FAI accounts reveal tough task ahead to repay loans
The repayment or rescheduling of the large loans associated with the Aviva Stadium will be the key financial challenge for the Football Association of Ireland over the coming years, its latest set of accounts reveal.
The FAI is due to repay or reschedule €58.8m in loans between 2014 and 2017.
In addition to this, the association must pay an overdraft of €5.4m within one year.
Accounts for 2011 filed to the Companies Registry Office show the FAI had no money in the bank at the end of 2011.
However, the directors' report states that the company remains "on course" to have all loans "fully repaid" by 2020. The association's bankers are National Irish Bank.
The accounts show that turnover at the FAI in 2011 rose 15pc to €45.1m on the back of a strong year, driven by the Euro 2012 qualification campaign, which included strong attendances at the Armenia and Estonia matches.
However, fewer competitive matches this year may put pressure on turnover and operating surplus performance in 2012.
Interest on the loans significantly rose to €4.2m in 2011 against €1.8m in 2010.
This was mainly due to the costs associated with the construction of the Aviva Stadium (which is held in a separate joint venture with the IRFU, split 50/50 with the FAI) and the servicing of the overdraft loans.
The accounts also show that FAI chief executive John Delaney was paid €400,000 in 2011, down from €431k in 2010.
The association also significantly reduced the amount it paid in gross payroll in 2011.
This figure totalled €11.3m in 2011 against a figure of €13.1m in 2010. Staff numbers declined to 173 from 179 over this period.
The average gross pay per employee fell from around €73,000 in 2010 to €66,000 in 2011 -- a fall of about 10pc. Delaney's pay fell by just over 7.3pc in the same year.
The accounts also show that the FAI cut the grant aid paid to soccer clubs and leagues around the country by €377,000.
The accounts show that working capital is the main short-term financial issue facing the company.
Total current assets -- debtors and amounts due to the Association -- total €9.3m, but amounts due within one year total €26.6m, which includes the overdraft amount of €5.4m and deferred income.
Deferred income is income that the company has earned already, but relates to future period.