Rovers Financial Update

[Rovers Maniac]

http://www.sligorovers.com/content/view/628/1/

[John83]

That exclamation mark sold me a dummy. That's not great news for you guys, for all your efforts.

[pineapple stu]

the grim reality is that the club must raise a further €130,00 by the end of the season in order to ensure that the club is creditor free and tax compliant.
So you had to raise E130k, raised E96k and now you still have to raise E130k. :confused:

I'm assuming this is the difference between going out of business and getting a licence maybe, but still a kick in the teeth for those who've raised so much money to be told the goalposts have moved.

[Rovers Maniac]

That exclamation mark sold me a dummy. That's not great news for you guys, for all your efforts.

Ya sorry, not good news at all, €130k is a lot in the next few weeks and well be hard to come by.

[Rovers Maniac]

So you had to raise E130k, raised E96k and now you still have to raise E130k. :confused:

I'm assuming this is the difference between going out of business and getting a licence maybe, but still a kick in the teeth for those who've raised so much money to be told the goalposts have moved.

yes i agree it does feel like the goalposts have moved. Pineapple what do we need to get a license for next year? Is it just taxes paid up to date ?

[sligoman]

Hard to believe anything the management committee say these days.

[John83]

yes i agree it does feel like the goalposts have moved. Pineapple what do we need to get a license for next year? Is it just taxes paid up to date ?
I thinka repayment schedule in place is enough.

[pineapple stu]

yes i agree it does feel like the goalposts have moved. Pineapple what do we need to get a license for next year? Is it just taxes paid up to date ?
Just don't completely implode.

Some clubs have repayment schemes in place, so presumably they're OK. You'll always have some creditors, so that'd be OK too. But it's hard to tell with the FAI.

[red bellied]

They are only trying it on after all the Goodwill that has been shown to the club. Gates from remaining matches, lottos sales and 400 hundred club membership and what other incomes there are will probably raise half of that.

[John83]

They are only trying it on after all the Goodwill that has been shown to the club. Gates from remaining matches, lottos sales and 400 hundred club membership and what other incomes there are will probably raise half of that.
Well then, hope like hell that they've exaggerated how much the club needs to survive. And that they weren't already counting that stuff.

[Rovers Maniac]

Well then, hope like hell that they've exaggerated how much the club needs to survive. And that they weren't already counting that stuff.

THis is something like i heard what happened :(

[higgins]

I still don't understand what's going on that they have to pick 130k again ?
Just a number that the management committe like or is there any real meaning behind this!

Couldn't every club come out saying we need X amount before the end of the season to keep going ? What's the 130K for exactly ? Have you already restructured the old tax debt with revenue and now need to make those payments?

130K would be 10k per week for 13 weeks which would by a quarter of the year.
Are these deals worked out in terms of quarters? Seems to have come after June last time and now after September? did the club meet the 130K for the tax man by 31st August and now must do the same by December 31st.

Very unclear if the money required is on top of the expected gates and prize money etc or if it's something new completely.

[pineapple stu]

130K would be 13 weeks which would by a quarter of the year. Are these deals worked out in terms of quarters?
13 weeks of what? They've noted their running costs are E17k, which would be E221k over a quarter.

[higgins]

I edited the post again Stu.
I'm thinking they have already restructured the debt ?

Some deal where they owe 130K per quarter!!
Seems to be some significance behind 130K ?

[Red&White Rover]

No idea where we're going to get 130k before the end of the season, unless we win the Lotto.

[lowroadrover]

Ok ,this is getting a bit crazy.First they say we need to raise 130k to survive and then when we put a good hole in that suddenly another 130k is required .
what are they playing at???

[redobit]

Is this for real, what the f,,k is goin on. First we are told 130,000 is required. Then you hear that the figure was exaggerated, now we hear they actually need another 130,000, and all before the rest of the season.
And all we get is a few lines on the rovers website. FFS.

[avvenalaf]

That's it. As far as I'm concerned they can take a run and jump for themselves. I'm not contributing any more than I normally do for the rest of the season ie. Lotto, 400, 15 at the gate and fiver for half time raffle.
They've lost all cred with me.

[Inside Man]

What is with the figure 130k?
Just seems as though they were to lazy to mention another figure. Why have they just choosen the same figure to be raised. It will just cause confusion and by the looks of this thread it already has.
Dermot I know you read and post on this forum but whats the thinking behind the 130k? I presume that 130k doesn't need to be raised all through fundraising. That is the figure the club needs in turnover over the next 7-8 weeks I presume. Which will include Gate reciepts etc. So really what we are looking at is more of a figure in the region of 40,000 - 50,000 to be raised through fundraisers.
Could someone clarify this.

[SkStu]

sorry to hear this Rovers fans, hope you can pull this out of the bag.

