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COMPANY REGISTRATION NUMBER 6233875
LEEDS UNITED FOOTBALL CLUB LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
3
JUNE 2 15
•A51G208B*
A 8
24/02/2016 ;
COMPANIES
HOUSE
230
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LEEDS
UNITED FOOTBALL CLUB LIMITED
FINANCIAL STATEMENTS
YEAR
ENDED
3
JUNE 2 15
CONTENTS P GE
Officers
and
professional advisers
1
Strategic
report 2
Directors report 3
Statement of directors responsibilities 4
Independent auditor s report
to the
shareholders
5
Profit
and loss account 6
Balance shee t 7
Cash flow statement 8
Notes
to the
financial
statements 9
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LEEDS UNITED
FOOTB LL CLUB
LIMITED
OFFICERS ND PROFESSION L
DVISERS
TH E
BO RD OF DIRECTORS
REGISTERED OFFICE
UDITOR
B NKERS
SOLICITORS
M
Cellino
Ercole Cellino
Edoardo Cellino
DArty
5 Patel
J
Patel
G Caboni
Elland
Road
Leeds
LS11 OES
Gibson
Booth
Chartered Accountants
6 Statutory Auditor
New Court
Abbey
Road North
Shepley
Huddersfield
HD8 BBJ
Barclays Bank pic
69 Albion Street
Leeds
LS1 5AA
Chadwick
Lawrence
8 16
Dock Street
Leeds
LS1 1LX
Ward
Hadaway
Wellington Street
Leeds
LS1 4DL
1
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LEEDS UNITED FOOTBALL CLUB
LIMITED
STRATEGIC
REPORT
YEAR ENDED 3 JUNE 2 15
REVIEW
OF
BUSINESS ACTIVITIES
The summer months leading up to the start of the 2014/15 season saw substantial changes both on and off the pitch. A cultural
change under
the
ownership
of
Massimo Cellino
saw a
sporting director, Nicola Salerno, appointed
to
take charge
of the
club's
recruitment
and 15 new
players w ere drafted
in -
eleven permanent signings
and
four
loan
deals.
Italian football was the main so urce of the incomings, with the likes of Giuseppe Be llusci and
Souleymane
Doukara
commanding substantial
fees to join
from Catania, Highly-rated Brazil Under-20s
international Adryan was
among those
w ho
arrived
on
loan, while striker Billy Sharp
was the
household name which
the
fans craved.
David
Hockaday
replaced Brian
McDe/mott as the
club's
new
head coach
in
June
but
departed Elland Road after just
two
wins
from his opening six games. Expectations for the season remained
high
despite a mixed start, and further changes were to
come as Darko Milanic was drafted in from Austrian side Sturm Graz to take charge following Neil Redfeam's productive
caretaker spell. However,
six
games without
a win saw
Milanic's contract terminated
and
R edfeam took charge
o n a
permanent
basis. By this point, however, w e were looking down the table rather than up and a worrying run of results over the Christmas
period saw the
team slip towards
the
relegation zone. January brought
a
turn
in
fortunes
and
improved results soon made
our
league standing a lot
healthier
as we went on to secure our Championship status.
Further reinforcements were made
in the
January transfer window, with
Sol
Bamba
and
Granddi Ngoyi both
arriving on
loan
from Palermo, while Edgar Cani joined from Catania for the remainder of the season.
p \AeT V
The
major positives
on the
footballing side came through
our
exciting homegrown talent, particularly
the
emergence
of
eventual
*"
fS
Young Player
of the
Year Lewis Cook
in his
breakthrough season. 2014/15
saw
Alex Mowatt, another Academy graduate,
vf
establish himself as a key figure as he went on to claim the Player of the Year award, while Charlie Taylor also cemented his
place
in the
side.
Sam
Byram continued
to
impress, scoring three times
and
attracting Premier League interest along
the
way,
ô c
v
and it was the
season which
saw
Kalvin Phillips make
the
step
up for his first-team
debut.
-
In financial terms the 2014/15 season saw the company make enormous strides towards stability Whilst there was a 3.55%
decrease in turnover from £25.3m to £24 .4m we can attribute this almost entirely to the decline in merchandising income.
