Kit supplier Playr-Fit have begun legal proceedings against Dundalk FC over an unpaid debt of €130,000, claiming they have also broken an agreement which relates to the issuing of a licence to compete in the League of Ireland last year.
The manufacturer, based in Armagh, has been working with Dundalk for the past three seasons, during which the Oriel Park club has encountered serious financial difficulties.
A statement from Playr-Fit owner Kieran Quinn said that the payment plan over the debt, which was promised under the FAI's Independent Licencing a year ago, has not been adhered to.
Quinn feels it should place a licence for next season in doubt unless the matter is addressed: "The licence granted to Dundalk FC for the 2025 season was issued on the basis of an agreement to repay this debt over a specified timeframe.
"However, the club has reneged on that agreement and failed to make any payments whatsoever in the 12 months since.
"This ongoing non-payment places serious doubt over the club's eligibility for a Premier Division licence for the upcoming season.
"As the FAI has itself stated, 'our licensing system places necessary importance on the protection of creditors to ensure that clubs settle their liabilities promptly, to ensure better cost controls and to encourage clubs to operate on the basis of their own revenues.'
"We believe that upholding these principles is vital for the integrity, fairness, and sustainability of Irish football and local jobs."
Majority owner John Temple, who rescued the club when it came close to folding last year, has told his fellow shareholders that he would be willing to sell if the right offer came in.
Three of the club’s four American-based investors - Chris Clinton, John Keenan and Kevin Brayton – have asked for Temple to hand over his shares.
The parties have entered mediation to agree a sale, with a number of others issues at play for Dundalk be permitted to compete in the Premier Division next season after securing promotion from the First Division.
That includes a new pitch and upgrading floodlights as well as payment plans in place for outstanding debts.
RTÉ Sport understands that an agreement is close for the sale of the club, with Clinton then set to assume more responsibility for all of the issues facing the Lilywhites.
Temple said last week: "We’re still applying for a licence. We’re still getting our pitch sorted out. We have a grant to draw down and we have a budget to agree and finalise to propose to Ciarán Kilduff and hopefully get that over the line. That’s what has to happen next."
The licencing process is ongoing with a decision to be made this month.
Legal proceedings from Playr-Fit against the Lilywhites have begun through a court in Northern Ireland.
Dundalk FC have been contacted for comment.
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