League to tighten rules as Rovers granted extra time
League to tighten rules as Rovers granted extra time
Wednesday April 13th 2005
EIRCOM LEAGUE clubs will face even more stringent financial tests under the FAI club licensing system following the appointment of an examiner to Shamrock Rovers.
UEFA is currently preparing to introduce phase two of the financial criteria for the club licensing scheme. No date has yet been set for its introduction, but the FAI is actively considering implementing these new standards in the 2006 manual in a bid to prevent a repeat of the Shamrock Rovers case.
The new standards would see clubs having to furnish monthly accounts, detailed cash flow budgets as well as detailed schedules for debt reduction.
The introduction of a salary cap is also a possibility and officials from the FAI's club licensing department have been closely monitoring the operation of a wage protocol in England, where League One and Two clubs have to maintain wages at between 65 and 75 per cent of income.
The FAI's first instance committee will meet within the next few days to discuss the Shamrock Rovers situation and they have the power to withdraw the club's premier division licence.
The FAI had their own legal team in the High Court on Monday and Tuesday keeping a watching brief and they will prepare a report for the first licensing committee.
The seven members of the FLC will be particularly keen to see what documentation was presented in court to support Rovers' petition for examinership and compare it to their application for a club licence back in January.
In both 2004 and 2005 Rovers were refused a licence by the FLC but subsequently obtained one on appeal.
It is believed that, because Mr Justice Peter Kelly feels that Shamrock Rovers has an opportunity to survive as a going concern, the first instance committee will be reluctant to go against the High Court and withdraw their licence during the period of examinership. However, they are sure to seek a meeting with the High Court appointed examiner, Neil Hughes, to hear his plans for the club and also to make him aware of the club's commitments under the licensing procedure.
Although several Eircom League clubs has privately indicated that they are extremely unhappy at the situation, there is unlikely to be any sanction against Rovers in the short-term.
Unlike the English League, where Wrexham were deducted ten points for going into administration, there is no provision in the eircom League's rule book for clubs going into examinership. However, they could be excluded from next year's competition if the majority of clubs at a special general meeting of the League felt that they were guilty of misconduct.
The PFAI have been in contact with their members at Rovers and have also had discussions with members of the 400 Club, who will be bankrolling the club over the period of the examinership. The Rovers players have been receiving their wages since the season started and the PFAI will continue to adopt only a watching brief as long as that continues.
The Shamrock Rovers 400 Club held an egm in Tallaght on Monday night and agreed to financially support the club through the examinership process.
"The 400 Club is crucial to the future of Shamrock Rovers and pivotal to the success of the examinership. We are fully committed to the cause and believe that the current crisis at Rovers can be resolved," said chairman Jonathan Roche.
Since the 400 Club was formed two years ago, they have contributed around €300,000 to Rovers.
Rovers manager Roddy Collins said he supported the move to examinership and the decision of the 400 Club to financially support the club over the next few months.
DUNDALK'S plans to unveil their new artificial pitch at Oriel Park on April 21 have failed to materialise and their 'home' game against Limerick that night will take place at United Park.
"The problem is still down to finance although we have heard that the Department of Sport are close to releasing the funding," said Dundalk CEO Sean Connolly. "We are disappointed that Oriel will not be ready but I would ask all Dundalk supporters to be patient."
Dundalk hope to be back in Oriel Park for the Monaghan United game on May 5.
Gerry McDermott
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