However, gate receipts increased slightly from £8.6m to £8.8m and following a period of restructuring the salary costs reduced
from £22.4m to £20.2m, a decrease of 9.8%.
r r
I am
very pleased
to
announce
a 91%
reduction
of
post
tax
losses
for the financial
year.
In
monetary terms,
the 2014/15
result
of
£2,012,342 loss represented
a
saving
of
£20,874,122
on the
2013/14 season.
O f
course, player trading made
a
major
contribution to the year on year savings with Ross McCormack departing in early July 2014 but this was necessary for the long
term benefit of the club.
The
Board
has
worked tirelessly
to
strengthen
the
balance sheet with
an
additional 14,500,000 Ordinary Share s issued.
The
balance sheet showed
a
surplus
of
£1,009,875
as at the 30
June 2015,
an
improvement
on the 30
June 2014 deficit figure
of
£13,477,783.
FUTURE DEVELOPMENTS
The
strategic review that commenced
in
April 2014 continues into
the
2014/15 season. Following lengthy discussions
the
Club
took the decision to buy back all catering operations from Compass Contract Services (UK) Limited in order to widen the income
base and to take a more long term approach to financial stability. On 3 July
2015
all catering operations at Elland Road returned
in
house
and a
programme
of
renovation
to the
hospitality areas
has
commenced
in the
West
Stand and will continue until all
areas have been comprehensively modernised.
1 The club will continue to make sensible and cost effective changes to the playing squad to ensure that the burden of salary
costs remains manageable. However, whilst cost management is considered crucial we recognise the importance of investing in
the club's home, Elland Road. All areas of the business have benefited from a conservative capital improvement scheme with ••
updates made to the retail shop, new 3G edging and lighting systems to the Elland Road
pitch.
Match day hospitality has
benefited from refurbishment of the private boxes and office areas have been modernised to exacting standards. Further
ujV̂
programmes will continue
as and
when
our
finances allow
it.
I
have openly voiced
my
opinion
on the
increased number
of
League games that
are
shown
on
live
TV and will
continue
to work
~ \̂to
ensure that
the
club
is
treated fairly, shown
no
more
or no
less than every other team within
our
League.
It is my
intention
to
work to safeguard the future of Leeds United.
Hi
/ /// /n
Signed on behalf of the directors J / /
// /]
/ /
MCELtfNO P SL/
V
Director
/ jfd̂ 1
/
—N
Approved by the directors on 2.fe>/. .'./.. .£ \ I VÂ/—
^
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LEEDS UNITED FOOTBALL
CLUB
LIMITED
DIRECTORS REPORT
YEAR
ENDED 30 JUNE 2015
The directors present
their
report and the financial statements of the company for the year ended 30 June
201
5.
RESULTS
ND DIVIDENDS
The
loss
for the
year amounted
to
E2 ,
01 2,
342.
The
directors have
no t
recommended
a
dividend.
FIN NCI L INSTRUMENTS
The
com pany s financial instalments comprise
of
borrowings such
as
secured
and
unsecured loans
and
advanced receipts
in
respect of the ordinary activities of the
club,
cash and liquid resources, finance leases and various other items
such
as trade
debtors
and
trade creditors that also arise directly from
its
operations.
FIN NCI L
RISK M N GEMENT ND EXPOSURE TO RISK
In order to minimise financial risk the directors of the company have taken the decision not to engage in trades of a speculative
nature. At the year end the company had no foreign currency exposure. Other risks and uncertainties may arise dependent on
the performance of the football team.
C SH FLOW
The
company continues to ensure that cash flows are closely monitored on a daily basis and reviews its overall financial
requirements on an annual basis. This policy will be maintained for the foreseeable future.
DIRECTORS
The directors who served the company during the year were as follows;
A
M Cellino
. Ercole Cellino
* E d o a r d o C e , , i n ,
p
p
at,
i
A
Umbers served as a director from 1 January 2015 until 12 October 2015.
G Caboni was appointed as a director on 21 January 2015.
M Cellino resigned as a director on 21 January 201 5
and
was re-appointed on 6 May 2015.
