Members of the world's oldest yacht club, the Royal Cork (RCYC), will gather for an information evening next Monday in Crosshaven to discuss aspects of staging future major events. The meeting is intended to answer questions arising from a significant financial loss which is to be reported to the annual general meeting a week later.
In a letter from Admiral Anthony O'Leary to the membership at the start of the year, a copy of which was sent to The Irish Times, the need for corrective financial measures following a loss of £241,004 for the year ended 31st October 2000 have been called. The previous year had seen a deficit of £44,205.
The RCYC is host to the biennial Ford Cork Week that attracts hundreds of overseas yachts and injects millions into the local economy. The club is widely considered to be the pace-setter for the sport in this country while innovations such as Cork Week and the successful 1720 Sportsboat have promoted its reputation worldwide. The officers of the club attribute two principal factors for the loss: the restructuring of the catering facility at the clubhouse in Crosshaven and the financial difficulties experienced during Cork Week.
According to Vice-Admiral David O'Brien, in a year where little significant capital expenditure was required to run the event, profit expectations were anticipated close to £200,000 surplus. Although boat entries fell a little short of target, total event income was ahead of budget. However, costs, and particularly shoreside, escalated at a higher rate, resulting in what is at best a break-even situation.
The club stresses the difficulty in apportioning costs between their flagship event and day-today running costs during normal operation. A full breakdown of Ford Cork Week's finances is expected to be presented to Monday's meeting.
Labour problems within the club finances, which are separate to the Cork Week accounts, also impact heavily with the minimum wage legislation placing increased demands on the club. In keeping with similar experiences elsewhere in the country, a fall-off in voluntary support also added to the problem.
In what should have been a bonanza year following the biggest ever Cork Week, the club did not meet its commitment to repay £110,000 in a lump sum off a term loan. Payments to creditors were delayed and a "difficult and tight" cash position has followed.
A temporary bank facility has been obtained but proposals to be placed before the membership at the end of this month include increased subscriptions, a special life membership offering, plus a service charge for members using particular club facilities such as the marina.
Apart from being a text-book event in virtually every other aspect to similar events and organisations around the world, Cork week is also a highlight of the Irish leisure tourism industry.
