View Full Version : Sunday Biz Post
Paddyfield
18/02/2007, 2:15 PM
There is a fairly hard hitting article about the League of Ireland in today's (18/02/07) Sunday Business Post. They usually put their articles on the web after a few days after publication so I will put up a link when available.
Basically, it sings the praises of Wexford Youths FC because they not going to pay their players and points out the fatal mistakes of Dublin City FC and Shelbourne FC. Nothing we never heard before but the article failed to point out the good work carried out by certain Clubs in recent years like Drogs, Athlone and Sligo, to name just three.
Methinks the hack did his reserarch by reading foot.ie :rolleyes:
.
LeixlipRed
18/02/2007, 2:46 PM
Wexford aren't paying their players? Must have missed that one
Bluetonic
18/02/2007, 2:48 PM
Paper is online on the same day.
http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=NEWS+FEATURES-qqqm=nav-qqqid=21135-qqqx=1.asp
Eircom League posts poor results
18 February 2007
It has tackled one crisis after another with little public support and even less cash, writes Ian Kehoe.
Two years ago, the Football Association of Ireland (FAI) hired Scottish sports consultants Genesis to take a hard look at the Eircom League.
Genesis had previously recommended a root-and-branch review of the FAI itself, and the association was hoping it could work some more magic on Ireland’s ailing domestic soccer league.
For the 22 clubs in the league, the Genesis report made for some uncomfortable reading. It concluded that the league was a financial train wreck. If major changes did not happen, Genesis predicted that the league would go out of business.
‘‘Over the last 20 years,” the report stated, ‘‘the Eircom League and its member clubs have struggled to survive.
‘‘By any rational analysis of financial performance, attendances and sponsorship, it is clear that the Eircom League is near to being economically bankrupt and is unsustainable in its current format and incapable of sustaining herself in the future’’. Genesis said the league was trapped in a ‘‘downward spiral’’. It had a poor product, unattractive facilities, lack of support, minimal sponsorship and low levels of income. Genesis made 11 recommendations, including capping wages at 65 per cent of club turnover and creating an elite league of ten teams. Most significantly, it proposed merging the league with the FAI. Up until then, the league was run by the 22 clubs themselves and was independent of Irish football’s governing body.
This season, for the first time, the league is under the remit of the FAI. The 65 per cent wage cap has been adopted by many clubs and will be formally enforced from the beginning of next season.
However, questions remain about the long-term viability of a semi-professional league in Ireland. Mick Wallace, the multi-millionaire businessman who has just been awarded a licence to operate a new Eircom League side, Wexford Youths, has already stated that he will not pay his players a salary. Instead, he plans to recruit players from the Wexford area and create a community-based club. The players will get expenses, but little else. This is in stark contrast to the top clubs in the Eircom League, which have a wages bill of more than €25,000 a week.
The figures for such salaries simply do not add up.With English clubs poaching the best talent from Ireland, the top Irish teams have struggled to attract any sort of loyal following.
The average attendance at a Premier League game is just 1,500,while as few as 500 pay to see a First Division match.
‘‘One of our top priorities is to increase the number of bums on seats,” said Fran Gavin, the FAI director of the Eircom League.
‘‘We have started to market and promote the games properly in an effort to draw crowds. We are spending upwards of €500,000 on marketing this year - much more than ever before.
‘‘We have 16 club promotion officers out there trying to raise the public profile of the clubs and help them grow their fan base and generate better attendances.” The FAI has swelled the prize pool. The winner of the league will receive €225,000 in prize money, while the runner up will receive €100,000. A few years ago, the champions got a cheque for just €18,000.
‘‘We are investing in the product,” said Gavin. ‘‘We are showing our commitment to developing the league. The increase in prize money is a testament to that. Likewise, we are trying to get the clubs to develop their business model so that they are sustainable in the long run.”
As things stand, the league is far from sustainable. According to Genesis, the 22 clubs have a combined annual turnover of just €14 million, while the cost of running them is more than €17 million, meaning that most clubs are operating with significant losses.
