Drogheda

[Dodge]

http://www.independent.ie/sport/soccer/drogs-open-to-takeover-2456985.html

Surprised it hasn't got a mention.

If they're predicting a shortfall of €150k for 2011, shouldn't thye just knock €150k off the budget?

[Jofspring]

They would struggle next season but surely they will just have to go back to playing all young players that are coming through from the A team with a few older heads in the team to at least keep the club afloat, similar to Salthill, Wexford, Mervue.

[Spudulika]

Maybe Drogs fans could enlighten us, though it could be a case of not wanting to admit the need to rebuild from the ground up. It was only a couple of years ago when they went close to a giantkilling in Europe, not to mention winning trophies. The sensible thing is to cut their cloth to suit their budget, though from what I've been hearing there will be more clubs in trouble come this time next year. If all clubs played by the rules - paid only on contract and nothing under the table, then the LOI wouldn't be in freefall.

[Ezeikial]

Unfortunately there is nothing unexpected in this latest report about financial diifficulties at Drogheda. There were reports in October of €30k-€40k being needed just to make the seasons end, and I would be amazed if the extent of the difficulties are as simple as there being a projected shortfall of €150k by end of the season of 2011, as the Indo report implies (and almost certainly not as simple as cutting the 2011 playing budget by €150k).

The Drogheda folk may well be worn out with "crises meetings" and repeated calls to save the club from extinction - there could be little appetitite and even less spare cash for another, especially facing into the graveyard division

The proposed closer involvement of the Claret and Blue Club last year did not seem to materialise in the way it was being suggested, and there is a real possiblity that Drogheda United may not survive the current prediciment.

I really hope that this does not prove to be the case.

[pineapple stu]

If they're predicting a shortfall of €150k for 2011, shouldn't thye just knock €150k off the budget?
But then how would they win stuff?

How've they gotten into such a bad position so shortly after having most of their debt written off?

[Lim till i die]

Pretty quiet in here!!

I can only assume there's absolutely no one with money backing them and every club needs one. Even a completely amateur setup is going to cost you a couple of hundred grand.

Was looking forward to the trips up there an all :(

[passerrby]

http://www.independent.ie/sport/soccer/drogs-open-to-takeover-2456985.html

Surprised it hasn't got a mention.

If they're predicting a shortfall of €150k for 2011, shouldn't thye just knock €150k off the budget?

what if their budget is €150K

[Dodge]

Well then, uh-oh!

[DRDoc]

for a 40 week season, a budget of 3750 a week would amount to . . . .150k

[Lim till i die]

Assuming that includes manager and coaches you can still add in:

Insurance
Travel
Medical
Officials

Off the top of my head.

Now say Drogheda get crowds of 400 at a (fairly generous) average of 8 quid a head for 19 games. That's €60800.

Which leaves a big massive hole for someone to fill.

[pateen]

Assuming that includes manager and coaches you can still add in:

Insurance
Travel
Medical
Officials

Off the top of my head.

Now say Drogheda get crowds of 400 at a (fairly generous) average of 8 quid a head for 19 games. That's €60800.

Which leaves a big massive hole for someone to fill.

Chryst!
When you put it that way that makes things quite scary for any club.
Hope to see FORAS figures if they release them to members

[Lim till i die]

Just thought of training facilities aswell. :D

EDIT: And The Revenue. And Auditors.

[SkStu]

its not just gates though is it? Every club has more than one stream of income, be it - sponsorship, bar revenue, merchandise, club lottos and fundraising etc etc...

Dont be scared Pateen. :)

[Dodge]

its not just gates though is it? Every club has more than one stream of income, be it - sponsorship, bar revenue, merchandise, club lottos and fundraising etc etc...

Dont be scared Pateen. :)

Not forgetting loans from fans, double mortgages, begging buckets etc etc

(yeah it was easy, so what? ;) )

[Mr A]

Yeah, but sponsorship in particular has collapsed recently. Businesses are getting it too tight to spend on that sort of thing any more. It's going to hurt the clubs very badly this season.

Even the normally reliable fundraisers seem to take a lot more effort for a lot less return these days.

