QuoteThe article was based upon the following press release by the Supporters Club. It can't be emphasised enough that this is a factual document, with all the information provided by John Purcell and Michael O'Sullivan. The Supporters' Club are not pushing anyone's opinion one way or the other, we just wish to allow the promised democratic vote about our club to take place. So if you think the committee are acting correctly or not, please lend your voice to the debate.
The press release came about due to the high number of concerned fans contacting us, and hopefully this will clear everything up.
Limerick FC Supporters’ Club – Press Release 26th January 2004
The Board of the Limerick FC Supporters’ Club are issuing this press release in an effort to keep the public informed of the developments presently taking place within Limerick FC. Many of these developments could have long-term effects upon the future of senior soccer within the city and county. The Supporters’ Club are anxious that any changes will strengthen the club and provide a good starting point for future progress. This press statement will address all the developments from the last public meeting that took place in the Garda Club on November 19th 2003.
The public meeting was called to discuss “The Future of Limerick FC.” The main topic of discussion brought up at the meeting was the legal status the club would adopt. Two options were discussed: the option of a Limited Company, and that of a Members’ Club. A show of hands was taken at the meeting, the result of which was that one person voted for a Limited Company while the rest of the attendees voted for the Members’ Club option. The result of the meeting was that the Limerick FC Committee would investigate the pros and cons related to both club forms before making a decision in consultation with the public. They would then relate the details in the follow-up meeting, which they agreed, was to take place two weeks later. This was delayed further, with a new date given for early in the New Year. This was not met, and the meeting has yet to be announced.
Just under two weeks ago the Supporters’ Club was informed by a source within the club that certain members of last year’s committee had taken it upon themselves to establish Limerick FC as a limited company. Club committee member John Purcell has since confirmed this to the Supporters’ Club.
In an effort to uncover details of the Limited Company the Supporters’ Club have had to make regular contact with those poised to take over the club. The details we have discovered so far from committee members John Purcell and Michael O’Sullivan are:
ü Michael O’Sullivan, John Purcell and Ralph McMahon will own the Limited Company.
ü The Limited Company will start with €100,000 issued share capital. Of this amount, the above committee members have given themselves €30,000. The remaining €70,000 will be sold as shares to the public at €100 per share.
ü Michael O’Sullivan, Ralph McMahon and John Purcell claim that they have donated this money to the club in previous years. Following advice from an accountant the Supporters’ Club are concerned that this is open to legal challenge, for two reasons:
1. Firstly the money was a voluntary donation with no agreement of reimbursement to our knowledge. In an attempt to clarify this point the Supporters’ Club asked Michael O’Sullivan for the opportunity to view accounts for recent years. Despite assurances from John Purcell that these documents were public viewing we were refused.
2. Secondly, the money was donated to Limerick FC whose legal status at the time was that of an amateur sports’ club. This predates the Limited Company, and as a separate legal entity has no legal ties to our knowledge.
ü With 30% (over 25%) of the Issued Share Capital Michael O’Sullivan, John Purcell and Ralph McMahon have the future option of buying out any other shareholders.
ü A concern that has been expressed to us by a number of our members and our accountant is that a Limited Company is a profit-making entity and not the best option for Limerick FC to take. With effective control of the club residing in the hands of the three remaining committee members there are also concerns that not enough people will be involved in decision making.
ü As the public are aware John Purcell has taken the role of full-time Commercial Manager. He held this position in a part-time role last year, a year in which the club experienced severe financial difficulty. A number of concerns have been expressed to us in regards to this appointment.
Concerns have already been raised as to whether the three remaining members of the committee can handle the huge workload required to run an Eircom League club, especially with the ongoing club licensing requirements.
We would greatly urge anybody with an interest in the future of senior soccer in Limerick to attend the upcoming public meeting promised by the club committee. Given that it has been delayed a number of times, we are hopeful that it will be held in the very near future.
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