In recent weeks, Shelbourne, the current Eircom League champions and the biggest outfit in the country, has been struggling just to stay afloat. Just days after winning the league, the majority of its staff and players left the club claiming that they had not been paid in months.
The club has since been summoned to a high-ranking FAI committee to answer a series of questions on its financial position. Most crucially, the club must respond to contentions that it lied about its financial status in order to get an Eircom League licence.
Shelbourne has been in trouble for some time. In the past year alone, the Revenue Commissioners have brought three petitions to wind up companies connected to the club after they fell behind in paying their taxes.
In recent weeks, it seemed possible that the club would go under. However, it has since emerged that multi-millionaire accountant Ossie Kilkenny has agreed to commit money to keep Shelbourne afloat for one more season. In return, Kilkenny will retain an option to buy the club’s ground in north Dublin, Tolka Park.
Shelbourne is not the only club in trouble. Cork City has been served with a High Court petition from the taxman, while Dublin City Football Club was wound up last year with debts of €1.5 million.
The club was called Dublin City to tap into a Dublin fan base but struggled to attract people to games and was unable to generate sufficient revenues. In the end, the club was losing between €15,000 and €20,000 a week. The club had competed in the Eircom League for five years, but had an average attendance of just 200.
The Revenue Commissioners have been targeting the league, identifying it as an ‘‘area of specific risk’’ and has notified 21 of the 22 clubs (Derry City is not within its jurisdiction) that it intends to carry out intensive audits on the league. The Revenue is concerned about financial transparency in a number of clubs, particularly concerning tax liabilities on players’ wages.
Players have regularly complained that they have not been receiving payslips, or that the amount on their slips does not match their actual income. ‘‘We have a lot of historic things to overcome,” said Gavin.
‘‘In many ways, we are dealing with the sins of our fathers. What happened, happened. We have to move on and make sure it does not happen again. We have worked hard and we have installed better structures and safeguards.”
The FAI is recruiting a compliance auditor, who will monitor the accounts of the league clubs on a monthly basis. The aim, according to Gavin, is to stop clubs running up debts and to force them to manage their cash prudently.
As a consequence of the improved structures, Limerick FC recently had its licence revoked by the FAI. Limerick subsequently lost a High Court challenge to the FAI’s decision. Indeed, while the case was going on, Limerick was served with a winding-up petition after it fell behind on its tax payments. The winding up petition will be heard in the High Court, on Monday week.
Not all clubs are on their last legs, however. Teams such as Longford Town and Sligo have managed to be competitive while also remaining financially viable. About four clubs turned a profit last year.
A prime example is Shamrock Rovers. In early 2005, the company was forced to go into examinership after running up a Revenue bill of more than €1.5 million. A consortium of supporters, Club 400, cobbled together a rescue package to save the company and it emerged from examinership 70 days later.
‘‘Two years ago, our club was deep in crisis with debts of €3 million and losing around €20,000 a week on an annual turnover of less than a million,” said John Byrne of Shamrock Rovers.
‘‘So the fans took it upon themselves to end the days of financial recklessness and bring some sensible planning to the table. Indeed, our fans were probably the first in football history to demand its board cut wages and off-load players, rather than buy some success.”
Each year, the members of the club come together and elect a board of management. It is a policy more akin to a small provincial club than an Eircom League outfit, but Byrne said it was working well.
‘‘Not only have we stabilised the club financially and made it profitable, we have also re-established the club in the Eircom League and developed an identity as a community-based football club though our ‘Football in the Community’ initiatives,” he said.
‘‘I wouldn’t dream of claiming that we have all the answers, or that our way offers a panacea for Irish football, but it is clear that there is an alternative to boom-and-bust.”
With the new season of the Eircom League due to kick off in the coming weeks, the FAI will be hoping more clubs can follow Rovers’ example. Otherwise, the FAI might have to call in Genesis for a third time.
