Clubs can ring up their profit

Ambitious is one word to describe the partnership between the Gaelic Players Association (GPA) and the newly formed telephone…

Ambitious is one word to describe the partnership between the Gaelic Players Association (GPA) and the newly formed telephone company ClubTel, but if initial targets are reached there is potential to generate significant revenue for clubs around the country. The GPA will also benefit, but to a lesser extent.reports

Yet part of its success will depend on how well it competes with a similar partnership announced by the GAA and Access Telecoms, which although several weeks away from operation will be drawing on exactly the same market.

At yesterday's launch in Dublin, GPA chief executive Dessie Farrell first outlined the benefits of their partnership, and then its ability to withstand competition from the GAA's venture.

"This is a landmark occasion for the GPA," said Farrell, "because for the first time it brings benefits directly to the clubs and club players around the country. And because of the enormity of the scheme it does have a huge potential to generate revenue.

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"And I believe there is a great appetite in clubs to reduce costs and expenditures in whatever way they can because of the rising financial demands being placed on them. This is arguably the most innovative fund-raising concept the GAA has witnessed, and will undoubtedly ease the burden on all parties."

The partnership is based on getting GAA club members and supporters to transfer their fixed line telephone service to ClubTel, initially for call charges only, and primarily on the grounds of up to a 30 per cent saving. But 10 per cent of the ClubTel subscriber's total call value will be given directly back to the participating clubs, and another five per cent will go to the GPA.

The initial target is to recruit 80,000 customers from the GAA's estimated community of 1.2 million, both north and south, in the first six months. On an average annual phone bill of €600, customers would yield €60 per year for their club and €30 a year to the GPA. That target, if reached in the first year, would generate around €7 million for club and other grass roots purposes.

Earlier this month, however, the GAA announced it had plans for a similar venture, to create an official fixed line partner for the association, and whereby savings could be transferred to clubs or counties or both. Farrell didn't mince his words when assessing that operation.

"To me it was clearly cobbled together overnight," he said. "But regardless of how that works out, we believe the market is vast enough to cope. So we wouldn't be too concerned at all.

"But this is something that we could have worked with the GAA on. All along we've been saying the co-operative model was the best way forward, but to our dismay the GAA have once again failed to respond to that."

The GAA denied their venture was somehow an attempt to upstage the GPA, and that the launch of their partnership would take place before the end of May.

"Our deal with Access Telecoms is certainly not a reaction to anything or anyone," said the GAA's commercial manager Dermot Power. "The idea was, in fact, presented to us well over a year ago by Seán Bolger from Access, and it was examined in various formats and tweaked a little to come up with the model we have now.

"Clearly it is a similar concept, but there are always going to be competitors in a market such as this and competition is good. The only danger I would see is that it may cause some confusion to the subscribers. But we're completely confident in the service Access will supply, who have 15 years of experience and a very good record."

The GAA's press officer, Danny Lynch, confirmed that their venture is nearing completion.

"It was put before Management Committee before Congress and subsequently approved in Killarney," he said. "In fact, the first we became aware the GPA's plans for a similar deal was through the media when it was raised at Congress."

Managing director of ClubTel, Alan Falsey, in fact welcomed that rivalry with the GAA. "We are in no way worried about what the GAA plan to do," he said.

"We wouldn't be sitting here if we did. The market is more than big enough. So bring them on."

The ClubTel venture involves a €2 million investment over the initial six months, and part of the advertising campaign involves four leading GAA players - DJ Carey, Brian Lohan, Peter Canavan and James Nallen.

Carey, Lohan and Canavan were present at yesterday's launch, with further support to be offered by the GPA's 1,200 members.

A wholly Irish-owned company, ClubTel has established carrier deals with MCI in the Republic, and Cable and Wireless in Northern Ireland.

Ian O'Riordan

Ian O'Riordan

Ian O'Riordan is an Irish Times sports journalist writing on athletics