Soccer:A section of Drogheda United supporters are in a financial race against time in their bid to raise €200,000 before an end of the month deadline and save their Louth club going out of business.
Current shareholders are not in a position to invest further in the club which has left the Claret & Blue Club steering group looking to "set up a new company to acquire Drogheda United FC on behalf of its supporters". A group of concerned supporters met at a forum on Monday to discuss the club's future.
The urgency of the matter comes into focus because under FAI licencing regulations, League of Ireland clubs must have "a firm commitment of €200,000" and this is required before the January 31st deadline.
According to the group, the club's financial shortfall stands in the region €150,000, including a debt of €55,000, some of which goes back to examinership from 2008. The club has also been unable to collect €14,000 still owed, according to the group.
In these straitened times, the group was unable to attract outside investment and instead went to the supporters in the hope they will buy shares in the club.
Shares in the new company cost €1,000 (one share) or can be bought at a reduced rate of €750 for members of the Claret & Blue Club and are sold on a one share, one vote basis. Shares are being sold through the club's website on a first come, first serve basis.
The group noted all monies raised will be lodged into a dedicated bank account and if the target total is insufficient by the end of January then all monies will be returned to applicants.
In 2008 the club got through the examinership process after asking and receiving donations from the general public. This latest initiative allows supporters to buy shares and have a say on the future of the club.
“The experience of the last two years has proved that is not possible to run Drogheda United based solely on gate income, sponsorship and fundraising in the current climate,” according to the steering group.
“Therefore, additional sources of revenue have to be found if the club is to become self-sustaining. This €200,000 is required to fund day-to-day running costs and the strategic development of the club.
“It is expected that with the correct structures in place the club will be self-sufficient within two years allowing the board to continue with its vision to create a longer term strategic plan.”
Drogheda were relegated from the Premier Division last season.