[SkStu]

Not forgetting loans from fans, double mortgages, begging buckets etc etc

(yeah it was easy, so what? ;) )

easy - and expected. :)

[SkStu]

Yeah, but sponsorship in particular has collapsed recently..

but in terms of sponsorship, things are still hunky dory up in Drogeda right?

[chigg89]

Drogheda United.........An example of how not to run a football club!!

[TenaciousDee]

Chryst!
When you put it that way that makes things quite scary for any club.
Hope to see FORAS figures if they release them to members
If you are a member of Foras they would have to release their figures to all members at the AGM

[sheao]

Drogheda United.........An example of how not to run a football club!!

It will be a whole lot clearer as to where they will go from here after the fans meeting tonight .

[oriel]

Any drogs fan hear the word that FAI are now considering the EUR 3.5m deal from the Lourdes Hospital across the road, as the FAI need this money to service the debt on the Aviva, the FAI in turn will have to re-locate Drogs somewhere else if/when they survive ?

Would sound a little extreme, its just a rumour.

[L.T.F.C.]

Any drogs fan hear the word that FAI are now considering the EUR 3.5m deal from the Lourdes Hospital across the road, as the FAI need this money to service the debt on the Aviva, the FAI in turn will have to re-locate Drogs somewhere else if/when they survive ?

Would sound a little extreme, its just a rumour.
I call bullshít.

[Mr A]

Drogheda Independent (http://www.drogheda-independent.ie/premium/sport/soccer/drogs-euro-150000-christmas-wish-2461542.html):


DROGHEDA United launched a fresh appeal for ‘outside investment’ ahead of Tuesday night’s big supporters meeting in the Droichead Arts Centre, citing a shortfall of € 150,000 in the proposed budget for 2011.
The club says it hopes to operate with a budget of up to twice that amount, which would allow Bobby Browne put together a squad capable of making a credible push for an immediate return to the Premier Division.
But that € 300,000 figure can only be achieved if new investors come forward, and in advance of the meeting club chairman Terry Collins admitted that a smaller sum may have to be looked at.
Browne confirmed he would be attending the meeting and was hoping to operate with a budget of € 250,000 to € 300,000 for 2011, but he was aware that the club couldn’t run with such a figure as things stand.
‘I was speaking to Terry Collins during the week and he outlined a lot of things. It’s a bit bleak, but they’re trying to rally some support and this is a crucial meeting,’ he said.
Browne said he wanted to begin signing players before Christmas, but his hands were tied because of the uncertainty over Drogheda’s financial position.
‘Ninety per cent of players are out of contract and there’s a lot of decent players around the top amateur leagues who would play for a minimal amount. It’s similar to what I did with Monaghan,’ said the manager.
‘I will have to sit down with the club and see where they want to go and what they want to achieve in the future.
‘I have a list of players I want to bring down but can’t do anything until I have some insight into what I’m going to be getting.’
The anticipated deficit of € 150,000 – described in a club statement as the ‘most optimistic’ figure once projected income from sponsorship, gate receipts and other fund-raising was taken into account – was outlined to shareholders by the financial advisors sitting on the Claret and Blue steering group. In response, the shareholders have repeated their offer to transfer their shares to anyone interested in taking over the football club in order to secure its future.
The club statement added that neither the shareholders, nor the board members of Hinge Trading Ltd – which trades as Drogheda United – could act as guarantors any longer, nor do the shareholders believe the 250 Claret and Blue members should commit to doing so.
Outlining the reasons for last night’s meeting, which was postponed from the previous week due to the severe weather, Collins said: ‘ We want to have this meeting to gauge the support and see, is there a will out there to keep this club going.
‘The meeting is not for people to put money on the table, but just to come forward. If we are to continue running the club as it stands, we need to spread the load and get more people involved.
‘But we are looking for investment as well. People who are effectively running the club are of modest means and it would be great if somebody came forward and ran the club much the same as Dundalk is running its business.
‘One of the criteria for licensing is that somebody has to sign a letter of comfort and none of us is in a position to do that, either individually or collectively.’
The chairman said a three to five-year strategic plan for Drogheda United was being finalised, with a move away from United Park still top of the agenda.

