Rico just did an interview on Red FM and said how Shels (and other Dublin clubs) are spending silly money, money that they don't have in order to try and achieve success.
He said he will not get drawn into this as he does not want to see any clubs go out of business.
Champions!
If any club spending money they don't have to a signifcant level, the new guidelines, whenever the FAI enlightens us as to what they are, should put them in the first division. Something tells me that that'll suddenly be swept under the carpet though....
There's a difference between a club spending money it doesn't have, and spending money in an unsustainable way. Both are bad, but only one will fall foul of the Licensing.
Spending money you don't have involves 'borrowing' - whether directly through traditional channels, or indirectly by failing to pay your creditors. Licensing will rightly stamp this out, as it is very poor financial management.
Spending money in an unsustainable way may well involve money you 'have' in the bank. However - it is money you have by virtue of the generosity of individuals etc. Because the continuance of this income is outside of the club's control, it is unsustainable to rely upon it to any significant degree. However - licensing can't and won't throw you out of the league for spending money that the club itself didn't directly generate through its commercial activities. Nonetheless, it is still very dangerous for clubs to be reliant on this type of income beyond the short-to-medium term, though we have a number of such in the league.
So the question with Shels is - are they borrowing their money, or just overly dependent upon the generosity of a few individuals ?
Well I think its foolish of Rico to come out saying that if he doesnt have the balls to back it up...
Either do something about it or shut up..
John Delaney!! GET OUT!!!
www.ssdg.ie
typical head in sand response.Originally Posted by higgins
he has done something about it, gone public.
Well i'm not suprised he said this because its probably true bar shels. Derry hardly invested in their squad and suffered from relegation dogfights to secure a premier club licensing and look how stable our club is financially now with a good manager. Onwards and Upwards we are going!
I would imagine that all clubs spend money they don't have at some point.
One only has to look at any club round the league and look at the number of "fundraising" drives we are all running to see that the clubs are not financially viable on the basis of crowds alone/
Hardly a surprise to anyone. If anyone really thinks that Bohs/Rovers/Shels/Pats in recent years were spending only the money they generated were crazy. Pats seemed to learn first, Rovers next sadly us and Shels keep doing it. Still all bubbles burst in the end
Ours has just lasted well over a decade and counting....
Shels clearly have more benefactors than most clubs & more importantly these benefactors stay the course in the long term.
I wonder what percentage of income most clubs in the league generate from their own resources?
But is that money they don't have, but expect to get/generate (hence the ongoing fundraising initiatives) or money that's being spent on a complete wing and a prayer - with no solid plans for how it can be repaid ?
Money has to come from somewhere, and I doubt that many of our clubs have generous debt-agreements with their banks. That suggests benefactors are the main source for the clubs who's expenditure-to-attendances ratio is way out of line (e.g. Shels and CHF). But that would have no negative impact upon their licensing status.
Would you ever get over your Dublin City fixation
Recent examples of overspending would be Waterford & Shamrock Rovers who while they don't seem to have large bank debts owed a lot of money in private loans from Directors. IMO Directors who loan money to clubs they running are not entitled to anything.
Fenlon spoke last year of "speculating to accumulating" so this isn't news. Every knows Shels budgeted for further euro progression hence several players being hawked around the league now as thye bid to cut costs.
54,321 sold - wws will never die - ***
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The diference between money & exposure in Inter Toto & Cl is huge even in eL terms. I suppose Shels can handle 1 bad year but failure to at least make Uefa Cup in 2006 season would surely be too much for Shels?
lets hope so
54,321 sold - wws will never die - ***
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New blog if anyone's interested - http://loihistory.wordpress.com/
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I think what Rico was getting at is that Cork City are one of the few clubs doing things above board and that he won't get drawn into Shels game of Russian roulette as he feels it can only lead to clubs going bust.
Champions!
so says every manager who has failed to keep a winning side together
If you're reffering to Waterford here, Pete, you might want to get your facts straight.
Anyway, aren't Shels sitting on a 20 million euro site. So maybe they're just spending money they will have once they start ground sharing, and Rico is just jealous.
Ceci n'est pas une signature
ollie & co. have never kept it a secret that they are takin risks financially based on the hope of making the group stages within 5 years&perhaps this risk is been taken cos he knows they can always sell tolka
"Even if the sun ceases to rise, Even if the sea ceases to flow, Even if the wind stops to blow, The name of Sligo Rovers will shine and shine forever like the morning, glinting star in the sky."
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