GUFC prime example of good business sense
HOW ironic that the man who broke Barings Bank is now working within the Eircom League at a time when bank managers have been reduced to nervous wrecks by the financial antics of clubs.
Shamrock Rovers have debts of €2.36m and a High Court-appointed examiner is battling to save the club from going bust.
Dundalk have to sell their only asset, the pitch used for youths matches, because they can't get a loan using it as collateral. They also need the FAI to go guarantor if they are to get the bridging finance necessary to complete the installation of an artificial pitch at Oriel Park.
There are other clubs on the verge of financial meltdown.
Nobody needs to be a graduate of the Smurfit Business School or the London School of Economics to realise why Eircom League lurch from one financial crisis to another.
The culture that exists within the League is such that clubs continually over-extend themselves by investing money they don't have in their team in the hope this will bring success.
The belief is that with success will come increased income through bigger gates, improved merchandise sales and prize money that will cover the outlay.
In other words, it's a gamble and often they would be better throwing it on the nose of a nag in the 4.30 at Gowran Park than splashing out on a new striker.
There are players in the Eircom League currently earning over €1,500 per week, more than some Irish rugby internationals earn, and in the effort to meet the weekly wage bill clubs are ignoring the bills and destroying the goodwill of their local business community.
While some wonder how certain clubs received their club licences for 2005 situations like those at Shamrock Rovers probably wouldn't have come to light if they hadn't been required to prepare audited accounts.
The financial criteria demanded by UEFA and the FAI is set to crank up in 2005 with the introduction of monthly accounts and detailed debt scheduling - expect more financially reckless clubs to be outed over the next 12 months.
The appointment of Nick Leeson as Galway United's commercial manager has attracted a lot of interest primarily because of his notoriety but he will be judged on whether he has met his targets rather than the number of column inches he has generated for the club.
Galway are a progressive club who definitely seem to be getting their house in order having realised the days of depending on local benefactors to bail them out of trouble no longer works.
They are attempting to be self-financing and operate from a realisation that gate receipts only provide between 10 and 20 per cent of their income.
Galway has a Board of Directors that contains 15 members drawn from a wide variety of backgrounds and expertise.
All the directors are volunteers who pay their own way, from purchasing season tickets and club gear to looking after their own expenses on away trips.
The day-to-day running of the club is conducted by the club executive made up of five people each of whom represents a key committee - finance, marketing, secretary/legal, UEFA Licence and facilities. Overall, there are around 45 volunteers running the club.
The employee side is under the control of General Manager Tony Mannion which includes the team manager, backroom staff and players as well as the new commercial manager, office manager and liaison officer.
Like every club in the League, Galway did their budgets at the start of the year and know what they must take in to meet their costs. Crucially, they have set targets to be met during the season and alarm bells will go off if they are not reached.
"There is a tremendous level of visibility and the board and the members of the executive know what is going on in every area of the club. It's transparent so problems can be spotted," says chairman John Fallon.
"Sentiment goes out the window when you have got to deliver on the balance sheet. The club has to be run as a business or else it is not going to succeed," he added.
It's a message others within the Eircom League should note.
