Delaney: Eight clubs made profit

[A face]

Delaney: Eight clubs made profit


FAI chief executive John Delaney was staunch in the face of recent criticism over the association's handling of club expenditure and yesterday reiterated that eight League of Ireland clubs were profitable last year. Delaney made the claim as the dust was still settling on a turbulent season during which two Premier League clubs entered court-appointed examinership, three more made pleas for public fund-raising and numerous others endured severe financial difficulties.

He also said he would welcome an end to confidentiality agreements which prevent clubs from releasing details of their finances to the general public, as pressure mounts over the state of the domestic league. Speaking at a press conference announcing Newstalk as a top-tier sponsor for the League of Ireland, Delaney said: "Last season was in some respects difficult, but there were also a number of positives.


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[bigmac]

Hard to believe, but he also said

Now, in one or two cases that is in terms of director's contributions, so the difference there is that if they make those contributions, they can't take it back out.

For one or two, read four or five. It looks to me like clubs are making a loss, a director is covering the loss (plus €1 maybe??) and Delaney is presenting the club as making a profit....

Technically correct, but distorting the reality.

[Ezeikial]

Any informed specualtion as to who are the Golden Eight?

Delaney is quoted as saying that one or two clubs relied on directors contributions - so 6 special ones then who are completely self-financing???

[HammerNThongs]

If he's going by Director contributions, it could be anyone who didnt go into Examinership basically.

Sporting Fingal so I guess??? UCD maybe?

[Dodge]

But those trying to make out that all clubs who made a loss are in trouble are just as guilty of distorting reality, and probably doing more harm.

[pineapple stu]

UCD maybe?

Nope. In the sub E50k loss band.

[oldyouth]

Any informed specualtion as to who are the Golden Eight?

Delaney is quoted as saying that one or two clubs relied on directors contributions - so 6 special ones then who are completely self-financing???

Significant shortfall for us last year but a lot of it down to capital expenditure.

[Black and White]

Ill muster a guess...id go with Dundalk, Wexford, Shels, Limerick, Fingal, Sligo(I know they had cash flow problems etc but this is over the trading yera for them), Pats(same as Sligo reason and Kildare?!if not some of these throw in Monaghan!!

[pineapple stu]

Significant shortfall for us last year but a lot of it down to capital expenditure.

Capital expenditure doesn't count in the P&L.

[LeixlipRed]

We made a 70k loss last season so it's not us.

[pineapple stu]

Don't think anyone thought it was, in fairness.

[oldyouth]

Capital expenditure doesn't count in the P&L.

But do loan repayments which financed the capital expenditure??

[Buile Shuibhne]

Nope. In the sub E50k loss band.

In the 'The Final Premier Division Spot' thread - you said this:

As an example, every club bar us and Shamrock Rovers had some sort of financial problem last year, be it asking players to take wage cuts, not paying bills, massive cut backs for 2009, etc....

Is losing sub E50k not classed as some sort of financial problem?



In relation to Shels- at a fans forum last Feb, the board told the supporters that the budget for the season ahead would likely fall short of 70k and that it would be made up by drawing down 70K from the sale of Tolka Park.

Technically speaking does this qualify as a loss - i.e an asset was sold to balance the books?

[Dodge]

Is losing sub E50k not classed as some sort of financial problem?

Either UCD are guilty of the dreaded "overspending" or the even worse "optimistic budgeting"

I couldn't even begin to believe they'd be guilty of deliberately trying to deceive anyone

[pete]

Delaney should never have used the term profit. He should have said surplus. You can't say a Director donation makes a club profitable.

[bigmac]

Is losing sub E50k not classed as some sort of financial problem?

Sub 50K gives a wide range to play with...

49K loss = financial problem
€500 loss = not a financial problem

[Longfordian]

We are also one of those clubs in the sub 50k loss bracket. Hence a reduced playing budget this year.

[MariborKev]

Derry aren't one of the profitable ones either.

[pineapple stu]

We're a good way sub E50k. And have cut back our 2009 budget this to make up the gap.

Every other Premier club has either asked players to take pay cuts, gone into examinership, had urgent fire sales of players or asked fans to raise lots of cash. That's a financial problem. Losing a few grand isn't. Though I'm sure you know that and are just looking for a row.

Interesting that you refer to a E70k loss as "modest", yet Delaney's figures show put you in the bottom half in terms of 2009 results. Not sure how you reconcile that, even allowing for the holes in the statement as pointed out.

But do loan repayments which financed the capital expenditure??

Nope. Loan interest, yes. Depreciation, yes, but land and buildings tend not to be depreciated. It harks back to the olden days when such items kept their value.

[Buile Shuibhne]

Interesting that you refer to a E70k loss as "modest", yet Delaney's figures show put you in the bottom half in terms of 2009 results. Not sure how you reconcile that, even allowing for the holes in the statement as pointed out.

I don't understand the above?

Did Delaney publish figures - are they available online?

What holes, in what statement, pointed out by who/where?