Dundalk FC have received a stay of execution – but the future of the Louth club remains uncertain.
There had been fears owner Brian Ainscough, who only purchased the club in December, would put Dundalk into liquidation if an investor or a buyer could not be found by 5pm on Monday.
There is said to be a debt of more than €1 million hanging over the club, and outstanding wages to players and coaches could only be paid last week after Dundalk received a contribution from the FAI in lieu of prize money.
With nothing left in the coffers to pay the bills, fears spread on Sunday night that the club would fold by the close of business on Monday after American businessman Jeffrey Saunders withdrew his interest in a takeover.
However, Ainscough is for now continuing negotiations with interested parties in the hope of striking a deal that at least allows the Premier Division outfit to survive until the end of the season.
“There will be no liquidation today,” he told RTÉ on Monday.
Supporters and club members gathered outside Oriel Park on Monday before the 5pm deadline.
Meanwhile, on Monday evening Minister for Sport Thomas Byrne announced that Dundalk’s application for €500,000 to help with upgrades to the artificial pitch and floodlights would be granted.
“Subject to the club remaining in operation, I informed the FAI today that I expect that the club will receive most, if not all, of what it has applied for,” stated Minister Byrne, who acknowledged the club was at a critical juncture.
The precariousness of Dundalk’s situation carries potentially huge ramifications for the integrity of the League of Ireland – as all 30 Premier Division matches involving the club would be deemed null and void, should the Lilywhites cease trading.
Such a scenario would see Derry City, currently second and four points behind table-toppers Shelbourne, leapfrog Damien Duff’s side at the Premier Division summit.
Derry picked up five points from their three fixtures against Dundalk this season (one win, two draws) while Shelbourne amassed 10 points from four games (three wins, one draw). If those tallies were to be erased, Derry would go one point clear of Shels at the top of the table.
The removal of Dundalk’s results would have huge implications throughout the table, not just in the battle for the title. Dundalk have six games remaining, with Jon Daly’s side scheduled to play Sligo Rovers in the Showgrounds next Saturday.
On Sunday night, Dundalk FC admitted: “Our owner is in discussions with different groups, domestically and overseas.
“The next 24 hours is a critical time for the club and we hope that we can get a deal done that keeps us going forward.”
Dundalk, founded in 1903, is one of Ireland’s most storied and successful clubs and sit second in the league roll of honour with 14 table-topping campaigns – only Shamrock Rovers (21) have won more league titles.
There have been three changes of club ownership since 2021, with Boston-based Dubliner Ainscough agreeing to take over from Andy Connolly and Statsports late last year. Connolly and Statsports had bought out Peak6 in November 2021.
However, the timing of Ainscough’s acquisition of Dundalk – one month after the FAI had granted licences to clubs to compete in the League of Ireland – appears to have allowed the purchase to proceed without all relevant financial checks taking place.
Speaking at Saturday’s FAI AGM, interim chief executive David Courell admitted: “The award of the club licence was granted in November 2023.
“The club changed hands after that, in December 2023, and as a result the financial checks were done on the previous ownership. Lessons will be taken away from this process so for any future transfer of ownership that loophole will be closed.
“There are a range of other leagues across the Continent that don’t have the same rigour when it comes to the transfer of a club. We will be better.”
Over the weekend Stephen McGuinness, general secretary of the PFA Ireland, issued a sobering take on events in Dundalk: “Some people seem to think it’s going to be saved. I don’t see that. At this moment in time there’s no wages there for the players next week. The horse has bolted.”
Any last-ditch rescue deal at this stage could still see the club enter the Small Company Administrative Rescue Process (SCARP) – a short-term lifeline for insolvent small businesses that would see the club survive but also guarantee automatic relegation.
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