Delaney’s FAI deal fails to protect against potential actions

John Delaney's deal with the Football Association of Ireland does not indemnify the former chief executive against future actions that may arise from ongoing investigations of corporate governance at the association, The Irish Times has learned.

The association has also not committed to paying Mr Delaney’s legal costs relating to the investigations or subsequent actions.

However, the former chief executive, who has secured an exit package of around €500,000 from the FAI, may ultimately have recourse to other forms of protections offered under company law to directors of companies, such as directors insurance.

The payout, according to well-placed sources, will take place in a single transaction, rather than being spread across multiple payments or triggered by certain clauses. Sources in the football community said the deal was constructed with the aim of drawing a line under the Delaney saga. The affair has dogged Irish football since it was first reported in March by the Sunday Times that the organisation received a €100,000 loan from its chief executive.

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The association has been under pressure since then as a series of stories broke covering alleged payments to Mr Delaney’s girlfriend, as well as disclosing details of his expense regime.

The timing of the announcement of Mr Delaney’s departure has divided opinion in Irish football. Some sources were pleased that the issue had been concluded, while others criticised aspects of the deal, including the timing of its announcement. One source said the organisation had committed “an absolutely massive strategic mistake by announcing [the departure] on a Saturday night”.

Minister for Sport Shane Ross said he wanted to know that "large sums were not being paid unnecessarily".

“I think it’s absurd after all the controversy that we shouldn’t know exactly what the pay-off is,” he said.

There was criticism over the timing of the announcement also from Fergus O'Dowd, chairman of the Oireachtas committee on sport. Mr O'Dowd told RTÉ radio's Morning Ireland that he wanted the details of the deal to be known.

"We need to know if Santa Claus came to John Delaney, " he said.

Behind the scenes

He also said an upcoming forensic audit of the FAI, commissioned by Sport Ireland, should have been published before Mr Delaney’s exit package was agreed.

The full figure is expected to be published at the FAI agm in November, most likely as an addendum to the 2018 accounts as a post-balance sheet event, which occurs after a reporting period but is of significant importance to an organisation publishing financial statements.

Behind the scenes, there is intensive political lobbying within Irish football over membership of the new FAI board and the newly created Football Management Committee which is designed to closely monitor and devise strategy for the game in Ireland.

Several organisations, including fan groups and referees, are understood to be seeking places on the committee.

Meanwhile, four new independent directors are to be appointed to the board. At least two are expected to be women, as part of the FAI’s commitment to improve gender balance within the organisation.

The FAI had no comment when contacted. Mr Delaney’s lawyer did not respond to a request for comment.