DIS BLED EMPLOYEES
Applications for employment by disabled persons are always
fully
considered. In event of members of
staff
becoming disabled,
every opportunity is made to ensure their employment with the company continues and that appropriate training is arranged. It is
the policy of the company that the training, career development and promotion of disabled persons should, as far as possible.
be identical to that of other employees.
EMPLOYEE INVOLVEMENT
The company s employment policies are designed to attract, retain and motivate the best people. The company involves
employees at all levels of the organisation through a broad base of regular communication, meetings and briefing sessions to
understand current performance
and
communicate future developments.
UDITOR
Gibson Booth are deemed to be re-appointed under section 487(2) of the Companies Act 2006.
Each of the persons who is a director at the date of approval of
this
report confirm that:
• so far as
each
director is
aware, there
is no
relevant aud it information
of
which
the
company s
auditor is
unaware;
and
•
each director
has
taken
all
steps that they ought
to
have taken
as a
director
to
make themself aware
of any
relevant audit
information and to establish that the com pany s auditor is aware of that information.
Registered office: Signed on behalf of
Eland Road
Leeds
LS11
OES
Approved by the directors on
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LEEDS
UNITED
FOOTBALL
CLUB
LIMITED
STATEMENT OF
DIRECTORS RESPONSIBILITIES
YEAR ENDED
30
JUNE 2 15
The
directors
are
responsible
for
preparing
the
Strategic Report, Directors Report
and the
financial statements
in
accordance
with applicable
law and
regulations
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have
elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards
and
applicable law). Under company
law the
directors must
not
approve
the
financial
statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or
loss of the
company
for
tha t year.
In
preparing these financial statements,
the
directors
are
required
to:
•
selec t suitable accounting policies
and
then apply them consistently;
• make udgements and accounting e stimates that are reasonable and prudent;
•
state whether applicable
UK
Accounting Standards have been followed, subject
to any
material departures disclosed
and
explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will
continue
in
business.
The directors are responsible for kee ping adequa te accounting records that are sufficient to show and explain the comp any s
transactions and disclose with reason able accuracy at any time the financial position of the company and enable them to ensure
that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the
company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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LEEDS
UNITED FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR S
REPORT TO THE
SHAREHOLDERS
OF
LEEDS UNITED FOOTBALL CLUB
LIMITED
YEAR ENDED 30 JUNE 2015
We have audited the financial statements of Leeds United Football Club Limited for the year ended 30 June 201 which
comprise the Profit and Loss Account, Balance Sheet, Cash Flow Statement and the related notes. The financial reporting
framework that has
been
applied in their preparation is applicable law and United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's shareholders, as a body, in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might state to the company's shareholders those matters we are
required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept
or
assume responsibility
to
anyone other than
the
company
and the
company's shareholders
as a
body,
for our
audit work,
for
this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES
OF
DIRECTORS
AND
AUDITOR
As
explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit
and
express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing
(UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for
Auditors.
SCOPE OF THE
AUDIT
OF THE
FINANCIAL STATEMENTS
A description
of the
scope
of an
audit
of
financial statements
is
provided
on the
FRC's website
at.
www.frc.org.uk/apb/scope/private.cfm.
OPINION
ON FINANCIAL STATEMENTS
In our
opinion
the
financial statements:
• give a true and fair view of the state of the company's affairs as at 30 June 201 5 and of its loss for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
OPINION
ON
OTHER MATTER PRESCRIBED
BY THE
COMPANIES
ACT
2006
In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial
statements are prepared is consistent with the financial statements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We
have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in
our opinion:
• adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or
• the financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors' remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
ALISTAIR RUSSELL
FCA
(Senior
Statutory Auditor)
For
and on
behalf
of
GIBSON BOOTH
New
Court Chartered Accountants
Abbey
Road North
Statutory Auditor
Shepley
Huddersfield
HD8 8BJ
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LEEDS UNITED FOOTBALL CLUB
LIMITED
PROFIT AND LOSS ACCOUNT
YEAR ENDED 30 JUNE 2015
TURNOVER
Cost
of
sales
GROSS
PROFIT
Administrative expenses
Other
operating income
2015
Note £
2 24,418,955
(3,937,295)
20,481,660
(33,324,254)
201,918
2014
25,290,530
6224396 *̂^̂
19,066,134
(37,212,169)
304,471
OPERATING LOSS
Profit/(loss)
on
disposal
of
players registrations
Interest payable
and
similar charges
LOSS ON ORDINARY ACTIVITIES BEFORE
T X TION
Tax on loss on ordinary activities
LOSS FOR THE FINANCIAL YE R
(12,640.676) (17.841,564)
£jT
9,815,148
(392,510)
(2,066,860)
813,186
(2,012,342) (20,300,934)
7
(2,585,530)
(2,012,342) (22,886,464)
All of the activities of the company are classed as continuing.
