Rovers report steady finances at club’s AGM
IT was another challenging year for Sligo Rovers on the field in 2019, when they finished in seventh place in the SSE Airtricity Premier Division.
Off the field, things have been steadily improving. At last Tuesday night’s AGM, directors were able to report for the first time in some years, that the club actually broke even last year.
The costs of running the club continue to increase, while the lack of European football means that Rovers have to dig deep in order to survive on a yearly basis.
Treasurer David Rowe told the club’s members at the meeting in the Clayton Hotel that the club had received €491,939 from fundraising and donations.
“That’s absolutely astonishing. It’s humbling,” Rowe said. Before adding: “Without it, there’s no doubt that we would not be able
Income
Gate receipts
Season ticks/spons
Prize money
Lotto 500 Club
Annual draw
Donations
Supporters Club
Seats 2019
€235,000
€130,000
€27,000
€102,000
€83,000
€73,000
€60,000
€25,000
€88,000 to fund a professional set up in Sligo.”
The club’s budget for 2020 has been increased by €50,000 to €1.3million. The club’s income amounted to €1,248,000 - the same as their expenses.
“We think the average is about €1.8million. We’re probably about €300,000-400,000 off being really competitive as a top four club. That’s probably the financial reality of what we’re looking at. We’re hoping on a lot of luck and a lot of ingredients coming right to make ourselves top four competitive,” Rowe added.
Last season, Rowe said, was a difficult one. Not because of the season it was itself, but more because of the accumulative debt from the previous number of seasons. He explained: “We had a disastrous 2014 where we lost €190,000 and 2017 where we lost €91,000, last year it was €41,000 and this season we’ve brokebroken even. I had a look at the accounts for tthe last time when our dear friend Loman Gallagher was treasurer, the accounts that year showed costs of about €900,000 in terms of running the club, that was 2007. I was looking at where the difference is between then and now. €110,000 in terms of under-age and a whopping €60,000 in terms oof insurance. WWe’re a bigger 2018
€185,000
€122,000
€42,000
€100,000
€100,000
€60,000
€62,000
€15,000 0 ship but we’re a more cumbersome ship because of the number of teams we have.”
The club actually mad ea profit of €287 in 2019. Gate receipts were up, which was largely due to the club’s FAI Cup run, when they made it as far as the semi-final.
“While league attendances were more evenly spread last year, it’s actually more interesting for supporters if you’re involved in a relegation scrap, your gates actually improve.”
Prize money is down for 2019, as the club was involved in the Irn Bru Challenge Cup in 2018.
“The fashion show is not in these figures because that came in in December. The Symphony of Dance is not in these figures because that came in in December. Those figures will be in next year’s accounts.”
Player wages are down slightly, but this is because player/assistant manager John Russell’s wages are included in the management/ coaching wages.
“Last year we were lucky to have six talented under 19s come through, that’s their first full year as a professional so obviously their wages are going to be a little lower than when they are fully matured. Management and coaching is up as John Russell is classified as coach, we have three this year with Dave Campbell on board,” Rowe said.
Once again, the club are facing another insurance claim, with their premium on the rise annually.
“One shocking figure we have is the insurance premium. It’s gone up from €52,000 to €72,000. The bulk of that is personal injury public liability. We had two big claims historically. That’s a huge burden, it’s closing other sports clubs. That’s two and a half professional players, that’s what we are paying in insurance.
“Unfortunately we have had a notification where there was an incident at the Limerick match. It’s reasonably clear that we’re quite far down the queue in terms of where that claim may end up. We pleaded with the individual and solicitor not to include us in the list of claimants but that fell on deaf ears. That’s definitely going to have a financial consequence in terms of this year’s renewal.”
In November, the club owed €282,000. They owed €95,000 to the bank, committee loans were down from €20,000 in 2018 to €9,000.
“Revenue up a bit (to €54,000 from €31,000), not because we owed for longer but because we carried more through the off season than the previous year. The overall that we owed was up from €230,000 to €282,000. That now sits at the €150,000 mark. We got a big influx of cash from season tickets, Christmas draw, Christmas shop and various things.”
The club is currently owed €55,000 by the FAI, and they are hopeful that they money will comee through in the next six weeks.
A €25,000 per annum grant forr two years allowed the club the funds to appoint Colin Feehily as CEO, which Rowe said was ‘an important step.”
On this year’s budget, Rowe said it has been increased slightly, and a player will now more than likely have to be signed to replace John Mahon who will miss the season through injury.
“Our budget for the coming year, sixth year of no European competition, we’ve set the budget at €1.3m. That’s another €50,000 on top of last year. In addition to that, there’s probably €30,000€40,000 to be spent on repair and fortification work on the Jinks Avenue Stand.
“We’re in the same situation pretty much s this time last year, PAYE, PRSI, arrears and creditor payments absorbing season ticket money. The players’ wages budget is up €50,000 and that was before the John Mahon injury. We’re probably going to have to bring a player in to replace John.”
The club say audits were stricter,, more than likelyy as a result
Total
Player wages
Management
Insurance 2019
€1,248,000
€438,000
€138,000
€72,000 2018
€1,186,000
€476,000
€114,000
€52,000 of the FAI controversy, and that the club are prepared for tighter checks should they happen.
“We definitely had a tougher audit this year, that’s fine, we’re well able for that.
“There’s probably a view with the accountant, looking at where Deloittes are with the FAI that they better have a better look at FAI clubs. That’s fine, we have nothing to hide.
“None of us take any expenses. We don’t get reimbursed for anything. I can assure you that we give our time, we don’t get paid for that. We’re as clean as a whistle. There’s talk of the licensing procedure being upped and being more invasive. That’s OK, we’ll be OK with that.”
Rowe concluded: “In summary, that’s a good year. the €490,000 in terms of fundraising. It’s the model that we have. Is it sustainable? Don’t know. We are working on lots of other things to try and up our income but that’s not easy. To break even when you don’t have Europeanp prize money is very ggood.”
AidAidan Mannion, who attenattended the meeting, sspoke up to compliment Martin Heraghty, who stepped down as Chairman following the meeting: “I’d llike to pay a particular ccompliment to Martin Heraghty who was one of the few men who stood up when it was a very unpopular thing to do in the FAI context.c
“And I saw him sitting at the top table when there was a lot of glass falling and a lot of rocks going in on top of them. He was one of the men with credibility who in my view, saved the FAI from going into a legal and financial quagmire and I think he should be very proud of himself and the club should be very proud.”