GUST apply for first division licence

**Dodge** · 05/01/2012, 1:16 PM

Cork received no footballing punishment. They folded.

The new club applied for a license and received a first division one, and then bought the rights to the old club

EXACTLY the same deal that GUST are looking for

**Charlie Darwin** · 05/01/2012, 1:19 PM

Originally Posted by Louth4sam

But I'm not bankrupt. I Just change my name and claim I've just been born. I can now go and buy another house whilst you are still in debt and paying legacy house prices. I then buy my old name and life back in a years time.

This does not happen in the real world does it?

I get you - the metaphor doesn't extend that far because Galway spent the money on salaries for players rather than on property. If they'd used the money to buy Terryland, it would be repossessed and sold, so they'd still have nothing. The general point I was making is that Galway have nothing to show for their years of borrowing and spending. All it's done is make them a far smaller club than they would have been had they plotted a sustainable course.

Originally Posted by Sean South

But would it be fair he got to keep his big house with the debt wiped off and you still pay for yours?

It was a limited metaphor - I didn't mean for it to be dragged out this far! My basic point was that it's not a "reward." They've gained absolutely nothing from their decision to borrow too much money.

Originally Posted by Dodge

McDonnell's a Dundalk man, and to be fair, the vast majority of the Irish media were generous in their praise for ROvers great achievments. One columnist in the indo, aside

One part-owner of Shamrock Rovers no less! Who seems to have finally decided he's going to go back to supporting his hometown club again.

**geezer** · 05/01/2012, 1:21 PM

in their wisdom the directors who held that licence up to 31st of december 2011 just havent aplied for a licence to play LOI for 2012, The community spearheaded by gust is trying apply to have a licence given to the community. 1. so a club representing the city and county continues and is what the majority want and 2. To sop Terryland which cost 3million to develop becoming a ghost venue

**Louth4sam** · 05/01/2012, 1:42 PM

Originally Posted by Charlie Darwin

The general point I was making is that Galway have nothing to show for their years of borrowing and spending. All it's done is make them a far smaller club than they would have been had they plotted a sustainable course.

But neither have Bray. It's quite possible that a club called Galway United with the same crest, history etc could be in the premier league in two seasons debt free in a far stronger position than a club like Bray that is honouring it's debt.

The problem isn't a new club forming it's claiming they are the same club as the previous one that folded.

**Charlie Darwin** · 05/01/2012, 1:57 PM

Originally Posted by Louth4sam

But neither have Bray. It's quite possible that a club called Galway United with the same crest, history etc could be in the premier league in two seasons debt free in a far stronger position than a club like Bray that is honouring it's debt.

The problem isn't a new club forming it's claiming they are the same club as the previous one that folded.

Do Bray own or lease the Carlisle Grounds? I don't know. Either way, they have Premier League status to show for their prudence, although a club that small would never have been able to borrow on the scale that Galway did anyway. If they could have, maybe they would have, but we'll never know.

**Dodge** · 05/01/2012, 1:59 PM

Bit harsh to suggest the only thing stopping Bray from being in massive debt is their size in fairness.

**Dodge** · 05/01/2012, 2:00 PM

Originally Posted by geezer

in their wisdom the directors who held that licence up to 31st of december 2011 just havent aplied for a licence to play LOI for 2012, The community spearheaded by gust is trying apply to have a licence given to the community. 1. so a club representing the city and county continues and is what the majority want and 2. To sop Terryland which cost 3million to develop becoming a ghost venue

Have you plans to call the team Galway United or will you market the club as a new club?

**marinobohs** · 05/01/2012, 2:10 PM

Originally Posted by Dodge

McDonnell's a Dundalk man, and to be fair, the vast majority of the Irish media were generous in their praise for ROvers great achievments. One columnist in the indo, aside

....presumably only that Hoop cheerleader in the Herald should be allowed write about LOI now

Little will change on the issue of clubs going bankrupt unless the FAI impose strong deterents/penalties. Managers, fans and boards (fans or private directors) will always push "to take the next step up" (blind, usually unfounded, optimism or not). More often than not, as we have seen, this ends in tears but until there is more serious sanction than 1/2 years in the 1st Division it will continue.

The FAI have to be more proactive (bearing in mind the difficulties Galway had getting a licence surely there should have been regular checks ? ) to maintain what remains of the LOI credibility.

**Macy** · 05/01/2012, 2:37 PM

I really don't see the issue with what GUST are doing. They, wrongly in the circumstances in my opinion, tried to save the club for over a year and could see it wasn't sustainable. My issue is the ease at which the "new" clubs suddenly take on the name and history of the "old" club. This may or may not happen with Galway United.