[micls]

Wtf do they need a 300k playing budget in the first division for, 7500 a week! Or am I reading it wrong?

Half that, and there's your shortfall sorted.

[pineapple stu]

I assumed that was total budget to run the club, kind of for the reason you stated.

[micls]

I assumed that was total budget to run the club, kind of for the reason you stated.

It was this quote from the manager that made me think it was playing budget:
"Browne confirmed he would be attending the meeting and was hoping to operate with a budget of € 250,000 to € 300,000 for 2011"

But according to the Drogs forum it is closer to overall budget, just badly phrased.

[Lim till i die]

The anticipated deficit of € 150,000 – described in a club statement as the ‘most optimistic’ figure once projected income from sponsorship, gate receipts and other fund-raising was taken into account – was outlined to shareholders by the financial advisors sitting on the Claret and Blue steering group.

:bulgy:

NO ONE EVER LEARNS ANYTHING EVER IN THIS LEAGUE. EVER.

[Nesta99]

I have to smirk at Terry Collin's comment on looking for somone to run the club similar to Dundalk's situation! A few years back he said to me(in quite a dismissive and scornful tone) that Drogheda wouldnt need to install an artificial pitch in any future development as the sorts of income generated by such an amenity would not be needed by a club the size of Drogheda Utd!!! He was being deadly serious too.
Posters above picked out the most damning aspect of Drogheda's thinking....clubs should be budgeting for a worse case scenario and anything else is a bonus. Im still not totally confident about my own clubs finances and yet we are opeating under the tightest financial restraints probably ever in our history. A decade of footballing agony ultimately did us no harm and we are trying to grow slowly to a position of challanging (indeed our progress has pushed on due to the recklessness and demise of other clubs). I suppose what i am saying is that for Drogheda to budget for quick promotion could finish them off. With pending restructuring of the league too???

[ndrog]

Any drogs fan hear the word that FAI are now considering the EUR 3.5m deal from the Lourdes Hospital across the road, as the FAI need this money to service the debt on the Aviva, the FAI in turn will have to re-locate Drogs somewhere else if/when they survive ?

Would sound a little extreme, its just a rumour.

No truth in that whatsoever . And it wouldnt be the FAI relocating Dufc anywhere as we own the ground with them and it cant be sold from under us without our consent .

[ClaretnBlue]

I dont post much on the forum because most of the discussion is based on rumor and counter rumour. What i will say is that the Drogheda situation is grim to say the least. If Browne is hoping to have a budget of 250K , he is not going to get it because it simply will not be there. Most clubs i am sure are going to find themselves in trouble if some common sense is not used in the present economic circumstances with regard to budgets , forecast income and expediture .
The fact that the FAI pass these budgets is neither here nor there but personally i wouldn't get them to pass my kids teams expenses.
One fact that gets brushed away is costs , and simply the costs involved in running a LOI club , excluding a modest playing , are ridiculous. I shouldn't have to list them but its covers everything from tea bags to hospital bills.
The liciencing regulations , although improving certain standards slowly , are unrealistic and unreasonable for a league so small we are trumped in with Moldova and Albania in other european standards.
Until there is both commercial and people support for this league there is no point in denying the inevitable that its future is never going to improve.
THe FAI exist not for the benefit of the clubs but the league and the clubs exist on life support for the benefit of the FAI, i dare them to deny it.
Every rumour and counter rumour that appears on here ignores the elephant in the room - that LOI football cannot continue in its present format , run by the same people with the same agenda under the same set of rules and regulations.
Yes , i hear someone say so what would you do. Well God knows i've tried with one club but there just seems to be an inability to change .

[White Horse]

LOI football cannot continue in its present format.

It cannot survive in the format as followed by Drogheda, Bohemians, Cork, Galway etc.

However, clubs operating on the basis of funds generated from their own community and amenities, such as Rovers, Sligo and ourselves (following our belated conversion to sensible economics) is sustainable.

[Dodge]

Sligo's inclusion in that is laughable

[SkStu]

It cannot survive in the format as followed by Drogheda, Bohemians, Cork, Galway etc.

