Dundalk FC prepare for SCARP but Temple hopes they don't go into it

Dundalk FC owner John Temple remains hopeful the club can avoid entering into SCARP – as they prepare for life in next season’s SSE Airtricity League First Division.

The relegated club’s current liability stands at approximately €1.5 million, according to Mr Temple, who previously suggested in a sit-down with local media that such debts could necessitate entry into the Small Company Administrative Rescue Process (SCARP).

SCARP is a formal insolvency operation which enables the restructuring of businesses that have less than 50 employees. It would allow Dundalk to enter into a compromise agreement with its creditors, where a proportion of the debts would be written off.

However, such an arrangement would likely incur a points deduction for The Lilywhites ahead of their unwanted return to the League of Ireland’s second tier after 16 seasons.

Mr Temple said: “I came into the club just over six weeks ago. From September to now, I’ve scaled the building, I’ve looked at an awful lot. One thing that struck me even before I came into the club is that it is a football town.

“Have I saw viability in the club? I have. Just last week we opened up the indoor pitches out here and in the next week or so we’ll have the gym opened up.

“The club has to become self-sustainable. I spoke about this recently to some of the local media in that the club has to move away from relying on sponsorship and other people. It must become self-sustaining and I do see that prospect there.

“I can see where the club can become self-sustainable. Rome wasn’t built in a day, it is going to take time, but if we don’t lay the foundations now then we won’t reap the rewards later on.

“We have some very exciting news coming up in the near future about sponsors and about going forward with new kits and everything else.”

He added: “A lot of the sponsors for front-of-shirt for the team and everything, they wanted to see what their budgets look like as well because when you’re in the Premier Division, you have them coming in and outbidding each other for it.

“First Division, Dundalk haven’t been there for a number of years, so they wanted to work out exactly where did they fit in and where does it fit in for Dundalk’s budget.

“There are restrictions on who you can advertise and what can be advertised and who can sponsor. The budget has been more or less set now for the year.

“For SCARP, I think it’s inevitable that we had to prepare for SCARP. The first thing I did was come in and say, look, we’re preparing for SCARP. Do I think that we’re going to go into SCARP? I’m hoping not, but we’re still in discussions and negotiations with all creditors.

“It really does come down to, is someone going to pull the final plug? Is somebody not going to honour their word for us and go out and pull the plug? I don’t believe that that’s going to happen.

“I’ll be holding a press conference again, probably within about a week’s time, to update you, but more in relation to other things which are going to happen around the club.

“I can’t speak at the moment because some things are not tied down and signed, but hopefully in the next week or so we will have announcements to make.”

Having flagged legacy issues as a potential stumbling block in obtaining a First Division licence for 2025, the new Dundalk owner then offered a positive update on that front.

“We’re still going through the licence process, it’s a huge process,” he said. “There’s a huge amount of documentation required. They need full requisitions, they need undertakings, they need a lot of declarations provided.

“It’s a massive provision of documentation, but the FAI have never signalled to me and said, you’re not getting it. They’ve been liaising with Peter (Halpin) and the documents have been provided as best we can and as much as we can right now.

“Obviously there’s a huge chunk to go yet, but we’re still going through that process of preparing for it, but there’s no indication that we’re not getting the licence.”

Meanwhile, as revealed by The Democrat last month, Dundalk have confirmed that former chairman Padraig McGowan has made a return to Oriel Park as club secretary.

The Dundalk FC Supporters Trust are due to host their first-ever AGM next Monday, November 18th at 7pm inside The Lisdoo. The meeting is strictly open to members only.