The company has no recognised gains or losses other than the results for the
year as set out above.
f o
The
notes on pages 9 to 19 form part of these financial statements.
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LEEDS UNITED
FOOTBALL
CLUB LIMITED
BALANCE
SHEET
3 JUNE
2015
FIXED ASSETS
Intangible assets
Tangible assets
CURRENT ASSETS
Stocks
Debtors due within one year
Debtors due after one year
Cash at bank
CREDITORS: Amounts
falling
due
within
one year
NET
CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS: Amounts
falling due
after more than
one
year
CAPITAL
AND
RESERVES
Called-up equity share capital
Share premium account
Profit
and
loss account
Note
8
9
12
13
2
21
21
2015
9,876,418
10,628,994
20,505,412
646,015
8,536,446
4,022,701
10,937,672
24,342,834
19,797,406)
4,545,428
25,050,840
24,040,965)
1,009,875
19,000,000
6,000,000
23,990,125)
2014
£
7,891,935
11,412,700
19,304,635
637,982
8,836,720
12,113,047
21,587,749
18,734,657)
2,853,092
22,157,727
35,635,510)
13,477,783)
4,500,000
4,000,000
21,977,783)
SHAREHOLDERS
FUNDS/(DEFICIT)
21
These accounts
M
Cellii
Direct
Compai
d by the directors and authorised for issue
i
1,009,875 13,477,783)
.Z.t?/. ..'.././P., and are signed on their behalf by:
istrafion
Number: 06233875
The notes on pages 9 to 19 form part of these financial statements.
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LEEDS UNITED FOOTBALL CLUB LIMITED
CASH FLOW STATEMENT
YEAR ENDED 3 JUNE
2015
NET CASH OUTFLOW FROM OP ERATING ACTIVITIES
RETURNS
ON
INVESTMENTS
A ND
SERVICING
OF
FINANCE
Interest paid
Interest element of finance leases
NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS AND SE RVICING OF
FINANCE
CAPITAL EXPENDITURE
Payments to acquire intangible fixed assets
Payments to acquire tangible fixed assets
Receipts from sale
of fixed
assets
NE T
CASH INFLO W/ OU TFLOW) FROM CAPITAL EXPENDITURE
Note
22
2015
£
10,076,757)
45,465)
65,882)
111,347)
6,143,390)
563,804)
10,459,676
3,752,482
2014
£
7,538,344)
496,884)
63.774)
560,658)
2,302,432)
666,141)
174,750
2,793,823
CASH
OUTFLOW BEFORE FINANCING
FINANCING
Issue of equity share capital
Share
premium
on
issue
of
equity share capital
Movement
on
short-term borrowings
New long-term loans from group undertakings
Repayment of long-term loans from group undertakings
New long-term loans from related pa rties
Repayment of
long-term
loans from related parties
Capital element of finance leases
NE T CAS H INFLOW FR OM FINANCING
6,435,622) 10,892,825)
8,000,000
2,000,000
325,446)
4,274,581)
139.726)
4,000,000
4,000,000
75,437
10,967,560
5,374,581
1,572,000)
98,595)
5,260,247
22,746,983
DECREASE)/INCREASE
IN CASH
23
1,175,375)
11,854,158
The
no tes on page s 9 to 19 form part of these financial statements.
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LEEDS
UNITED
FOOTBALL CLUB LIMITED
NOTES
TO THE
FINANCIAL
STATEMENTS
YEAR
ENDED 30 JUNE
2015
1
ACCOUNTING POLICIES
Basis
of accounting
The
financial statements have been prepared under
the
historical cost convention
and in
accordance with applicable
accounting standards.
At 30 June 2015 the company had net assets of £1,009,875 (2014 £13,477,783 net liabilities) and net current assets after
deducting debtors
due
after more than
one
year
of
£522,727 2014: £2,853,092).
The
directors have prepared
and
reviewed forecasts and, as part of their assessment of the going concern status of the company, they have received
written confirmation from both
Mr
Massimo Cellino
and
other group companies stating that amounts payable will
not be
called in for a
period
of no
less than twelve months from approval
of the
financial statements.
A s a
result,
the
directors
consider that
it is
appropriate
to
prepare
the
accounts
on the
going concern basis.
Turnover
Turnover represents income receivable from football and related commercial activities, exclusive of VAT. Gate receipts
and
other match
day
revenue
are
recognised
as the
games
are
played.
Th e
club also receives central distributions from
the
Football League
and a
solidarity payment from
the
Premier League that
are
beyond
the
direct control
of the
officers
of
the club. These distributions are recognised evenly over the course of the financial year.
Revenue derived from season tickets is credited to income in the period to which it relates. Amounts received in advance
are
credited
to
deferred income
in the
balance sheet.
Sponsorship, advertising
and
similar commercial income
is
recognised over
the
duration
of the
respective contracts.
Amounts received in advance are credited to deferred income in the balance sheet.
Facility fees received for live coverage or highlights are taken when earned.
Intangible fixed assets
goodwill
Goodwill relating to the football club is being amortised in equal instalments over 50 years based on the longevity of the
club and the strength of the brand, all other goodwill is amortised over a 20 year period. Goodwill is reviewed annually to
ensure that it is not impaired.
Intangible fixed as sets
player registrations
In line
with
FRS 10:
Goodwill
and
intangible assets,
the
costs associated with
th e
acqu isition
o f
players registrations
are
capitalised
as intangible
fixed assets
and
amortised,
in
equal annual instalments, over
the
period
of the
respective
players contract. The transfer fee levy refund received during the year is credited against additions to intangible assets.
Players registrations are written down for impairment when the carrying amount exceeds the amount recoverable
through use or sale.
Intangible fixed assets trademarks
Trademarks a re being amortised in equal
annual
instalments over 10 years.
Tangible fixed assets
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful
economic life of that asset as follows:
Alterations
a nd
improvements
-
2-20
years
straight line
Fixtures and fittings - 1-20
years
straight line
Leasehold land
and
buildings
- 0-3 4
years straight line
Assets under the course of construction are not depreciated until they are brought into productive use.
Stocks
Stocks,
which comprise goods for resale, are stated at the lower of cost and net realisable value.
Leases
Assets under finance leases and hire purchase contracts are capitalised at their fair value on the inception of the lease
and depreciated over their estimated useful life. Finance charges are allocated evenly over the period of the lease in
proportion
to the
capital amount outstanding.
Operating lease rentals are charged to profit and loss in equal amounts over the term of the lease.
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LEEDS UNITED FOOTBALL CLUB LIMITED
NOTES TO THE
FINANCIAL
STATEMENTS
YEAR
ENDED 30 JUNE
2015
1 ACCOU NTING POLICIES
cont inued)
Pension costs
For defined contribution schemes the pension cost charged in the year represents contributions payab le by the group to
various pension schemes. For defined benefit schemes the expected cost of providing pensions, as calculated
periodically by profess ionally qualified actuaries, is charged to the profit and loss account so as to spread the cost over
the
service lives
of
employees
in
such
a way
that
the
pension cost
is a
substantially level percentage
of
current
and
expected
future pensionable payroll.
Deferred taxation
Deferred
tax is
provided
in
full
on
timing differences which result
in an
obligation
at the
balance sheet date
to pay
more
tax, or a right to pay
less tax,
at a
future date,
a t
rates expected
to
apply when they crystallise based
on
current
tax
rates
and
law. Timing differences arise from
the
inclusion
of
items
of
income
and
expenditure
in tax
computations
in
periods
different from those in which they are included in the financial statements. Deferred tax is not provided on timing
differences arising from the revaluation of fixed assets where there is no commitment to sell the asset, or on unremitted
earnings of subsidiaries an d associates where there is no commitment to remit there earnings. Deferred tax assets are
recognised
to the
extent that
it is
regarded
as
more likely than
not that
they
will be
recovered. Deferred
tax
assets
and
liabilities
are not
discounted.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet
date.
