Ian Mallon: 'Toxic payment’ blamed for FAI financial controversy
![Ian Mallon: 'Toxic payment’ blamed for FAI financial controversy Ian Mallon: 'Toxic payment’ blamed for FAI financial controversy](/cms_media/module_img/7696/3848068_5_articlesmall_2370427-FA_AZ4I4035.jpg)
KING OF THE HILL: FAI Chief Executive Jonathan Hill. Pic Credit ©INPHO/Bryan Keane
A NUMBER of senior FAI sources have revealed that a €12,000 top-up to chief executive Jonathan Hill was being maliciously blamed internally on a “toxic payment”, made by an embittered accountant.
The extraordinary and damaging rumour - being put out against the highly respected and named ex-staffer – demonstrates the depths to which football’s latest financial crisis has plunged.
The Pitch also understands through a source close to Jonathan Hill that the controversial payment for holidays taken in lieu - a practice banned in the FAI – had been approved by the Board.
If it is the case that the Board, or some of its members, approved the arrangement, then the question now focuses on which directors knew about the issue that is being investigated by the Government and Sport Ireland auditors Kosi.
In a lengthy statement to The Pitch, the FAI said last night: “Recently Sport Ireland sought clarification - relating to the treatment by the FAI, at source - regarding benefit in kind payments and pay in lieu of annual holiday to the CEO.
“The FAI has discussed this issue in detail with Sport Ireland and all the requested actions have been agreed to by the FAI.”
The question now is who on the Board knew about the controversial Hill payments, including an €8,500 liability for benefit-in-kind (BIK) relating to the chief executive’s commute from London, and living expenses in Dublin.
President Gerry McAnaney last week declared the CEO was blameless for what was a ”technical financial interpretation”.
Attention has now turned to Liz Joyce, who chairs the association’s remuneration committee and also sits on the Board.
Sources close to Ms Joyce claim she did not know of the payment, although was aware of the BIK issue - a request by this column to speak to the director was not successful.
The Hill payments were revealed after Sport Ireland received “additional information” in the FAI’s financial statements, ahead of next month’s AGM, which resulted in an immediate suspension of funding – the FAI has received €60m in grants from Sport Ireland for 2020-22.
A senior FAI board and assembly source told The Pitch that his view was that Jonathan Hill’s position is no longer tenable, even though the CEO is still only under investigation.
“It has been accepted by the FAI that payments to the CEO, which are in contravention of the company rules, were made,” said the insider.
“On that basis alone he must be suspended until the matter is resolved.
“That you have a chief executive claiming money for doing some work out of normal hours is highly unusual.”
A second source added that if “Jonathan Hill had the approval of the Board to achieve such top-ups, then those who knew must go with immediate effect, given that staff were playing to a different set of rules”.
Staff at the FAI are not allowed claim for holidays in lieu.
The issue and subsequent rancour about “toxic payments” have caused a great amount of anger among FAI staff, not just towards the CEO, but also against those who are seen to be deeply entrenched in the Hill camp.
Currently those who support Hill include Gerry McAnaney, Liz Joyce, Catherine Guy, Niamh O’Mahony and Maeve McMahon.
Chairman Roy Barrett, Hill’s loyal and most dedicated supporter, left the organisation last week – however, there is nothing to suggest that he was complicit in the controversy.
Those pushing against Jonathan Hill include Vice-President Paul Cooke, independent directors Packie Bonner and John Finnegan.
Significantly, also in this camp is Robert Watt, the Secretary General at the Department of Health, who is said to be incredulous at the lack of correct governance surrounding the issue.
One director who has yet to be swayed either way is Joe O’Brien, a non-independent football director – Mr O’Brien declined to reveal his hand when contacted by The Pitch.
The Hill controversy comes during a highly damaging time for the FAI, where the organisation has never appeared more divided.
There is an additional simmering anger surrounding last week’s post-EGM statement by the association, which many sources say was designed to “completely undermine” the Assembly.
