Dundalk’s frightening brush with liquidation has reinforced Glentoran manager Declan Devine’s view that running a top football club on the island of Ireland is a risky, challenging business.
The Lilywhites live to fight another day after a deal was agreed to save the club.
Dundalk suffered cash flow problems under the ownership of Brian Ainscough but a deal has been thrashed out with local businessman John Temple that sees a consortium of investors underwriting the players’ wages for the remainder of the Premier Division season.
Northern Ireland clubs have also had to weather financial storms while attempts are being made to resurrect Omagh Town.
No club is too big to fall if the finances aren’t right and Glentoran were in serious financial trouble before Ali Shams Pour purchased the east Belfast side in July 2019.
British-Iranian businessman Pour has injected around £3m into the Oval outfit in the pursuit of silverware.
Despite increased investment around the League and rising wages, clubs have struggled to avoid posting losses.
Financial Compliance Regulations (FCR) have been agreed by the Irish FA, Northern Ireland Football League and Premiership clubs in a bid to avoid financial meltdowns.
The new regulations will now see all Premiership clubs required to meet break-even compliance over a two-year cycle from their audited annual accounts — to ensure that all competing clubs remain both sustainable and profitable going forward.
Devine feels the Dundalk nightmare is a timely reminder of clubs’ ongoing battles for survival.
“You can chase the dream too quickly, there are warning signs there with Dundalk,” said the former Derry City and Bohemians manager.
“If you had told me four years ago when Dundalk were in the group stages (of Europe) for a second time that they would be so close to going to the wall and out of existence I would have said you were mad.
“But over the last 20 years in my experience as a coach, assistant manager and manager it happens too often.
“Nearly every club in the League of Ireland has almost gone to the wall, some have gone and not come back.
“I could not understand why a fit and proper person check wasn’t done through licencing rules by the FAI and that was a major concern.
“The licencing has got to be really stringent. Players, supporters, managers and staff need to be assured there is enough funding to honour contracts.
“That is key. We are very fortunate here (at Glentoran) where we have an investor willing to support the club.
“A lot of clubs across Ireland are living day by day and that is a concern.”
Glentoran are desperate for the BetMcLean Oval to be redeveloped but the £400m figure quoted in relation to the redevelopment of Casement Park highlights soaring construction costs.
“We have seen what happened with Casement Park and the rising construction costs are a way of life now, everything is going up,” said Devine.
“Whether you want to heat your home or put fuel in your car everything has become extortionate, especially since Covid. My remit is to win football games and I have enough on my plate.
“At Glentoran we are working hard to improve The Oval and I love going there on a daily basis. It has such a great history but we all know that clubs need their facilities tidied up.
“Dundalk bit off more than they could chew. Finances must be right and it’s not easy running a football club in the current climate.
“If you are attracting smaller crowds and wages are rising, I wouldn’t want to be running a football club.
“As long as you live within your means, you have half a chance.
“That’s why I feel a heavy fixture schedule can affect your finances and the product.”
The new Financial Compliance Regulations will be phased in from next season (2024-2025) and fully implemented by the end of the 2026-2027 campaign, with penalties of points deductions for clubs who fail to fulfil the aggregated two-year break-even compliance.