Sligo Rovers AGM.
THE SLIGO ROVERS AGM HEARS THAT THE CLUB WAS FORCED TO OVER-STRETCH BUDGET TO BEAT RELEGATION, WITH BUDGET INCREASED FOR 2018. JESSICA FARRY REPORTS.
THE people who pull the pursestrings at Sligo Rovers were handed some tough decisions throughout the 2017 season. Following a dreadfully slow start to the season, the decision was made to part ways with manager Dave Robertson after seven games. With three teams set to be relegated to the First Division, Rovers knew that new manager Gerard Lyttle would have to be given a budget to strengthen his squad, giving Rovers the best chance possible of surviving.
All actions have their consequences, and Rovers’ squad strengthening cost them financially, suffering a loss of €93,000 in 2017.
But, weighed up against the financial consequences of relegation, suffering such a loss seemed like the lesser of two evils.
“Last year was a very challenging year. The first game in February at a wet and windy Market’s Field was not what we had expected. Unfortunately we got off to the worst possible start in the Premier Division with three teams destined to go down,” Chairman Martin Heraghty told the AGM.
“It’s no exaggeration to say that the two heavy defeats in those first two games were body-blows, not just from a football perspective but also from a financial point of view. From virtually the very beginning we found ourselves in a relegation
battle that lasted until the very end of the season. The strategic plan which we had prepared and launched in 2016 had to be placed on the back-burner as we went into survival mode.
He continued: “Tough and unpalatable decisions had to be taken in the best interests of the club. These decisions were made with the belief that relegation would be a major setback for the club. As well as impacting negatively on Sligo and the region. We took the view that everything had to be done to keep Rovers as one of the top ten teams in the country. After the first seven games, the decision was taken to change the first team management.
“This was not an easy decision. Gerard Lyttle was appointed and he was given the task of charting out our survival. With a new manager in place we had to give him the resources and support to strengthen and restructure the squad. An extraordinary amount of work was undertaken mid-season on player recruitment before the close of the transfer window. In making that hard decision to stretch out the budget, we were fully aware of the financial constraints of the club and the potential risk of a wrong call. It was not a decision that was taken lightly but we believed that this course of action would be less costly than having to deal with the consequences of relegation. As it happened, the steps that we took proved to be even more necessary as other relegation threatened teams geared up significantly to avoid the dreaded drop.”
Treasurer David Rowe said: “We were faced with either a fairly heavy investment or be relegated - it was as stark as that. The loss should be in the same region as that of two years ago which was €170,000, but for the amount of effort by the management committee and outside that in various fundraisers to keep the afloat, was huge.
“We go into this season financially damaged,” he added. “We’re facing into the season having managed to keep most of the players we wanted to.”
Rowe added that in Sligo Rovers’ best years, they were spending €1.6million in their budget.
He also confirmed that all underage coaches are volunteers.
The Bit o’Red rely heavily on fundraising and donations each year, but 2017 in particular, would have been a lot worse if members of the public had not been so generous.
The lotto took in €124,000, the 500 Club €121,000, the annual draw €60,000 with special events and donations taking in a sum of €60,000.
The budget has been increased to €1,175,000 for 2018. The income from season ticket sales for the 2018 season has largely been absorbed by PAYE/PRSI arrears.
In November 2017, the club owed €229,000 in from loans, revenue and trade creditors, compared with €126,000 in 2016. Most of that has now been cleared.
“We’ve paid off a reasonable amount of debt in the last couple of months, we’ve paid the revenue, we’ve paid creditors. Our borrowings are higher and cashflow is tight,” Rowe added.
“The support during the year was phenomenal including supporters, revenue, suppliers, bank. We’re kind of borrowed out on those things now. I don’t think we would be able to endure the same kind of season financially this year.”
“This was the toughest year that I can remember but we were an unbelievably united group. When things get tough there can be a divide but it wasn’t like that. I think a lot of that was down to Martin in terms of style and how he ran it.”
The running of underage teams last season cost €77,000. It’s estimated the addition of the ladies team and a full season for the Under 15s will cost between €90,000-€95,000.
A number of dedicated supporters set up the ‘Up the Bit o’Red fundraising campaign over the winter, and this has gathered significant funds for the club.
But until Rovers enjoy more success, fundraising will be required.
Heraghty explained: “While there has been great progress in developing the club, I must return to the harsh financial realities that continue to confront us. I referred last season in my address to the continuing struggle to maintain capital to get us through a season and to the fact that a bad season can set us back financially.