[Rovers Maniac]

That's it. As far as I'm concerned they can take a run and jump for themselves. I'm not contributing any more than I normally do for the rest of the season ie. Lotto, 400, 15 at the gate and fiver for half time raffle.
They've lost all cred with me.

Totally agree and big time shot themselves in the foot even though i heard there is another part of a tax bill to come in. Sure lets go to the well again more syndicates please !

[celticV3]

Another €130,000? i hope someone is joking? With the publicity that has gone around claiming that we were sure to go out of business if we didn't receive the money, i was praying this wasn't scaremongering. there are a lot of people who tried their hardest to organsie and raise money and people aren't going to be as generous if they think that this was indeed scaremongering by and inept MC.

[avvenalaf]

sorry to hear this Rovers fans, hope you can pull this out of the bag.

The problem is that the bag is empty. We'll finish up giving Seamie Coleman away for nothing.

[Rovers Maniac]

The problem is that the bag is empty. We'll finish up giving Seamie Coleman away for nothing.

We won't but i am raging over this, really disgusted, it was not even bloody spell checked :mad:

[Mr A]

So Rovers had to raise €130k, raised pretty much €100k and now need €130k again.

Where did the extra €100k come from? Did the board of Sligo simply not know about it when they made the first appeal (woeful planning and incompetence) or were they just not telling the truth? If they did know why didn't they make more squad cuts?

It's very hard to know what to make of all this- it really is getting into Twilight Zone territory at this stage, and donor fatigue is going to hit big-time. I think the people who worked so hard in responding to the first appeal deserve a proper explanation of what's going on.

[Nah Nah Nah Nah]

We won't but i am raging over this, really disgusted, it was not even bloody spell checked :mad:

Why not? Do you honestly think any team is going to come in and give us what close to what he's worth when they know we're completely broke?

[deecay]

That's it. As far as I'm concerned they can take a run and jump for themselves. I'm not contributing any more than I normally do for the rest of the season ie. Lotto, 400, 15 at the gate and fiver for half time raffle.
They've lost all cred with me.
Totally agree

[Rovers Maniac]

Why not? Do you honestly think any team is going to come in and give us what close to what he's worth when they know we're completely broke?

The poster said we would give him away for free i said we won't :confused:
And we won't either, i think you jumped the gun with your post.

[brianw82]

Have to echo what everyone else has said so far. To come out and say that they need another 130K is just baffling.

Personally speaking, I can't afford to keep digging in my pockets. I'm currently living off an overdraft, have my CC maxed out, and have just put a deposit on a flat. I haven't 2 pennies to rub together, yet I'm supposed to contribute more?

[Jeebus]

Have to echo what everyone else has said so far. To come out and say that they need another 130K is just baffling.

Personally speaking, I can't afford to keep digging in my pockets. I'm currently living off an overdraft, have my CC maxed out, and have just put a deposit on a flat. I haven't 2 pennies to rub together, yet I'm supposed to contribute more?

Brian,

I dont think people realise that the extra 130K is normal weekly expenses. gate receipts and lotto will cover most of it. (thats what we were told anyway at a DSC meeting in July anyway)

All of us up here in Dublin pushed that extra mile recently to get cash for our race night. Mates of mine were ringing me offering €20 to help save the Rovers as they knew this is my life (jesus even the girlfriend gave me €50 to get me out of the house most weekends:D) Some of those lads were Shams fans!!!

I dont know why the club didnt look for a big time backer when all this started. They should have went an looked for €500k, got Cookie the guts of the budget for next year (and he will stay if he can get the budget.

We can never go back and ask these people again in Dublin to help save our club, we hit the same people in Dublin every year. I really hope that the club realises that we can never cry " we are dying" again as i know i'll be laughed at by most people if this happens again.

btw brianw52 dont be afraid to say hello to us DSC heads, we are not that scary!!! You were pointed out to me at Inchicore so we know who you are:D :D

[srfc1928]

Have to echo what everyone else has said so far. To come out and say that they need another 130K is just baffling.

Personally speaking, I can't afford to keep digging in my pockets. I'm currently living off an overdraft, have my CC maxed out, and have just put a deposit on a flat. I haven't 2 pennies to rub together, yet I'm supposed to contribute more?

Brian, i think you summed up a lot of peoples fiancial situation at the moment give or take different situations i.e mortgages etc. I couldnt keep going with donations, syndicates and the rest.



I dont think people realise that the extra 130K is normal weekly expenses. gate receipts and lotto will cover most of it. (thats what we were told anyway at a DSC meeting in July anyway)


Jeebus, thanks for some clarity on this



I dont know why the club didnt look for a big time backer when all this started. They should have went an looked for €500k, got Cookie the guts of the budget for next year (and he will stay if he can get the budget.


