Cork GAA says €33m Páirc Uí Chaoimh debt is 'not frightening'

Looking at nee revenue streams including naming rights for Páirc Uí Chaoimh, a museum and cafe in the stadium, improved conference facilities and increased concerts

Eoin Downey, Captain Cork Minor Hurling, Tracey Kennedy, Cork GAA Chairperson, Eoghan Nash, Captain Cork Minor Football and Kevin O’Donovan, CEO/Secretary Cork GAA in Páirc Uí Chaoimh at the launch of One Cork. Picture Darragh Kane

The outstanding €33m debt attached to Cork's Páirc Uí Chaoimh stadium is not "frightening" and should be viewed in the long term akin to a mortgage on a house, Cork GAA has said.

The organisation has embarked on an ambitious new programme of investment and commercial activity that it expects will realise over €20 million in revenue over the next five years.

A new body called One Cork amalgamates all of the existing organisations working to further the sport across the county, including the Cork County Board, the Páirc Uí Chaoimh Stadium Board and Cairde Chorcaí. Along with reducing a significant portion of the debt, One Cork aims to create levels of commercial activity that rivals most other counties.

The organisation has identified more than 50 separate potential revenue streams ranging from naming rights for Páirc Uí Chaoimh, a museum and cafe in the stadium, improved conference facilities, increased concerts and events, advertising and ticket sales.

The Cork County Board is expected to lodge a planning application early next year for a housing development on land they own in Kilbarry on Cork's northside. It is planned to put the land on sale, with planning permission in place, in late 2021/early 2022. 

The steering group is made up of a number of GAA and business heavyweights including Dairygold CEO Jim Woulfe, Port of Cork Chairman John Mullins and property developer Michael O'Flynn. 

Asked if there was a specific target date for the stadium debt to be cleared, Cork GAA CEO Kevin O’Donovan said: “We see the debt as a long-term mortgage on our house. There is huge fear amongst our supporters at the moment that that debt will derail our activities. One Cork is a bulwark against that. It is to say we will pay our mortgage over a long period, at a steady rate but will still have enough revenue to fund our games, fund our teams, our training facilities and our coaches."

"There are issues to be resolved and we are working very hard on those. We expect to be in a steady-state on those issues over the next 12 to 18 months and then be in a position to refinance over a long term," he said.

Speaking to the Irish Examiner, Michael O'Flynn said once the Kilbarry lands are sold and other short and medium-term issues are resolved they will be in a position to know what the net debt will be. "I don’t want to create a hostage to fortune but once we do the pluses and minuses, we are going to be in close to €20m," he said.

However, he said the debt on the stadium when compared with its €96m value was not particularly onerous.

"The overall asset and the percentage debt of that asset is not in any way frightening. It is obviously above and beyond what was anticipated but then the stadium went above and beyond what was originally planned," he said.

Asked about the relationship with the bank and the repayment structure for the debt, Mr O’Flynn said there was now a joined-up approach by Cork and Croke Park with the bank. "The bank and Croke Park are very happy that we have come together as one group in Cork."

Mr O'Flynn said they plan to host more concerts to further boost revenues but accepted that the Covid-19 pandemic and planned roll-out of vaccines would dictate the timeline of when events could return. 

"Covid is still a showstopper when it comes to future planning. Some of the concerts we planned this year have been put to next year with a question mark. And let’s be frank, I would be pessimistic about concerts happening in the middle of next year. The vaccine has to happen. People have to get confidence back."

"We are talking here realistically about 2022 when it comes to major conferences, concerts, exhibitions. But that gives us the chance in the early part of next year to get the changes we want, to cement down the plan, and for the public to know this is a new beginning and see what can people do to help."

In relation to the naming rights for the stadium, Mr O'Donovan said they would consider both full and partial naming rights for the stadium but said they were would be various other commercial sponsorship opportunities both within the stadium and on the field.

"We do hope to have a headline title naming rights partner and there is a workgroup on One Cork specifically dedicated towards that."