Gaelic Gear goes Bust. Who is to blame?

[Hereiam]

GAA sportswear company Gaelic Gear goes bust

Peter Sherry of Fermanagh fends off the challenge of Wexford's Adrian Flynn Fermanagh players wore Gaelic Gear shirts for six years

A company which attempted to break into the GAA leisurewear market with limited success has gone into liquidation following a court hearing.

Gaelic Gear made jerseys for Down and Fermanagh football teams during the middle part of the last decade.

However the company, based at Kennedy Way in west Belfast, faced stiff competition from traditional GAA supplier O'Neills.

The winding-up petition was made by Moneynick Construction Limited.

Last minute

It is understood the company was owed about £17,000 for rent of the Kennedy Way warehouse.

The public face of the Gaelic Gear was businessman Paul Campbell. He is listed in the most recent accounts filing at Companies House as the sole director of the business.

It is understood that at the hearing on Wednesday, he made a last-minute application to avert liquidation through a Companies Voluntary Arrangement (CVA).

A CVA is a deal where a company agrees to pay a proportion of its debt to creditors and continues to trade.

However, it is understood that Moneynick Construction was not happy with the terms of the CVA and proceeded with the winding-up application.

The Inland Revenue had also made a winding-up application although this was dismissed because the other had already been granted.

The liquidation comes months after Gaelic Gear lost access to its most potentially lucrative market.

Licence

A spokesperson for the GAA confirmed that it had withdrawn its licence to the company in March.

He said it meant that Gaelic Gear was unable to use any club or county crest on its leisurewear.

It was also not licensed to use the GAA crest.

It had already lost most of its business, with the Fermanagh County Board deciding not to renew its six-year contract in 2009, and opting for O'Neills instead.

The company, which also sold footballs, sliotars and hurleys, courted controversy during its relatively short time in the market.

In 2005, it clashed with the Kerry County Board after releasing a press statement appearing to link the county's football team with the company in "the most lucrative deal" in GAA history.

Kerry, which had a deal with O'Neills, rubbished the statement.

Accounts

The company was also known for its "partnership model" under which a fixed percentage of money earned from replica gear in a county was repaid to the county board.

In the latest accounts to the end of June 2008, the profit and loss account showed an overall loss of £3,273,771.

They also indicate that Mr Campbell has given personal guarantees to banks which have provided overdrafts.

He will therefore not be protected by the limited liability status of the company but will have to pay back the total of the guarantee from his own assets.

No-one from Gaelic Gear was available for comment.

[Kerry Mike]

The company, which also sold footballs, sliotars and hurleys, courted controversy during its relatively short time in the market.

In 2005, it clashed with the Kerry County Board after releasing a press statement appearing to link the county's football team with the company in "the most lucrative deal" in GAA history.

Kerry, which had a deal with O'Neills, rubbished the statement.

Remember this at the time, shame to see them gone but with them well over 3 million in debts and in a very limited market where O'Neills rule the roost it was only ever going to end one way once the GAA pulled the plug on them.

[Muzz]

Why did the GAA withdraw its license to them?

[GrandMasterFlash]

Why did the GAA withdraw its license to them?

Possibly because the GAA are getting kickback royalties from O'Neills or some have some form of exclusively deal with them.

[Muzz]

Well this is what first jumped to mind.  If that is the case then that is brutal!!!  Giving contracts/approval to use copyright based on loyalties and backhanders in my book is not on from an amateur association.

[Lecale2]

Well this is what first jumped to mind.  If that is the case then that is brutal!!!  Giving contracts/approval to use copyright based on loyalties and backhanders in my book is not on from an amateur association.

It's also illegal under EU competition law! I'd say it was more to do with quality.

[A Quinn Martin Production]

Who is to blame??  Whoever ran the company??

[Rois]

Well this is what first jumped to mind.  If that is the case then that is brutal!!!  Giving contracts/approval to use copyright based on loyalties and backhanders in my book is not on from an amateur association.

Who mentioned backhanders??  I would like the GAA to get as much money as possible from jersey sales, and if the way to do that is through an exclusivity deal with O'Neill's, I don't see anything wrong with it.

[Muzz]

Well this is what first jumped to mind.  If that is the case then that is brutal!!!  Giving contracts/approval to use copyright based on loyalties and backhanders in my book is not on from an amateur association.

Who mentioned backhanders??  I would like the GAA to get as much money as possible from jersey sales, and if the way to do that is through an exclusivity deal with O'Neill's, I don't see anything wrong with it.

Why do you want to see the GAA get as much money as possible?  Its about competition.  Competition in the market and competition for its consumers.  Why should headquarters get the revenue?  What not the county boards like Gaelic Gear was doing?  If HQ withdrew license to Gaelic Gear for financial reasons (i.e. hurting their revenue) then I feel this is unacceptable.

[Rois]

Why should headquarters get the revenue?  What not the county boards like Gaelic Gear was doing?  If HQ withdrew license to Gaelic Gear for financial reasons (i.e. hurting their revenue) then I feel this is unacceptable.

Accepted.  However, there are reasons why Down and Fermanagh didn't renew their agreements so it can't have been that lucrative for them.  Were there any county agreements in existence before the licence was withdrawn?  Down signed off long before it.  I'd say it was more a case of they couldn't pay the licence fee. 

A tough business at a tough economic time - a combination of bad luck and bad decision making somewhere along the line. 

I'll ask again about the backhanders - what do you mean?

[angermanagement]

To be that much in debt I would imagine the company has been is difficulties for a long time well before the GAA pulled the plug on the license.

[ardal]

A couple of years back; 2007, I was setting up a new club, and contacted both O'Neills and Gaelic Gear about supplying some basic needs. Gaelic Gear ended up sending me 15 of their match balls for next to nothing (think it worked out at €15 per ball). this was exactly what we needed as didn't have a penny to our name. The ECB had also put us in contact with O'Neills for their special deal / agreement, but it worked put at €50 per ball. The service from Gaelic game was fantastic and we were really grateful to them, but shortly after we held our first tournament the balls went pear shaped; literally. so at the end of the day quality was an issue, but I'd still like to know why HQ withdrew the license. Competition is essential in this market, as the cost of GAA Gear can be a little excessive, especially taking into consideration that O'Neills have a solid, guaranteed, consistent market. A sad day indeed

[A Quinn Martin Production]

The GAA withdrew the licence in March 2010.  The accounts to June 2008 showed losses in excess of £3mill.  The failure of Gaelic Gear is nothing to do with the GAA's failure to renew the licence.

[T O Hare]

The stuff they made was crap!! Thats the be all and end of!! The Down jersey they had a few years ago was the worst fitted jersey ever and the balls were like ballooons!!!
O'Neills are expensive and the billing system for clubs is crap but they have brilliant products which can last a lifetime.

[Muzz]

Perhaps backhanders is the wrong word to use - but with GAA withdrawing license agreement and in reference to the previous post about O'Neills having something to do with it - O'Neills could have sweetened their deal with GAA to ensure that the license fee was withdrawn.

Not saying they did but no one knows the reason why the GAA removed the license.