign. Some of them don’t even get found out. That’s why we attract the lowest of the low to politics, that must change if we are to have any chance of turning this country around from what is it today, 10,000+ homeless and 80 year olds spending their final hours in a chair in a corridor beside the toilets, to a place where we progress, where problems are solved, where life improves. As it is I could be that aul fella sitting in the chair in the corridor in few decades. Why doesn’t corruption/embezzlement/fraud carry a minimum mandatory jail sentence of 20 years, or why are we not insisting that it does, instead repeating the same mistakes over and over again.

  4. Bud Flanagan

    Why not get the FAI’s next sponsor to be Airbnb ?
    Then if Ireland do qualify for the Euros ( stop laughing at the back ) and can’t afford hotel rooms they’d at least have a fall back option.
    Kit-wise the Faroe Isles could chip in with some of their old training gear.
    Gibraltar must have a few balls left over they could bung the lads for a knockabout.
    Only trying to be helpful lads.

    1. Brother Barnabas

      not one of your finest – flabby and insipid, truth be told

      certainly wouldnt have made the cut during the charger salmon halcyon days

      1. Bud Flanagan

        I’m sure there’ll be plenty of new material with the big reveal at 1pm.
        I’m getting the popcorn it.

  5. MoRhustyDilis

    Worth noting that Three CEO R. Flanagan is a personal close friend of Delaney. And word has it that he was aware and advising Delaney and pulled sponsorship in support of Delaney and in objection to his departure.

    1. Liam Deliverance

      Delaney, from link above, in 2018 – ““There’s no doubt we had a debt of €70 million, it’s now for the first time under €30 million, it will be under €20 million next year”

      So I’d love to see how they went from minimal debt at some point, to major debt to pay for the stadium, to the above quote and then to today with E55m debt – Where did all the revenue earmarked to pay this debt go to in the last 2/3 years and who trousered it? If FAI want taxpayer funding then they need to explain this, unfortunately a public inquiry will be needed to do that I would expect. All state funding of this nature, horses and greyhounds and others, needs to be fully transparent and if not then no funding.

      1. Dr.Fart

        *wealthy irish
        the rest of us face plenty of consequences. unless of course youre a sex offender, then you’re getting a lot of leniency in the courts.

  6. DOC

    The FAI are looking for a sponsor
    How about Delaneyland – An alternative to Disneyland
    Both organisations full of clowns

    1. Otis Blue

      Describing them as clowns really lets them off the hook. It’s much worse than that. They all drank deep. Heroes one ‘n all.

  7. Hector Ramirez

    If you are at a certain level in Ireland m, you can walk away from circumstances your oversaw and carry on with your life as usual, while everyone talks about how WE can clean up the mess…

    1. Lilly

      Yes, listening to Shane Ross on the news… ‘and we’ll all be paying for it.’ Why would we pay for it? And what the hell were they thinking giving that ceolán Delaney a payoff of a half a million for running the outfit into the ground?

        1. Lilly

          Either comment or don’t; this passive- aggressive stance is tedious.

          I presume you’re suggesting Delaney would sue for unfair dismissal. The FAI could counter-sue for breach of contract.

          1. wearnicehats

            I would imagine that their people have talked to his people and come to that very conclusion. There is probably enough murkiness on both sides to keep such a tit-for-tat legal battle in court for years. The payment to Delaney might just have been a better the devil you know move

            Much as in the Israel Folau rugby case where a solid financial decision was taken to settle out of court and save (probably a lot of) money in the long run. Doesn’t mean it’s a palatable solution – just business, baby

          2. Lilly

            True, but in light of all the irregularities surrounding the accounts, he wasn’t exactly in a strong negotiating position. If, for instance, he had any input into the decision to pay himself €1mil at the end of 2020 (you bet he had), that wouldn’t have been his best bargaining chip.

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