BohDiddley
18/02/2007, 5:01 PM
I think the article is a lot more positive than the dense kick-the-eL headline. At this point, people are so brainwashed by the Genesis propaganda that it's difficult for them to look past the gloom.
If you read the piece minus the Genesis spin, which has been thoroughly discredited here and by STIG, there's a good deal that's encouraging about it.
but the article failed to point out the good work carried out by certain Clubs in recent years like Drogs,
What good work have Drogheda done? Thye got a bloke too put in money but still have ordinary crowds, a poor ground and are paying o
ver the top wages...
Peadar
18/02/2007, 5:50 PM
What good work have Drogheda done? Thye got a bloke too put in money but still have ordinary crowds, a poor ground and are paying o
ver the top wages...
He was obviously being sarcastic. Look at the 3 clubs he mentioned.
Drogs are the next Shels!
holidaysong
18/02/2007, 6:14 PM
Drogs are the next Shels!
:D :D
Athlone and Sligo are doing good work though....
Paddyfield
18/02/2007, 7:46 PM
What good work have Drogheda done? Thye got a bloke too put in money but still have ordinary crowds, a poor ground and are paying over the top wages...
You just wouldn't believe what a monumental slip that was? I wrote "Drogheda" when I meant "Dundalk".
Sure aren't they both the same? They have a similar accent and they are on the same strech of road? And they both begin with the letter D?
Can I have my POTM award before I am banned from foot.ie?
.
Paddyfield
18/02/2007, 7:48 PM
Drogs are the next Shels!
Shels are the next Dublin City?
Lim till i die
18/02/2007, 8:43 PM
Instead, he plans to recruit players from the Wexford area and create a community-based club. The players will get expenses, but little else.
Hmm, yes "Expenses" :rolleyes:
Celdrog
18/02/2007, 8:45 PM
Drogs are the next Shels!
Been hearing that for four years now.
The only next thing we are is being League champions this season :cool:
Peadar
18/02/2007, 8:51 PM
Been hearing that for four years now.
Shels fans were in denial for five years.
You've only one more year of denial left to endure...
Shels fans were in denial for five years.
You've only one more year of denial left to endure...
Peadar all club loyalty aside do you seriously believe ccfc have not been severely weakened by recent departures? I just cant see them challenge like the last few seasons with the loss of such good players in key areas and with oflynns non stop sick notes. Drogs would be way ahead of Cork in my book
Peadar
18/02/2007, 9:50 PM
Peadar all club loyalty aside do you seriously believe ccfc have not been severely weakened by recent departures? I just cant see them challenge like the last few seasons with the loss of such good players in key areas and with oflynns non stop sick notes. Drogs would be way ahead of Cork in my book
Shels were ahead of us, on the field, for the past few years. Didn't stop them from going into meltdown. We've got some good players in the sqaud and we're been adding to that. Darragh Ryan being the most recent addition.
What's more important is that we haven't been spending ridiculous money on transfers. On top of that, we've got the best ground in the league, with one of the biggest fan bases. Consistency is what we're all about and we're not some flash in the pan, jumped up outfit from a Dublin suburb, with a third world standard ground.
im talking specifically about squad strength as of now not laudable club structures and future plans, currently drogs squad in better shape than corks
pineapple stu
18/02/2007, 9:57 PM
We've got some good players in the sqaud and we're been adding to that. Darragh Ryan being the most recent addition.
Never thought I'd see the day when Cork fans would be happy with signing a UCD reserve. :p
Peadar
18/02/2007, 10:13 PM
im talking specifically about squad strength as of now not laudable club structures and future plans, currently drogs squad in better shape than corks
On paper, wws, but they're welcome to the paper cups!
Never thought I'd see the day when Cork fans would be happy with signing a UCD reserve. :p
0-0 draw specialists must have some defensive qualities. No harm trying to tap into that.
Student Mullet
18/02/2007, 10:33 PM
0-0 draw specialists must have some defensive qualities. No harm trying to tap into that.I know you are but what am I?