However, clubs operating on the basis of funds generated from their own community and amenities, such as Rovers, Sligo and ourselves (following our belated conversion to sensible economics) is sustainable.

fair enough WH - however, it seems that most clubs need to be stung by their own actions at least once before the necessary changes are made.

[dong]

Sligo's inclusion in that is laughable

In what sense? We have been operating on a sound enough financial basis for the last couple of seasons as far as I know.
I would have included Pats in White Horse's list.

[BonnieShels]

And the rest need to be stung how many times?

[iceman]

Wednesday, 15 December 2010 19:08
Drogheda United have revealed that they are suffering severe financial problems after they confirmed that they are actively seeking a new owner for the club.

In a statement, the club confirmed that they must raise €185,000 before 28 January if they are to partake in next season's Airtricity First Division.

Drogheda, who were relegated from the Premier Division after finishing bottom this season, have been run by a group of volunteers since the club underwent examinership two years ago.

However, the steering group currently in charge of the club claim that they need to raise a five-figure sum before January's final FAI licensing deadline.

In a statement, the club said: 'Following a public meeting in Drogheda last night, the message is now loud and clear - Drogheda United FC requires a new owner/benefactor.

'This may be an individual or alternatively a wider group of people, be it a consortium of business people or supporters or a combination of both. The message imparted by members of the Claret & Blue Club steering group now running the club is that a figure of approximately €185,000 is needed before the 28 January final FAI licensing deadline.

'This figure would give the club the security required to embark on another season of football and enable the club to put structures in place that would ultimately lead to it becoming self-sustaining in the future.

'Due to lack of sufficient funds since Drogheda United exited examinership two years ago, the club has by necessity been run by a small group of volunteers who have been so embroiled in the daily task of keeping the club functioning that they have not had the time or manpower to put in place medium to long-term plans.'

[BonnieShels]

However, the steering group currently in charge of the club claim that they need to raise a five-figure sum before January's final FAI licensing deadline.



So when are the provisional deadlines that the FAI have set?

Heard this on Off The Ball earlier. Doesn't sound to healthy at all. I have my fingers crossed for the club.
I always had this feeling though that ye may have been better off getting relegated a la us there a couple of seasons ago when the fan started to be covered in excrement as I feel that a low base would have made everything hit home a bit quicker. As it stands it just felt like ye were suffocating to death. A sad demise and I for one hope ye get through it.

[oriel]

It cannot survive in the format as followed by Drogheda, Bohemians, Cork, Galway etc.

However, clubs operating on the basis of funds generated from their own community and amenities, such as Rovers, Sligo and ourselves (following our belated conversion to sensible economics) is sustainable.

Good point, its not all doom and gloom out there, UCD are another club who can survive and always have their house in order. To ClaretnBlue above`s post, I do hope drogs survive but your comment is typical of a club who have had a bad season, its like saying 'the standard is the worst ever' (as in the eyes of a fan who`s club did bad that year)

We had 7 years (8 in total) in the FD, it almost saw the club fold, but we emerged stronger, better run, trying our best to break even, an improved ground, of course the new owner helped, but he has a business model in operation from the tea and coffee sold at half time, to pitch rentals, to generating income from 2 bars, (soon 3) to playing in europe, that is whats needed, a clear business model. Now this comes at a cost, the playing budget is modest, so fans know to expect mid table finishes, but thats fine by me as we are seeing Premier Div football.

There is enough goodwill and support for properly run football clubs to survive in this league, in these cases the public will come out and support them, for others it will be a case of starting at the very bottom if need be, but there should always be hope.

[Dodge]

The point should continually made that the league has survived since the inception of the state.

Clubs may come and go. Attendances may rise and fall.

But there'll always be a League of Ireland

[White Horse]

2010 expenditure was put at €529,000, when all income considered there was a shortfall €88,000. The projected budget for 2011 takes a realistic approach in factoring in significantly lesser figures including gate income, due to the anticipated smaller crowds and the relative lower ticket prices. Fixed costs such as travel, rent, medical, light and heat have driven the figures upwards. Overheads for 2011 are estimated at €402,000, however considering all incomings there is a perspective deficit of €188,000.
http://www.extratime.ie/newsdesk/articles/4710/

Perhaps I'm missing something. Drogheda are carrying forward a loss from 2010 of €88,000 and that deficit will increase by €100,000 if they proceed with budgeted expenditure of €402,000.

