THE 1998 World Equestrian Games, which were awarded to Ireland two years ago, will definitely not be staged here following an announcement yesterday that the organising company, World Equestrian Games (Ireland) Ltd is to cease trading.
A decision taken at Cabinet level to refuse further funding for, the £10.9 million project until a firm commitment on sponsorship could be given was confirmed at a meeting between WEG representatives and senior officials in the Department of Tourism and Trade yesterday afternoon.
The Government had pledged funding of £1.5 million when Ireland's successful bid to host the six discipline Games was made in 1994. Only a third of that sum had been drawn down by the company, with subventions from Bord Failte of £250,000 in 1995 and 1996.
Conor Crowley, chairman of the WEG Ireland board, led the five man delegation that met yesterday with Department secretary Margaret Hayes, representing Minister Enda Kenny. "The Government has confirmed that it is not willing to continue funding the venture", he said after the hour long meeting.
"From day one, Government funding of just over £1.5 million was involved. They told us that they couldn't make a legally binding agreement and that they could only do it on a year to year basis, but that money was part of the budget produced when the bid was launched in Tampa."
Crowley stated that the Government had not got the confidence to continue funding the project because of the lack of a firm commitment on sponsorship. In its two years of operation, WEG had been unable to secure the necessary £6 million sponsorship package. Negotiations had been ongoing with several major backers, but binding contracts could not be signed until WEG had confirmed agreement on television coverage.
"We gave an undertaking on television scheduling and the FEI (International Equestrian Federation) agreed to accelerate - the timescale on this. We also revealed the possibility of private funding," Crowley said. "But their minds were totally made up. They were only interested if we could produce a sponsor today and didn't take into account anything said at the meeting."
A WEG Ireland board meeting is to be called next week to wind up the company and a decision made on payment of creditors believed to be in the region of £200,000.
Yesterday's decision to pull the plug on the 1998 Games could still have financial repercussions for the Government, however, as the FEI demanded a guarantee of £1.5 million should WEG Ireland default. The bond was underwritten by Bord Failte in 1994.
The £1.5 million bond will definitely be called in by the FEI, Crowley stated yesterday, although it is believed that the Government may attempt to claim a breach of contract by the FEI for failing to deliver on the television rights.
The withdrawal of Governments funding, for what would have been Ireland's biggest sporting event, is particularly ironic, following last month's announcement by the Minister of a grant" exceeding £1 million for an equestrian centre in Ballina.
