Former owner 'surprised' over Limerick FC licence
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BARELY TWO years after he announced at Punch’s hotel in Limerick that the challenge of turning the city’s League of Ireland football club around “excited” him, New Jersey lawyer Jack McCarthy has expressed his “total surprise” at discovering this week that Limerick FC’s FAI licence for the coming season has been granted to a company other than the one he has invested €280,000 in, and still owns the majority of, without him being told.
The case appears to raise new questions about the club licensing system as the process to initiate a liquidation of the company McCarthy was involved with appears to have been commenced and its only significant asset, the club and its licence, taken over by another company without, it seems, McCarthy knowing.
McCarthy, who became involved after asking FAI chief executive John Delaney to recommend good investment opportunities in the game here, is considering how to react to a move which he says was taken entirely without his knowledge. He acknowledges that the club, which was formally owned by a company called Limerick Thirty Seven FC Ltd (LTSFC), had ongoing financial problems, that local businessman Pat O’Sullivan had taken over the funding of it and that liquidation had been “an option” they had discussed last summer but maintains that no formal decisions were ever made by the company or its members, which include a number of other much smaller shareholders. Late last year, the pair exchanged correspondence through their legal representatives about a buyout of McCarthy’s investment which, in accordance with FAI regulations, had been made in the form of equity.
A spokesman for the club said last night that McCarthy had indicated his agreement to the company being liquidated in one of these letters but the American denies this, insisting that he had merely indicated that O’Sullivan might have to take that course of action if agreement regarding a purchase price for his shares could not be reached. “It’s one thing to say that we might have to liquidate when two guys are talking about figures,” he said. “It’s another to say to one of the guys afterwards that you’ve just gone ahead and done it. I didn’t see that I was authorising that action.”
LTSFC had held the licence for League of Ireland football in the city during McCarthy’s time in charge with the American taking over and paying off almost €200,000 in debt before providing close to €100,000 more in order to keep the club afloat.
O’Sullivan became heavily involved during the course of last summer when McCarthy stated publicly that he could no longer afford to subsidise the club himself. McCarthy subsequently resigned as a director but the pair had an agreement that their respective shares in the company would continue to be linked to the amount of money they put in. In the most recent documents registered with the Companies Office, the holdings are listed as 63.18 per cent and 29.95 per cent respectively. But Limerick’s licence application was subsequently made by a different company, Munster Football Club Ltd.
A spokesman for the club said that this was done because nobody would agree to become a second director of LTSFC and this threatened to fatally undermine any licence application it made. O’Sullivan and a member of his family are the only registered directors of the new company.
The FAI says that the licence was granted because the new company had guaranteed all of the debts of the previous company and a spokesman for the club said last night that all trade creditors will be paid by the new company. Both say that company law was adhered to.
“I’m disappointed that there wasn’t more transparency and communication,” said McCarthy last night.
“I put a lot of my heart and a lot of my money into the club and I did hope that there might be some future involvement but I feel now like eaten bread is soon forgotten.”
Its sounds worrying at first but by the end of that article it seems nothing wrong legally has been done but McCarthy is just disappointed he is not involved with the club anymore and it seemed to happen without him knowing. I don't know if this could go further but it doesn't seem like it will.
No story here Pat o Sullivan took over the club. McCarthy can be dissapointed all he wants we nearly folded under him last year.
Last edited by bluewhitearmy; 26/02/2010 at 8:58 AM.
"No story here"Johnny cochrane speaks.Originally Posted by bluewhitearmy
Yep im Johnny Cochrane and your the mental case at the corner with the sign saying "The end is coming"
It may very well be!
would'nt you be the happy bitter camper.
"We've had a lot of good times, but you don't know how good they are until you have the bad ones" Tony Adams
Yep after the huge controversy of Limerick doing something that is not illegal and that the FAI have said is fine we are going to come to an end.
Story looks more like a poor attempt by the Irish Times to stir up more noise about the FAI's licensing than anything.....which surprises me a little to be honest.
For my own curiosity...does this mean Jack McCarthy is completely gone, or is he still around by virture of owning some equity in the new company? Its not really important either way.
Much better than listening to the Profit of Doom.
You'd think at your age you would stop hanging around internet forum looking for any signs of cracks. It must have been a very bitter few months for you and I understand your fustration but if you hang on long enough theres surely something that will come up that will fulfill your needs. This is Limerick soccer and the next meltdown is only around the corner. In the meantime go watch some porn or something.
Limerickleader report
LIMERICK FC have moved swiftly to diffuse any potential fall-out from an article which appeared in Friday's Irish Times in which Jack McCarthy expressed his "total surprise" at discovering that the club's licence to participate in the 2010 Airtricity League had been granted to a company other than the one he has invested €280,000 in, and still owns the majority of, without him being consulted.
In the article Jack McCarthy also insisted that the process to initiate a liquidation of the company which he was involved in appears to have been commenced and its only significant asset, the club and its licence, taken over by another company.
The club was contacted by Leader Sport and subsequently released the following statement on Sunday morning: "All trade creditors of Limerick Thirty Seven FC Ltd have been taken on by the new company Munster Football Club Ltd. The majority shareholder of Limerick Thirty Seven FC Ltd. resigned as a director of the company. The remaining director Pat O'Sullivan was unsuccessful in finding a replacement director for Limerick Thirty Seven FC Ltd.
"In order to ensure compliance with company law, a new company was founded.
"The trade creditors from Limerick 37 FC ltd were moved to the new company's balance sheet and a successful licence application was made under this new company which is in compliance with FAI licensing rules. This action was taken in order to ensure the continuation of senior soccer in Limerick. The club at all times have complied with company law and with club licensing requirements. Any insinuation to the contrary is entirely without foundation."
Jack McCarthy has acknowledged that Limerick Thirty Seven FC Ltd (LTSFC) had endured on-going financial difficulties before local businessman Pat O'Sullivan had taken over the funding of it.
Jack McCarthy and Pat O'Sullivan had exchanged correspondence through their legal representatives late last year concerning a possible buyout of McCarthy's investment which, in accordance with FAI regulations, would be made in the form of equity.
LTSFC had held Limerick's licence to play League of Ireland football during McCarthy's time in charge with the American paying off almost €200,000 in debt before investing almost another €100,000.
O'Sullivan became involved in the club last year when McCarthy stated publicly that he could no longer afford to subsidise Limerick FC and McCarthy subsequently resigned as a director of the club.
On Friday last Jack McCarthy said: "I'm disappointed that there wasn't more transparency and communication.
"I put a lot of my heart and a lot of my money into the club and I did hope that there might be some future involvement, but I feel now like eaten bread is soon forgotten"
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