Shamrock Rovers play home games at Tallaght Stadium
SHAMROCK Rovers recorded an after-tax loss of nearly 1.8 million euros, compared to a profit of more than 627,000 euros the previous year.
Accounts from the Tallaght-based club during the year through November 30, 2020, describe the blow it suffered from the Covid-19 pandemic and related public health measures, which saw attendance at the events sports severely curtailed by the government.
The club’s balance sheet had been transformed the year before when a â¬ 2million cash injection by businessman Dermot Desmond turned shareholders’ funds from a deficit of nearly $ 1.3million. ‘euros to a surplus of 1.34 million euros.
However, the club’s latest accounts show that shareholders’ funds are once again in the red with a deficit of â¬ 410,663.
Mr Desmond, who owns a 25 percent stake, previously said he had invested in Rovers to develop his academy for young people.
He said he felt more of a âdirectorâ of the club than a shareholder.
The latest accounts show that the directors agreed to write down a â¬ 800,000 inter-company loan owed by his academy during the year.
The club’s board of directors predicted that it had sufficient cash funding to meet its debts over the next 12 months, and said it was “confident” that shareholders would continue to support it. . He also noted that “key shareholders” have confirmed that they will not be looking to repay their loans in the next 12 months.
The club said they have undertaken a “thorough review” of their forecast which “depends critically” on a number of “key assumptions” made by the club “on the basis of information available to the board.” .
These assumptions include that the club will compete for European places in the Airtricity League in 2021 and successfully compete in European competition this season and next. The club is well on its way to retaining the league title.
The forecast also hinges on whether subscription sales are consistent with historical experiences, but the board has recognized that match-day revenue is expected to be “negatively impacted” by Covid-19 and admissions to sporting events.
Further assumptions are that sponsorship, business and other non-match activities will reflect âcontinued trust and a successful 2021 campaignâ.
The forecast also assumes “the planned storage of the tax commissioner’s debts resulting from the impact of Covid-19” as well as the “continued receipt of the employee wage subsidy scheme”.
Rovers employs 42 people, including 21 professional footballers, eight administrative staff, five management and training team members and eight directors.