Transactions in
foreign
currencies are Iranslated into sterling at the rate of exchange
ruling
at the date of the
transaction. Exchange differences are ta ken into account in arriving at the operating profit.
Signing-on fees
Signing-on fees represent a normal part of the employment cost of the player and as such are to be charged to the profit
and loss account over the term of the contract, except in the circumstances of a player disposal. In that
case,
any
remaining signing-on
fees due are allocated in full against the
profit
on disposal of players registrations in the year in
which
the
player disposal
is
made.
2
TURNOVER
All re lates to the principal activity of operating a p rofess ional football club and arises from activities within the UK .
2015 2014
£ £
Gate receipts
8 761 296
8,561,702
Television an d
broadcasting income 270,400 406,750
Merchandising income 4,656,646 5,513,681
Central distributions 4,098,500 4,127,800
Other commercial revenue 6,632,113 6,680,597
24,418,955 25,290,530
10
8/20/2019 LUFC Accounts
13/21
LEEDS
UNITED
FOOTBALL
CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR
ENDED 3
JUNE 2015
3
OPERATING LOSS
Operating
loss is stated after charging/(crediting):
Amortisation
of
intangible assets
Impairment of
intangible
fixed
assets
Depreciation
of
owned
fixed
assets
Depreciation of assets held under finance lease agreements
Loss/(Profit) on disposal of fixed assets
Operating lease costs:
-
Plant
and
equipment
-
Other
Net profit on foreign currency translation
Impairment
of
Yorkshire Radio Limited
inter-company
debtor
Auditor's
rem uneration
-
audit
of
the
financial
statements
Auditor s remuneration
-
other fees
2015
£
3,160,653
353,727
1,277,723
69,000
786
1,983,583
181,910)
11,950
19,500
27,617
2014
£
2,949,634
770,372
1,299,878
92,000
5,549)
8,000
1,945,914
120,057)
154,070
19.500
12,750
Auditor's
remuneration - audit of the financial stateme nts
2015
£
19,500
2014
£
19,500
Auditor's
remuneration - other fees:
-
Taxation services
-
Corporate finance services
-
Interim review
-
Secretarial work
13,885
5,330
5,000
3,402
27,617
1,000
11,750
12,750
4 PARTICULARS OF EMPLOYEES
The average number of staff employed by the company during the financial year amounted to:
Players
Apprentices
Football team management— itxc
Management/administration Oo
Casual match
da y
staff
2015
No
52
12
12
69
35 1
496
2014
No
44
19
12
107
38 2
564
The aggregate payroll costs of the a bove were:
Wages
and
salaries
- Ocv
Social security costs
Other pension costs
Included in wages and salaries are redundancy and
ex-gratia
p
2015 2014
£ £
17,781,412 20,117,561
2,039,694 2,192,700
26,633 59,845
19,847,739 22,370,106
of £1,173.591 2014: £1,158,622 .
11.
8/20/2019 LUFC Accounts
14/21
_
LEEDS
UNITED FOOTBALL
CLUB
LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 2015
5. DIRECTORS' REMUNERA TION
The directors' aggreg ate remuneration in respect of qualifying services were:
Aggregate remuneration
Pension contributions
OrAsA e-ost f
c
^v
* V - ~
\
O-Ô
Remuneration of
highest
paid
director:
ggregate
remuneration (excluding pen sion contributions)
cA>r-r ?Sc
Vs*̂
2015
£
16,667
16,667
Vs^^-T
=
p̂̂ ûL* v
2015
16,667
2014
£
514,397
7,500
521,897
2014
£
394,043
None
of the
directors were accruing benefits under
a
defined contribution pension scheme (2014: one).
6.
INTEREST PAYA BLE
AND
SIMILAR CHARGES
Finance charges
Interest
on
other loans
̂ v«v X̂
GjPr\
£
65,882
(879,068)
(813,186)
2014
£
63,774
2,003,086
2,066,860
7.
During
the
year,
the
loans from
GFH
Capital Limited were restated,
and
interest
of
£914,369 prevously accrued
was
reversed.
