But the whole point is any club giving out unsustainable contracts. What club is earning enough off the field to pay 20k a week off season, that is not affected by the teams performance? I can't think of any club that is in that situation. Realistically all clubs need to be earning money every week that will come in whether their top of league or bottom, otherwise its always the rollercaster effect, lads with money put some in, club does well, that stops and then freefall.
and Ronnie that brings me back to my original point - we know drogs are in this situ but I would bet very few clubs are not in some sort of simialr situ even if the figures are dramtically different. Very few here or even in many other countries have income which balances against wages. You point is valid but I really wonder will we ever see clubs matching income with outgoings - just look around europe. football seems t be rules by the heart more than the mind, far too often.
is it fair to say that the only reason investors came in was because of the potential for housing development or are they real fans with a genuine interest in your club
I wish i did not know then what I dont know now
anyhows -its a beautiful evening and I am off to enjoy a few beers in the sun. Wishing you all a good evening and good health - looking forward to tomorrows discussions on other topcs.
Up the el.
Originally Posted by passerrby
whooo - can't leave without replying. I was on the board that took over after our near collaspe and the lads who came in at the time came in to save the club, at that point there was no talk of a new stadium. Our problems atthe time involvedgetting the revenue sorted, clearing the ban on signing players and trying o avoid relegaion. New stadiums were a long long way off. Actually it was only a yea or two ago that we were looking at a stadium on the north side of the town with no houses but the land deal dfell through (apparently). And this recent development seems to be the new strategy (if it works out, well only time will tell).
The 3 main lads were directors before. Our chairman was with the club when it started in 1963, and charman a few times over the years. So it wouldn't be a fiar comment (although I know you only raise it as a question rather than a accusation). They are supporters true and true.
am working till late so drink one for al us plebs
I wish i did not know then what I dont know now
Lads that work in an office spending time on that MB would not constitute most of the support in fairness.
Drogheda 19 or whatever club was set up to replace Drogheda United might use it.
We're not arrogant, we're just better.
why is there somthing wrong with people working in offices on mbs ???
Yeah but no club will get a licence using it.
TO TELL THE TRUTH IS REVOLUTIONARY
The ONLY foot.ie user with a type of logic named after them!
All of this has happened before. All of it will happen again.
Assuming you mean me, I assume Dodge is referring to posts like these -
does not matter, excuses excuses, you made a loss - forget about others and look at your own club - let he who is without sin (probably harps & galwayand maybe Derry) cast the first stone. Your directors ran a club that made a loss. Were there cut backs in the off season, players let go? What action was taken to prevent another loss this year - if there is another loss will heads roll?
PS thanks for your honest answer in stating that you made a loss.Dodge is correct to like Drogs fans to Shels fans. On the (now deleted) thread on the Drogs forum about the stadium problems, a Supporters' Trust was mooted. The only answer anyone posted was that Drogs fans weren't the kind to go in for it.
I think I'll change my sig.
sligo rovers attendances are down to shocking levels this term. IMO its down to the farce of Mcdonald leaving. (or forced out by MC. whichever ur view) . As a result the squad is thin, they've only just appointed a manager. (who IMO wont last long) Our pitch has always been shocking and nothing been done about it. Supporters are ignored. list goes on. we made a profit last year but i would still say the way the MC have undone all their own good work of the past 2 years is pretty reckless. expecting a loss on the books for this year !!!!
if you want to take that as having a go Stu and Dodge then work away. Stu look at the quotes you picked out as so called evidence of me having a go - patectic. I wish you the best of luck in the real world if thats interpretated of "having a go".
Try to have some sort of debate on all clubs in relation to their accounts and I have answered the questions in relation to mine (honesty seems to throw some people off) - and somehow I am accused of having a go at people. I don't tend to get into these personal debates and steer clear - in the past I use to but found they end up going around in circles.
I started this thread about other clubs and have they made losses, some have and yet the thread is forced back onto trialing DUFC - and ultimately twisted into me apparently having a pop at people. I think I will leave this particular sandpit to you lads - you are not interested in discussion or debate - you view every poster as an opponent, in whom you have to "beat".
Cheerio
Admin - please delete my account from this forum
Last edited by SeanDrog; 04/05/2007 at 7:44 AM.
Chill pill Sean, I've been following this thread myself and it's been pretty relaxed to be fair. There seem to have been some crossed wires about the inference of comments, but it's nothing to get so worked up about. Why not bring the ball back and everyone can play again.
Foot.ie's entire existence is predicated on the average idiot's inability to ignore other idiots
Are you serious? Of course not - most of the lads I go to matches with wouldnt even know how to spell 'internet' so when Dodge or whoever equates Drogs fans to Shels fans having thier heads buried in the sand or whatever on the basis of a few lads on an MB, its hardly an accurate reflection on the majority fanbase.
I'm sure the vast majority of fans would not even know (or care) that such a facility exists.
[QUOTE=pineapple stu;678296]Your destiny is not in your hands. It's in your directors' hands. They can pull the plug at any stage they wish, just like Seery did with Dublin City.