The FAI stated that its wider council, which runs Irish football, had “voted against the proposed constitutional change to allow two additional female candidates to join the FAI Board”.
The FAI Assembly is not against allowing two extra female candidates joining the FAI Board, rather it objected to certain motions surrounding the breakdown of the board of football versus non-football directors.
Indeed the LFA has proposed that the two female directors could come from football, allowing eight football directors and six independent, however Minister for Sport Thomas Byrne this week said that breakdown must be seven-and-seven on a new 14-person board.
For now, the issue of payments for holidays not taken and travel expenses will dominate headlines as Jonathan Hill’s remote living arrangements are examined at closer detail.
The Yorkshireman, who lives in London, stays at the Castleknock Hotel and Country Club when he is in Ireland, where a typical FAI discount rate is approximately €100.
This would mean that if Hill stayed at the hotel for four nights a week, for 46 weeks of the year for 2021 and 2022, his accommodation expenses alone would sit at approximately €36,000.
It is understood that Mr Hill has covered his own living expenses for 2023.
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Bernard Jackman’s appointment as Horse Sport Ireland’s Acting Head of High Performance may be masterstroke by chief executive Denis Duggan.
Jackman will assume the role until the end of the Paris Olympics next year when horses and riders will set out to turn their world number one status in Show Jumping into medals, and where Team Ireland will hope to place strongly in Dressage, Eventing and in Para Eventing.
For many Jackman is one of RTÉ’s finest rugby commentators, but in the world of sports business he is an astute brand man having transitioned from the area of high performance into the corporate and sports worlds with ease.
He has worked with and observed closely a suite of leading brands including Airbnb, Aviva, Primark, Circle K, Pfizer and EY, but his work and access to some of the world’s leading sports teams has been key.
The Carlow man has also developed key sporting associations with Manchester United, IMG Tennis Academy and the Red Bull Formula One team.
So why horse sport for a man who has no history within the segment?
“I’ve always been a big fan of all horse sport, I know Ruby and AP quite well, and while I have no direct experience what I can hopefully bring - as someone from a rugby background – support to help people tap into my own knowledge of high performance.
“This is a really exciting challenge for me to help focus on the Olympic games in Paris and the opportunity for me is to support high performance and the challenge of the Olympics, perhaps the greatest challenge any athlete can face.”
Chief executive of HSI Denis Duggan believes that Jackman’s experience, particularly around game days or periods within competition, will be crucial to the role.
“To start with we always have very good high performance structures in place from youth and development squads right through to a performance director for each of our Olympic disciplines.
“Now we have that extra support from Bernard on the day-to-day in competition which will benefit the athletes and right through to the owners, where his principles in high performance are transferable.”
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ONE of the great mysteries of sports sponsorship is the typically coy treatment of values by major sporting organisations in Ireland.
While most teams and federations baulk at revealing such values publicly, Dublin GAA have demonstrated that putting the price out there can reap immediate returns.
Six weeks ago, The Pitch announced that the Dubs, through no fault of their own, had been jilted by a big name brand at the last moment, as it looked set to announce a new headline sponsor.
We revealed that the per annum value of that deal would sit at around €1.1m, and it was noted that the association’s commercial team were not too concerned about the last-minute abandonment.
Fast forward 42 days and Dublin is freshly endowed with a new sponsor, announced amid a blaze of glory yesterday with Staycity Aparthotels.
The Irish-owned, Dublin-based firm, had read The Pitch and seen the price and a mammoth five-year deal was constructed very quickly.
The package covers lead and shirt sponsorship of all men’s and ladies football, hurling, and camogie teams until the end of 2028.
Tomas Quinn, Dublin GAA’s Commercial and Marketing Director told The Pitch at yesterday’s unveiling, that price is not something the association ever hides behind.
“We don’t go into negotiations with anyone as if we were selling a house, it’s not a negotiations process, the price is the price and we never hide behind it.
“The Pitch actually helped get this deal over the line, in that Staycity Aparthotels saw the piece and got in touch with us, and we’re so happy to have them on board.”