Cavan club faces €1.2m 'boom' debt

One of the country's most historic GAA clubs, which built state-of-the-art facilities at the height of the Celtic Tiger, has been left nursing a debt of more than €1.2 million on the development.

Mullahoran Dreadnoughts, who have won 11 senior county titles in Cavan, took on a massive development programme in recent years, buying 19 acres of land, installing floodlights and building a new sports complex named in honour of one of their most famous sons, former minister and Cavan GAA legend John Wilson.

Earlier this year, the GAA's director-general Páraic Duffy warned that many clubs and county boards are facing heavy debts and face financial difficulties and, as this is the time of year when most clubs hold agms, the financial plight of some is coming to light. Duffy also warned that clubs would struggle with managing their debts at a time when revenues are being reduced.

Earlier this year, Mullahoran sold off 12.5 acres of the 19 acres they had bought for €320,000 in 2007 to help with their mounting debt. Though the club paid almost €17,000 per acre in the original purchase, the excess 12.5 acres -- situated on the opposite side of the road from the club complex -- was knocked down at auction for €165,750 or just over €13,000 per acre.

The construction of the clubhouse at Our Lady of Lourdes Park cost €1.5m. The club also installed a new outdoor athletics track as well as indoor training area, a gym and new dressing rooms which have left the club with substantial debts of more than €1m -- despite significant State aid including a €430,000 grant under the Government's Capital Grants Scheme and other grants from the GAA.

The club also received more than €50,000 under the Clár programme (Ceanntair Laga Ard-Riachtanais/Programme for Revitalising Rural Areas) which is designed to tackle the problem of depopulation, decline and lack of services in rural areas.

Members of Mullahoran were told at the club's AGM last night that the club's income in the Sports Complex and Development Account was €108,357 with €45,000 of this is in the form of a grant. Expenditure was €91,999, including interest payments of €55,626. The General and Lottery Account showed income of €68,028, including a GAA grant of €8,000. Expenditure was €72,643.

On October 31 last, the loan for building the new complex stood at €792,438. The loan for the purchase of the 19 acres of land still stands at €197,455 -- despite the sale of the 12.5 acres. Total debt on the club's ambitious development project now stands at €1,214,046.

Many GAA clubs across the country embarked on similar ambitious developments during the boom and find themselves lumbered with large debt.

According to Páraic Duffy, all areas of the association were "experiencing difficult financial circumstances'', and that a number of GAA projects would have to be cancelled or cut back. While he acknowledged that the association had a responsibility to help its clubs, Duffy warned that it did not have "sufficient resources'' to bail out every club.

"In recent years, there have been unprecedented levels of funding from the GAA central council for units and for projects of various kinds," Duffy said. "Revenue pressures mean that these levels of funding, too, may not continue in the immediate future."

i know hindsight is a great thing but the development programme undertaken by this club was optimistic to say the least. Were they not a little OTT with their plans for the future. Seems a lot of clubs could be in the same boat though.

I was just thinking to myself the other day as i was out and about in the car and you pass all these great clubrooms and pitches that GAA clubs have and then you realise they are achieving absolutely nothing on the field of play.

Seems to me that if half the amount of time was put into 'investing' in teams and less in state of the art clubrooms gyms and the likes then the generations of boys and girls coming through would have something to aspire too.

bocerty wrote:One of the country's most historic GAA clubs, which built state-of-the-art facilities at the height of the Celtic Tiger, has been left nursing a debt of more than €1.2 million on the development.

Mullahoran Dreadnoughts, who have won 11 senior county titles in Cavan, took on a massive development programme in recent years, buying 19 acres of land, installing floodlights and building a new sports complex named in honour of one of their most famous sons, former minister and Cavan GAA legend John Wilson.

Earlier this year, the GAA's director-general Páraic Duffy warned that many clubs and county boards are facing heavy debts and face financial difficulties and, as this is the time of year when most clubs hold agms, the financial plight of some is coming to light. Duffy also warned that clubs would struggle with managing their debts at a time when revenues are being reduced.

Earlier this year, Mullahoran sold off 12.5 acres of the 19 acres they had bought for €320,000 in 2007 to help with their mounting debt. Though the club paid almost €17,000 per acre in the original purchase, the excess 12.5 acres -- situated on the opposite side of the road from the club complex -- was knocked down at auction for €165,750 or just over €13,000 per acre.