Easier said than done, id say. But this is the only way forward that I can see. unfortunatly the club doesnt seem to be set up for this to happen, yeah theyll take the money but what say does the investor get

[brianw82]

btw brianw52 dont be afraid to say hello to us DSC heads, we are not that scary!!! You were pointed out to me at Inchicore so we know who you are:D :D

Really? That's weird, I don't think I know anyone from this forum personally, and didn't know that anyone here knew me. Well, I'll probably be at UCD on Friday so say hello if you do know who I am. :)

[sligo1]

I think you'd need a Masters in Maths to understand these figures.I'm well able to add 1 and 1 together but when the calculator keeps saying 130,000 and I know the answer is 2,then I get confused.

Lets stick to the facts-

its 10 weeks from the date of the MC's statement to the end of the season.
we have 4 home games
according to the MC,the weekly expenditure is 17,000 euro.
according to the MC,the players wages is (9,000 + 2,500 euro)=11,500 euro

Let's throw in some assumptions:

4 home games at an average of between 10,000 and 15,000 euro per game
The payers wages of 11,500 includes PAYE/PRSI
400 Club will bring in 1,000 euro per week after expenses
Lotto will bring in 1,000 euro per week after expenses

Use the TOP SECRET Formula known only to the Committee of Sligo Rovers

x+y+(a/b-c)+1 cup of soup=130,000

So when you put all the figures into this magical equation,you get income of between 60,000 and 80,000 and expenditure of 170,000 leaving a deficit of between 90,000 and 110,000 euro rounded up to 130,000 as per the TOP SECRET Formula.

Some Questions:

-what is the 5,500 euro per week on top of the players wages for?
-Jeebus,who at the DSC meeting in July told you that the extra 130k is normal weekly expenses and would be covered by gate receipts,lotto and 400 club even though the MC didn't issue their statement until the 8th September(maybe you have the month wrong)?

In my opinion,the Club need more money and any shortfall will not be made up from regular income.

I will be deleting the TOP SECRET Formula within the next 24 hours before Finance Committees or Treasurers from other Clubs get hold of it.

[Mr A]

I think adding just €2500 on to a net wage bill of 9k for PRSI and PAYE is probably much too low. I'd be surprised if it wasn't at least €4.5k once players PAYE, employers PAYE, and PRSI for both are taken in.

Plus aren't Rovers still making debt repayments on last year and also failed to hit the previous target?

[sligoman]

Michael Toolan was on Ocean FM and explained where this 130k comes from. Rovers currently owe €22,000 to trade creditors, the weekly wage bill is €17,000 with eleven weeks of the season left so that's €187,000 and there are non-wage costs of €22,000 (coach travel, laundry, day to day bills etc.) so all added up that's €229,000. Projected income between now and the end of the season is €100,000 which leaves €130,000 needed approx.

[pineapple stu]

So basically your wage bill is twice what you can afford even after letting a few players go? That's insane.

[John83]

So basically your wage bill is twice what you can afford even after letting a few players go? That's insane.
Depends on whether their income and other costs for the remainder of the season are representative of the whole season. If a lot of their fundraising is early in the season, the numbers might add up better. Still looks pretty bad though.

[red bellied]

The 130,000 is needed to make sure the club are debt free going into next season, according to Toolan.

[Mr A]

So the debts from the start of this season have been cleared? That's excellent work if true and would mean that Rovers are in better shape now than at the start of the year!

[red bellied]

Interview on the back page of the Weekender with Toolan claiming that the club will be debt free if the extra 130,000 is raised. I presume its the total debt that will be cleared.

[red bellied]

http://www.sligoweekender.ie/news/story/?trs=mhgbeysnoj&cat=sport

SLIGO Rovers Football Club must raise a further €130,000, by the end of the season to be totally debt free, said chairman Michael Toolan.

This is on top of the original €130,000 the club said in July they needed to continue to exist and brings the total fund-raising target to €260,000.

It was originally calculated that €130,000 was needed to pay off an old tax bill and to cover on-going expenses including the €17,000 weekly wage bill.

The club have raised €97,000 so far which has reduced the amount owed to creditors to €20,000. It is hoped to have that debt completely cleared by the end of the season.

However, a further €130,000 is needed to cover expenses and ensure that Sligo Rovers go into next term with a clean slate.

[brianw82]

Has anyone asked the question WHY the club needs to be debt free?

Any properly-managed business can (and should) cope with certain levels of debt, through re-financing loans, etc.

Hmmm, I guess I answered my own question with the 'properly-managed' part....

[sligoman]

Has anyone asked the question WHY the club needs to be debt free?To get a Premier Division licence next season you need to be debt free or at least have some sort of payment plan in place iirc.

[Longfordian]

As far as I know you dont have to be debt free but you can't owe any money to players or Revenue or at least you must have an agreed payment plan in place. I'd say pretty much every club has some debt.