The Football Association of Wales (FAW) posted an operational profit in its last financial year despite initially budgeting for £3m losses. The association is also on track to exceed its target of growing revenues to £26m by 2026 in its current financial year as it looks to drive greater commercial revenues.
For its financial year to the end of June, 2022, revenues came in at £23.3m, down on just over £28m on the previous year - which were buoyed by Wales’ participation in the delayed 2021 Euros. Its operating profit came in at £237,897 A pre-tax profit loss of £257,331 would have been in the black but for a £295,500 loss of office payment agreed by the board for its former chief executive Jonathan Ford. It was also adversely impacted by the performance of its investment fund, managed by HSBC, which for the year sustained losses of £736,050. However, with market fluctuations since year end the value of the fund has recovered.
The FAW’s chief executive Noel Mooney, who took up his role in August last year, said every expenditure line was looked at on his arrival to eliminate the projected operating profit deficit. He said: “We were forecasting a £3m loss which was extraordinary really and something we couldn’t sustain. So we brought everyone together and said basically we are going to go for zero. We did things more efficiently and cut out things that were unnecessary and went through everything line by line to make sure that we got to neutral. So, it is very encouraging that we have delivered a greatly improved operational result compared with the original budget for the 2022 financial year.”
For the last financial year the FAW reduced administrative expenses by around £1.5m.
On the outlook Irishman Mr Mooney, said:” The aim was to get revenues to £26m by 2026, but we will get to that next year without competition (World Cup) money. We are building lots of new products, like summer soccer schools and all sort of new deals with commercial partners. So, we are well ahead of target.”
With the FAW securing around £4m from Wales’ participation from the World Cup in Qatar, which starts later this month - representing a third of the total with the rest going on logistic costs and payments to players, management and backroom staff - this will be passed through to invest in improving grassroot facilities via the independent Cymru Football Foundation.
Mr Mooney said; “ This year (financial 2022-23) we will go to £31m or £32m revenues and that will have the £4m (World Cup impact) within that. We are also hoping to make another £4m from Euros 2024 if we qualify and that is only 18 months away so not the normal two year cycle from the World Cup. So, that would be £8m added to our reserves which will go into grassroot funding and driving improved facilities for boys and girls. We have many opportunities to grow football at all levels so we need to keep increasing our resources to ensure we can fully capitalize on our huge potential. Equally, we are always mindful of costs to our members and fans, trying to ensure the price of tickets, courses etc remain affordable for those who love Welsh football. Our change management programme will continue through 2023 when we will record significant profits to invest into Welsh football.”
The last financial year also saw a significant uplift in non TV, governing body and matchday income with sponsorship revenues up nearly £2m. The chief executive said a number of new commercial partners would be revealed shortly.
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On his future Mr Mooney, whose remuneration last year was £195,279, said: “I am really happy here and like what we are doing. I feel that we are going in the right direction really quickly and the world is our oyster to deliver things.”
He said like with any business or organisation undergoing change, such developments were not always universally popular. He added: “When you want to go from good to great you will get resistance there is no doubt about that, but it doesn’t bother me in the slightest as I am absolutely convinced that what we are doing will make us a far stronger and better organisation.”
FAW president, Steve Williams, said “Last summer we were looking at a challenging year financially but thanks to the great work of everyone at the FAW, we have delivered a very positive return for Welsh football and look forward to a bumper financial year ahead following our qualification to the Fifa World Cup Finals.
“Our Wales (strategic plan)) is being delivered efficiently and effectively, with the FAW becoming stronger than ever before. We are hugely excited by the opportunities ahead of us and look forward to investing in these opportunities to grow football across Wales.”