DmanDmythDledge
18/02/2007, 10:37 PM
0-0 draw specialists must have some defensive qualities. No harm trying to tap into that.
Seeing as he was usually on the bench and cost us a few goals at least last season you're not. Bad signing for Cork.
On paper, wws, but they're welcome to the paper cups!
0-0 draw specialists must have some defensive qualities. No harm trying to tap into that.
dont give a sh!t.... as long as yis beat por-di-down....ill be happy
Calcio Jack
19/02/2007, 7:16 AM
Been hearing that for four years now.
The only next thing we are is being League champions this season :cool:
Maybe it has been covered here before...but would like to hear from a Drogs fan the exact detail of how your current investors plan to provide you with a new stadium.... seems to me that all that is happening is akin to Shels ie new investor has come in , pumped money into the club via loans and taken over ownership of the ground (almost) on some vague promise of selling it off and developing a new stadium out of town..... now where did we hear that sceanario before.... hope it works out for you but I suspect the 'devil is in the detail' of which their is very little in the shape of binding contracts etc... so IMO Drogs to find themselves homeless and investorless in about 2/3 years.
Celdrog
19/02/2007, 8:50 AM
The Drogs deal is done. Unlike Shels our club owns our ground, United Park, not the lease on it. Of course it is not sustainable for the 3 amigos to continue to throw money into the club, but if anybody cared to look at their business plan you wiill see that the medium term plan, never mind long term is for the club to be self sufficient.
A property developer has the land beside the motorway. The rezoning has been given the green light. He is buiding the stadium, leisure centre, retail warehousing which will be owned by the club. In return he gets United Park, which the Drogs own, unlike the bestest team in the country who rent their ground from the MFA, have no tangible assets, have lost several of their key players, have seen their attendances go down season on season, only got the inter-two bob bit because Derry won the cup and whose fans still believe Brian (I have investors lined up) Lennox and Damien (I am a brilliant man manager, look how I got all the players to stay) Richardson will deliver them the league this year.
And they say we are in denial :rolleyes:
And Peader, Stuey Byrne, Mikko Vilmunen, Aidan O'Keefe, Ollie Cahill and Richie Baker were all free transfers this year. We only paid good money for Zayed and Barrett. When we move from United Park, which is very poor we will have the best ground in the league. We currently have the best training facilities in Mosney and its all ours.
If it all goes pear shaped well then we will have had our few years in the sun and will go back to the dark days. We are excited at the thoughts of possibly winning the league for the first time ever. I hope Shels carry on unlike a lot of sad "fans" who are drooling at the prospect of them and the Drogs crashing and burning, instead of SunderIreland and its commitment to Irish football or Thomas Davis with a similar commitment. Will you be glad its us in Europe to bring home some more co-efficient points?
Your bitterness / jealousy for the Drogs is now legendary but at least we are all EL fans, with a lot more in common than you think so get over it
BohsPartisan
19/02/2007, 9:27 AM
The Drogs deal is done. Unlike Shels our club owns our ground, United Park, not the lease on it.
The FAI owns United Park. However the Drogs get to keep the majority of the proceeds of the sale. Its some complicated set up that was explained to me by Cosmo.
We currently have the best training facilities in Mosney and its all ours.
The best training facilities in Mosney? As opposed to the ones the asylum seekers use? :confused:
If you are suggesting you have the best training facilities in the league, you're having a laugh. Mosney is a kip. At least us and UCD have better facilities than you.
Calcio Jack
19/02/2007, 9:35 AM
The Drogs deal is done. Unlike Shels our club owns our ground, United Park, not the lease on it. Of course it is not sustainable for the 3 amigos to continue to throw money into the club, but if anybody cared to look at their business plan you wiill see that the medium term plan, never mind long term is for the club to be self sufficient.
A property developer has the land beside the motorway. The rezoning has been given the green light. He is buiding the stadium, leisure centre, retail warehousing which will be owned by the club. In return he gets United Park.
