Dundalk FC takeover by US consortium

[Chozz]

League of Ireland runners up Dundalk FC confirmed today the 100% takeover by Peak6, a Chicago based group who also have a stake in Bournemouth AFC. They fee paid was not disclosed as yet but represents a first foreign investment in Irish football. Dundalk won the league in three consecutive seasons from 2014-16 and made history by becoming the first Irish team to gain points in the Europa League group stages.

But a big question remains. Why would such a consortium invest in a part time league club? We all know the answer to this question when it comes to the premier league, to make money. But Dundalk earned prize money of just €110k for each title win. Their dilapidated ground holds a maximum of 5,000. Most of the non playing staff are on community employment schemes earning peanuts. The players themselves are mostly part timers on 1 year contracts. Dundalk lost some of their best players to clubs like Preston and Brighton without transfer fees being recouped.

Their amazing run in Europe in 2016 - where they beat BATE and Maccabi Tel Aviv, as well as creditable performances against Zenit St Petersberg - earned them close to €6m. Their profit for the year was approximately €3.3m, a massive increase from the €145k in 2015. In fact their brief cameo in the qualifying round of the champions league this season (knocked out by Rosenborg 3-2 on agg) provided about €580k.

But there is no guarantee of success in Europe again and there is little financial gain to be had from anything else in the league; no tv revenue bumper deals, no major sponsorship packages or corporate packages. It'll be interesting to see just what the long term plan is here.

Local fans are delighted, but we know all too well that foreign investment doesn't guarantee success...

 

[Diogenes the Cynic]

A girl from Dundalk broke my heart once.

I hope they moneyball the club to oblivion and wipe it's seed from the face of the Earth.

 

[The binman chronicles]

PSG and City better watch out then, enter a new challenger...

 

[NeroCeasar]

LOI football is a strange commodity, Dundalk and Cork City are leaving the rest for dead while Shamrock Rovers try desperately to hang onto the coat tails of the big two. Which probably makes investing in the big two worth a shot, Cork City are owned by the fans trust FORAS so are closed to investment so that leaves Dundalk. Lee Power who owns Swindon bought Waterford last year so investment isn't new, indeed Cork City are owned by the fans on the back of an investment firm Arkaga lasting less then 2 seasons who in turn gave it to a local chancer TNB (Tommy no bobs) who saw his holding company wound up by the high Court and the fans step in and take the club on. The likeihood that this all ends in tears is very high for Dundalk but there is a chance that if done properly it could yield a lot of European prize money. The other consideration is Brexit, owning 25% of Bournemouth means this may be a play to bring players to the UK via Dundalk post Brexit, where it looks like the common travel area will be in place and it may be very easily done. Pick up a youngfella in eastern Europe, he signs for Dundalk then 12 months later goes to Bournemouth and is sold on for £30m 2 years later, nice roi there

 

[Neiler]

I imagine there is someone in the Irish Diasproa involved.

They could buy the FAI for not much more.

Domestic Irish football is a disgrace wholly down to the failing of the FAI, nothing would give me greater pleasure then seeing the FAI disbanded and domestic league under a new model and strategy.

 

[gonetomorrow]

I like the sound of Tommy No Bobs.

 

[dublinbluenose]

They are essentially banking on a European run every season which is not a sensible model. The club will have to be run at a loss. Oriel park is in desperate need of upgrading, the away section is like something from a Bangkok prison.

While the previous owners had taken it as far as they could - trying to run their own business and a football club - a take over of some sort was enevitable. Dundalk don't have a big enough fan base to make a supporter run club an option.

Interesting couple of years ahead.

 

[NeroCeasar]

I like the sound of Tommy No Bobs.

You will find him the bookies and in the South County bar in Douglas Cork all day today. If you ask him he will tell you an interesting story about how he would have turned Cork city into CL regulars if some people like the revenue hadn't insisted on being paid. Part two will be about how the fans screwed him over to take control....

 

[NeroCeasar]

Domestic Irish football is a disgrace wholly down to the failing of the FAI, nothing would give me greater pleasure then seeing the FAI disbanded and domestic league under a new model and strategy.

This is the correct answer on anything to do with LOI football

 

[Chozz]

the away section is like something from a Bangkok prison.

I think you're being a bit harsh there...Thai prisons are a tad more comfortable.

It's without a doubt the area that needs most investment. The main stand is like something from the 70s. 1870s.