THE GOVERNMENT IS unlikely to stand in the FAI’s way if they choose to sell their stake in the Aviva Stadium, The42 understands.
Amid debts of around €62 million, the FAI asked Sports Minister Shane Ross and Brendan Griffin on Monday night for a government bailout of €18 million as they seek a refinancing package with their bank to secure their future.
This was denied, with Minister Ross citing a finding by the forensic KOSI audit that the FAI is not fit to handle public funds.
Minister Ross made it clear that the government will not give the FAI any money at the moment, and Chair of the Oireachtas Sport Committee Fergus O’Dowd told The42 yesterday that he believes a bailout from European football governing body Uefa is the FAI’s only way out of the present crisis.
Should Uefa decide not to put up the money, however, one possible way the FAI can bring in some cash is to sell their stake in the Aviva Stadium. The FAI own 42.5% of the stadium – the rest of which is owned by the IRFU – and it is planned that it will revert to full IRFU ownership in 2070, at the expiration of the current lease.
Given the State paid €191 million of its overall construction cost of €460 million, the sitting Minister for Sport must sanction the sale of any stake in the stadium, and The42 understands the present Minister for Sport Shane Ross will not stand in the way of any potential sale of the FAI’s stake.
Under terms of the stadium agreement, its primary use must be for sport until 2040.
The FAI revealed just under two weeks ago that the board had discussed a potential sale of their stake in the stadium, but were unsure whether it was possible.
A Department of Sport official clarified to a meeting of the Oireachtas Sport Committee that the FAI are free to sell their share of the stadium with the Minister’s approval.
The stake has not been valued at today’s rate.
Elsewhere, the IRFU have sought a meeting today with the Department of Sport, over anxieties raised by the FAI’s stark financial situation.
Minister Ross will not be at that meeting, but he and Minister Griffin will meet with Uefa on 14 January to discuss the FAI’s future. He has said he is also willing to meet Fifa, and told yesterday’s Committee meeting that he understands the global body are keen to meet with his department.
He said he has been given no indication he is infringing Fifa’s rules barring third-party interference in the running of a football association. Among the items on that meeting’s agenda is the future of the League of Ireland and whether Ireland’s national teams could compete internationally should the FAI enter liquidation.