Equating criticism of this approach with a general attitude to failure is a load of crap. Companies do have a route out of failure, called examinership, as several clubs have shown in recent years. However, for companies (and therefore clubs) with assets (grounds) it isn't as attractive, so they have no choice but to pay debts.

**passerrby** · 05/01/2012, 2:38 PM

Interesting thread but the bottom line for me is that Galway must receive a sanction from the league for **** management and changing the owners/directors should not in any way let that sanction pass

**Charlie Darwin** · 05/01/2012, 2:46 PM

Is there a precedent for docking points for this kind of situation? In the world, I mean. That could be an appropriate deterrent - more so than denying the club a license at least.

**derm** · 05/01/2012, 2:50 PM

Originally Posted by gufc2000

You make it sound like what ye did was honourable.

Technically ye were relegated that year, because everyone got bunked up one place when ye were discounted.

Originally Posted by Dodge

Cork received no footballing punishment. They folded.

The new club applied for a license and received a first division one, and then bought the rights to the old club

EXACTLY the same deal that GUST are looking for

Not quite. FORAS applied for an A-division licence as a fall-back position when it looked obvious that TNB was going to run the club into the ground. The FAI encouraged them to upgrade to a first division licence. FORAS found backers / new owners and attempted to buy the club from TNB including the debt. Many members argued for starting a new fully-owned, fan-run debt-free club but the majority felt it was unfair on the creditors and voted to save the club with a minority ownership stake. However TNB played hardball and by the time the deal was concluded the FAI told them there was no time to get what was required to apply for a prem licence.

The backers were only interested in a premier division club so CCFC was essentially wound up. Every effort was made to do the "honourable" thing but in the end it just wasn't feasible. The stated aim of FORAS is to ensure the survival of Cork City FC which is why the rights were bought asap. It wasn't the preferred option, it was the only one left.

I'm unsure of all of the details of GUST and GUFC so I can't comment on whether or not the honourable thing is being done in this case.

**Louth4sam** · 05/01/2012, 2:53 PM

Originally Posted by passerrby

Interesting thread but the bottom line for me is that Galway must receive a sanction from the league for **** management and changing the owners/directors should not in any way let that sanction pass

Sanction whom, Galway United who no longer play football or GUST FC who claim to be a new club?

**bluewhitearmy** · 05/01/2012, 2:56 PM

Originally Posted by Charlie Darwin

Is there a precedent for docking points for this kind of situation? In the world, I mean. That could be an appropriate deterrent - more so than denying the club a license at least.

Could do what they did to Leeds when they went into administration when they had already been relegated and dock em 15 points the next season.

**Louth4sam** · 05/01/2012, 2:56 PM

Originally Posted by Charlie Darwin

Is there a precedent for docking points for this kind of situation? In the world, I mean. That could be an appropriate deterrent - more so than denying the club a license at least.

If a club is already in the first division or safe in the premier division. Dropping a few points for the sake of a few hundred thousand Euro couldn't be called an appropriate deterrent.

**Dodge** · 05/01/2012, 3:02 PM

Originally Posted by Charlie Darwin

Is there a precedent for docking points for this kind of situation? In the world, I mean. That could be an appropriate deterrent - more so than denying the club a license at least.

You can't dock a new club points.

**Mr A** · 05/01/2012, 3:07 PM

Then maybe the deduction should come at the point where new entities acquire the previous one's history.

**Louth4sam** · 05/01/2012, 3:22 PM

Originally Posted by Mr A

Then maybe the deduction should come at the point where new entities acquire the previous one's history.

I really don't think that is much of a deterrent either. If Cork got a point deduction the season they bought the history, crest etc it wouldn't have made much difference as they were not going to get promoted anyway.

If a new entity wants to acquire the previous ones's history it should also acquire it's debts by default.

**daithifla** · 05/01/2012, 3:25 PM

GUST done everything in its power to continue on under GUFC. If we were planning this all along we would have had our license application in long ago. We were left with no alternative but to apply for a license as GUST FC in order to make sure that Galway city and county had a team to support for 2012 season. We are not running away from the debt. We are going to honour the debt we accurred last season when running GUFC. We don't have to do this but we feel that we ran up the debt and we are morally obligued to do this. That debt is small. The bank debts are director guaranteed and that company has not folded and the directors are not running away from this either we hear. Until that company goes out of business all creditors can still be paid. A license application was lodged under GUFC and the directors decided to withdraw this application.

**passerrby** · 05/01/2012, 4:04 PM

Simple Louth if a new entity is looking to carry on the franchise then they must take a sanction if it's a whole new club then they must come from the lower leagues and not from a reconstructed management . This is not meant as a dig a Galway but the league as a whole