Unpaid City staff to receive redundancy
THE NEW chairman of the Derry City Steering Committee has claimed that all the club's employees would receive "statutory redundancy" payments after the club moved into Administration.
However, in order to secure such redundancy payments from the N. Ireland Department of Employment and Learning, the decision to put the club into Administration lies with the past Board of Directors who remain responsible for Wellvan Enterprises, the limited company which governs the affairs of the Brandywell club.
Philip O'Doherty, the managing director of E. & I. Engineering and the new chairman of the "Steering Group" which will lead Derry City until a new Board is elected, claimed his immediate priority was to establish a new Board of Directors once the Administration process was set in motion.
"Based on our experience over the past few days, it's my view that it could take just one week to formulate a new Board of Directors given the contacts we've made and received over the past seven days," claimed Mr. O'Doherty.
"In fact, I would suggest that we have two, maybe three, interested individuals who are positive about coming onto a new Board but they have yet to sign on the dotted line.
"But we must wait on Wellvan Enterprises to go into Administration. We are seeking five or even seven directors to lead that new Limited Company and I would expect us to be in a position to do just that once the decision is made by Wellvan Enterprises."
New blood required
Mr. O'Doherty, who has agreed to take his place on that new board, hoped that "new blood" would also be involved as he attempted to take the club forward.
"The Steering Committee would like as many new faces as possible on that Board as we intend to have other experienced people to be part of an Advisory Committee which would assist the Board should that assistance be required, particularly during the early stages of the new company's life.
"The individuals on that Advisory Committee would include Paul Diamond, Jack McCauley, Martin McDaid and John Meehan," he confirmed.
And the chairman said he was also anxious to appoint a manager and, indeed, have a budget in place for participation in the First Division come next February.
"At this moment in time, Stephen Kenny, his backroom staff and playing staff, are retained as assets of Wellvan Enterprises. Therefore, we cannot approach any of those people until Wellvan goes into Administration. When that happens, the Adminstrator actually makes those employees redundant, just as any employer would in this type of situation.
"From our point of view, we must be ready to put a Board in place when Administration arrives and I'm certainly hopeful that will occur before this weekend."
Mr. O'Doherty appealed for prospective new directors to step forward, people who felt they had something to offer on that front.
"To be perfectly honest, there are more people telling me they do not wish to be directors, rather than telling me they would consider becoming a new director of the company. Hopefully, this story in today's 'Derry Journal' will assist us in attracting people to come forward as I would really like to see some new faces involved, particularly those with a business background. That said, I can assure you, no-one will be ruled out.
"While the appointment of new directors would be a priority at the moment, back-up support is also essential. Willing and hard-working individuals who would assist our various voluntary committees, in short we really need the help of everyone we can get," insisted Mr. O'Doherty.
"All structures at the club must be looked at including the work of the various committees and what they actually do. Those who represent the Supporters' Trust and, indeed, members of the various supporters clubs also have an integral role to play in this re-structuring process."
He also held the view that mistakes had been made over the past decade - through no fault of anyone - but he was adamant that plans had to be put in place for the 2010 season in particular.
"Many people hold the view that the most important task for the new directors of the club would be to get Derry City back into the top flight as soon as possible. However, in my opinion, the main priority is to restore the reputation of this football club and, after that has been achieved, ensure that we have financial stability. Then, and only then, would I look towards a return to the Premier Division. Things have to change, make no mistake about that, particularly on the financial front.
"Personally, I was ashamed at certain things that happened last season involving business with other football clubs. I was embarrassed at the way this club has been dragged through the mud on occasions. Unfortunately for us, that has also had a significant effect on the good name, not only of the football club, but also of the city itself," claimed the Steering Committee chairman.
"I think the fact that people seemed to ignore situations that really should have been addressed has been one of the main failings of the Board of Directors who led the club last season, there can be no doubt about that. However, I also take the view that it's time to move on, tackle the problem in relation to getting back into the Premier Division after we restore Derry City's good name and the club's credibility and, of course, establish that sound financial footing.
