NICK FALDO is set to take a stake involving several million pounds in Ballyliffin Golf Club on the Inishowen Peninsula. Negotiations aimed at securing a long term lease on the club for the US Masters champion have reached an advanced stage and are expected to be completed before the end of the year.

The first stage of what would be a unique arrangement in Irish golf took place on May 28th of this year when a select group, headed by Faldo, arrived at Ballyliffin. Since then, representatives of the club and the player have been in regular contact, culminating in a visit by two representatives to the Co Donegal venue nine days ago.

Arising out of that meeting, a firm offer was made to the club council which they considered last Monday. Since then, Faldo travelled to Sun City, South Africa, for the Million Dollar Challenge in which he is currently competing, but I understand that the club are ready with their answer.

On that crucial visit last May, which took place on the day following the Volvo PGA Championship at Wentworth, Faldo's entourage arrived at lunchtime by minibus from Derry Airport, a distance of about 40 miles. There was the player, his mother, father and children and his manager John Simpson.

It was Faldo's first visit to the club since he first made its acquaintance in June 1993, when he visited several west coast links by helicopter prior to a successful defence of the Irish Open at Mount Juliet. At that stage, there was only one course at the club but in August 1995, the new, £1 million Glashedy Links, designed by Pat Ruddy and Tom Craddock, was officially opened.

In the event, the Faldo group spent about six hours looking over the extended complex in three golf buggies. Then they were guests at a reception laid on by the 1993 captain, Brian Harkin. The club council also attended.

At the time, a club member suggested to me that Faldo might be attempting to establish a relationship with Baallyliffin, similar to that between Tom Watson and Ballybunion. Whatever the truth of that assessment, it has now developed into a major business deal which could involve the player in an outlay of several million pounds.

Significantly, Faldo announced last month that he was severing his connections with Mark McCormack's International Management Group and would in future be taking charge of his own destiny. A critical element of the arrangement, however, was that his long time friend and business manager, Simpson, would also be breaking from IMG, thereby maintaining one of the game's closest and most fruitful relationships.

Ballyliffin is a members club and I understand that Faldo wants to lease it for 33 years. The belief is that the move would not affect the status of the 1,000 men and women members who would retain ownership of the facility.

Indeed they would benefit considerably from a possible ungrading, including the construction of a new clubhouse and even a third 18. Either way, it is anticipated that Faldo would re design elements of the Old Links. His design skills are in evidence at the Chart Hills course in Kent where he collaborated with the gifted American architect, Steve Smyers.

In terms of prestige, however, Chart Hills would lack the sort of impact of Irish links terrain, which is widely regarded as the world's finest. Indeed, its status has been embellished through the inclusion of such outstanding courses as Portmarnock, Royal Co Down, Ballybunion and Royal Portrush in lists of the game's finest venues.

But what's in the Ballyliffin deal for Faldo? The key would be merchandising, based on his ownership of the club logo. He would exploit this in a variety of ways, not unlike the manner in which Jack Nicklaus marketed Muirfield Village, which he designed and financed in Dublin, Ohio.

I understand that the financial possibilities for such a venture would be very considerable on the world market, given the international profile of a player who has captured six major titles - the British Open in 1987, 1990 and 1992 and the US Masters in 1989, 1990 and 1996. And even without expanding the existing, 36 hole facility, green fee revenue could also be increased appreciably.

From a tourist standpoint the viability of the venue has been enhanced considerably by the development of Derry Airport. The area is currently promoted through Inishowen Tourism and its proximity to Carndonagh (eight miles) and Buncrana (10 miles) offers considerable options for accommodation, bars and restaurants, quite apart from Ballyliffin itself.

Meanwhile, the facility comprises 365 acres of spectacular duneland, is bordered on one side by the North Atlantic and inland by picturesque hills and mountains in one of the more beautiful areas of the country. On his visit to the old course in 1993, Faldo described it as the most natural course had ever played.

The new course takes its name from the Glashedy Rock offshore, similar to Ailsa Craig at Turnberry. With an overall length of 7,102 yards, it offers a worthy challenge to the most accomplished of players and, as such, is highly marketable among the world's more discerning practitioners.

Over the years, Faldo has been a strong supporter of Irish golf since he first played here in 1975 as a member of the England team in the Home Internationals at Portmarnock. Less than 12 months later, at the same venue, he led the pre qualifiers for the Carrolls Irish Open but wasn't long enough in paid ranks to be eligible to collect the prize money.

He missed the cut that year but went on to become one of the event's strongest supporters until he eventually captured the title at Killarney in 1991. Faldo then successfully defended it in a play off with Wayne Westner at the same venue the following year and gained the unique distinction of winning it on a third successive occasion, at Mount Juliet in 1993.

As it happened, that triumph was preceded by his first view of Ballyliffin. Now, if the proposed deal goes through, his impact on Irish golf will take on a fascinating new dimension.