FIFA paid FA of Ireland $5 million to prevent legal action on Thierry Henry's infamous handball

During the 2010 FIFA World Cup qualifying phase, the Republic of Ireland faced off against France in a two-legged playoff tie. France led 1-0 from the first leg, but the Ireland team had taken the lead against Les Bleus until William Gallas headed the ball into the goal in extra-time.

Thierry Henry had clearly handled the ball in the process of setting up the goal and despite the appeals of the Irish players, the decision to award the goal to France stood and eventually they went on to qualify for the World Cup. The decision left the Football Association of Ireland (FAI) fuming.

FAI chief executive John Delaney said he made his feelings extremely clear to Sepp Blatter, FIFA chief at the time and they came to a “fully legitimate” financial settlement.

Now, since Sepp Blatter’s announcement to step down from his post, it has come to light that FIFA loaned FAI $5 million to avoid a court case and wrote off the loan when the Republic of Ireland failed to qualify for the 2014 World Cup.

FIFA and FAI statements

FIFA released a statement, it read: “"FIFA granted FAI a loan of $5 million for the construction of a stadium in Ireland. At the same time, UEFA also granted the FAI funds for the same stadium.

“The terms agreed between FIFA and the FAI were that the loan would be reimbursed if Ireland qualified for the 2014 FIFA World Cup. Ireland did not so qualify. Because of this, and in view of the FAI's financial situation, FIFA decided to write off the loan as per 31 December 2014.”

The FAI stated that these funds were directed towards the development of the Aviva stadium that was built on the site of the Lansdowne Road national stadium and opened in 2010.

The FAI released a statement themselves, saying it was a “legitimate payment that enabled our Association to put €5m into the Aviva stadium project. This is fully reflected in our financial statements which are audited independently. The Associated accepted FIFA's settlement offer to avoid a long, costly and protracted legal case.

“FIFA's settlement with the Association has at no time influenced the FAI's criticism of FIFA as demonstrated by our consistent criticisms of Sepp Blatter.

“Furthermore the settlement was made without any conditions other than confidentiality.”

FAI chief defends their position

FAI chief executive Delaney speaking on radio, added: “We felt we had a legal case against FIFA because of how the World Cup playoff hadn't worked out for us with the Henry handball.

“Also the way Blatter behaved, if you remember on stage, having a snigger and having a laugh at us. That day when I went in, and I told him how I felt about him, there were some expletives used. We came to an agreement.

“You've put a figure out there and fair play to you. It was a payment to the association to not proceed with a legal case. In there, they signed a confidentiality agreement where I can't talk about the amount involved. You used a figure there, well done to you, but it was a very good and legitimate deal for the FAI.”

Both the FAI and FIFA have now come under the microscope as several questions are being asked about the legitimacy and the nature of such a deal.