FAI chief executive John Delaney has given a new account of why the organisation received a payment of €5 million from Fifa in the wake of Ireland's controversial defeat in a World Cup play-off.
Last night he claimed any potential legal case the FAI had against Fifa was based on factors other than a refereeing error that saw Thierry Henry’s handball in Paris in November 2009 go unpunished. It contributed to the French scoring the goal that secured their place in the finals in South Africa.
On Thursday when the €5 million payment emerged as a source of controversy, Mr Delaney said it related to the handball incident.
He made the latest claim at the same time as the association released documents, including what appears to be the main agreement between the two organisations, which contain only references to the handball incident.
In an interview on RTÉ television last night, Mr Delaney said the goal had merely been the “catalyst” for what followed. The FAI had, he claimed, first sought a “sporting solution” – an extra place at the finals or a replay – then compensation. He said the compensation was agreed on the basis of Fifa’s “real concerns” over the strength of the FAI’s legal claim.
The FAI’s case, he now says, was based on a decision taken by Fifa weeks before the play-offs to seed the draw and what he describes as the “reputational damage” caused to the FAI by Sepp Blatter mocking the “33rd team” suggestion in the aftermath of his first meeting with Mr Delaney.
Mr Delaney claimed the €5 million payment was not specifically disclosed in its accounts because of a confidentiality agreement with Fifa under which the FAI would be liable for a $250,000 fine if it were revealed.
However, Aidan Clifford, technical director of the accountancy body ACCA Ireland said the FAI's failure to specifically disclose the payment in its accounts called into question the stewardship of its directors. He said a matter as "material" as a €5 million payment or loan would be expected to be mentioned directly in the accounts.
Taoiseach Enda Kenny said yesterday the payment was “quite extraordinary” and Mr Delaney should answer all questions regarding the transaction. However, he said Mr Delaney’s position was still tenable.
Worldwide attention
Mr Kenny said the controversy had attracted worldwide attention and while the money was not taxpayers’, full transparency and accountability was required. Minister for Foreign Affairs
Charlie Flanagan
said it had the potential to affect Ireland’s international reputation.
The FAI accounts for the years 2010 to 2013 do not specifically refer to any payment or loan from Fifa. The 2014 accounts have not yet been filed.
Fifa said the money would have been repayable if Ireland had qualified for the 2014 World Cup. This meant the money was probably a “contingent liability” for the FAI up to the time it became clear the money would not have to be repaid, according to a second accountancy expert who did not wish to be named. “Given the FAI’s turnover, I would think it was unusual not to separately disclose the transaction.”
The leading sponsors of the Irish football team and the FAI declined to comment.
