Dundalk owner John Temple: Entering SCARP and points deduction still a possibility

SCARP RISK: Dundalk FC CEO Peter Halpin, new manager Ciaran Kilduff and Owner John Temple speak to the press. Pic: ©INPHO/Ciaran Culligan

Dundalk owner John Temple has not ruled out the possibility that the club may still enter the SCARP process - a move that would land the club with a points deduction to start life in the First Division.

The club, relegated from the Premier Division this season after a dismal 2024 which was beset by problems on and off the pitch, announced club legend Ciaran Kilduff as new manager on Wednesday afternoon.

He replaces Jon Daly ahead of next season's First Division campaign. Kilduff had managed Athlone Town to the Women's Premier Division title this season, as well as guiding them to FAI Cup success last year.

However, there are still question marks surrounding how Dundalk will manage their debt going forward.

The Small Companies Administrative Rescue Process scheme was introduced by The Companies (Rescue Process for Small and Micro Companies) Act 2021 to allow small and micro businesses to avoid liquidation and to ensure creditors get a better outcome than they would have if the venture was wound up.

Entering the process would result in a points deduction that the Lilywhites would face in the second tier next season.

Temple, a local barrister who completed a takeover of the stricken Oriel Park side in September, has previously confirmed that accountants had advised him that he needed to go down the SCARP route to ensure the club meets obligations towards their creditors.

“For SCARP, I think it’s inevitable that we had to prepare for SCARP. Do I think we’re going into SCARP? I’m hoping not but we’re still in discussions and negotiations with our creditors," he told a press conference held to announce Kilduff as the club's new first team boss.

"It really does come down is someone going to pull the final plug, is someone not going to honour their word for us and go out and pull the plug. I don’t believe that is going to happen and I’m hoping to have word.

"I can’t speak at the moment because some things are not tied down and signed. Hopefully in the next week or so we’ll have announcements to make."

In terms of the club's budget for the forthcoming season, Temple said the projected costs for the campaign will be upwards of €500,000.

“Well, the budget we have now is a budget proposal," he said. "Obviously you don’t know until you sit down. A lot of the sponsors – front of shirt and everything – they wanted to see what their budgets looked like as well. Obviously when you’re in the Premier Division you have them coming in and they’re kind of outbidding each other for it.

“The First Division, Dundalk haven’t been there for a number of years, so they wanted to work out exactly where did they fit in and where does it fit in with Dundalk’s budget.

"There are restrictions on who you can advertise, who can sponsor, the budget has been more or less set now for the year."