Cork City is in talks with potential investors and is also considering examinership as the club seeks to avoid folding altogether. The FAI Cup holders admitted this morning that talks have been ongoing for a number of weeks but argued that the figures in the media, detailing their debt, had been exaggerated.
The board will meet to decide the future of the club next week but will do so without former chairman Brian Lennox, who resigned as a director last night. Lennox sold the club to venture capital firm Arkaga in 2007.
"Cork City Football Club has been engaged in negotiations with potential new investors for the last number of weeks," a statement released today read. "It is too early to speculate on the outcome of these discussions which are still ongoing.
"The board of Cork City Football Club will meet next week and come to a decision on the future of the club.
"Some of the figures currently being reported today, particularly in relation to the wages of players and staff, are inaccurate and grossly inflated.
"Because of the sensitive nature of the ongoing discussions it would be inappropriate for Cork City Football Club to make any further comment at this time."
The FAI has responded to today's news by insisting the responsibility for the club lies with Arkaga after the firm assumed Cork's liabilities until early next year.
"The Football Association of Ireland has been in regular contact with the Arkaga fund and Cork City Investment FC Ltd (the company operating Cork City Football Club) in relation to financial difficulties facing the Cork City Football Club," the association said today.
"The FAI has contacted the Arkaga fund with regards to a written undertaking made by one of its companies to guarantee all liabilities arising from Cork City Investment FC Ltd for a twelve month period from 29th January 2008 through to 29th January 2009.
"It is the FAI's view that the club's sustainability depends on its investors and Directors managing the company's affairs as a sensible business. We await news of what the Arkaga Fund, as investors in Cork City Investment FC Ltd intend to do.
"If Cork City Investment FC Ltd is in financial difficulty, then the onus is on the club's investors and Directors to take all necessary corrective action to ensure its survival. The FAI has been and will continue to provide professional assistance to assist the club in any way possible at this difficult time."
Cork are the latest side to experience financial difficulties. Galway United, Sligo Rovers and Cobh Ramblers are also struggling but Cork's difficulties highlight the fact that it is not just small clubs that are struggling to make ends meet.
