Dundalk reiterate severe financial difficulties at club

Dundalk have today released a statement once again outlining the perilous situation the club finds themselves in financially.

Despite a battle call for to raise funds a number of weeks ago, after the club failed to pay the players, the club have announced that no one has stepped forward with the exception of the DFC Trust and 19 supporters. The 19 supporters have collectively donated €3,450.

A week ago,  Football Association of Ireland confirmed that Monaghan United’s participation agreement to play in the Airtricity League was terminated following the club's decision to withdraw from the League of Ireland.

The statement in full is available below:

This is an update from the board of Dundalk FC in regards to the severity of the financial position we currently find ourselves in.

As the public are aware 5 weeks have now passed since we announced that we were unable to pay the players for one week of their wages at Dundalk FC. We did stress back at this time that Dundalk FC was in severe financial difficulties.

It was also made clear at this time that anybody expressing an interest in regards to taking over Dundalk FC or who could be in a position to make a substantial contribution to help the club should contact the board directly. Today the club will meet with representatives of the DFC Trust for an exploratory discussion on a potential takeover. Apart from the Trust, we are very disappointed that no one, either directly or indirectly, has contacted us in this regard particularly when we are in a position when we need them most.

People must be made aware that should the club not be in a position to pay another week’s wages to the players, resulting in a total of two weeks wages in arrears, that these players have the right to seek employment with other clubs. This undoubtedly may trigger our top players to leave voluntarily or other clubs knowing this situation will contact our top players with a view to taking them on with immediate effect. We have clear indications the latter will happen. If any group or individual wants to sponsor any particular player’s salary to the end of the season, this option is available and we can sit down and agree with the group/individual how this can be done.

Since these financial situations have arisen we have initiated a number of fundraising programmes to generate money. Our Honorary Vice President and Supporter Donations programmes and letters have been sent out to over 700 people. To date 19 Supporters have donated €3,450 and the Honorary Vice President have taken in €2,500. The Board wish to acknowledge these receipts and are very appreciative to these people and other people who continue to contribute to the running of the club. However the reality is that if more people do not contribute we will be undoubtedly be fighting a relegation battle, or worse case, go out of existence.

To give an example of how the financial difficulties have arisen we have outlined the following example;

2011 – Season Tickets & Net Gate Receipts after 11 League games = €157K

2012 – Season Tickets & Net Gate Receipts after 11 League games = €87K

This is a difference of €70K year on year and does not include lost Merchandising Sales, Bar Income, Lotto Sales, Match Programmes Sales, and other match night revenue sales which are affected by reduced attendances and people coming to games. It also does not include any Setanta Cup gate receipt money and only compares league games.

This example is only one of a number we could pick from where actual revenues are significantly below budget figures…..match sponsorship, pitch signs, lotto sales, pitch rental, to name a few are amongst others.

In all of these matters we are continuing to work with the FAI in regards to the financial troubles and status of Dundalk FC and we will continue to keep them informed of any and all matters arising.

Again we would appeal to the supporters and people of Dundalk that this is a very serious situation and to contact the board directly if you feel you or a group are in a position to take over the club or make a substantial financial contribution.

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