Official Takeover Thread

Discuss any news,views and opinions on Dundalk F.C.

Moderators: Duffman, Colin Gallagher

oldfogey
1st Team Regular
1st Team Regular
Posts: 1585
Joined: Wed Nov 21, 2007 8:24 pm

Re: Official Takeover Thread

Post by oldfogey » Thu Jul 05, 2018 8:08 pm

Sneachta wrote:I see Bournemouth got fined for breaching financial fair play rules. Should that be a concern? I think someone mentioned somewhere else about the 65% expenditure to income ratio for LOI clubs. Considering we are bringing in all these players on good money is it a concern for anyone else?

Sent from my TA-1020 using Tapatalk
Not in the slightest. Any amount by which we might be over the SCP is easily rectified. It is also possible that previous years surpluses are carried forward to future years.



User avatar
DFCLife
Youth Team
Youth Team
Posts: 24
Joined: Sun Mar 11, 2018 4:32 pm

Re: Official Takeover Thread

Post by DFCLife » Thu Jul 05, 2018 10:24 pm

Sneachta wrote:I see Bournemouth got fined for breaching financial fair play rules. Should that be a concern? I think someone mentioned somewhere else about the 65% expenditure to income ratio for LOI clubs. Considering we are bringing in all these players on good money is it a concern for anyone else?
Bournemouth's breach of FFP occurred in the 2014-15 season in which they were promoted from the Championship. Peak6 purchased their stake in the club during the following season in November 2015. Therefore, they had no involvement in the club when FFP rules were broken.
N'Golo Kanté has posters of Chris Shields on his bedroom wall

Ezeikial
Club Captain
Club Captain
Posts: 5113
Joined: Wed Dec 10, 2008 1:00 am

Re: Official Takeover Thread

Post by Ezeikial » Thu Aug 23, 2018 7:31 pm

John O'Connor is a Bohs fan with a financial background who has taken time to analyse and comment on the financial affairs of several League of Ireland clubs based on the limited information available publicly

Here he comments on Dundalk FC financials from 2014 - 2016 in a blog posted yesterday. It may have limited relevance to the current situation with new owners but gives an interesting commentary on recent performances

The 2017 accounts that are due shortly may add some further interesting insights:
https://leagueofirelandfinance.blogspot ... -2016.html
Ezeikial posts personal opinions and observations from this supporters perspective.

Sneachta
Subs Bench
Subs Bench
Posts: 870
Joined: Sat Aug 01, 2015 1:01 pm

Re: Official Takeover Thread

Post by Sneachta » Thu Aug 23, 2018 11:01 pm

For some strange reason the full link is not there and the page doesn't come up. Can you post it again or is it just me that the link doesn't work?

Sent from my ONEPLUS A6000 using Tapatalk

Ezeikial
Club Captain
Club Captain
Posts: 5113
Joined: Wed Dec 10, 2008 1:00 am

Re: Official Takeover Thread

Post by Ezeikial » Thu Aug 23, 2018 11:03 pm

Sneachta wrote:For some strange reason the full link is not there and the page doesn't come up. Can you post it again or is it just me that the link doesn't work?

Sent from my ONEPLUS A6000 using Tapatalk
The original link appears to be working ok for me

Hope this one works for you

https://leagueofirelandfinance.blogspot ... -2016.html
Ezeikial posts personal opinions and observations from this supporters perspective.

Ezeikial
Club Captain
Club Captain
Posts: 5113
Joined: Wed Dec 10, 2008 1:00 am

Re: Official Takeover Thread

Post by Ezeikial » Fri Nov 02, 2018 11:30 pm

Tweets today from John O'Connor highlighting some details from 2017 accounts
John O'Connor
‏@chippie1974
Dundalk finally posted their 2017 accounts. Made a loss in the year of (€83k) which surprised me with the Euro monies still to go through the accounts. They had a payroll bill of €1.8m in 2017 compared to Rovers €1.2m and Cork €1.1m.
https://twitter.com/chippie1974/status/ ... 6696765440
At Nov'17 Dundalk had €2.5m cash in the bank so they were well set for going forward. Given over the 2016 and 2017 they received circa €8.1m from their European run their profits for the 2 years of €3.1m seem low. From the payroll number bonuses were paid but still seems low.
As the 2 shareholders sold their shares on 18/01/18 and monies paid to them would not have to be disclosed as they would no longer be related parties. Full blog post on Dundalk tomorrow.
Ezeikial posts personal opinions and observations from this supporters perspective.

