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LAST UPDATE | 16 Sep 2024
DUNDALK ARE SET for a stay of execution after today’s self-imposed deadline for investment to keep the club afloat was extended by owner Brian Ainscough.
And there was further cause for optimism for the future at Oriel Park after Minister for Sport Thomas Byrne confirmed that the Government would provide up to €500,000 in funding as part of its Sports Capital Grant process.
The 42 reported earlier this afternoon that Ainscough has been in talks with two groups – one of which is based in mainland Europe – about a deal to ensure the Premier Division side can survive until the end of this season.
With sources confirming an overall debt figure of more than €1 million, it’s believed that €360,000 is needed in the short term for Dundalk to fulfil the final couple of months of the campaign.
Ainscough released a statement last week confirming the perilous financial situation the club found itself in. Wages to staff and players went unpaid at the start of this month and while those monies have since been paid there had been no solid commitment for any future external investment.
On Friday, American businessman Jeffrey Saunders pulled out of talks with Ainscough and that led to a fraught weekend.
Developments today have provided some hope, with Minister Byrne confirming that up to €500,000 will be forthcoming to upgrade the astro turf pitch and floodlights.
“What I’ve been able to say is that subject to the club remaining in existence, getting a league licence, the club will get most if not all of the half a million euro they have applied for. That’s just to be helpful to the process, we will make a final announcement in the next two weeks,” Minister Byrne said, insisting that the money would not be used for wages or debt relief and that he had contacted FAI interim chief executive.
“No, it’s for capital development but as I understand it that (stadium upgrades) is a significant factor now in terms of who might want to come to the club. We’re just trying to be helpful to the process.
“I informed David Courell and I think it’s taken in that vein, that it will be helpful to the process.
“We want the club to be saved, we want the club to maintain its existence. We know it’s a valid application, we know it’s a good application, to give this indication at what is a critical juncture for the club is helpful.”
At the FAI’s AGM in Dublin on Saturday, Courell admitted the timing of Ainscough’s takeover at Oriel Park played a part in a more rigorous check being carried out.
The Dubliner, who has been based in Boston since emigrating there in the 1990s, took control from StatSports and Andy Connolly in December 2023, one month after the licence to compete in the League of Ireland was granted by the FAI.
“It’s regretful the situation we find ourselves in, the situation Dundalk find themselves in,” said Courell. “We need to acknowledge that there are lessons to be learned from this process.
“The financial checks ahead of the 2024 season were done on Dundalk’s previous owners. While there is an owners and director’s test, that primarily focuses on the integrity of the incoming owners.
“We recognise, and we’re not unique in this situation, it’s quite common in leagues across the world, that at that juncture there wouldn’t be the same degree of financial due diligence carried out.
“That is a learning we need to own up to. Right now, our focus and energy is in trying to support Dundalk and ensure its viability moving forward.”
Asked about the FAI’s role, Minister Byrne said: “This can’t be allowed to happen. We need to protect it. I’m not happy the way everything has happened. For the future I think there needs to be financial tests in terms of new owners coming in.
“I know that’s something the FAI are looking at to make sure that everything will work out for at least the medium term. Nobody is going to stay forever. There are clubs there that are community owned and that’s a really good model, and there are institutional investors too, some of whom are good as well.
“But if the profit motive is there then it’s not always the football considerations that are paramount. I’m not sure what profits come out of League of Ireland clubs, occasionally they do and that’s part of the problem here. We want to support them as best we can.”
Written by David Sneyd and originally published on The 42 whose award-winning team produces original content that you won’t find anywhere else: on GAA, League of Ireland, women’s sport and boxing, as well as our game-changing rugby coverage, all with an Irish eye. Subscribe here.
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Where is the money they got for the great years in Europe competition??? Why should they get government funding when we have a Health crisis. A lot of scuriolis operations for that money
@John Hally: likely went into the investors/owners pockets. It’s the economic ideology we choose to live under. Has a tendency not to mix well with ‘the community’.
Once again, the taxpayer is put on the ‘hook’……& All the while children with scoliosis needing urgent surgery being kicked down the ‘road’
@Buster Lawless: Children’s waiting lists should be banned. Any child needing care should be sent to another country if no care is available here. For every month, a child has to wait , the family gets 1 million euro. Simple as that.
