FAI admits they are powerless against UEFA's payment slash for First Division clubs

Officials from the League of Ireland have informed First Division clubs such as Finn Harps that recent changes to UEFA’s solidarity payment system, which reduce funding for lower-tier teams, are beyond the control of the FAI.

Earlier this week, the European Clubs Association (ECA) confirmed significant alterations to UEFA’s compensation scheme. This scheme distributes funds generated from elite European competitions to clubs that do not qualify for the group stages, offering them financial support.

These changes will have significant consequences for Irish football, as the UEFA/ECA deal is set to increase the total pot available to leagues of Ireland’s stature from €1.4 million to around €4 million.

However, the new 2024-2027 structure limits the amount that can be allocated to second-tier clubs, unlike the previous arrangement where the FAI distributed the €1.4 million across both the Premier and First Divisions.

Under the new terms, First Division clubs are expected to receive approximately €45,000 per year, a reduction of €25,000 compared to the previous deal. In contrast, Premier Division clubs will see their payments increase significantly, from €70,000 to around €350,000, with the possibility of even higher figures.

This has sparked anger among First Division teams, prompting League of Ireland director Mark Scanlon to call a meeting in response to the complaints.

Scanlon explained that the FAI no longer has control over how the funds are allocated, with Premier Division clubs holding the power to veto any further distribution of the €450,000 allocated to the second tier.

The FAI has considered measures to address the funding gap, such as increasing prize money or offering additional grants to First Division clubs, particularly at underage levels. However, no commitments have been made, as the FAI is still awaiting official documentation from UEFA. The ECA had briefed its members before the FAI was fully informed of the changes.

There is also the possibility of a delayed timeline for payments. While UEFA initially indicated that there could be a double payment in 2025 - covering the 2024/25 and 2025/26 seasons - this may be postponed to 2026 due to the complexity of the new system, which aims to issue solidarity payments immediately after the group stage qualifiers end, rather than the following calendar year.