leeds united full board meeting back
Post on 01-Jun-2018
219 Views
Preview:
TRANSCRIPT
-
8/9/2019 Leeds United Full Board Meeting Back
1/28
Leeds UnitedMain Club Sponsor Proposal
LUFC Board PackMeeting 18thSeptember 2013
-
8/9/2019 Leeds United Full Board Meeting Back
2/28
-
8/9/2019 Leeds United Full Board Meeting Back
3/28
-
8/9/2019 Leeds United Full Board Meeting Back
4/28
Leeds UnitedMain Club Sponsor Proposal
Financials
-
8/9/2019 Leeds United Full Board Meeting Back
5/28
Leeds UnitedMain Club Sponsor Proposal
Key Statistics 12/13
Average home league attendance21,572
Full season tickets sold - 11,156
Half season tickets sold345
Average corporate attendance - 839
Total Player Expenditure - 13.2 million
Net revenue player sales - 3.9 million
Exceptional items:
Police refund - 1.2 million
Pension - 401,000
Preference shares redemption - 907,000
-
8/9/2019 Leeds United Full Board Meeting Back
6/28
Leeds UnitedMain Club Sponsor Proposal
Summary of actual results 2012/13
Loss after tax 15% smaller than budgeted
Revenue 6% lower than budget, but gross margin of 78.9%
better than budget (73.5%)
Wages & salaries 10% more then budget mainly due to first
team salaries & change of control bonus
Administration costs 2% lower than budget
-
8/9/2019 Leeds United Full Board Meeting Back
7/28
Leeds UnitedMain Club Sponsor Proposal
Profit & loss for the 12 months ending 30th
June 2013 - LUFC
Year to date Prior Year
Actual Budget Variance Actual Variance
000's 000's 000's 000's 000's
Turnover 27,717 29,665 (1,948) 31,081 (3,364)
Cost of sales 5,844 7,858 2,014 5,582 (262)
Gross profit 21,873 21,806 67 25,499 (3,626)
Gross margin 78.9% 73.5% 5.4% 82.0% (3.1%)
Wages and salaries 20,004 18,101 (1,904) 17,828 (2,176)
Administrative expenses 8,647 8,818 171 8,536 (111)
Total expenses 28,652 26,919 (1,733) 26,364 (2,288)
Operating profit/(loss) (6,779) (5,113) (1,666) (865) (5,914)
Profit/(loss) on sale of players 3,907 0 3,907 3,698 209
Profit/(loss) on sale of fixed assets 2 0 2 0 2
Interest received 0 0 0 11 (11)
Financing costs
Depreciation - Fixed Assets 1,431 1,665 234 1,188 (243)
Depreciation - Trademarks 1 1 0 1 0
Amortisation - Players 1,817 1,104 (713) 1,174 (643)
Amortisation - COA 120 120 0 120 0
Interest paid 1,244 62 (1,182) 90 (1,154)
Exceptional items
Non trading expenses 401 0 (401) 0 (401)
Non trading income 1,152 0 1,152 0 1,152
Profit/(loss) before tax (6,731) (8,064) 1,333 272 (7,003)
Deferred tax movement 104 0 (104) (45) (149)
Profit/(loss) after tax (6,836) (8,064) 1,229 317 (7,152)
-
8/9/2019 Leeds United Full Board Meeting Back
8/28
Leeds UnitedMain Club Sponsor Proposal
Profit & loss for the 12 months ending 30th
June 2013 - LCH
Year to date Prior Year
Actual Actual Variance
000's 000's 000's
Turnover 29,623 33,097 (3,474)
Cost of sales 6,190 6,559 369
Gross profit 23,433 26,538 3,105
Gross margin 79.1% 80.2% (3.1%)
Wages and salaries 20,298 18,741 (1,557)
Administrative expenses 9,254 9,004 (250)
Total expenses 29,552 27,745 1,807)
Operating profit/ loss) 6,119) 1,207) 4,912)
Profit/(loss) on sale of players 3,907 3,699 208
Profit/(loss) on sale of fixed assets 2 0 2
Interest received 0 11 (11)
Financing costs
Depreciation - Fixed Assets 1,431 940 (491)Depreciation - Pavilion 278 604 326
Depreciation - Yorkshire Radio 24 24 0
Depreciation - Trademarks 1 1 0
Amortisation - Players 1,817 1,173 (644)
Amortisation - COA 194 194 0
Amortisation - Carriage Agreement 50 50 0
Interest paid 1,249 98 (1,151)
Profit/ loss) before tax 7,254) 581) 2,427)
Deferred tax movement 104 (45) (149)
Profit/ loss) after tax 7,358) 536) 2,278)
-
8/9/2019 Leeds United Full Board Meeting Back
9/28
Leeds UnitedMain Club Sponsor Proposal
Key assumptions Budget 13/14
2013 / 14 (budget) 2012/13 (actual)
Av Home League
Attendance
26,500 21,572
Season tickets 12,500 11,156
Corporate sales 889 839
Match Categories 6 As
11 Bs
6 Cs
10 As
11 Bs
2 Cs
Player Wages 10m (currently 14m) GBP 13.2m
Exceptional Items Further police refund -400,000
Rates rebate - 250,000
Police refund - 1.2mPension - 401,000
Pref shares - 907,000
-
8/9/2019 Leeds United Full Board Meeting Back
10/28
Leeds UnitedMain Club Sponsor Proposal
Budget 13/14 - LUFC
2013/14 Prior Year
Budget Actual Variance
000's 000's 000's
Turnover 29,520 28,869 651
Cost of sales 5,862 5,844 18
Gross profit 23,658 23,025 633
Gross margin 80.1% 79.8% 0.4%
Wages and salaries 15,574 20,004 (4,430)
Administrative expenses 7,886 9,048 (1,162)
Total expenses 23,460 29,052 5,592)
Operating profit/ loss) 198 6,027) 6,225
Profit/(loss) on sale of players 0 3,907 (3,907)
Profit/(loss) on sale of fixed assets 0 2 (2)
Financing costs
Depreciation - Fixed Assets 1,400 1,431 31
Depreciation - Trademarks 1 1 0
Amortisation - Players 2,189 1,817 (372)
Amortisation - COA 120 120 0
Interest paid 178 1,244 1,066
Profit/ loss) before tax 3,690) 6,731) 3,041
Deferred tax movement 0 104 (104)
Profit/ loss) after tax 3,690) 6,835) 3,145
Needs updating from Fa
-
8/9/2019 Leeds United Full Board Meeting Back
11/28
Leeds UnitedMain Club Sponsor Proposal
Budget 13/14 - Consolidated
2013/14 Prior Year
Budget Actual Variance
000's 000's 000's
Turnover 30,077 29,623 454
Cost of sales 6,190 6,190 0
Gross profit 23,887 23,433 454
Gross margin 79.4% 79.1% 0.3%
Wages and salaries 15,771 20,298 (4,527)
Administrative expenses 8,031 9,254 (1,223)
Total expenses 23,802 29,552 5,750)
Operating profit/ loss) 85 6,119) 6,204
Profit/(loss) on sale of players 0 3,907 (3,907)
Profit/(loss) on sale of fixed assets 0 2 (2)
Financing costs
Depreciation - Fixed Assets 1,400 1,431 31Depreciation - Trademarks 1 1 0
Depreciation - Pavilion 278 278 0
Depreciation - Yorkshire Radio 2 24 22
Amortisation - Players 2,189 1,817 (372)
Amortisation - COA 120 194 74
Amortisation - carriage licence 4 50 46
Interest paid 178 1,249 1,071
Profit/ loss) before tax 4,087) 7,254) 3,167
Deferred tax movement 0 104 (104)
Profit/ loss) after tax 4,087) 7,358) 3,271
Needs updating from Fay
-
8/9/2019 Leeds United Full Board Meeting Back
12/28
Leeds UnitedMain Club Sponsor Proposal
Variance analysis
Ticket office, Retail and Compass catering have a favourable variance alldue to an increase in attendance to 26,500 from 21,572
Central and First team both have favourable variances due to a decreasein salaries
Cup matches has an adverse variance based on a conservative budgetmore could be achieved depending on performance
Revenue and gross profit are approximately the same from 2012/13actual to 2013/14 budget
Wages & salaries are down by 29% from 2012/13 actual to 2013/14budget
Administration costs have been decreased by 16% for the 2013/14 budget
-
8/9/2019 Leeds United Full Board Meeting Back
13/28
Leeds UnitedMain Club Sponsor Proposal
2013/14 Projected cash flow requirement
Projected cash flow based on three material
assumption:
Attendance at 26,500 per game Players wages at 14.5 million
No external funding included
Total cumulative cash flow required c4 million
Average attendance will be challenging
Cash requirement may increase to c 5 to 7m
-
8/9/2019 Leeds United Full Board Meeting Back
14/28
Leeds UnitedMain Club Sponsor Proposal
Cash flow overviewJul13 - Jun14 (000)
Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Total
Total inflows 3,213.1 4,559.1 1,965.5 1,599.8 2,593.4 2,880.7 3,163.3 1,877.7 3,578.3 2,871.3 3,462.4 3,702.0 35,466.4
Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Total
Total outflows (5,712.6) (3,658.1) (3,639.2) (2,406.0) (3,178.1) (3,245.2) (2,529.3) (2,796.7) (2,879.4) (2,401.1) (4,177.0) (2,836.0) (39,458.6)
Net cash inflow/ (outflow) (2,499.5) 901.0 (1,673.6) (806.3) (584.7) (364.5) 634.0 (919.0) 698.9 470.2 (714.7) 866.0 (3,992.2)
Opening Balance (actual cash) 229.0 (2,270.5) (1,369.5) (3,043.1) (3,849.4) (4,434.1) (4,798.7) (4,164.6) (5,083.6) (4,384.8) (3,914.6) (4,629.2)
Closing Cash Balance (2,270.5) (1,369.5) (3,043.1) (3,849.4) (4,434.1) (4,798.7) (4,164.6) (5,083.6) (4,384.8) (3,914.6) (4,629.2) (3,763.2)
Needs updating from Fay
-
8/9/2019 Leeds United Full Board Meeting Back
15/28
Leeds UnitedMain Club Sponsor Proposal
Summary of loan monies
To date, the owners have provided GBP 17.5m of loans to LUFC tosupport the clubs cash flow position
The amount of support provided has been in excess of what wasanticipated and reflects the fact that the wage bill was increased andturnover was less than expected.
Seeking Board approval to meet future cash flow shortfall on pro-ratabasis
Distribution of existing debt % stake Debt
GFH Capital 53.50% 9.38
IIB 10.00% 1.75
Envest 36.00% 6.31
Al Khal 0.50% 0.09100.00% 17.54
Distribution of future requirement % stake Debt
GFH Capital 53.50% 2.14
IIB 10.00% 0.4
Envest 36.00% 1.44
Al Khal 0.50% 0.02
100.00% 4
-
8/9/2019 Leeds United Full Board Meeting Back
16/28
Leeds UnitedMain Club Sponsor Proposal
Operational Issues
-
8/9/2019 Leeds United Full Board Meeting Back
17/28
Leeds UnitedMain Club Sponsor Proposal
Update on Management Structure
Shaun Harvey
SH resigned.
