Cork City Examinership

[Calcio Jack]

According to RTE 1 this morning...Cork City are €800k in debt and are heading to the High Court to put themsleves into 'examinership' to try and avoid going to the wall....

[The Rebel Ram]

I recon they won't be the only ones this season.
Time for realistic wages for players.................
Hopefully it will work out for them

[gufct]

The whole game here needs a complete rethink but as long as there are clubs willing to pay bad players huge money they dont have this problem wont go away.

The most worrying thing is that Cork are the best supported Team in the country are in such a situation how teams like Bohs,Pats & Drogheda are surviving on gates half the size of Corks.

[Duggie]

are cork not owned by some rich company ????

[RonnieB]

ruh roh

[razor]

are cork not owned by some rich company ????Doesn't matter how rich they are, if they haven't been paying the bills...

I'm absolutely sickened this morning and more so fearful.

[RonnieB]

Wonder if points deductions may be levied.

[Mr A]

Shamrock Rovers got deducted their points total to date in the season when they went into examinership didn't they?

[Macy]

The whole game here needs a complete rethink
I'm not sure it does really, it just needs a good dose of realism. As you said the problems are brought about by clubs paying too much for players. That wouldn't change based on the format. It needs people to realise that sustainability should be king and grow clubs slowly up from a solid foundation.

And Cork were one of the clubs against the 65% wage cap :rolleyes:

[jebus]

Feel sorry for the minority of Cork fans that show a bit of grace around here. The ones that sneer at clubs ranging from UCD to Galway to Limerick though, well it really couldn't have happened to a nicer set of supporters, so taking a leaf from their book all I'll say is that if Cork can't pay their agreed contracts then they're no loss to the league

[The Lilywhites]

http://www.rte.ie/sport/soccer/2008/0814/corkcity.html

Cork City considering examinership

Thursday, 14 August 2008 09:29

RTÉ News has reported that Cork City Football Club are considering an application to the High Court for examinership in order to prevent the club from folding.

The current FAI Cup holders are believed to have debts of more than €800,000. One of the best supported clubs in the League of Ireland, the club requires immediate investment if it is to continue to trade.

RTÉ soccer correspondent Tony O'Donoghue reports:

FAI Cup holders Cork City face a daunting challenge over the coming days, the club requiring immediate investment if it is to survive.

Less than two weeks ago the Cork players failed to get paid on time ahead of a top of the table clash with Bohemians.

However; it is understood that all the current staff are now paid up to date.

The club are now preparing an application to the High Court for examinership. Former Chairman Brian Lennox, who sold Cork City to venture capital firm Arkaga in 2007, resigned as a director last night.

Cork are one of a number of League of Ireland clubs to experience severe financial difficulties this season, among them Galway United, Sligo Rovers and Cobh Ramblers, and the fate of several other Premier and First Division clubs hangs in the balance.

The situation is a considerable cause of concern to the FAI, who took over the running of the League in 2007. A decision on Cork's future is likely in the next 48 hours.

[The Lilywhites]

Kildare County players about to go on strike according to the audio clip on that above link.

[charliesboots]

Can one of the mods start a poll for what the name of the next Cork franchise will be?

[redobit]

If Cork, of all teams, are in such a position im not sure what chance the rest of us have.

[blackholesun]

http://www.irishexaminer.com/breaking/sport/mhqlmhojgbsn
Cork City FC is believed to be considering an application to the High Court for examinership in a bid to avoid going into receivership.

The club has been experiencing financial difficulties of late and as recently as two weeks ago they failed to pay the salaries of the players, sparking an outburst from club captain Dan Murray. However, the players are now understood to have been paid up to date.

Former chairman Brian Lennox, who sold the club to Venture Capital, stepped down as a director of the club last night.

City is the latest eircom League club to undergo such difficulties with Cobh Ramblers and Galway United also showing concerns recently.

----------------------------------------------------------------------

btw IIRC Rovers were deducted 9 points for submitting a dodgy set of figures (i.e. the same set as the year before) to the league, and went from +8 to -1 points. Rovers were not deducted points for going into administration, but I think the league might have brought in a rule after that, that you loose points if you go into administration ala what happens in England.

