Irish Indepentent Article
Bohemian FC's future at stake over €58m deal with Carroll
By John Mulligan
Thursday June 25 2009
A €58m deal between League of Ireland champions Bohemian FC and a company controlled by embattled developer Liam Carroll could be increasingly under pressure, raising fresh prospects that the Dublin club may have to resort to rapid financial restructuring in order to survive. It might even contemplate making its players part, rather than full-time employees.
Auditors who signed off the club's recently-filed accounts at the Companies Office, have also expressed uncertainty over Bohemian's ability to continue as an on-going concern after a €1.9m operating loss in the last financial year propelled its accumulated losses to more than €2.6m.
Bohemian FC signed a deal in 2007 to sell its grounds at Dalymount in north Dublin to Liam Carroll's Danninger vehicle. The acquisition by Danninger would include a cash payment of just over €38m and an undertaking to construct a 10,000-seater stadium valued at €20m for the club at Harristown. It's understood that the football club has received fresh offers for the grounds within the past few months and that it would be willing to allow Danninger to break the purchase contract in return for a fee, or possibly to renegotiate the purchase price. While the club has already received €2.6m from Danninger, it's understood that no further payments are due, pending the resolution of a legal battle between the club and rival property firm Albion.
Last year the High Court instructed the football club to hold a portion of its grounds in trust for Albion, refuting a contention by Bohemian FC that no redevelopment agreement had been concluded between the club and the property firm. On Monday, Irish Nationwide commenced legal action against Liam Carroll, claiming he had personally guaranteed up to €60m in loans made to one of his numerous property firms, Aifca.
Danninger has recently had to secure additional bank financing to overcome cashflow issues and has asked creditors to write off up to 40pc of their debts.
In its company accounts, Bohemian directors state that they are confident the club can return to profitability within one to two years and that if its financial health further deteriorates, assets could be revalued to reflect a higher value than that currently on the club's balance sheet.
- John Mulligan
http://www.independent.ie/business/i...l-1789170.html