Delaney calls for ‘breathing space’ for City as D-Day arrives

FAI chief executive John Delaney last night expressed his hope that Cork City will be allowed enough “breathing space” to see them through their current plight as they face the most crucial day of their 25-year history.

The club has drafted in financial management experts to negotiate with the Revenue Commissioners this morning prior to a High Court appearance on foot of a long-standing winding-up order which stems from tax liabilities of over €400,000.

Club chairman Tom Coughlan last night agreed to relinquish the chairmanship of the club — should the Revenue demand this — while also handing over the negotiations to the Quintas Wealth Management group.

He has also agreed to write off his personal investment in the club, a sum of money which is understood to be in the region of €700,000.

On another day of hectic fundraising, majority shareholder at SPL giants Celtic, Dermot Desmond, contacted Cork City to offer his club for a high profile friendly in August or September, a potential money spinner that will feature high in negotiations.

“It would seem now with €220,000 available to Revenue and the confirmation that the game against Celtic is going ahead, Cork should be afforded some breathing space,” Delaney said.

Jim McCarthy, a business development director at Quintas, will lead negotiations today and has set out a financial plan that, on top of payment of €220,000, will include a commitment to clear the debt in four months.

“We have completed a root and branch review of it (Cork City Investments Ltd) to establish if the tax bill was the only major problem and we found out that it was,” McCarthy said last night.

“There are obviously other creditors but nothing of too much significance, nothing that can’t be sorted out from managing the cash flow of the club carefully going forward which I think has to be a priority. A big creditor of the company would be Tom Coughlan himself and I think to be fair he has put €700,000 in and he’s prepared to write that sum off in its entirety.

“Crucial to our discussion with the Revenue’s advisors (this morning) will be our commitment to stay involved and make sure that the club does not end up in the same boat again.

“And then it’s up to them because in the current climate, we’re talking about saving over 40 jobs.”

The League of Ireland Premier Division clash with Bray Wanderers is still set to go ahead with both sides preparing as normal for the match.

There had been talk of several City players taking advantage of their new-found free agent status however only Pat Sullivan and Robert Mezeckis have left the club which welcomed the Celtic friendly.

“This friendly match now confirms that we will have the ability to pay the outstanding balance owed to the Revenue,” read a statement. “The club sincerely hope common sense will prevail and the club will be given the opportunity to deliver on this.”

Cork boss Paul Doolin encouraged fans to turn up in their thousands tonight (kick off 7.45pm) pointing out that his team are still in with a chance of catching leaders Bohemians. “We will be all out for the three points tonight,” said Doolin.

- Due to demand for the friendly game against Celtic, Cork City wish to advise supporters that when tickets go on sale, priority will be given to season ticket holders, followed by those who hold ticket stubs from tonight’s game against Bray Wanderers.