@did you every wonder: genuinely, cannot see anything WRONG with that suggestion
@did you every wonder: just wondering would have same comment if it was a gaa club. Just asking
@did you every wonder: I agree with you 100% Public money is easily squandered in Ireland in lots of different ways but can never be found for the deserving. Nothing forces the mind until it starts to hurt the coffers…
@Buster Lawless: Apart from the 1 million euros. That’s my tax money.
The same commenters here would be scolding the government for letting the club fall into liquidation. They did the right thing. We can’t pause all spending on everything until our health crises is solved. This app is full of the most cynical human beings in Ireland.
@Daire O’Reilly: very much doubt anyone would do any crying if this basket case’ was allowed to fail after years of blatant mismanagement. Sends out a totally stupid message that ‘moral hazard’ will not just be tolerated, it’ll be REWARDED
@Buster Lawless: If I was playing there (I used to play GAA for a club, on the side of a slopey mountain, with sheep turds on it, in winter they’d freeze solid), I would be overjoyed with the upgrades. It’s only 500k, the price of nearly two bike shelters.
@Daire O’Reilly: health crisis solved. Come on my friend get real. No matter how much money is spent. And billions have been. And more billions will be. But never a solution I’m ashamed to say
@Buster Lawless: yes, but those risks were not taken by the supporters nor the local community, and they are the ones who would benefit from the rescue, not the ones guilty of the moral hazard
@John Flanagan: I think you need to reread my comment. That’s exactly my point.
Youd wonder were all the european nights cash has gone . Some fall ..same with the great fanbase barley showing up these days. Cmon the town.
So dundalk wasted millions and are now broke..so the government thinks that it is a good idea to provide them money for floodlights and AstroTurf…
This should be seen in the same light as the Apple case, it is state aid to an independent private company ,which is not automatically being given to all other sporting organisations..I know they can apply but if refused, then state aid is not equal
@hi from heaven: I remember comments on an article on theJournal covering fans protests against their American owners and typical comments were sneering fans for having the audacity to want their club ran well. I think we need to put some legislation in that requires that fans/community have the majority ownership and oversees any investors before government commits to giving funding. Here we see a prime example of an investor who creamed off any profits for themselves and left the club to rot.
@hi from heaven: whatever arguments that can be made about this, one of them certainly isn’t that football in this country is getting too much money ahead of other sports.
The club is over a million in debt and needs €360k to get them through the next 10 weeks. So the government is giving them €500k to “upgrade the astro turf and floodlights” ? How will that save the club other than give the board more time to whine about how it’s not really their fault the club is bust. On the plus side, if anyone’s looking for second-hand astro turf and floodlights in November, I know a place that’ll be selling them cheap.
Why are they using my taxes for this? We really haven’t learned anything have we.
Wheres the millions they got from european competition government bailout for rte and everyone except small businesses
Well I’m glad dundalk is able to continue. Two things come to mind. Who spent the money from Europe etc. And arnt they lucky general election around the corner. Rest my case
Looks like no-one else was gonna save them so well done to the govt for stepping in, presumably they won’t get a second chance so better get their shitogether.
@Hotirish: The government’s money won’t save them.It will only entice any future owners.
Dundalk need around €350000 short term to stay alive.
What are they gonna do, put in new turf and floodlights and not pay the players?
Money been thrown around like confetti & Harris & Martin telling us lies that the General Election will be in Spring. All that’s needed around the country & they throw cash at a commercial outfit that will probably go burst anyways when investors pull more money out of it.
Why wasn’t the same help provided to Cork City when they needed it?
Over the years we saw the fablous success of the Club ,then we saw instead of progress the plastic pitch disintegrating ,the writing was on the wall when they Sold Pat Hoban ,so everyone surprised except Dundalk supporters, sad stuff …hope it works out…
There wasn’t a euro invested in the club a great club the pitch facilities toilet etc a disgrace she of the newer women’s soccer club better facilities pitch etc
Why the hell is my tax money being used to save a private business. No no, no
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