DROGHEDA UNITED Football Club has secured High Court approval for a scheme aimed at ensuring the club’s survival.
To loud applause from club supporters who packed the courtroom, Ms Justice Mary Finlay Geoghegan yesterday approved the scheme of arrangement devised by court-appointed examiner Kieran McCarthy for Hinge Trading Ltd, United Park, Windmill Road, Drogheda, Co Louth, whose principal business is running Drogheda United FC.
The scheme was presented by Mr McCarthy last week and its approval by the court means the club will come out of examinership from midday today.
Ms Justice Finlay Geoghegan said she was satisfied the necessary criteria for approval of the scheme had been met.
She had also taken into account that the club was not a regular commercial trading company which seeks to make profits for its shareholders, but was run on a break-even basis.
The considerable local support that the club received from the people of Drogheda, who had raised funds for it, was also very significant, she added.
Congratulating all those who had brought the club through a “very difficult” examinership, Ms Justice Finlay Geoghegan wished the club good luck and hoped it would survive into the future.
She also paid tribute to Hinge director and chairman of Drogheda United Vincent Hoey for his “very significant work” and for acting in a “very unselfish” manner when efforts were being made to put together a scheme.
The scheme provides that the club will no longer have full-time professional players – only part-time professionals – while the club’s creditors will be paid some €316,000.
Earlier, Gary McCarthy, for the club, said the scheme’s provision for part-time rather than full-time professional players would reduce its wage bill from €48,000 per week, or €2.5 million per year, to €300,000 per year. Counsel said money to pay off creditors had been raised from various ventures including door-to-door collections and bagging groceries, and also from the Football Association of Ireland. Additional money was also being provided by Mr Hoey from the sale of a Dublin property.
The club estimated an income of €646,000 for the year, with expenditure of €644,000. Counsel said those figures were conservative. It had expected to make a loss of €3,000 this month but was going to make a profit of €7,000.
Kelley Smith, for the Revenue Commissioners, who are owed some €535,506 for PAYE and PRSI, said it had some concerns about the scheme but was neutral on whether it should be approved or not.
She agreed the scheme met the minimal legal criteria required for court approval, and added the Revenue would be looking very carefully at the club.
The club sought the protection of the court last year because of cash-flow problems arising out of a proposed move to a new 10,000 seater stadium on a green field site south of Drogheda at Bryanstown. The club also had significant debts to creditors, including the Revenue.