"We will be starting with a clean slate - carrying no debts whatsoever - the overall budget will be much lower than what has been experienced in the past and it will be in line with the numbers coming through the Brandywell turnstiles next season. The attendances have been spiralling downwards and it's also time for supporters to talk to their families, friends and colleagues about bringing people back to the Brandywell."
Season Ticket Holders?
Given that the new company would start with what he described as "a clean slate," does that mean that the 400 supporters who renewed their season tickets at the request of the previous Board, could actually lose out despite their loyalty to the club?
And what about the 350 individuals who each paid 20 to secure membership of the new Derry City Social Club based in Crawford Square, would they also stand to lose their membership fees?
"I can only give you a direct answer in relation to those questions. Those people, the season ticket holders and those who paid their Social Club subscriptions in advance, will be treated as 'unsecured creditors' by the Administrator," answered Mr. O'Doherty.
"They would also come way down the pecking order in terms of receiving some sort of compensation. However, when the new Board of Directors is formed and put in place, I think that problem will be looked at more closely in addition to the overall club budget and the fresh finances that will be brought to the club.
"Will the season ticket holders receive discounts etc.? Maybe they will be asked to pay a percentage of another ticket? I really don't know at this stage, but my view is that we will have to do something in relation to that given the loyalty those season ticket holders have shown. I certainly don't think the loyalty and good faith they have shown can be dismissed.
"The same situation applies to the Social Club members, but I really cannot answer these questions outside giving you the legal response."
But Mr. O'Doherty said he did not view the proposed new Social Club as a priority.
"I don't believe the establishment of a new Social Club is a priority. We have to concentrate and focus on the re-establishment of the football club and getting it back up and running, that's the priority in my mind. I honestly believe that taking on a new Social Club would prove to be a distraction given the times we live in. However, there's no doubt that the issue will be discussed in full by the new Board and the club's new Advisory Committee."
Turning to the playing staff and his suggestion that statutory redundancy payments would be forthcoming to all the club's employees, Mr. O'Doherty said the Steering Committee had already investigated that possibility.
Given that the manager, his coaching staff, players and other club employees have not been paid since the end of September, plus the fact that they are owed an additional three weeks from August - approximately 11 weeks without any remuneration - how soon would they receive redundancy payments?
"The Steering Committee has been pressing the existing Board of Directors to appoint an Administrator as soon as possible. The sooner that situation is addressed, the sooner the Department of Employment and Learning would be in a position to pay statutory redundancy.
"But that redundancy payment would not fully cover what those individuals are owed. As far as I know, a maximum of eight weeks wages would be paid, but those wages are capped at a figure of approximately 380 per week, no matter what the individual earned.
"If my figures are correct, those earning 380 per week or above would receive an approximate payment of just over 3,000 each. Obviously that will fall well short of what those staff are owed, but provided the Administrator was appointed immediately, that finance could well be paid to those involved before Christmas which is what the Steering Committee has been aiming for."
Mr. O'Doherty confirmed that he has been involved in two meetings with representatives of the 2009 Board. He agreed that putting Wellvan Enterprises into Administration was the preferred option for all.
Timing is vital
"The FAI Chief Executive, Mr. John Delaney, discussed this situation with us on his recent visit to Derry. He made it clear that such a step should be made as quickly as possible in order to buy us time. Once that had been done, it would the present us with an opportunity to speak to both the manager, Stephen Kenny and members of the playing staff. However, we cannot do that legally until the Administration procedure has been implemented. In short, we're in limbo until then and that's why we have opted to remain silent over recent weeks," he continued.
When asked why he had opted to make a return to the club having not been involved over the past 10 years, Mr. O'Doherty answered: "I am prepared to step in because I am conscious that someone has to do it. I'm equally conscious that some money must be made available to get started up and having not been involved in the club for such long time, I feel I really should spend some time on it as there are very few people that are going to be jumping in to help."
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Friday 25 May 2012
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