So why not reduce budgeted expenditure to €214,000 and clear all the debt.

Drogheda need to realise that they are a small club with a tiny fan base. If they cut their cloth, they can plan to build up their fan base (and their revenue) over a number of years.

[Red4Eva]

Sligo's inclusion in that is laughable

Why is that Dodge?

[Lim till i die]

Perhaps I'm missing something. Drogheda are carrying forward a loss from 2010 of €88,000 and that deficit will increase by €100,000 if they proceed with budgeted expenditure of €402,000.

So why not reduce budgeted expenditure to €214,000 and clear all the debt.


402k - 214k = 188k = Not enough to run a LoI club


Why is that Dodge?

I'd imagine he's refering to the bi annual bouts of poor mouthery tbf. :ball:

[ndrog]

2010 expenditure was put at €529,000, when all income considered there was a shortfall €88,000. The projected budget for 2011 takes a realistic approach in factoring in significantly lesser figures including gate income, due to the anticipated smaller crowds and the relative lower ticket prices. Fixed costs such as travel, rent, medical, light and heat have driven the figures upwards. Overheads for 2011 are estimated at €402,000, however considering all incomings there is a perspective deficit of €188,000.
http://www.extratime.ie/newsdesk/articles/4710/

Perhaps I'm missing something. Drogheda are carrying forward a loss from 2010 of €88,000 and that deficit will increase by €100,000 if they proceed with budgeted expenditure of €402,000.

So why not reduce budgeted expenditure to €214,000 and clear all the debt.

Drogheda need to realise that they are a small club with a tiny fan base. If they cut their cloth, they can plan to build up their fan base (and their revenue) over a number of years.


And you need to realize that its swings and roundabouts in this league , a few seasons ago when things where going well on the pitch ( granted it was due to large investment ) we had great crowds by LOI standards . Before that while we where going between divisions we had decent crowds .The last time we won promotion away to sligo we had more there than the home team . Last seasons crowds where by far the worst for many years , due to among other things the recession etc . I remember being in Oriel a few years ago and there was about 200 people there . Your " small " club is a nonsense tbh , all LOI clubs are tiny in the scheme of things and No club gets a crowd it could brag about . I wonder how Dundalk are going to cope without Dermot Ahern and those big sports grants you where getting ?

[Longfordian]

Reduce it to €214k he said in fairness. Our budget wouldn't be too far off that somewhere around €200-250k I think.

[bullit]

. . I wonder how Dundalk are going to cope without Dermot Ahern and those big sports grants you where getting ?

Gerry Adams has a few quid salted away for a rainy day or two ;-D

[Lim till i die]

Reduce it to €214k he said in fairness. Our budget wouldn't be too far off that somewhere around €200-250k I think.

Vodka + (reading + maths) = fail :)

Really that low?! That's bare bones stuff.

[Longfordian]

So I believe anyway, there's no frills but they seem to be keeping things relatively in order. Don't owe players or Revenue anything from what I hear so that's a start!

[Nesta99]

. Your " small " club is a nonsense tbh , all LOI clubs are tiny in the scheme of things and No club gets a crowd it could brag about . I wonder how Dundalk are going to cope without Dermot Ahern and those big sports grants you where getting ?

Ouch!! Bitter doesn't suit you..

[L.T.F.C.]

Vodka + (reading + maths) = fail :)


It is all fail.

[Sam_Heggy]

Vodka + (reading + maths) = fail :)

Really that low?! That's bare bones stuff.

To be fair Harps club budget isn't much more than €180k for the year.
Most of our players are on €50 a week with the luxury players getting around €100-€150. We had at least 4 players getting nothing last season.
Admin staff is cut to just 1 and we've even gone so far as using email notifications to shareholders to reduce the costs of postage.

It's about time clubs got a serious bout of reality and cut their cloths to suit. I know not all clubs will do this but the majority are looking towards local youths and building local sides for the future.

Always enjoy my trips to United Park and fingers crossed we will be visiting there again in the new year.