More woe for Wallace as club's short-term debts double to over €120,000
MICK Wallace's beloved Wexford Youths FC faces major financial challenges after the soccer club's debts doubled over a 12-month period.
Accounts filed with the Companies Registration Office (CRO) reveal that the football club owes its short-term creditors more than €120,000.
According to the documents, seen by the Irish Independent, Wexford Youths must now generate €40,000 in fundraising in a bid to allay concerns about its short-term future.
"To continue for the coming season, the company will have to raise €40,000 through various fundraising events," the documents said.
"The directors believe that this is feasible and that the company will continue as a going concern for the next 12 months."
But the club's future is largely dependent on an interest-free loan provided by the Wexford deputy through M&J Wallace Ltd, which is now in receivership.
Mr Wallace's firm was previously at the centre of a tax probe which culminated in a €2.1m settlement being agreed with the Revenue Commissioners in 2012.
The revelation that Mr Wallace had knowingly underpaid VAT almost cost him his Dail career and resulted in him being named in Stubbs Gazette
He has pledged to use half his Oireachtas salary to pay the tax bill; however, only a small portion of the €2.1m sum has been paid back.
The fact that M&J Wallace Ltd is in receivership means it will be prohibited from further bailing out Wexford Youths.
The recently filed documents show that the interest-free loan must be repaid within five years; however, the directors of the club have indicated that this will take place towards the latter part of this period.
The club last year was reported to have received a substantial donation from Ireland international Kevin Doyle (30).
The Wolves striker is known to be close to Mr Wallace and appealed for people to vote for the TD before he was elected in 2011. Neither Mr Wallace nor Wexford Youths responded to a request for comment.