Bohs in financial trouble

**dcfcsteve** · 29/08/2010, 2:51 AM

Originally Posted by Model Club

Whatever about Kildare which imo was a failed experiment,St Francis(albeit in junior football),Kilkenny(E.M.F.A.) and especially Jame's Gate all had a decent history or at least enough not to be regarded as "anonymous outfits".

Someone should have told that to the soccer going public in Kilkenny and Dublin then....

History Schmistory - the 3 clubs had dreadful crowds, which showed that no-one really cared. They certainly didn't care enough to try to save them. Francis and Gate in particular are missed by no-one (except perhaps SoccerC... ).

Model Club · 29/08/2010, 1:22 PM

Originally Posted by dcfcsteve

Someone should have told that to the soccer going public in Kilkenny and Dublin then....

History Schmistory - the 3 clubs had dreadful crowds, which showed that no-one really cared. They certainly didn't care enough to try to save them. Francis and Gate in particular are missed by no-one (except perhaps SoccerC... ).

Your first point could be relevent for every city,town,hamlet in the country.No club can say they are happy with attendances-Some are just less bad than others.
I agree on your second point I just felf it historically unfair to put Kildare in with clubs who at least had a history or at least a few at one stage who gave a damn!

Dont dis history steve.For some football fans its all we have

**dcfcsteve** · 30/08/2010, 1:39 AM

Originally Posted by Model Club

Your first point could be relevent for every city,town,hamlet in the country.No club can say they are happy with attendances-Some are just less bad than others.
I agree on your second point I just felf it historically unfair to put Kildare in with clubs who at least had a history or at least a few at one stage who gave a damn!

Dont dis history steve.For some football fans its all we have

I'll never diss history MC ! I'm just not convinced St Francis or Kilkenny City had much of it to speak of

**Spudulika** · 30/08/2010, 4:45 AM

The biggest mistake St. Francis did was be bullied/enticed/lured into the LOI, they were a solid club with good fan base and realistic ambitions, far too good for the LOI. Kilkenny is a good football town but just didn't have the numbers to make it work, it shows now when there is still abundant football there that it may have worked somehow. Kildare County showed that just because there's lots of football being played locally doesn't mean that there will be a transition into pro or semi-pro football. I remember playing against Kildare schoolboy teams and while they were rough as sandpaper, they were fanatical, same up in the Junior ranks, but there seemed to be a disconnect when County kicked off. It at least dampened the calls for LOI teams to be put in Navan and Mullingar, for now!

**peadar1987** · 30/08/2010, 2:36 PM

Originally Posted by pineapple stu

Shels got loads of coverage when they played Depor. What good did that do the league?

European progression as a panacea is very much overrated.

Something doesn't have to be a panacea to be of benefit though. European progression won't hurt the league so long as the clubs don't run themselves into the ground chasing it

**pineapple stu** · 30/08/2010, 2:46 PM

No, that's true. Its benefits get way overstated though. I'll claim poetic licence on that one.

Model Club · 30/08/2010, 3:23 PM

Originally Posted by Spudulika

The biggest mistake St. Francis did was be bullied/enticed/lured into the LOI, they were a solid club with good fan base and realistic ambitions, far too good for the LOI. Kilkenny is a good football town but just didn't have the numbers to make it work, it shows now when there is still abundant football there that it may have worked somehow. Kildare County showed that just because there's lots of football being played locally doesn't mean that there will be a transition into pro or semi-pro football. I remember playing against Kildare schoolboy teams and while they were rough as sandpaper, they were fanatical, same up in the Junior ranks, but there seemed to be a disconnect when County kicked off. It at least dampened the calls for LOI teams to be put in Navan and Mullingar, for now!

Great post Spudulika!

I had a soft spot for Francis since my old man used to ref the AUL and they seemed to sweep up every trophy possible for years.
The also wore the right colours and when the won a certain semi-final in 1990,well..........How could a Rovers fan not like them.

