Limerick Leader - Reactions to the truth

Just starting this post to get feedback from those who have read today's article in the post.

Any comments?

For students and fans living outside Limerick here is the text of the piece:

By MIKE DWANE
THE committee of Limerick FC has confirmed that it is currently seeking to
establish the club as a limited company.
The news has angered the supporters¹ club who claim the committee promised
to consult them before any such move was made.
At a public meeting on the future of the club held on November 19 last, it
was agreed that the most urgent priority was to give the club a legal
status.
Two options were discussed at the Garda Club meeting, namely a limited
company and a members club.
A statement issued by the supporters club this week reads:
³The result of the meeting was that the Limerick FC Committee would
investigate the pros and cons related to both club forms before making a
decision in consultation with the public.²
³They would then relate the details in the follow-up meeting, which they
agreed was to take place two weeks later. This was delayed further, with a
new date given for early in the New Year. This was not met, and the meeting
has yet to be announced.²
When contacted, club chairman Michael O¹Sullivan said that he had spoken to
his counterpart in the supporters¹ club, John Devane, on Tuesday evening,
with a view to getting the two sides together some time next week.
³We always said we would come back to them but there are still a few details
to be sorted out,² he said.
To avail of any funding under the Eircom League licensing scheme, clubs must
have a legal status and be fully tax compliant.
At November¹s meeting club PRO Ralph McMahon said that ³the club has no
legal status and this cannot continue for the status of senior soccer in
this city.² With just seven weeks to go before the season kicks off, the
club's status is no less ambiguous.
Club sources feel that a members¹ club with an annual subscription is not a
viable option to secure Limerick FC¹s future, given the club¹s small
fanbase.
Mr O¹Sullivan said that the committee were currently talking to a city
accountant about setting up a limited company.
The supporters¹ club claim they were told by club sources that the current
committee would own 30 percent of the shares in the company.
But Mr O¹Sullivan said that ³until the limited company is set up, we can¹t
really discuss share capital.²
Meanwhile, manager Mike Kerley, who took Limerick to the play-offs last
season, has still to sign a new contract with Limerick.

The article was based upon the following press release by the Supporters Club. It can't be emphasised enough that this is a factual document, with all the information provided by John Purcell and Michael O'Sullivan. The Supporters' Club are not pushing anyone's opinion one way or the other, we just wish to allow the promised democratic vote about our club to take place. So if you think the committee are acting correctly or not, please lend your voice to the debate.

The press release came about due to the high number of concerned fans contacting us, and hopefully this will clear everything up.

Limerick FC Supporters’ Club – Press Release 26th January 2004

The Board of the Limerick FC Supporters’ Club are issuing this press release in an effort to keep the public informed of the developments presently taking place within Limerick FC. Many of these developments could have long-term effects upon the future of senior soccer within the city and county. The Supporters’ Club are anxious that any changes will strengthen the club and provide a good starting point for future progress. This press statement will address all the developments from the last public meeting that took place in the Garda Club on November 19th 2003.

The public meeting was called to discuss “The Future of Limerick FC.” The main topic of discussion brought up at the meeting was the legal status the club would adopt. Two options were discussed: the option of a Limited Company, and that of a Members’ Club. A show of hands was taken at the meeting, the result of which was that one person voted for a Limited Company while the rest of the attendees voted for the Members’ Club option. The result of the meeting was that the Limerick FC Committee would investigate the pros and cons related to both club forms before making a decision in consultation with the public. They would then relate the details in the follow-up meeting, which they agreed, was to take place two weeks later. This was delayed further, with a new date given for early in the New Year. This was not met, and the meeting has yet to be announced.

Just under two weeks ago the Supporters’ Club was informed by a source within the club that certain members of last year’s committee had taken it upon themselves to establish Limerick FC as a limited company. Club committee member John Purcell has since confirmed this to the Supporters’ Club.

In an effort to uncover details of the Limited Company the Supporters’ Club have had to make regular contact with those poised to take over the club. The details we have discovered so far from committee members John Purcell and Michael O’Sullivan are:

ü Michael O’Sullivan, John Purcell and Ralph McMahon will own the Limited Company.
ü The Limited Company will start with €100,000 issued share capital. Of this amount, the above committee members have given themselves €30,000. The remaining €70,000 will be sold as shares to the public at €100 per share.
ü Michael O’Sullivan, Ralph McMahon and John Purcell claim that they have donated this money to the club in previous years. Following advice from an accountant the Supporters’ Club are concerned that this is open to legal challenge, for two reasons:
1. Firstly the money was a voluntary donation with no agreement of reimbursement to our knowledge. In an attempt to clarify this point the Supporters’ Club asked Michael O’Sullivan for the opportunity to view accounts for recent years. Despite assurances from John Purcell that these documents were public viewing we were refused.
2. Secondly, the money was donated to Limerick FC whose legal status at the time was that of an amateur sports’ club. This predates the Limited Company, and as a separate legal entity has no legal ties to our knowledge.
ü With 30% (over 25%) of the Issued Share Capital Michael O’Sullivan, John Purcell and Ralph McMahon have the future option of buying out any other shareholders.
ü A concern that has been expressed to us by a number of our members and our accountant is that a Limited Company is a profit-making entity and not the best option for Limerick FC to take. With effective control of the club residing in the hands of the three remaining committee members there are also concerns that not enough people will be involved in decision making.
ü As the public are aware John Purcell has taken the role of full-time Commercial Manager. He held this position in a part-time role last year, a year in which the club experienced severe financial difficulty. A number of concerns have been expressed to us in regards to this appointment.
Concerns have already been raised as to whether the three remaining members of the committee can handle the huge workload required to run an Eircom League club, especially with the ongoing club licensing requirements.

We would greatly urge anybody with an interest in the future of senior soccer in Limerick to attend the upcoming public meeting promised by the club committee. Given that it has been delayed a number of times, we are hopeful that it will be held in the very near future.

Well done to all involved,i think that the problem over the years as this proves is that they have done things which benefits them and them only and really don't care about the club or where its going.To publicly state that the supporters club would be involved in any decision that was made and to then go and make there own decisions which by the sounds of things benifits them alot more than it does the club.John purcell and michael o sullivan both seem to have different views on letting people view the accounts what are they hiding?.Who else was envolved in the decision process about becoming a ltd company?.Alot of questions need answering and im sure we'd all be shocked at whats gone on over the years.