Irish dance org's finances "improving," though risk of costly litigation reportedly remains

An Coimisiún Le Rincí Gaelacha (CLRG), the oldest and largest competitive Irish dance organization in the world, appears optimistic about its finances amid reports that costly litigation could threaten its existence.

According to CLRG's recently filed 2024 accounts, the Irish dance organization could be facing more legal action and, in turn, financial strain, The Irish Times has reported.

According to The Irish Times, CLRG's new 2024 accounts filed with Ireland's Companies Registration Office show it recorded losses of €717,796 last year, which included a €500k special provision for potential litigation amid the fallout from the 'feis-fixing' scandal that erupted in 2022.

Much to the frustration of many teachers, disciplinary proceedings related to the cheating scandal were abandoned in May 2024. While CLRG leadership did not state why the proceedings would no longer be pursued, it is understood that the cost was becoming too high.

According to The Irish Times this week, directors stated in a note attached to the new accounts on making the €500k legal cost and settlement provision, “there are several potential legal cases that may be taken against" CLRG.

One registrant has issued proceedings against CLRG regarding the suspension of registration in 2022, and "there is concern that the company may face further litigation from additional registrants based on the outcome of the above," the directors noted.

As per The Irish Times, CLRG has estimated a potential outflow of €500k for damages and legal fees, but the exact amount is subject to the outcome of the legal process. Directors have considered up to 12 potential extra cases when making the provision.

Directors stated that going forward, such legal costs “would not be able to be met from company reserves leading ultimately to there being no organisation to govern our beautiful art form."

They further cautioned that if all potential legal cases as outlined by the solicitors were to proceed, “then the organisation may not be able to continue as a going concern."

However, the directors stated that they “are satisfied that ... continued and enhanced financial stewardship should ensure that the organisation returns to a viable position."

When asked for comment about the Irish Times report, a spokesperson for CLRG told IrishCentral on Thursday: "Throughout 2024, CLRG have implemented a range of initiatives to reduce costs and increase revenue for the organisation.

"By continuing to hold meetings online, the company has achieved significant savings, while a renewed focus on enhancing the profitability of our flagship events has delivered strong results. 

"Enhanced communication amongst members has led to more transparent financial reporting. Notably, the company recorded a net deficit of €217,796 for the year ended 31 December 2024, compared with €704,269 in 2023. Cash-flow forecasting for the next 12 months also indicates substantial improvement in our financial position.

"We are delighted to see a rise in registration numbers, reflecting an international level of support. CLRG remains committed to enhancing our financial stewardship and ensuring that we can govern this beloved art form for many years to come."

Meanwhile, when asked what kind of communication CLRG had issued to teachers about its finances, one registered Irish dance teacher told IrishCentral on Thursday that she was told: "Audited accounts were approved by the Board beforehand and presented to the floor on the Saturday meeting (13 September).

"To note, the financial report highlighted improvements in the organisation’s financial performance, including a profit of €108,000 for the All-Ireland event and a significant turnaround at the World Championships, which succeeded in covering costs despite the absence of city subvention."

The "improvement" in CLRG's finances comes more than a year after it emerged that the Irish dance organization was in a dire financial situation stemming from the loss of two World Championships due to the pandemic, followed soon after by the so-called ‘feis fixing’ scandal that prompted the hiring of a public relations firm and the commissioning of an independent review by Sia Partners.

During an Emergency General Meeting (EGM) in June 2024, CLRG voted to impose a levy on its instructors and adjudicators to cover operating costs, despite pushback from teachers.

Had the measure not gone through, CLRG may have had to declare bankruptcy.