dell1
Reserves
Reserves
Posts: 282
Joined: Mon Aug 13, 2018 9:55 am

Re: Official Takeover Thread

Post by dell1 » Sat Nov 03, 2018 12:40 am

Would the replacement of the pitch be in the 2017 accounts, Ive lost track of how many damn pitches have been layed. If it is in 2017 accounts it would be c€.5mil from profit/cash reserve.

cooney
Youth Team
Youth Team
Posts: 243
Joined: Sat Aug 19, 2006 11:55 pm
Location: Dundalk

Re: Official Takeover Thread

Post by cooney » Fri Jan 04, 2019 3:45 pm

“People I talked to asked: ‘Why would you buy a club in Ireland? The league is not strong and most of the best players in Ireland get poached by the best clubs in the United Kingdom’. But when I step them through the business model and say: ‘Look, this is a really interesting club, it was in the Europa League group stages in 2016, there is a lot of financial upside to being in European competition, it’s a very modest club so there is a lot of financial upside there.’

“When people hear that, they are like: ‘Oh, that’s super interesting. Why didn’t I think of that?’”
interesting chat with one of our American overlords Mr Jordan Gardner (he starts chatting about 9 mins in)


https://www.stitcher.com/podcast/planet ... oplay=true

fastnbulbous
Youth Team
Youth Team
Posts: 66
Joined: Sat Nov 11, 2006 12:43 pm

Re: Official Takeover Thread

Post by fastnbulbous » Fri Jan 04, 2019 4:06 pm

> interesting chat with one of our American overlords Mr Jordan Gardner (he starts chatting about 9 mins in)

Interesting, biz model seems to be let the club fend for itself and wait for payday of euro prizemoney and transfer fees ...

oldfogey
1st Team Regular
1st Team Regular
Posts: 1585
Joined: Wed Nov 21, 2007 8:24 pm

Re: Official Takeover Thread

Post by oldfogey » Fri Jan 04, 2019 4:25 pm

fastnbulbous wrote:> interesting chat with one of our American overlords Mr Jordan Gardner (he starts chatting about 9 mins in)

Interesting, biz models seems to be let the club fend for itself and wait for payday of prizemoney and transfer fees ...
I think it's safe to say that Mr Gardner doesn't seem to have much interest in the club now, other than the possibility of dividends. Mike Treacy, on the other hand, appears to have been bitten and takes much more of an interest in progress on the pitch.

Martin Lawlor80
Youth Team
Youth Team
Posts: 214
Joined: Sun Nov 12, 2017 3:58 pm

Re: Official Takeover Thread

Post by Martin Lawlor80 » Fri Jan 04, 2019 7:33 pm

fastnbulbous wrote:> interesting chat with one of our American overlords Mr Jordan Gardner (he starts chatting about 9 mins in)

Interesting, biz model seems to be let the club fend for itself and wait for payday of euro prizemoney and transfer fees ...
Who’s paying all the players that we’ve signed up to full time deals? Brought back McEleney during the Summer. First close season we haven’t lost our best players for nothing . I’m sure this has nothing to do to with owners...

dundalkfc1903
1st Team Regular
1st Team Regular
Posts: 3976
Joined: Sat Aug 25, 2007 4:27 pm

Re: Official Takeover Thread

Post by dundalkfc1903 » Fri Jan 04, 2019 8:06 pm

Martin Lawlor80 wrote:
fastnbulbous wrote:> interesting chat with one of our American overlords Mr Jordan Gardner (he starts chatting about 9 mins in)

Interesting, biz model seems to be let the club fend for itself and wait for payday of euro prizemoney and transfer fees ...
Who’s paying all the players that we’ve signed up to full time deals? Brought back McEleney during the Summer. First close season we haven’t lost our best players for nothing . I’m sure this has nothing to do to with owners...
Has the consortium invested any new capital into the club, over and above what was in the bank when they purchased it?
I would say they haven't, although that day will come soon enough when the coffers dry up.

User avatar
El Paso
1st Team Regular
1st Team Regular
Posts: 2400
Joined: Tue Dec 03, 2002 12:33 pm

Re: Official Takeover Thread

Post by El Paso » Fri Jan 04, 2019 8:08 pm

The club is paying for it. We can never forget that the way this works is that the money being spent is being loaned to the club. When the club was bought the money used to buy it will have been loaded back onto the club as a debt. They’re not sugar daddies risking their own cash.

