Newry restructure wage bill as finances are stretched

A statement released by Newry City FC last night gave an insight in to the club’s finances. The club, like many others in Irish league football is suffering from financial difficulty, made worse of course by last season’s relegation to Championship 1. In last night’s statement from City Chairman Paul McKenna, the club announced negative trading for each month, as well as a restructuring of the wage bill that goes from the players right through to the administration staff.

The statement read, “A further analysis of income and expenditure during the season to date has indicated negative monthly trading which has been sustained directly by the directors and sponsors of the club. More recently key directors and sponsors have had to withdraw their financial support due to changes in their own financial responsibilities.”

McKenna continued, “Based on this clear financial position the Board of Newry City FC have recognised that allowing monthly losses to go unchecked and accrue debt is financially, sportingly and morally irresponsible and as such have taken the proactive step of discussing and agreeing  an almost complete wage budget reduction for players, management and administration. This act will, in both the short and long term, ensure the viability of Newry City FC as a senior club and as a focal point of soccer and community in the south County Down area.”

The news will be disheartening to City fans, but perhaps the club’s recent form will give them some hope. Newry find themselves in the top 2 of Championship 1 and have had some impressive results such as trashing Banbridge 6-0 and recently beating Limavady 2-0 to continue their fantastic start to the league season. The club also alluded to their promotion ambitions in the statement by saying the players will continue to do their bit on the pitch, while the directors and staff work hard off the pitch in making sure the IFA are satisfied with the club meeting any licensing requirements.

The club finalised the statement by announcing a new project which will see the playing surface at The Showgrounds upgraded to a full 3G playing surface, “The club shall actively seek new investment via both revenue and capital means. An example of this is the upcoming development in partnership with the IFA and FIFA to develop a full size 3G Football Turf playing surface on the main pitch. This project will ensure that additional revenue can be generated in parallel with developing the best of local talent and also creating the opportunity for the Showgrounds to host local junior and youth football matches in order to build on existing good relations within the football and sporting family in the city of Newry.”

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Posted by Declan McAteer on Dec 21 2011. Filed under Sport. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry