Kenny stays on as Derry City boss

Kenny was last week linked with the managerial vacancy at Dundalk

Stephen Kenny is to remain on as manager of Derry City.

Kenny's position had been in doubt after the recent decision by the Football Association of Ireland to expel City from the League of Ireland.

However, the chairman of the club's new steering group, Philip O'Doherty, says Kenny has accepted a new two-year contract with the Candystripes.

Kenny's new Candystripes contract is said to be on "revised terms" which include a reduced salary.

Dubliner Kenny was last week linked with the managerial vacancy at Dundalk.

Despite their expulsion from the League of Ireland, the indications are that Derry will be permitted to play in the League of Ireland First Division next season.

He's going to retain some players but a substantial number are going to go

Derry City steering committee chairman Philip O'Doherty

Derry went into administration last week and doubts over Kenny's future were increased by the new steering committee's delay in holding talks with the Dubliner.

However, Kenny held talks with members of the new Derry board over the weekend and Monday's announcement followed.

"I met Stephen myself on Saturday morning for about an hour and all the board members met him on Sunday night," said O'Doherty.

"We basically made him an offer and he's accepted it for a two-year contract.

"Stephen is going to be a manager of a First Division club which is not what he's used to and he knows it's going to be a challenge getting out of the First Division. It's a tough league.

"He'll have to manage on a much-reduced budget and some players are going to leave the club.

"He's going to retain some players but a substantial number are going to go.

We'll be looking for a main sponsor in difficult times

Philip O'Doherty

"He's going to be working with a lot more younger players from the youth set-up."

O'Doherty added that all players and other staff members at the club will be on a "reduced contract".

"We have to live within our means.

"We have to look at the whole fund-raising set-up around the club.

"We are going to have to look at seven directors rather than five and we are going to have to do a lot of work on sponsorship.

"We'll be looking for a main sponsor in difficult times."

O'Doherty added that Kenny would also be looking at any savings that can be made in expenditure on his backroom staff.