Then they sold their soul to Pats and the rest is...................

**Roo69** · 30/08/2010, 3:31 PM

Originally Posted by Lim till i die

EVERY club, bar maybe Monaghan, will invariably bring the game into disrepute a half dozen or so times each per season.

False.

I would say in their entire history UCD have not brought the game into dispreute half a dozen times, Bray wouldn't be far off it either in their history. Several other clubs go about their business in correct manner too and are never in the news making the wrong headlines or invariably bring the game into disrepute a half dozen or so times each per season as stated.

**Spudulika** · 06/09/2010, 2:54 PM

Originally Posted by Model Club

Great post Spudulika!

I had a soft spot for Francis since my old man used to ref the AUL and they seemed to sweep up every trophy possible for years.
The also wore the right colours and when the won a certain semi-final in 1990,well..........How could a Rovers fan not like them.

Then they sold their soul to Pats and the rest is...................

Thanks Model Club, St. Francis should never have come into the league, they were like some team from the North that I cannot for the life of me remember their name, they're amateur or semi-pro and really strong below IL level, but they've knocked back invites to step up into the top ranks as they just don't want to risk it financially. St. Francis are still going, and there are lots of other sides like them who could have done a job in the league but held back (thank goodness Ashtownvilla, as they were then, didn't jump into the LOI, though I still wish Tolka Rovers had taken a chance in the late 80's when they had a few of the Dubs playing for them).

**pineapple stu** · 06/09/2010, 3:21 PM

Bohs' accounts have been filed with the CRO. The highlights -

Loss for last season of E1.9m (compared to 2008 of E1.1m). The main difference is not getting any money from the sale of the property.
Wages for players are down E250k on 2008, and are 66% of turnover - E1.7m compared to turnover of E2.5m. Wages for management and technical staff were up E10k to E435k. I thought this was being brought under the SCP last year?
Staff numbers rose from 36 to 41; an extra 3 players, 6 admin staff and 4 fewer coaches
Income is up E500k - E200k extra prize money, E140k extra from gate receipts and E200k extra from commercial activities including sponsorship and, I think, transfer fee receipts of E100k (other operating income was down E60k). This doesn't count income from the sale of Dalyer, which went from E1m to E150k
Short-term creditors rose E800k, pretty much all of which went to trade creditors, which were E1.4m at the year end.
Long-term creditors - the Zurich bank loan - rose E800k in the year. They owed E400k of PAYE at the year end, which could well be just the annual P30. But basically they've funded the year by borrowing more from Zurich, not paying creditors and seeing cash reduce from E350k to E75k.
There was a legal bill of E820k
Bank interest was E130k (down from 140k last year). Zurich interest was up E50k; investor loans interest was down E35k to nil, while interest on overdue tax was down E20k to E10k.
Cost of running the underage teams rose by E40k to E170k
Bar wages were down E10k to E95k
Bad debts were E40k (E35k last year). Sundry costs were E70k (E35k last year). Audit was E28k (same as last year). Repairs were E85k (E37k last year). Medical expenses were E95k (E83k last year). Player and staff kits cost E21k (E35k last year). Still seems to be some serious cost-pruning doable.

There's a note that the millions Danninger have paid to date are non-refundable and suggests Bohs could sue for moneys outstanding (good luck with sueing an insolvent company). It also says that "The directors have prepared detailed budgets and forecasts for 2009/10 which have been submitted to the FAI for licencing requirements. Their proposed strategy to increase expansion of the club in European competitions, while cutting costs, with specific focus on player costs, will allow Bohemians to remain viable and become profitable within 1-2 years". So that's out the window straight away.

Another note - "The directors are confident that there is sufficient working capital ability in long-term loans to bridge the gap that will fall in the short-term" - so they plan to continue borrowing more money from Zurich.

So leaving aside the legal fee, they still lost E1m in the year. 2010 can't see a massive improvement income-wise (lost to TNS v lost to Salzburg at the first hurdle in Europe) and they don't look like winning the league, so even allowing for cutting wages a lot, you're looking at a conservative loss of E750k for this year.