The money the club earns pays interest on these loans (but rarely reduces the principle) and any profit made is used to pay dividends. It’s the Glazer model. Technically the club is probably already well in debt. If anyone wants to buy the club in the future they’ll be buying the debt as well as paying the book value plus whatever.

It kind of doesn’t matter as long as the debts are being serviced. But even one season out of the top 4? I wouldn’t like to see that. But be wary of wanting Peak6 to ‘invest’ too much because it’s money the club is borrowing.

Martin Lawlor80
Youth Team
Youth Team
Posts: 214
Joined: Sun Nov 12, 2017 3:58 pm

Re: Official Takeover Thread

Post by Martin Lawlor80 » Fri Jan 04, 2019 9:48 pm

dundalkfc1903 wrote:
Martin Lawlor80 wrote:
fastnbulbous wrote:> interesting chat with one of our American overlords Mr Jordan Gardner (he starts chatting about 9 mins in)

Interesting, biz model seems to be let the club fend for itself and wait for payday of euro prizemoney and transfer fees ...
Who’s paying all the players that we’ve signed up to full time deals? Brought back McEleney during the Summer. First close season we haven’t lost our best players for nothing . I’m sure this has nothing to do to with owners...
Has the consortium invested any new capital into the club, over and above what was in the bank when they purchased it?
I would say they haven't, although that day will come soon enough when the coffers dry up.
They bought the club from two small businessmen who couldn’t bring the club any further and had to look after their own businesses ( who did a fantastic job btw ). Every season our best players were picked off even with money in the bank. The new owners financial muscle had meant the likes of Duffy, who we all thought would be off, has stayed. Yes Jordan Gardner is an investor who wants to make money, but ( I assume) he realises that to accumulate in Europe some speculation is needed,which is what he did when he put his own money on the table to buy the club

User avatar
thecaptain
1st Team Regular
1st Team Regular
Posts: 1072
Joined: Fri Dec 15, 2006 12:31 pm

Re: Official Takeover Thread

Post by thecaptain » Sat Jan 05, 2019 10:33 pm

El Paso wrote:The club is paying for it. We can never forget that the way this works is that the money being spent is being loaned to the club. When the club was bought the money used to buy it will have been loaded back onto the club as a debt. They’re not sugar daddies risking their own cash.

The money the club earns pays interest on these loans (but rarely reduces the principle) and any profit made is used to pay dividends. It’s the Glazer model. Technically the club is probably already well in debt. If anyone wants to buy the club in the future they’ll be buying the debt as well as paying the book value plus whatever.

It kind of doesn’t matter as long as the debts are being serviced. But even one season out of the top 4? I wouldn’t like to see that. But be wary of wanting Peak6 to ‘invest’ too much because it’s money the club is borrowing.
As far as I'm aware not once since the Peak6 backed consortium took over has any word of anything like a leveraged buy out, as happened to Utd with the Glazers, been mentioned as occurring? Not every non tycoon takeover of a football club is a leveraged buy out Glazer style, thank Christ.

What information is out there is that Paul and Andy got a fair price for the club, the club is being prudent and not spending beyond it's means and it was confirmed several times there's still a fair chunk of wedge in the bank post takeover from the euro run.

Andy and Paul got paid whatever was agreed/ the going rate and the cash in the clubs bank account was left as is from the euro run was the general gist of things, despite the lads being well entitled to take a dividend before they sold up, though the cash in bank was a massive asset on the books for Peak6's interest in buying the club, as far as I was aware and from what I was told?

If a leveraged buy out did occur you can be damn sure Gavin, James, Dan McDonnell and the media would have gone to town on it and Gerry sure as hell wouldn't keep it quiet!

As per the CRO Dundalk Town LTD last filed accounts on 31/08/2018 and they would have been the books for 2017 so it'll be 31/08/2019 for 2018 if anyone would like to spend €3.50 to find out exactly what the books for last year look like and how the takeover affected them.
Ian Foster: (On the expectations level at Dundalk): "That's why you want to be involved in management. If I don't do well I'll do my shopping in Newry!"

Ian Foster: Last seen heading for Newry.

Post Reply