The FAI have revealed new agreements with its creditors – the Bank of Ireland, Fifa and Uefa – to reduce debt repayments over the next three years.
The association currently owes €38 million with that figure projected to be €36.5 million by the end of this year.
A revenue windfall, estimated at €25 million from co-hosting Euro 2028 has allowed the FAI’s initial plan of being debt-free by 2031 to be extended by five years.
“The aim is to be debt free by 2036,” said FAI president Paul Cooke after the association’s AGM on Saturday afternoon, “but that could move.”
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The FAI received a rescue package from the Government of €30.83 million in January 2020. Currently, they pay out €3.9 million annually with most of that money serving borrowings from the Bank of Ireland but that will now be reduced to €1.5 million until after the European Championships.
Ireland still have to qualify for Euro 2028 but Uefa have held two slots in case any of the four host nations – England, Scotland and Wales – fail to make the cut.
In 2024, the debt was only reduced from by €1.3 million due to a €4.3 million drop in match-related income from €18.6 million to €14.3 million.
“We have rephased our debt, which is a good thing, not a bad thing,” said David Courell, the FAI chief executive. “It is important. We, traditionally, have three primary lenders – Uefa, Fifa, and the Bank of Ireland being the biggest one.
“In the last three years our debt repayments have been in the region of €3.9 million plus serving of debt on top of that of €1.5 million. Give or take.
“By virtue of this renegotiation we will see the repayment to Bank of Ireland reduce from €3.9 million to €1.5 million over the next three years.
“We will catch up some of that lost ground in 2028 when we have the additional hosting revenue.”
Meanwhile, on Saturday, the FAI General Assembly discussed the voluntary redundancy process currently being rolled out by the association in its Emergency General Meeting, which was scheduled to vote on a proposal to ask Uefa to suspend Israel, with Cooke explaining that this was done without the media as discussing 60 job losses is a “confidential matter for staff.”
Cooke added that the General Assembly members were “broadly comfortable” with the redundancy plan.
The FAI have confirmed they will attend a Work Place Commission hearing brought by Siptu against the association’s move to cut jobs, particularly at grassroots level.
“There is a significant reduction [in staff] coming,” said Courell. “We think we can deliver a more efficient association. Benchmarking data clearly indicated a more efficient way. There are three reasons for this: strategic alignment, a high-performing culture, and financial sustainability.
“Currently, 27 per cent is spent on payroll. The average among Uefa members is 17 per cent.”
When asked if senior management have considered taking a pay cut to help reduce the number of redundancies, Courell responded: “No, we discounted the prospect of pay cuts at every level of the organisation. Salaries in Irish football are not particularly handsome. Instead of cutting them deeper, we want to get the right people in the right places, delivering in the right manner.”
Tony Keohane, the FAI independent chairman, who was re-elected for another two year term alongside Cooke, said that the FAI needs to “change the way we do our business.”
“That involves a reform and governance change,” said Keohane who is also the chair of the Malone Group consultancy and OUTsurance Ireland, and he is the CEO of Keohane-Conaty consulting.
“The definition of madness is, as we know, doing the same thing over and over and expecting a different result. We have to do our business differently and that starts with changing how we work.”
Keohane suggested that a subcommittee will be formed to take certain “football issues” away from the board of the directors.