Clubs living beyond their means have only themselves to blaim. Offering 1000's a week to LOI players is not sustainable unless you average gate is close to 10K a week and no club to close to that at the moment!

As Plantini says "its the cheats who are winning"!

bhs

[blackholesun]

Can one of the mods start a poll for what the name of the next Cork franchise will be?

Cork 84 :cool:

Thought it sounds a bit too much like a bottle of wine :D

bhs

[charliesboots]

before this gets messy later on people should note that administration and examinership are different.

Both are designed to protect insolvent companies with a view to survival but administration provisions in the UK are far more onerous than the administration provisions in Ireland.

[Partizan]

Cork 84 :cool:

Thought it sounds a bit too much like a bottle of wine :D

bhs

Thats the only option the C/\wkies have left, they have used up, Alberts, City, FC, Hibs, Celtic, United..... :D

[dublinred]

Thats the only option the C/\wkies have left, they have used up, Alberts, City, FC, Hibs, Celtic, United..... :D

Cork Hotspurs ?

[Partizan]

Cork Corinthians

They'll either be forced to go part time or amateur so will recapture that corinthian spirit :p

[Macy]

Rovers were not deducted points for going into administration, but I think the league might have brought in a rule after that, that you loose points if you go into administration ala what happens in England.
Rovers didn't go into Administration, then went into Examinership. My memory is not 100% but I think there was a sanction for administraion, but not examinership. If that loophole did exist I don't know whether it was closed since.

Where this leaves the FAI financial control I really don't know. I thought they were supposed to be keeping tabs monthly, and now we have it going tits up all over the shop? There's only 4 clubs in the premier that are not in trouble and being run sustainably.

[jebus]

If Cork, of all teams, are in such a position im not sure what chance the rest of us have.

This is the same team that has been throwing ridiculous money at players that haven't been performing right? Do you realise that Limerick's entire playing budget is half Joe Gamble's salary?

No surprise Cork have run into financial troubles in my opinion, Arkaga were obviously banking on an All Ireland League to boost profits, now that that has been shown up as the pipe dream that it is it's no surprise they want off the ship

[SalvadorSanchez]

Time to get real in this league... If Jebus' comment about Limericks entire wage bill is true.... well it just goes to show that the whole thing has gone nuts.
looks like the league have to be even more intrusive in the financial management and day to day administration of the clubs, we may have to accept that we'll lose our better players to Championship and Div 1 mediocrity in the UK. Sad really but it boils down to competition for spectators, increased UK football coverage and people just assuming our league is sh*t and not going...
poor gates = poor revenue, this leaves clubs like Galway, Sligo, Harps, UCD, Cobh not even trying to sign the best players so you have just a few clubs fighting it out for the best players and out bidding each other on wages and screwing each other up, Cork, Drogs, Bohs etc.
Time to develop a more radical salary cap, I don't know what maybe a system like in the US where clubs are allowed something like 2 players on x/week 4 players on y/week 6 players on z/week. would help the clubs and make things more sustainable..

[charliesboots]

Rovers didn't go into Administration, then went into Examinership. My memory is not 100% but I think there was a sanction for administraion, but not examinership. If that loophole did exist I don't know whether it was closed since.

Where this leaves the FAI financial control I really don't know. I thought they were supposed to be keeping tabs monthly, and now we have it going tits up all over the shop? There's only 4 clubs in the premier that are not in trouble and being run sustainably.

No such thing as administration in Ireland Macy

[fergalr]

Shocking news. Tragic thing is that its not surprising - the writing was on the wall for all to see and the only question was which of the overspenders were going to crack first. The follow-up question is of course who is next?

Now to see if the FAI have any teeth. Anyone know definitively what their rules are now for this situation?