TAXATION ON ORDINARY ACTIVITIES
(a)
Analysis
of charge in the year
2015
£
Total current
tax
Deferred tax:
Origination and reversal of timing difference s
Losses
2014
£
2,585,530
(b) Factors affecting
current
tax charge
The tax assessed on the loss on ordinary activities for the year is higher than the standard rate of corporation tax in the
UK
of 20.75 (2014 - 22.50 ).
Loss on ordinary activities before taxation
Loss on ordinary
activties
by rate of tax
Expenses
not deductible for tax
purposes
Depreciation in excess of capital allowances
Intercompany write offs
Short term timing differences and losse s not utilised
Total current tax (note 7(a))
2015
£
2,012,342
417,561
10,531
186,993
220,037
2014
£
20,300,934
4,567,710
173,368
850,474
34,666
3,509,202
(c)
Factors
that may
affect future
tax
charges
The company has losses of approximately £68 million (2014: £64 million) to carry forward against future profits.
, v-
-12-
8/20/2019 LUFC Accounts
15/21
LEEDS UNITED FOOTBALL CLUB
LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR
ENDED
3 JUNE 2 15
8. INTANGIBLE
FIXED ASSETS
COST
AtUuly2014
Additions
Disposals
At 30 June 201
5
AMORTISATION
At
1
July 201 4
Charge
for the
year
Impairment
for the
year
On
disposals
At 30
June 201 5
NET BOOK VALUE
At 30
June 2015
At 30 June 201 4
Goodwill
£
5,984,321
5,984,321
815,276
119,955
935,231
5,049,090
5,169,045
Trademarks
£
10,398
10,398
4,506
1,040
5,546
4,852
5,892
Player
registrations
6,605,070
6,143,390
3,094,497)
9,654,593
3,888,702
3,039,658
353,727
2,449,970)
4,832,117
4,822,476
2,716.998
Total
£
12,600,419
6,143,390
3,094,497)
15,649,312
4,708,484
3,160,653
353,727
2,449,970)
5,772,894
9,876,418
7,891,935
Following a review of the playing squad at the year end a nd the subsequent release of several players the D irectors have
taken the decision to impair the value of several members of the First Team squad. A total of £353,727 2014: £770,372)
has been charged
to the
profit
an d
loss
in
respect
of
this impairment.
9.
TANGIBLE FIXED ASSETS
COST
At 1
July 2014
Additions
Disposals
At
30 June
2015
Leasehold land
and buildings
£
2,150,654
36,012
2,186,666
Alterations and
improvements
£
12,057,196
290,786
12,347,982
Fixtures and
fittings
£
3,812,729
237,006
1,966
4,047,769
Total
£
18,020,579
563,804
1,966)
18,582.417
DEPRECIATION
At 1
July 2014
Charge for the year
On disposals
At
30 June
2015
217,026
116,649
333,675
3,638,780
869,747
4,508,527
2,752,073
360,327
1.179
3,111,221
6,607,879
1,346,723
1,179
7,953,423
NET
BO OK VALUE
At 30 June
2015
At
30 June
2014
1,852,991
1,933,628
7,839,455
8,418,416
936,548
1,060,656
10,628.994
11,412,700
The company
has an
option
to
acquire
land adjacent
to Lowfields
Road from Leed s City Council that would
be
required
to
complete the East Stand Development for which planning consent is in place. The option will expire on 31 October 2016.
The directors have reviewed the net book value of both the tangible and intangible fixed as sets and are satisfied tha t they
are not impaired other than as described in note 8.
• 1 3
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16/21
LEEDS UNITED FOOTBALL CLUB LIMITED
NOTES TO THE
FINANCIAL STATEMENTS
YEAR
ENDED
3
JUNE
2015
9. TANGIBLE FIXED ASSETS
cont inued)
Finance lease agreements
Included within the net book value of £10,628,994 is £172,000 (2014 - £381,000) relating to assets held under finance
lease agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted
to £69,000
2014-£92,000).