The construction of the clubhouse at Our Lady of Lourdes Park cost €1.5m. The club also installed a new outdoor athletics track as well as indoor training area, a gym and new dressing rooms which have left the club with substantial debts of more than €1m -- despite significant State aid including a €430,000 grant under the Government's Capital Grants Scheme and other grants from the GAA.

The club also received more than €50,000 under the Clár programme (Ceanntair Laga Ard-Riachtanais/Programme for Revitalising Rural Areas) which is designed to tackle the problem of depopulation, decline and lack of services in rural areas.

Members of Mullahoran were told at the club's AGM last night that the club's income in the Sports Complex and Development Account was €108,357 with €45,000 of this is in the form of a grant. Expenditure was €91,999, including interest payments of €55,626. The General and Lottery Account showed income of €68,028, including a GAA grant of €8,000. Expenditure was €72,643.

On October 31 last, the loan for building the new complex stood at €792,438. The loan for the purchase of the 19 acres of land still stands at €197,455 -- despite the sale of the 12.5 acres. Total debt on the club's ambitious development project now stands at €1,214,046.

Many GAA clubs across the country embarked on similar ambitious developments during the boom and find themselves lumbered with large debt.

According to Páraic Duffy, all areas of the association were "experiencing difficult financial circumstances'', and that a number of GAA projects would have to be cancelled or cut back. While he acknowledged that the association had a responsibility to help its clubs, Duffy warned that it did not have "sufficient resources'' to bail out every club.

"In recent years, there have been unprecedented levels of funding from the GAA central council for units and for projects of various kinds," Duffy said. "Revenue pressures mean that these levels of funding, too, may not continue in the immediate future."

i know hindsight is a great thing but the development programme undertaken by this club was optimistic to say the least. Were they not a little OTT with their plans for the future. Seems a lot of clubs could be in the same boat though.

I was just thinking to myself the other day as i was out and about in the car and you pass all these great clubrooms and pitches that GAA clubs have and then you realise they are achieving absolutely nothing on the field of play.

Seems to me that if half the amount of time was put into 'investing' in teams and less in state of the art clubrooms gyms and the likes then the generations of boys and girls coming through would have something to aspire too.

On the head Boc, you will have nearly one/two of these in every county.
Only have to look at Ratnure in Wexford over a million on a complex but going increasing backwards on the field of play.
Only now have croker set up a body to vito clubs and see if they are abl to manage loans/debts of these magnitude. The problem this body is facing county boards have to follow the same procedure and they don't like it.

bocerty wrote:
I was just thinking to myself the other day as i was out and about in the car and you pass all these great clubrooms and pitches that GAA clubs have and then you realise they are achieving absolutely nothing on the field of play.

Its nearly Xmas Boc - give us Dubs a break!

Hear parallels in Dublin got the go ahead for a 30million development. Surely I am not hearing correctly. any comments facts etc

JimWexford wrote:Hear parallels in Dublin got the go ahead for a 30million development. Surely I am not hearing correctly. any comments facts etc

Jim - will check out. Is this current or planned?

It is current

DUBLIN GAA club Parnells has received the green light to go ahead with a massive €30m development in Coolock village.

The granting of planning permission by Dublin City Council has been hailed by Parnells officials as "the beginning of a new chapter in the club's history".

The new state-of-the-art development will include two all-weather pitches, a sand-based grass pitch, a sports hall, gym and sports therapy centre.

A clubhouse will be built along with a function room facility as part of the proposed development on 12 acres of land at Chanel College, which is being sold to the club by the Marist Fathers.

The project will include a small development of 17 houses and 53 apartments on a section of the site, plus a medical centre and pharmacy at the entrance to the club in Coolock village, which will bring a much-needed resource to the local community.

The club is anxious to build on recent successes on the field following the promotion of the senior footballers to Division 1.

Dublin goalkeeper Stephen Cluxton, a three-time All Star and the club's best-known player, said: "This will simply transform the club. We cannot wait for this development to get under way."

So I wasn't doting. Thanks Boc, this is something you would seriously have to question

JimWexford wrote:So I wasn't doting. Thanks Boc, this is something you would seriously have to question

it beggars belief Jim - you would really have to question the sanity of those behind the project