Finn Harps propose new ownership model as stadium move reaches critical juncture

Finn Harps FC is proposing to move to a new ownership model as part of its plan to plug a €1.5 million funding shortfall for the club's new stadium.

Details of the new model will be presented to shareholders of the Finn Harps Co-Operative Society Ltd on Sunday-week, April 28.

A new fundraising strategy aimed at helping to restart construction of the Donegal Community Stadium is underpinned by a bridging finance arrangement based on the eventual sale of Finn Park.

Shareholders have been summoned to a special general meeting in Ballybofey on April 28 at the Villa Rose Hotel.

Under the proposals being brought by the Finn Harps Board of Directors is for the existing shareholder category be closed and a new share class introduced.

A vote will be taken on the introduction of a new ownership model that would involve an annual membership fee of €180 or €120 for members of the 500 Club.

Should shareholders give the proposals the green light, holders of the original share class will remain part owners of the club. They will no longer have voting rights or attend general meetings unless they join the annual membership.

The Finn Harps Co-Operative Society Ltd, which currently has over 500 shareholders – many of whom would be considered 'lapsed' – was formed in 1996 following a failed takeover of the club in the aftermath of the club winning promotion to the Premier Division.

Harps' need for the new stadium has been further highlighted by the recent failure of the floodlighting system at their existing home at Finn Park.

The cost of the stadium, which will be a modular build, is now €7.3 million and Harps have a funding deficit of €1.5 million with €5.8 million in grant aid secured.

Harps' endeavours to see the new stadium come to fruition have been beset by a series of roadblocks since the project was first mooted in 2004.

The club has, so far, been awarded funding of €4.7m from the Large Scale Sporting Infrastructure Fund, €0.5m each from Donegal County Council and the FAI and has €0.1m remaining on a Sports Capital Grant.

An arrangement whereby the developers of the new stadium would take ownership of the existing Finn Park collapsed at some point along the way.

The existing and outdated Finn Park is owned by the Finn Park Trust, who withdrew from that agreement in an attempt to protect its asset.

However, talks have since smoothed over that stand-off with Trust members now understanding of Harps' position and also keen to see senior football remain in Ballybofey.

Under the arrangement, the Trust would transfer to the new site.

Harps said in a statement: “Commercially, Finn Park is zoned for high density housing whereas the site in Stranorlar is designated for sport meaning that the valuation of Finn Park is significantly higher and this value differential means we indirectly through the Trust have something to contribute to the project.

“If we remained in Finn Park we would not be able to provide anything by means of match funding apart from what can be fund-raised.”

Harps will need to purchase the land on which the new stadium is being built from Donegal County Council and the club say they are 'confident' of getting finance in place.

The club said in a statement: “The elements to progress this project to a conclusion can now be put in place to recommence construction.”

Cashflow challenges from the club's inability to simply meet the rules regarding matched funding for the drawdown of the grant aid and project financing mean that Harps have had to undergo something of a rethink.

The club said: “We recognise that it would be impossible within any short-term timeframe to raise this full amount from our fanbase alone, while continuing to support the significant costs of running the club’s ongoing football operations. It would simply be a bridge too far.”

Harps were forced to kick off their recent home game against UCD at 5pm - three hours earlier than usual - after the floodlight system at Finn Park failed.

While the club has been given a special derogation from the FAI on its facilities for the best part of the last 20 years, Harps are staring into an abyss without the new stadium.

The club said: “As a club we are facing a major fork in the road: Either we get this project over the line or we have little future as a senior club.

“The urgency is very clear- Finn Park has various issues and cannot be upgraded to an acceptable level for licensing. Our external funding will remain static while costs continue to rise. It’s now or never if we are to preserve senior football in Donegal.”