Shamrock Rovers rolling to the brink of ruin
Shamrock Rovers rolling to the brink of ruin
Tuesday April 12th 2005
THE country's most famous football club, Shamrock Rovers, is on the brink of financial ruin with debts of more than €2.36m.
The club, which was founded in 1901, has been without a home ground since 1987. It currently plays home games at Dalymount Park, for which it pays Bohemians Football Club €60,000 a year, the High Court heard yesterday.
Mr Justice Peter Kelly was told the lack of a ground was the main reason for the club's financial woes. Branvard Ltd took over the 'Hoops' in 1996 but had been declared insolvent.
Last week, the 400 Club, set up by Shamrock Rovers' supporters to contribute financially to the team, loaned money to cover players' wages. Despite this, the club's ability to play in the Eircom League is under threat because it failed to meet a schedule of payments agreed with the Revenue Commissioners, who are owed over €540,000. But there may be a glimmer of hope. An independent accountant said the club had a reasonable prospect of survival if a "neutral" ground was found and a full-time commercial manager appointed.
The court heard that the club is in negotiation to secure grounds at Santry's Morton Stadium. Justice Kelly adjourned an application by the company which runs the club to appoint an interim examiner.
Breda Heffernan
© Irish Independent
http://www.unison.ie/irish_independent/ & http://www.unison.ie/
Huge debts could force homeless Rovers to blow the final whistle
Tuesday April 12th 2005
SHAMROCK Rovers may be forced to drop out of the Eircom League unless an interim examiner is appointed, the financially beleaguered club has warned.
The club, which has debts of over €2.36m, is so cash-strapped that a supporters' club last week paid the players' wages.
Yesterday the football club went to the High Court to make an application for the appointment of an interim examiner. The application was refused but will come before the court again today.
If appointed, an examiner would keep the club running while investigating the viability of the business. He would decide whether to put the company into receivership or liquidation.
Anthony Maguire - a director of Branvard Limited which took over the club in 1996 - told the High Court yesterday that the club had become an institution for successive generations of Dubliners. He added that it had a reputation internationally and domestically not rivalled by any other Irish team.
The club maintains its financial troubles are due to a lack of a permanent home ground. It was based at Glenmalure Park in Milltown until 1987 but since then has been unable to secure new grounds. It currently rents Dalymount Park from Bohemians at a cost of €60,000 a year.
Mr Maguire explained that the club's long-time home ground at Glenmalure Park had been owned by members of the Kilcoyne family who - despite fierce opposition from fans - sold it for development.
The appointment of an interim examiner was supported by the 400 Club, a fund created by Rovers supporters to contribute an agreed annual amount to help the club. Plans to relocate to a new facility at Tallaght have bogged down in planning difficulties and the club has now broached the possibility of moving to Morton Stadium in Santry instead.
However, the club may have contributed to its own difficulties. The court heard that a practice existed whereby it appeared that players had been paid mileage expenses even though transport was provided by the club.
The club has also failed to meet payments to the Revenue Commissioners, who are owed €540,000in PAYE and PRSI arrears, and could lose the right to play in the Eircom League.
The agreement involved payments of €50,000 on December 1, 2004, followed by 20 payments of €18,500 a month commencing at the end of March 2005 and culminating in a final payment of €144,980.
The agreement with the Revenue had been put in place to enable the club to obtain a Tax Clearance Certificate - without which it cannot play in the League.
Various suppliers have issued legal proceedings against the club, as has a former manager who was awarded €30,500 in the Circuit Court after taking an unfair dismissal case.
However, the final whistle may not have sounded just yet for Shamrock Rovers.
An independent accountant believed it had a reasonable prospect of survival if four conditions were met. These include securing a long term home ground, successful completion of negotiations to restructure the company's debts, acceptance of a scheme of arrangement and the appointment of a full-time commercial manager to procure revenue and sponsorship.
Mr Justice Peter Kelly said yesterday he would refuse Branvard's application as there was insufficient evidence showing the company's ability to secure a "neutral" home ground at Morton Stadium in Santry. He also wished the Revenue Commissioners to have an opportunity to be heard on the application.
On that basis, Mr Justice Kelly refused the application but adjourned it to today to allow the club to furnish further evidence on the Morton Stadium option and to allow the Revenue to be represented.
Breda Heffernan
and John Maddock
© Irish Independent
http://www.unison.ie/irish_independent/ & http://www.unison.ie/
Rovers granted examinership
Rovers granted examinership
12/04/2005 - 3:49:04 PM
Shamrock Rovers have been granted a court-approved examinership in a move which the club hopes will end their crippling financial problems.
Branvard, trading as Shamrock Rovers, applied for the examinership – a provision in law to allow a company to suspend the payment of all debts, but continue trading, while a rescue package is put in place - last week.
It was believed by the majority associated with the club that the proposal was one of the few remaining options to keep the club in business, as they struggle with €2.3m debts and no fixed assets.
An independent investigation of the club’s accounts revealed that Branvard were financially insolvent and, if the examinership bid failed, could have faced liquidation.
But Mr Justice Peter Kelly allowed the examinership after seeking assurances that the club are looking for a long-term lease on Morton Stadium in Santry and will not renege on a payment schedule agreed with the Revenue Commissioners.
Mr Neil Hughes has been appointed examiner and he will start work immediately while the Shamrock Rovers’ supporters’ trust, the 400 club, will bankroll the day-to-day running of the club.
http://www.breakingnews.ie/2005/04/12/story197750.html#
Shamrock Rovers Examinership Thread
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