The Football Association board agreed in principle today to cut the organisation's spending by 10% as a means of coping with the summer collapse of the Irish broadcaster Setanta but will not make redundancies or by cut planned investment in grassroots or professional football.
The FA is keen for this difficult period not to be considered a crisis, and has stressed that it still has significant income and will maintain its planned £200m investment in grassroots football over this year and the next three.
The financial retrenchment has been prompted by the collapse in June of Setanta, which still owed the FA £150m for this and the following two seasons' TV rights for FA Cup and England matches. The £425m, four-year deal signed with Setanta and ITV for 2008–12 was a record for the FA, which is stressing that Setanta's collapse is necessitating cutbacks to put it back to its previous position, not plunging the organisation into serious financial problems.
The FA are also hoping that a tenant will opt soon to occupy their former office block in Soho Square, where the organisation is still paying the £2.4m rent a year. More businesses are said to have shown an interest recently, but no firm offers have been received.