[dublinred]

Galway could be staying up if they can finsh third bottom

[Macy]

No such thing as administration in Ireland Macy
I knew there was a reason I was getting out of accountancy. :o :D

[gael353]

Smells like Dublin city going bust a few years ago. will cork be fulfilling their FAI fixture against Derry? and yes jebus comment is true we operate on about 14 - 44% on our budget.

[Monkfish]

... If Jebus' comment about Limericks entire wage bill is true.... .

They had 4 players earning more (each) in a week than our whole squad was at the time of our cup game this year, personally I dont want to see any club in trouble but its no harm for some to get a kick up the arse and told to cop on (my own included)

[Partizan]

They were spending in around 75k a week on wages (players and staff). Absolute madness. We dont even spend 1/10th of that a week on our entire squad and staff.

[pineapple stu]

Where this leaves the FAI financial control I really don't know. I thought they were supposed to be keeping tabs monthly, and now we have it going tits up all over the shop?
It depends. It's possible alright, but this always was the danger when a club was sustainable only on a third party's whim, and not of their own. They could have had their amounts guaranteed by Arkaga and make the wage cap through a loop hole, say, but then if Arkaga pull out, it's immediate tits up time without ever (technically speaking) breaking the FAI requirements.

This surely is a nail in the coffin of Platinum One? This is more or less what'd happen in their proposed future, with no wage cap, encouragement to spend the same sums of money as presently backed up by some hypothetical millions. With Bohs' and Drogs' ground deals in trouble, I can see in a couple of years the league going back to how it was ten years ago, to be honest.

[jebus]

Time to get real in this league... If Jebus' comment about Limericks entire wage bill is true....

It is if the rumours of Joe's fortune are true. Our wage bill was running at half his supposed earnings the last I checked(end of the transfer window).

I think it's time for the league to get real alright, a return to part time football, and wages being stripped right back would be a start. Merging the leagues into a 16 team Premier and creating a structure that includes the MSL, Connaught leagues and LSL would be the next step after that in my opinion

[harry crumb]

Good for Limerick. How life in Division 1 for the last 10 years?

[jebus]

Good for Limerick. How life in Division 1 for the last 10 years?

Yeah, enjoy the community section of Foot.ie :D

[harry crumb]

Cork City FC arent going anywhere.

This is all over the top reporting IMO.(I hope)

[Mr A]

CCFC statement:


Cork City Football Club has been engaged in negotiations with potential new investors for the last number of weeks.

It is too early to speculate on the outcome of these discussions which are still ongoing.

The board of Cork City Football Club will meet next week and come to a decision on the future of the club.

Some of the figures currently being reported today, particularly in relation to the wages of players and staff, are inaccurate and grossly inflated.

Because of the sensitive nature of the ongoing discussions it would be inappropriate for Cork City Football Club to make any further comment at this time.

[razor]

Club Statement Released (http://www.corkcityfc.ie/main.php?action=newsLink&headlineID=487)

Could be the truth or could be, as before, complete lies

[finnpark]

According to RTE 1 this morning...Cork City are €800k in debt and are heading to the High Court to put themsleves into 'examinership' to try and avoid going to the wall....

They don't need to go anywhere near the High Court. Tell them to put their accounts up here and Im sure there will be plenty on here to tell them how to make their club work in this league. And we can have a good laugh also. :D

On a more positive note, this could be good news for Harps :cool:

Can someone answer me this:

If Cork are really in trouble why the hell did they not offload Joe Gamble? :confused:

[Mr A]

Notable by the lack of specific denials of the examinership story etc.....

[OneRedArmy]

No surprise Cork have run into financial troubles in my opinion, Arkaga were obviously banking on an All Ireland League to boost profits, now that that has been shown up as the pipe dream that it is it's no surprise they want off the shipHow was this obvious?

I ask this as I didn't understand why Arkaga invested in Cork at the time it was announced and I still don't. I don't believe an AIL is either near or further away than when Arkaga invested, so I'm still perplexed. If they had property assets I'd understand it more but AFAIK Cork City have no assets other than (overpaid) players.