Your bitterness / jealousy for the Drogs is now legendary but at least we are all EL fans, with a lot more in common than you think so get over it
Wha ??? I think this is the first time I've ever commented on Drogheda...so where are you getting the 'bitterness' stuff from ??
As I said was wondering how concrete are the plans re Drogheda. I've heard all the points you made above before but can anyone confirm that these plans actually exist as a reality eg I thought the FAI still held the lease on Utd Park due to them bailing you out a few years back ? Sure planning permission may be in place but when will the work on the new stadium start and more importantly finish ?? and the big one how are the loans to the club structured, how much is owed etc. Personally I think it would be great for the league to have a vibrant strong Drogheda in place however having lived through the debacle of the Colwell/Maguire years at Rovers I'm understanably not convinced and if I was a Drogheda fan I'd enjoy my day in the sun but would also seek much clearer evidence that the future is as bright as you think.
Peadar
19/02/2007, 9:50 AM
Our training facility used to be a League of Ireland ground. We're currently building a new facility, with the help of Cork City Council.
With regard to dreaming of the best ground in the country, only if you build before Bohs, will you have a chance to claim that honour and even if you do, it will be short lived.
Good luck getting people to travel to Meath for you home games though.
Peadar
19/02/2007, 9:57 AM
Actually, now that I think of it, our training ground has more covered seats than United Park. :D
LukeO
19/02/2007, 10:38 AM
The Drogs deal is done. Unlike Shels our club owns our ground, United Park, not the lease on it. Of course it is not sustainable for the 3 amigos to continue to throw money into the club, but if anybody cared to look at their business plan you wiill see that the medium term plan, never mind long term is for the club to be self sufficient.
A property developer has the land beside the motorway. The rezoning has been given the green light. He is buiding the stadium, leisure centre, retail warehousing which will be owned by the club. In return he gets United Park, which the Drogs own, unlike the bestest team in the country who rent their ground from the MFA, have no tangible assets, have lost several of their key players, have seen their attendances go down season on season, only got the inter-two bob bit because Derry won the cup and whose fans still believe Brian (I have investors lined up) Lennox and Damien (I am a brilliant man manager, look how I got all the players to stay) Richardson will deliver them the league this year.
And they say we are in denial :rolleyes:
And Peader, Stuey Byrne, Mikko Vilmunen, Aidan O'Keefe, Ollie Cahill and Richie Baker were all free transfers this year. We only paid good money for Zayed and Barrett. When we move from United Park, which is very poor we will have the best ground in the league. We currently have the best training facilities in Mosney and its all ours.
If it all goes pear shaped well then we will have had our few years in the sun and will go back to the dark days. We are excited at the thoughts of possibly winning the league for the first time ever. I hope Shels carry on unlike a lot of sad "fans" who are drooling at the prospect of them and the Drogs crashing and burning, instead of SunderIreland and its commitment to Irish football or Thomas Davis with a similar commitment. Will you be glad its us in Europe to bring home some more co-efficient points?
Your bitterness / jealousy for the Drogs is now legendary but at least we are all EL fans, with a lot more in common than you think so get over it
Do you still believe your new stadium will be ready by November? :rolleyes:
BohsPartisan
19/02/2007, 10:45 AM
Cork found out a few seasons back that there fans would not travel a couple of miles across the city for their games i think drogs and Bohs will find the same in time.
Our new ground will be about the same distance from some of our main catchment areas as Dalyer is so it shouldn't make much difference in that respect.
MariborKev
19/02/2007, 10:45 AM
‘‘In many ways, we are dealing with the sins of our fathers. What happened, happened. We have to move on and make sure it does not happen again. We have worked hard and we have installed better structures and safeguards.”
Have to say I have real problems with this statement. If the structures are safeguards are better, then we are truly dealing with the Emperor's new clothes!
First major test of the "new" system was the Dec licence, and has been nothing but a shambles.
Peadar
19/02/2007, 10:52 AM
Cork found out a few seasons back that there fans would not travel a couple of miles across the city for their games i think drogs and Bohs will find the same in time. It is dangerous to move out of your main catchment area.
