Cork City play down Revenue wind-up fears

CORK CITY have sought to play down fears about the club’s future following the announcement that the Revenue Commissioners are petitioning to have the company which owns the club wound up.

A hearing is set for May 25 but the club has expressed confidence that it will overcome what it called “short-term problems” relating to outstanding tax liabilities which, according to unofficial sources, could be in the region of €300,000.

In a statement issued last night, the club said: “Cork City Football Club wish to confirm that the club is currently in negotiation with the Revenue regarding the club’s tax liabilities. When the club emerged from Examinership, a settlement was reached with Revenue. Additional tax liabilities subsequently emerged which result from the club’s previous ownership, and the club is currently addressing this matter with Revenue in a bid to bring the issue to a swift and successful conclusion. The fact that these liabilities have arisen subsequent to the Examinership is an issue which the club intends to pursue with the Examiners. The club’s legal and financial advisers intend to meet with the Revenue as a matter of urgency in order to come to an agreement with regard to our current tax liabilities.

“Having emerged from the Examinership, Cork City FC has embarked on a rebuilding programme in order to create a sustainable club which is grounded in the community and is capable of achieving success on and off the pitch. While the first team is currently enjoying an excellent run and is now joint top of the League of Ireland Premier Division, the economic conditions have meant that the goals set by the club are taking longer to achieve than was foreseen.

“While income levels have proved to be less than were projected, the club is working to address this. Cork City FC is working hard at every level to build a sustainable, successful club of which Cork city and county can be proud.”

The statement added: “Cork City Football Club is confident that any short-term problems affecting the club will be overcome as a result of the determination and ability of the club and its supporters.”

Not for the first time, it seems that City are doing a fair impression of a swan – serene on the surface but apparently paddling like mad just to stay afloat.

The timing of the revelation that the Collector General has petitioned to have the company wound-up could hardly be worse. After their almost traditionally slow start to the season, an eight-game unbeaten run in the league has lifted City to joint top of the Premier Division table alongside Bohs.

And tomorrow night, Cork have the opportunity to go clear at the top, at least for 24 hours, when they host third-placed Derry City at Turner’s Cross.

Now, the challenge for manager Paul Doolin and his players is to try to keep their focus on the football even as dark clouds gather off the pitch.

Cork City have been here before, of course. Last year, when previous owners Arkaga pulled the plug, City went into Examinership with reported debts of €1.3 million. When they emerged from the process, it was as an altogether leaner going concern with major cost-cutting inside Turner’s Cross matched by a 10-point deduction in the league as FAI punishment for their financial transgressions.

Yet the club still managed to finish the 2008 season on a high on the pitch by winning the Setanta Cup.

However, rumours of instability have continued to stalk the club and the news that a May 25 deadline has effectively been set for the settlement of outstanding monies owed to the Revenue Commissioners means that both players and supporters alike will have more than football on their minds tomorrow.

The FAI will also be nervous onlookers. A third of the way into the 2009 campaign, they will have been relieved that, thus far, the season has not been disfigured by the kind of seismic financial problems which rocked the likes of Cork, Drogheda and Shels.

For a number of years, Irish club football has stood accused of living beyond its means, but as the domestic game belatedly cuts its cloth to cope with the harsh realities of the recession, the revelation that one of the best and best-supported clubs in the country is once more facing financial turbulence is worrying news not only for football in Cork but right around the country.