Ward

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Ward Co.Chartered Accountants

• Specialists in Recovery and Reorganisation

Barry Ward FCA, MIPA, FABRP Tim Heaselgrave MIPA
Lyn Green MIPA, MABRP Andrew Shackleton MIPA
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FOOTBALL CLUBS

• Football and its Finances Barry Ward
• Legal implications of running a football club
  Robin Koolhoven
• Changes to the Administration
• process Tim Heaselgrave

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FOOTBALL CLUBS
KEEPING YOUR BALLS IN THE AIR (All you really
need to know about Football and its Finances)
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FOOTBALL CLUBS
1 PERCEPTION

• a. Publicity Value v Actual Business Size
• b. Emotional Value

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FOOTBALL CLUBS
2a IDEAL ORGANISATION
No Agents!
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FOOTBALL CLUBS
2b ACTUAL ORGANISATION
PUBLICITY
MANAGER
AGENTS
HIS PLAYERS COACHES
CHAIRMAN
OTHER PLAYERS COACHES
CHIEF EXEC/ ADMIN
BOARD
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HOW FOOTBALL IS GOVERNED
3 THE UNHOLY TRINITY
FA
THE UNHOLY TRINITY
THE UNHOLY TRINITY
FOOTBALL LEAGUE
PFA
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FOOTBALL CLUBS
4 FINANCE

• a. The cash flow concept as understood in
  football.

Annual Cash Flow
ALL CASH RECEIVED INCREASE IN BANK LOANS
PLAYERS WAGES AND BENEFITS
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FOOTBALL CLUBS
4 FINANCE

• b. Mortgaging the future.
• c. Players wages/the managers view signing on
  fees sales.
• d. Players wages/signing on fees the reality.

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FOOTBALL CLUBS
5 ASPIRATION v REALITY THE REAL MATCH

• a. Directors
• b. Managers
• c. Players
• d. The Fans

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FOOTBALL CLUBS
6 WHAT HAPPENS IF REALITY WINS?

• a. Administration/ Receivership
• b. Rules change with the FA League
• c. Enterprise Act What Enterprise Act?

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FOOTBALL CLUBS
7 ADMINISTRATIONS

• a. What is Administration?
• b. Purpose of Administration
• c. Changes Enterprise Act
• d. Issues for Supporters Trusts

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FOOTBALL CLUBS
7a. What is Administration?

• Legal Process
• Insolvency Act 1986 Enterprise Act 2002
• Insolvency Practitioner appointed to manage
  BAPS!
• Designed to achieve a better result for a club
  than the alternative insolvency processes

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FOOTBALL CLUBS
7 b. Purpose of Administration

• Rescuing the Company as a GC
• Better result for creditors
• Realising property for secured or preferential
  creditors

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FOOTBALL CLUBS
7 c. Changes The Enterprise Act

• Faster appointment (Two forms)
• Now out of Court appointments
• Directors
• Shareholders
• Floating Charge Holder

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FOOTBALL CLUBS
7 c. Changes The Enterprise Act

• Reduced Costs (No 2.2 Report or Court hearing)
• Fewer Preferential Creditors
• Prescribed Part (maybe)

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FOOTBALL CLUBS
7 c. Changes The Enterprise Act

• The Dodo Receivership
• Secured lenders attitude to appointing (less
  stigma)
• Easy route into Voluntary Liquidation

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FOOTBALL CLUBS
7 c. Changes The Enterprise Act

• The Full Monty Distribute funds Dissolve
• No meeting of creditors

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FOOTBALL CLUBS
7 d. Issues for Supporters Trusts

• Duty to Creditors (Sale of Assets)

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FOOTBALL CLUBS
Melchester Rovers - Problems to be faced on
appointment

• 1. Major sponsor to pull out if star player sold.
• 2. Police will not provide future match security
  without being paid.
• 3. Two key players wish to determine contracts if
  deferred terms offered.
• 4. Former manager threatens to sue.
• 5. Architect not paid for new ground plans. Will
  not release these or attend progress meetings
  until dealt with.
• 6. Reserve League threatens to expel club if it
  does not honour fixtures.
• 7. Senior League withhold payments because of
  football debts.
• 8. Finance company wishes to repossess players
  cars.

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FOOTBALL CLUBS
Melchester Rovers - Problems to be faced on
appointment

• 9. Accounts clerk is believed to have stolen
  100,000.
• 10. Training ground has been sold to Directors
  for 1 with development potential.
• 11. Most expensive player has not played for 12
  months and is on 3-year contract with 18 months
  left outstanding.
• 12. Bank withdrew facility on 1 July.
• 13. FA threaten to remove club from cup
  competition.
• 14. Utilities threaten to cut off supplies.
• 15. Youth team strip will not be delivered unless
  paid for.