Waterford United will replace Shelbourne in the top flight following last night's decision to demote financially stricken league champions to the First Division.

Waterford today accepted an invitation from the FAI to join the League of Ireland Premier Division for the coming season.

However, their inclusion is dependent on the result of any Shelbourne may yet launch. The Dublin club still have five days to appeal last night's First Instance Committee ruling.

"This is fantastic news for the club," said Waterford manager Gareth Cronin. "These are exciting times ahead and I have
every confidence that we can be competitive in the new league.

"Obviously I will look at our preparations a little differently over the next few weeks as we have been preparing on the basis of playing in the First Division but the bottom line is that we are thrilled to be involved."

Waterford, a Premier side last season were stripped of their top flight status late last year when the Independent Assessment Group charged with determining which clubs compete in the respective divisions of the new league 'relegated' Waterford to the First Division last December.

That process was judged on scoring performances by clubs in on and off-field categories, with all of the 22 league clubs receiving a ranking based on their total score.

Waterford were ranked 13th of the 22 and missed out on the Premier Division by one spot.  In light of Shelbourne's demotion, Waterford officials believe it only right they replace the champions.

"The club considered the proposal carefully and decided to accept the invitation in the best interests of football in Waterford and the eircom league," said club secretary Larry Gough. "We will be meeting this evening to consider the implications for the club and with the new season just three weeks away it means that there is a lot of new work to be done."

Shelbourne's management committee meeting today to consider their options.

The Drumcondra club's financial plight has been well documented of late with debts running into the millions. Approximately €147,000 was also owed to former players and some €105,000 to the Revenue.

While a deal was in place to secure the necessary funds to meet those debts, the FAI's licensing committee ordered a re-think of the Premier Licence it awarded Shelbourne in December after hearing the full extent of the club's financial woes.

Whatever about their appeal, on-field matters could also force Shelbourne's hand.  The deadline for signing new players expires in just over a week and the club currently has no players or, indeed, a manager.  They therefore may decide to press ahead with life in the First Division and set about restructuring on a considerably reduced budget.

Last night's decision suggests the club could also struggle to obtain the license it requires to play in the qualifying rounds of the Champions League later this year.  Derry City, now managed by last season's Shelbourne boss Pat Fenlon, would replace the Dublin club.

The eircom League of Ireland season begins on March 9th.  Clubs are still awaiting the fixture list, although the FAI should be in a position to publish a schedule in the coming days, if not tomorrow.