You could use Seary as an example or you could use Glazier, berlisconi or abramovich or even Quinn, and we wonder why quinn isn't investing in our league, he probably read the guff the current LoI investors get on here,
Ive been reading this forum for years and always found you to be well rounded and intelligent stu, Your slightly misguided new sig' clearly proves me wrong
Yep you definitely could, and that's why there was so little support for the Glazer takeover at Man Utd - he dumped the debt onto the club giving it one of the largest debts in football.
The fundamental questions for any club are
- What assets do we have, cash, players, ground etc... and how liquid are they.
- How much money do we owe and to whom?
In St. Pats' case, the investment is coming in the form of capital (open to correction here) and hence it has no effect on the club's assets or liabilities. If the investors decide to walk away, the only money they can recoup is what they can get for their shares.
If (to use Man U as an example) the Glazers walk away, then they leave a club with a huge debt attached to it. in that particular case, the debt is manageable due to the size/earning potential of the club, however were a similar debt to be imposed on a smaller club it would be catastrophic.
In Waterford's case recently, the inward investment had come from directors' loans, and hence when a director left he was entitled to recoup the amount he had loaned the club - the Daryl Murphy transfer paid off that debt.
The questions that I am interested in are to do with the way that the recent investments into Drogs have been structured and the liabilities of the club should the investors walk away. I don't think it's unreasonable to ask these questions, given the recent financial behaviour of many Irish clubs. Is there someone who can answer the questions below factually and simply.
As an aside, I am also very aware of the financial situation my own club found itself in last season (as mentioned above), however I don't think that this should preclude me from enquiring about the situation at another club.
- How much debt is owed by Drogheda United football club?
- How and when will this debt be repaid?
- How much of a profit/loss has been made in each financial period since the investors came on board?
- If Answer 2 is a loss figure, what plans are in place to remedy this?
Foot.ie's entire existence is predicated on the average idiot's inability to ignore other idiots
I don't want to get into the pointless guff Pineapple stu's wading through here, mainly because I think he's picking arguments unnecessarily, but at least some of those are bad examples.
Take Glazier: right now, Manchester United PLC don't owe him a penny, and while he's saddled the club with sizeable debts (several hundred million), this is a company which makes in excess of £100,000,000 per annum profit. If he left in the morning, someone else would come in and continue running everything nicely.
By comparison, Drogheda had considerable debts (in the form of directors' loans) to their directors, and lost ~€1,000,000 in 2005 - this is all as per the company accounts which are publicly available. Assuming they've not turned that around (which there's no indication of), the directors' pulling out in the morning would leave a loss making entity with no fixed assets and substantial debts to their former directors, or in lay man's terms, ****ed.
To quote your own chairman from the Drogheda Independent in early March, "By pushing the project back 18 months to two years in would effectively result in Drogheda United losing their playing licence, putting the club out of the League and out of business. We can finance the club for another year but time is running out. It is costing us 50,000 a week - every week we lose."
That quote's consistent with you having been losing well over a million a year, which means you owe the directors a shed load of cash now. The situation's clearly serious.
You can't spell failure without FAI
I object to that; I was asked questions directly, so I don't see how I can be picking a fight by answering them. In fact, looking over the thread, it's one of my more rational contributions; your only previous post was, ironically, to pick a fight over the spelling of "reckless".
However, your post is correct other than that; ditto bigmac, whose club obviously have prior experience of the exact same thing happening, which is partly why they've been so bad the past year or two.
As far as mr untitled's post goes, it's worth noting as well that a group of Manchester United fans responded by forming their own club in protest, while many more were involved in various protests against Glazer's takeover (which ultimately they didn't have the money to stop), while I think Abramovic's takeover and subsequent spending spree was (at least briefly) met with vague UEFA threats to limit any one person's ability to bankroll a club in such a manner that, if they left, the club would be screwed. So there are similarities between the different cases. I think to write off my comments as "misguided" purely on the basis that you don't like hearing them is a bit silly.
All figures from Hinge Trading Ltd Accounts y\e 31/10/05 and DUFC (O2) Ltd accounts y\e 31/12/05 (Last accounts filed with CRO)
Drogheda United trades as Hinge Trading Ltd.
Drogheda United FC (O2)Ltd own 99.9% of Hinge Ltd
Answer 1. Hinge Ltd owed Drogheda United Football Club (O2) Ltd €1,136,537 at 31/12/05.
Answer 2. This amount is shown in Hinge Balance Sheet as "Due after more than 1 year".
However after 31/12/05 €1,111,021 of this amount was converted to shares in Hinge. This effectively wrote off the debt as the shareholder has to sell the shares to realise anything.
Hinge also owed €394,926 in amounts due within 1 year at 31/10/05, most likely Revenue, Overdraft, smaller creditors.
The 3 directors of DUFC ltd are also directors of Hinge. There is another director of Hinge who is not a director of DUFC.
The 3 common directors have provided interest free loans to DUFC Ltd totalling €1,014,584 at 31/12/05. These are shown in the accounts as being "Due after more than 1 year"
Answer 3 - Hinge lost €1,006,504 in the y\e 31/10/05 and has accumulated losses of €1,419,597 up to that date.
I'm what? I'm ants at a picnic?
Posting Permissions
Quote
Bookmarks