Shelbourne count the cost of future success
Sunday November 21st 2004
http://www.unison.ie/sportsdesk/stor...=12&si=1291494
SEÁN RYAN
THE cost of winning the eircom League of Ireland title has risen dramatically in the past decade - and Shelbourne, who retained the title for the first time in their 109-year history on Friday night, signalled a further rise by signing three of the League's highest earners for next season.
In 1992, when Shelbourne ended a 30-year barren spell with a League victory, it cost the equivalent of €250,000 to run the club, with the players' wages accounting for approximately €112,000 of that. At the time, there were only two full-time players on the staff, and wages were paid for the duration of the playing season, which was roughly 40 weeks.
When Shels completed the League and Cup double in 2000, the cost of running the club had risen to €750,000, there were still only two full-time players, but all staff were paid for the 52 weeks of the year. Players' wages accounted for approximately €528,000 that season.
This season, the cost of running Shelbourne has risen to €1.8m, with players' wages accounting for almost half of that figure. The club has a totally full-time set-up now, with over 20 players plus managers and coaches to be paid.
In what has undoubtedly been the best year in the club's history, incorporating a best-ever performance by an Irish club in European competition, it must be a worry for the directors that gate receipts (excluding the Lansdowne Road game against Deportivo de la Coruna) brought in only €450,000, just 25 per cent of what the club needs to break even.
It is a constant battle for Chief Executive Ollie Byrne, Chairman Finbarr Flood and the other directors to raise the remainder of that €1.8m, but by signing Glen Crowe, Colin Hawkins and Bobby Ryan from their main Dublin rivals Bohemians, they are clearly stating their confidence in the club's future. However, they are not breaking the bank in doing so, for the newcomers' wages are factored into continuing European success.
Shels raised the bar for League of Ireland clubs in Europe by advancing to the third round of the Champions' League and Chairman Flood states: "It is essential that we do that again. Once you have a full-time squad you have to make the breakthrough.
"We have learned an awful lot on the business side as well as the football side from our extended run in Europe this year. The clubs we played have all shared their knowledge with us. And the first thing you learn is the size of the task - it costs €80m to run Deportivo and €35m to run Lille, that's what we were dealing with.
"The most striking thing you learn is that none of the clubs on the continent own their own ground - they are all supplied by the municipal authorities at nominal fees. Lille are having a new ground built for them by the city council. At present, we in Shelbourne are paying for five different places for our teams to play and train in, at a cost of €120,000 a year. If we had one complex for all that it would be a big saving."
Shels have problems with their home ground, Tolka Park, when it comes to the Champions' League games. They had to move the Deportivo game to Lansdowne Road, as Tolka would not have passed UEFA's requirements for a game of that magnitude.
Flood revealed that plans are in train for a move to another stadium.
"The City Council were prepared to give us land in Finglas for a stadium which would have been held in trust for Shelbourne and the council. We would pay for the building from the sale of Tolka Park. Unfortunately, the residents objected to that move.
"We are looking at various options, but want to make a move as soon as possible. The problem with Tolka Park is that we can't increase its capacity, and if you're going to compete at Champions' League level you have to be equipped to do it."
Chief Executive Ollie Byrne emphasised the club's ambitions when he said: "If we advance to the group stages we have a problem with our ground and with our lights. We are hoping to deal with that very very shortly. The indications are that we will be making an announcement before the end of the year."
Shelbourne director Martin Fitzpatrick, who is also the business correspondent of this paper, makes a good case for investment in his club.
"If properly supported and properly managed, a League of Ireland club could be a very interesting business. Shels' experience shows that if you are a venture capitalist and want an off the wall investment, you couldn't go far wrong with a League of Ireland club, especially one guaranteed European football. The risks aren't all that high.
"An investment of €2m - €3m would guarantee success in the League and European football. Then you only need three wins and you're in the knock-out stages of the Champions' League or the UEFA Cup, which would guarantee a €5m return.
"The payback for the investment involved is very short term, which is crucial for financiers. The risk/reward ratio in League of Ireland football is thus potentially very high."
However, while the hope of a venture capitalist throwing in his lot with the club is greater than the expectation, the directors have to get on with raising that €1.8m which will keep the Reds afloat in 2005.
That means a lot of hard work in the months ahead, especially when there is no income from football. Raffles, dog nights, golf classics and a dinner at which Bobby Robson is guest speaker are all planned. The two bars at Tolka Park will tick over, there will also be rental income from the ground itself, sponsorship money and season ticket sales. It's a hard slog.
The rewards for being champions of the League are not as great as might be expected. The prize money from eircom amounts to €18,000, and there is also a guarantee of TV income as part of an agreement with a continental TV company which takes an option on Shels' European games.
Of more immediate importance is UEFA's contribution, which is due in December. For qualifying for the Champions' League in 2004, Shels receive 150,000 Swiss Francs, plus 80,000 Swiss Francs for each of the four rounds of competition in which they participated. This amounts to a welcome Christmas windfall of €300,000.
A meeting to outline the plans for the future of Shelbourne FC has been arranged for Tolka Park on Thursday, November 25 (8.0) to which all the club's fans have been invited. It should be an interesting evening.
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