Goodnight Bohs.

**Mr A** · 06/09/2010, 3:30 PM

Pretty grim reading there. Some serious legal fees.. especially when I don't remember winning any of their cases.

I think the coaches and management didn't come under the SCP until this year though.

It would be interesting to know what the terms of the contract with Danninger were with regard to Bohs being able to make a new deal now that a payment has been missed.

**Roo69** · 06/09/2010, 3:38 PM

Originally Posted by pineapple stu

Goodnight Bohs.

Premier Division.... here we stay

**pineapple stu** · 06/09/2010, 3:51 PM

On reflection, I'd say the trade creditors are way up cos they haven't paid the legal fees yet.

Originally Posted by Mr A

It would be interesting to know what the terms of the contract with Danninger were with regard to Bohs being able to make a new deal now that a payment has been missed.

From the Directors' Report - "A contract for an option to buy Dalymount Park has been entered into by BFC in Dec 2009. This will generate income in the coming year and ensure that should Danninger not be able to fulfil on the sale agreement entered into in 2007, that BFC will be in a position to re-sell".

Also says "These moneys [those received from Albion which meant they lost the court case] are currently being repaid by BFC, thus ensuring that the Danninger sale can go ahead."

So their plan seems to be to undo everything done so far and go ahead with either the Danninger deal or a new deal if Danninger go belly up.

You have to take notes like that with a pinch of salt though, as they're purely from Bohs' side and I recall previous notes saying that the directors considered it unlikely they'd lose the court case.

Edit - another classic from the Directors' Report - "The effects of the economic downturn continue to be experienced, which presents challenges to all businesses and this club is no exception. [...] Given the economic situation of the past 12 months, we feel that the actions undertaken to increase income and reduce costs has helped cushion BFC from some of the detrimental market downturn." So it's mostly the recession's fault.

**Mr A** · 06/09/2010, 3:53 PM

Cheers for that. Is there a figure for total debts?

Also,... Bohs must have some serious youth teams for that sort of money....

**Schumi** · 06/09/2010, 3:55 PM

Originally Posted by pineapple stu

Wages for players are down E250k on 2008, and are 66% of turnover

How is this allowed?

**Celdrog** · 06/09/2010, 3:55 PM

Originally Posted by pineapple stu

[*]Wages for players are down E250k on 2008, and are 66% of turnover - E1.7m compared to turnover of E2.5m.

So, they have admitted that they breached the 65% SCP

**pineapple stu** · 06/09/2010, 3:59 PM

Actually, I'd say the E150k from the buy-back and sale of the same piece of land was added to the turnover figure, giving an SCP % of 62.7%.

On Mr A's total debts question, they owe just over E5m.

Edit - the accounts in full are on imageshack linked through the Rovers forum (where else?

).

**Mario** · 06/09/2010, 4:04 PM

>Cost of running the underage teams rose by E40k to E170k

Great to see Bohs willing to invest so much money into their schoolboy set-up

Isn't that one of the suspicious points Rovers raised at the end of last season, or was that relating to the previous set of account? I am getting confused now ...

Mario

**Spudulika** · 06/09/2010, 4:05 PM

Good to see they've increased spend on the underage structure, scared to see the level of legal fees they have, worried about how this will all turn out. I can't see them going under, however not winning the league this year could be one of the best things that has happened to them. However the loss in potential revenue will be large, I'm not 100% on what the most recent figure is, but don't all league winners receive 350k before they kick a ball? If this is the case then they've got another large lump to get rid of from teh wage bill.

**pineapple stu** · 06/09/2010, 4:09 PM

Prize money last year was E625k. I think it's about E250k for winning the league, and something like E150k for second and E100k for third? So there's E150k gone straight away, plus then less prize money for UEFA Cup v Champions' League. So if they come third this year, you could maybe take E250k off their income straight off.