Placed on Garden Leave
Outstanding financial and employment issues with SH
Ken BatesKB resigned as chairman on 30th June and become president
Termination of KB as president due to breach of his services contract
Retrospective Board ratification requested
Gwyn Williams
GW was made redundant from this position as Academy head and technical
director
On review of his conduct GW was then dismissed on notice for gross misconduct (
pornography and breach of confidentiality)
Seek board ratification on changes
-
8/9/2019 Leeds United Full Board Meeting Back
18/28
Leeds UnitedMain Club Sponsor Proposal
Update on Management Structure
David Haigh
Following placing of SH on garden leave DH allocated as interim MD
DH has good relationships with staff and SH to smooth transition
Following appointment of acting CEO DH to focus on litigation and investment
DH focusing on Flowers deal
Salah NooruddinInitially Salah Nooruddin made Vice Chairman of LUFC
Following 30thJune 2013 made Chairman
Paul Hunt
Paul hunt, former deputy CEO of Blackburn rovers appointed as acting CEO
Temporary contract to move permanent on basis of success
To focus on operational matters
Has been known to GFH since summer 2012
Has been advising as a consultant since 1st
July
Seek board ratification on changes
-
8/9/2019 Leeds United Full Board Meeting Back
19/28
Leeds UnitedMain Club Sponsor Proposal
Aim is to reduce staff cost by 40% which will be broadly
achieved once settlement costs are paid
Senior management staff have been let goGW, NP, YA, SH
Junior staffRedundancy program complete Re-training for Safety Officer position to replace incumbent
Staff Optimisation
-
8/9/2019 Leeds United Full Board Meeting Back
20/28
Leeds UnitedMain Club Sponsor Proposal
Increase match day sales
Outbound sales
Positive PR
Group Sales
Dynamic pricing
Enhance commercial revenue
Outbound sales
Increase marketing
Improve match day experience
Increase retail revenues
Partnership with JD Sports
Pop up shop in Trinity
Increase product range
New Revenue Generation Strategy
-
8/9/2019 Leeds United Full Board Meeting Back
21/28
Leeds UnitedMain Club Sponsor Proposal
Cost Cutting Strategy
Closure of Yorkshire radioto save up to 350k per
annum in cash
Squeeze Suppliersobtain better terms from key
suppliers
Cost Committee
Individual departmental meetings
Biggest cost is player wage bill
Key is to ensure club is meeting FFP requirements
-
8/9/2019 Leeds United Full Board Meeting Back
22/28
Leeds UnitedMain Club Sponsor Proposal
Football
-
8/9/2019 Leeds United Full Board Meeting Back
23/28
Leeds UnitedMain Club Sponsor Proposal
Brian Mcdermott appointed in April and steered club away from relegation
Well-liked by the fans, media and peers
Presents a positive image
Engages well with staff
Thorp Arch appears to be a positive environment
New Manager
-
8/9/2019 Leeds United Full Board Meeting Back
24/28
Leeds UnitedMain Club Sponsor Proposal
Football Squad
Since the end of last season, 7 players have not had their contracts renewed
as they were not in the plans of the new manager.
Furthermore, Steve Morison was allowed to go on loan and 60% of his
wages are being recovered.
Four new players have arrived (Matt Smith, Noel Hunts, Luke Murphy andScott Wootton)
The arrivals have increased the wage bill to over GP 14.5m (budget is 10m)
The manager believes the squad is unbalanced and requires further
changes:
Too many left backs
Too many midfielders
No pace or width up front
-
8/9/2019 Leeds United Full Board Meeting Back
25/28
-
8/9/2019 Leeds United Full Board Meeting Back
26/28
Leeds UnitedMain Club Sponsor Proposal
Shareholders
-
8/9/2019 Leeds United Full Board Meeting Back
27/28
Leeds UnitedMain Club Sponsor Proposal
New Shareholding Structure
LUFC Holding
Leeds City Holdings
Limited
100%
Leeds UnitedFinancial
Services Limited
Leeds UnitedMedia Limited
Leeds UnitedFootball Club
Limited
Leeds UnitedCentenary
Pavilion Limited
Shareholder Structure
GFH 49.8
IIB 10
Envest 39.7
Other 0.5
Total 100
-
8/9/2019 Leeds United Full Board Meeting Back
28/28
Leeds UnitedMain Club Sponsor Proposal
AOB
top related