New Cork City owner Usher reveals shock at 86% backing from FORAS members

BACKED: New Cork City owner Dermot Usher said the margin by which his takeover was approved by Foras members is ‘a clear message to get me off on the right foot with the supporters and volunteers’.

Businessman Dermot Usher admitted his shock at the landslide 86% backing he received from FORAS members to take full ownership of Cork City.

Members of the Friends of the Rebel Army Society (FORAS) were allowed to quiz Usher before the ballot was taken at the Clayton Hotel in Cork City on Sunday.

Those unable to attend could cast votes in advance by post and email.

“I feel shocked to receive such an overwhelming mandate,” said the new supremo.

“It sends a clear message to get me off on the right foot with the supporters and volunteers, who are vital to what we’re trying to achieve with Cork City.

“I came here to be open and answered every question posed by the audience, which was only because I didn’t have the answer. Overall, it was a very positive experience, allowing us to get to work straight away.” 

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 €45m.

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.

“That’s an absolute worst-case scenario that’s been stressed-tested,” Usher said of the outlay.

“Based on my gut and the feedback I received in the room at the ballot, I would be very surprised if the figure transpires to be anything near that.

“Obviously, the amount will need to come down as years progress but I’m confident we can get the supporters and business community buying into our vision.” 

FORAS had 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’S 500 members, of which around 300 voted on the motion, 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, was 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.

Typical protocols associated with transferring companies – especially around employment legislation – mean it will be January before Usher takes official charge and he doesn’t envisage those appointments until then.

Former Shebourne and Bohemians league winning-manager Pat Fenlon has been strongly linked with the Director of Football vacancy but remains in the employment of Belfast-based Linfield for the time being.

MIDFIELD MAESTRO: David Hurley could be on his way to Cork City. Pic: Ray Ryan

Red tape won’t impede the recruitment plans of Colin Healy, however. Signings are due to be confirmed in the coming days, with Galway United’s David Hurley set to be just one unveiled.

Healy has made competitive offers to experienced top-flight players, the calibre of which will be paramount to achieve the stated target of a top-half finish.

Usher also dismissed any concerns regarding the changeover scuppering European qualification.

When Waterford finished fourth in 2018 in the first top-flight year of Lee Power’s stewardship, they were destined for the Europa League until Uefa expelled them due to Lee Power’s incorporating a new company.

“That three-year rule doesn’t apply in this case because we’re not leaving debt and burning people,” he asserted. “We’re changing companies out of necessity and the advice from the FAI is that causes no problem with Uefa.” 

This accord doesn’t dissolve FORAS as an entity, for Usher has agreed in the contract to hold quarterly meetings with the fans-led Trust as well as an annual townhall with members.

Fans-owned no more but what does takeover mean for Cork City?

The legalities: FORAS transfers its assets to Cathair Chorcaí 2022 FC Limited and onto Holmglade Limited (or another Company which is in the sole beneficial ownership of Dermot Usher).

Grovemoor: Predetermined fee to be transferred by Dermot Usher to FORAS for the Trust to execute a Deeds of Surrender of the Call-Option. Severs any legal tie between Grovemoor and Cork City.

The Board: No fan representatives. Darren Tierney, Usher’s financial controller at SONAS, will be the first director appointed.

Usher’s involvement: Initially plans to be based in Cork two days per week with the addition of Director of Football in January. Colin Healy's recruitment to continue in meantime, assisted by unnamed UK-based former Ireland international.

Training ground: Bishopstown will remain as base for now, with options for the club’s portfolio of teams to be explored in the coming weeks.