I think at this stage we can assume most Premier clubs are in some level of trouble, with only UCD really exempted (Pats seem fine but given they are backed by someone building the biggest residential building in the world in probably the biggest downturn since the depression I'd view this as a negative rather a positive). I presume Rovers are in decent enough shape as well, but only because they've been through the ringer already.

Its a real shame as the quality of football really has improved across the league in the last 5 years.

[finnpark]

Club Statement Released (http://www.corkcityfc.ie/main.php?action=newsLink&headlineID=487)

We have to wait and see. Maybe an oil and gas tycoon is about to buy them out :D

[charliesboots]

Interestingly there's not mention of Brian Lennox's resignation as a director in the statement.

If I was a Corkie (heaven forbid) that's what I'd be most worried about.

He obviously had something to lose by holding the directorship.

Watch out for Paul Appleby

[jebus]

How was this obvious?


Arkaga were really pushing the AIL, it was obvious they thought there was profit to be had from having Cork City in it, especially if the club was running up this amount of debt in the LoI. Now that the AIL is shown to pie in the sky talk (Eufa and the IFA would not allow it, the plans looked like they had been dreamed up by a 12 year old) they've realised it's best to get out now, rather than incur more debt

[OneRedArmy]

Arkaga were really pushing the AIL, it was obvious they thought there was profit to be had from having Cork City in it, especially if the club was running up this amount of debt in the LoI. Now that the AIL is shown to pie in the sky talk (Eufa and the IFA would not allow it, the plans looked like they had been dreamed up by a 12 year old) they've realised it's best to get out now, rather than incur more debt
Still not obvious. I have never ever heard the words profit and football mentioned either in the context of an AIL or the EL or indeed anywhere else in the globe. In my experience clubs, at best, aspire to break even and thus that show a small profit in some years do so by accident rather than design.

Methinks your view is a bit clouded by your anti-AIL obsession.

[The Lilywhites]

FAI Statement on Cork City FC

The Football Association of Ireland has been in regular contact with the Arkaga fund and Cork City Investment FC Ltd (the company operating Cork City Football Club) in relation to financial difficulties facing the Cork City Football Club. The FAI has contacted the Arkaga fund with regards to a written undertaking made by one of its companies to guarantee all liabilities arising from Cork City Investment FC Ltd for a twelve month period from 29th January 2008 through to 29th January 2009.

It is the FAI’s view that the club’s sustainability depends on its investors and Directors managing the company’s affairs as a sensible business. We await news of what the Arkaga Fund, as investors in Cork City Investment FC Ltd intend to do. If Cork City Investment FC Ltd is in financial difficulty, then the onus is on the club’s investors and Directors to take all necessary corrective action to ensure its survival. The FAI has been and will continue to provide professional assistance to assist the club in any way possible at this difficult time.

[brendy_éire]

In my experience clubs, at best, aspire to break even and thus that show a small profit in some years do so by accident rather than design.

Clubs do, but companies don't. The likes of Real Madrid, Man Utd, etc are companies run for profit. Success on the field is a by-product.

Not sure if the implication is that AIL clubs would be limited companies or not.

[Row Z]

Pardon my ignorance, but Cork out of all the teams in the Lge have made more money on transfers than anyone else(did they get a fee for Meyler btw) how are they in so much debt????
:confused:

[WoodquayBoy]

IMerging the leagues into a 16 team Premier . . .
Who are the 6 you would drop/ask to merge?

[rambler14]

Cork Ramblers is on the horizon:D

There won't be a relegation by the time we get to the end of the season because 3 teams will have dropped out.
Were definetley going to lose one team before the end of the season anyway. Leaving 2 relegation spots and Ramblers will still get fookin releagted.:(:D

[OneRedArmy]

Clubs do, but companies don't. The likes of Real Madrid, Man Utd, etc are companies run for profit. Success on the field is a by-product.

Not sure if the implication is that AIL clubs would be limited companies or not.First, almost every club is a company, but thats irrelevant.

Second, I thought Real Madrid were owned by the members, like Barca?

Football clubs, like airlines, are very, very rarely profitable in anything other than the short-term, based on historical performance.