Council suspend staff

[Ezeikial]

Council refuses to pay wages of bust football club




FINGAL County Council is to "vigorously contest" claims it owes wages to players following the collapse of a football club.
The council has insisted it does not have "any liability" regarding the outstanding salaries of Sporting Fingal, despite having a 26pc stake in the venture.
It comes after a letter was sent to the council by 10 players last month regarding its responsibility for paying the debts.
The club was forced to cancel footballers' contracts and withdraw from the Airtricity League in February after it was no longer able to fund itself.
It had been backed financially to the tune of some €2m by developer Gerry Gannon up until the end of last season, but failed to secure a new benefactor when he was no longer in a position to provide funding.
The council said the outstanding debts of Sporting Fingal FC Ltd -- which ran the club -- were an issue for that company, which has appointed a liquidator to wind up its affairs.
"The council does not accept any liability in the matter of these or other outstanding debts of the football club and will vigorously contest any such claims," the local authority said.
comurphy@herald.ie
http://www.herald.ie/national-news/city-news/council-refuses-to-pay-wages-of-bust-football-club-2646383.html

[Spudulika]

Thanks Ezekial, the spinners are out in force for FCC. They're lying through their teeth and this is going to hammer them. GG handed over his shares to them, so they held 100% of the company shares, they had agreed to pass on these shares to new shareholders and retain 26%, but then they reneged on the deal and folded the company - they are liable and they can contest as vigorously as they wish, but they've gone from scapegoating an innocent party to now denying they were behind folding the club. Disgraceful behaviour but nothing that we shouldn't expect from the numpties who run the country.

[Macy]

I think I'd rather wait for the courts to decide liability. Personally I don't think anyone will be "hammered" - the whole point of a limited liability company is to limit liability. It's the company that owe the players, not the shareholders, whatever about the moral rights and wrongs.

Just as a matter of interest, how come (in your view) FCC are attempting to avoid liability by passing on shares, but GG apparently wasn't when he dumped them on the taxpayer?

[Spudulika]

Macy, the FCC assumed full control of the company, not just 26% as they stated, the company was left with money (operating capital) as limited as that would have been, and the FCC took on to sell on the company. GG passed on the shares and the FCC snapped them up. That's grand, it kept everybody sweet. Then they stabbed many people in the back (including their own people) by folding it without warning.

My view isn't/wasn't that they tried to pass on liability, they didn't. They had the chance to pass on the shares and even an option to step away altogether, but they didn't. It was a cop out of the biggest degree and another sorry mark on the LOI.

And I should add, the FAI did show a lot of decency in how they behaved, though I am waiting for the PFAI to ramp up pressure now.

[passerrby]

I do hope the council contest this why the hell should the council rate payers pay for the folly of a developer and others .

[Charlie Darwin]

The council had representatives on the board too. SF wasn't just a developer's folly - it was a joint folly between business and council, one that could yet prove to some very dodgy goings-on in the background. I'm not sure exactly how SF as a football was set up but if it's a limited company then the council won't have to pay the players. However, I assume the club itself had assets that have reverted to somebody's ownership (presumably the council, if they finished up 100% shareholders) and the players would have the right to petition for compensation from those.

[Spudulika]

passerby, the FCC used the project to within an inch of it's life and ARE responsible for taking a unilateral decision to do what they did. They stuck the taxpayers with a needless bill because of their stupidity and duplicity.

[passerrby]

neither of the above is reason why imo the rate payers should fork out.

[Dodge]

passerby, the FCC used the project to within an inch of it's life and ARE responsible for taking a unilateral decision to do what they did. They stuck the taxpayers with a needless bill because of their stupidity and duplicity.

26% shareholders took a unilateral decision?

[Charlie Darwin]

If Spud is correct, Gerry Gannon transferred all his shares to the Council shortly before they wound up the club.

[Spudulika]

Dodge, the FCC had full control of the company, GG's shares were all transferred, as per FCC order, to them. They had 2 options, keep 26% and sell on the rest, or sell on 100%, they had agreed for the former and then when everything was agreed and the investment going ahead, they handed their scapegoat letters of termination. The whole thing stank of political pandering and this latest statement is going to haunt them. The council were in full control of the club since before Christmas last.

[Schumi]

However, I assume the club itself had assets that have reverted to somebody's ownership (presumably the council, if they finished up 100% shareholders) and the players would have the right to petition for compensation from those.

What assets would the club have had? It had no ownership of Morton AFAIK and presumably had no money as they were missing wage payments. Are we talking about footballs and training equipment or is there something more substantial?

[Spudulika]

What assets would the club have had? It had no ownership of Morton AFAIK and presumably had no money as they were missing wage payments. Are we talking about footballs and training equipment or is there something more substantial?

Really? 1 was delayed, what others were missing?

Last I heard the contracted staff and players in sports clubs were counted as assets, sale value etc.

[El-Pietro]

Really? 1 was delayed, what others were missing?

Last I heard the contracted staff and players in sports clubs were counted as assets, sale value etc.
not when you don't pay them. not when you release them.

[Schumi]

Really? 1 was delayed, what others were missing?

Last I heard the contracted staff and players in sports clubs were counted as assets, sale value etc.
Fine, delayed wage payments then; there still must have been a lack of money. How much do you expect to get for the players?

[pineapple stu]

What players?