Cork City members rubberstamp Dermot Usher takeover
Businessman Dermot Usher is the new owner of Cork City FC after FORAS members overwhelmingly voted by 84% to relinquish control of the fans-owned club.
Members of the Trust were allowed to quiz Usher before the vote was taken at the Clayton Hotel in Cork City on Sunday afternoon. The ballot consisted of posted, emailed and manual votes.
Grovemoor Limited, the English-based company that owns Preston North End, had retained the option of purchasing City from 2020 after saving the club but, following the passing of Trevor Hemmings, recently opted against completing the takeover.
That enabled Kildare-based Usher to swiftly explore the sale and after obtaining approval from the existing board, a ballot of members was required to formalise the change.
Usher had been surveying the League of Ireland market for the right club to invest in from the largesse he generated by twice selling his SONAS Bathrooms business. Their latest annual turnover is €40m.
Unlike his previous interest in Shelbourne, Dundalk and Waterford, whereby he was either buying a stake or entering with a consortium, he has handled this project in a standalone capacity. A minimum of five years is the commitment he anticipated in a recent interview with the Irish Examiner while the initial pledge of investment for 2023 is €850,000.
Friends of the Rebel Army Society (FORAS) has operated at the club as a Trust since 2010 when rescuing it from a previous financial meltdown but despite last year’s success of a First Division title and with promotion envisaged life back in the Premier Division becoming a struggle.
FORAS members, of which there’s estimated to be around 500, received a communication earlier this week from the board, explaining the background and justification for their endorsement in the deal.
Under their estimate using the present model, revenue generated during 2023 would translate into only a marginal increase in the playing budget for the first-team, with a relegation scrap probable.
Yearly trading losses in two other playing sections of the club, the women’s and Academy, is also projected.
Among the reasons cited for that grim forecast was an inflationary cost environment, including the advent of the minimum wage for players, a development that may result in reversion to a part-time status for the 2024 season.
Usher’s cash injection promises to transform the immediate outlook from the fear of relegation to aspirations of challenging for European qualification.
Apart from all current off-field staff have been assured their jobs are safe, the new chief plans to bolster resources by appointing a Director of Football, Marketing Executive and Accountant.
FORAS will remain as an entity, with Usher vowing to hold quarterly meetings with the Trust as well as a townhall with members.
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