That area is now very built up and the Ballincollig Bypass runs right by it.
15 years ago, it was a wilderness.
Simply a project ahead of it's time, as the infrastructure exists there now.
Peadar
19/02/2007, 11:19 AM
But your main catchment area in Phibbsboro itself ?
There are almost no Dubs living in Phibsboro' anymore!
Their numbers in Cabra keep falling due to their desire to shoot each other. :D
BohsPartisan
19/02/2007, 11:26 AM
But your main catchment area in Phibbsboro itself ?
Main catchment areas would be Cabra (which will be a little further from Harristown than Dalyer - nothing significant) and Finglas, which is about the same distance from both. Then you have Ballymun (closer) Blanchardstown (not much difference), Santry (Closer), and the North County (closer). On top of this the site is well serviced by busses, there'll be easy access from the M50, the metro (if/when implimented) will stop within walking distance of the ground and of course its only a stonesthrow from the airport, allowing our legions of international fans from Malaysia, the continent and Manchester easy access to the ground. :D
Add to this that we'll be marketing towards new fans and Swords which will be nearby, has a population comparable to Waterford.
sonofstan
19/02/2007, 11:41 AM
There are almost no Dubs living in Phibsboro' anymore!
Oi! me and Mr. Diddley for a start...
LukeO
19/02/2007, 11:49 AM
Oi! me and Mr. Diddley for a start...
Together?? :eek: :D
Peadar
19/02/2007, 11:53 AM
Together?? :eek: :D
So that's what sonofstan meant when he said they would love to adopt new fans. Not sure how the Catholic Church would react though. :D
LukeO
19/02/2007, 11:59 AM
So that's what sonofstan meant when he said they would love to adopt new fans. Not sure how the Catholic Church would react though. :D
Luckily we're a Protestant club so...
pineapple stu
19/02/2007, 12:32 PM
0-0 draw specialists must have some defensive qualities. No harm trying to tap into that.
Yez were only one 0-0 off us in the league last year, so yez are doing quite alright by yourselves. ;)
BohDiddley
19/02/2007, 12:35 PM
Oi! me and Mr. Diddley for a start...
Wait a sec. I live in Dun Laoghaire!
BohDiddley
19/02/2007, 12:37 PM
There are almost no Dubs living in Phibsboro' anymore!
Their numbers in Cabra keep falling due to their desire to shoot each other. :D
That's just ignorant.
Peadar
19/02/2007, 12:39 PM
That's just ignorant.
Do you live in Dublin 7?
No!
Do I?
Yes!
BohDiddley
19/02/2007, 1:19 PM
Do you live in Dublin 7?
No!
Do I?
Yes!
And that entitles you to what?
BohsPartisan
19/02/2007, 1:20 PM
And that entitles you to what?
A blindfold! ;)
Peadar
19/02/2007, 1:22 PM
And that entitles you to what?
To have an opinon.
To have an opinon.
No it doesn't... you're from Cork ffs... :rolleyes:
;)
sonofstan
19/02/2007, 1:38 PM
Wait a sec. I live in Dun Laoghaire!
whoops! sorry, don't know where I got the idea you were a D7 denizen - the news that Peadar is one is disturbing though..
Peadar
19/02/2007, 1:43 PM
whoops! sorry, don't know where I got the idea you were a D7 denizen - the news that Peadar is one is disturbing though..
Ha ha, I took your postcode. I was well casual about it too! :D
BohDiddley
19/02/2007, 1:59 PM
Peadar, it's clear you're not from D7, and you never will be if you buy it from the Liffey to the Bogies.
Peadar
19/02/2007, 2:10 PM
Peadar, it's clear you're not from D7, and you never will be if you buy it from the Liffey to the Bogies.
Thankfully because it doesn't feature on my list of aspirations...
BohDiddley
19/02/2007, 2:42 PM
It must be miserable living in a place which you despise. I'm sure your neighbours would be equally charmed.
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