10. STOCKS
Goods held for resale
11. DEBTORS
Trade debtors
2 15
£
2,824,307
Amounts
owed by
group undertakings
«4 4,022,701
Transfer
fee debtors-** ̂ Cfi£
902,001
Other debtors
ther debtors 245,528
Prepayments
and
accrued income
—
C^0«iS^Vj£V-f ^£ f
^
4,564,610
2014
£
2 687 019
4,228,250
202 950
298 801
1 419 700
8 836 720
The debtors above include the following amounts falling due after more than one year:
Amounts owed by group undertakings
2 14
£
12. CRE DITO RS: Amounts falling due within one year
Transfer
fee
creditors
—
Amounts owed to related parties
Trade creditors
Amounts owed
to
group undertakings
Taxation
and
social security
Finance lease agreements
Other creditors
Accruals
and
deferred income
dboVv£-
;
4ocv s ferS
t̂ jogCS 4-
•
2 15
£
2 247 294
1 000 000
4 332 939
802 166 V
920 273
86 916
439 616
9 968 202
19,797,406
2014
£
1 197 658
222 984
4 319 891
688 600
1 860 946
156,239
356 445
9 931 894
18,734,657
-V.C.E .£ £..
Included in accruals and deferred income is £4,969,132 (2014: £7,059,000) representing advance payment of tickets and
sponsorship that would only become a liability of the company should it fail to
fulfill
all of its fixtures for future seas ons.
Included in accruals and deferred income is an advance payment of £900,000 (2014: £1,300,000) which is secured by a
fixed
and floating charge over
all the
company s assets.
Obligations under finance leases are secured on the related assets
As at 30 June 2015 there w as a convertible loan due to Sport Cap ital Limited totalling £160,479 (2014: £14 7,984). A
conversion notice had not been issued as at 30 June 2015.
1 4
8/20/2019 LUFC Accounts
17/21
LEEDS UNITED FOOTBALL
CLUB
LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 2015
13
CREDITORS: Amounts falling
due
after
more than
one
year
Amounts owed to group undertakings
Finance
lease agreements
Transfer fee creditors
Pension note 16
Amounts
owed
to
related parties
Accruals and deferred income
2 15
£
4 142 114
62 597
2 880 802
405 452
16 000 000
550 000
24 4 965
2 4
£
10,967,560
133,000
129 000
317,000
22 188 950
1 900 000
35 635 510
Obligations under finance leases are secured on the related assets.
14 CREDITORS
CAPITAL INSTRUMENTS
Creditors include finance capital which
is due for
repayment
as
follows:
Amounts repayable:
In more than one year but not more than two years
In
more than
two
years
but not
more than
five
years
In
more than
five
years
2 15
£
1 000 000
3,000,000
12,000,000
16,000,000
2014
£
2,000,000
8 500 000
10 500 000
Amounts owed
to
related parties represent shareholder loans from
GFH
Capital Limited
of
which £3,500,000
is
repayable
in
annual
instalments
from June 2016
to
June
2019. In the
event that
the
club becomes
a
member
of the FA
Premier
League prior to
2019
the remaining £ 13 500 000 will be repayable. If the club does no t become a member of the FA
Premier League,
the
remaining balance
is
repayable
in
annual instalments from June 2019
to
June 2032.
The
loans
are
unsecured and interest free.
15
COMMITMENTS UNDER FINANCE LEASE
AGREEMENTS
Future
commitments under
finance
lease agreements
are as
follows:
Amounts
payable within
1
year
Amounts
payable between
2 to 5
years
Less interest
and finance
charges relating
to
future periods
Finance lease agreements
are
analysed
as
follows:
Current obligations
Non-current obligations
2 15
£
128,794
100,990
229,784
80,271
149 513
86 916
62,597
149 513
2 14
£
214,999
203,426
418 425
129,186
289,239
156 239
133
289 239
15
8/20/2019 LUFC Accounts
18/21
LEEDS
UNITED FOOTBALL
CLUB LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
YEAR ENDED 3 JUNE 2015
16
PENSIONS
Defined contribution schemes
Certain professional footballing
staff are
members
of the
Football League Players Retirement Income Scheme,
a
non-contributory
defined contribution scheme. In addition the company ope rates a defined contribution scheme open to
all other employees. Costs of all defi
ned
contribution schemes, totalling £26,633 (2014: £48,000), have been charged to
the profit and loss account in the year.
Defined benefit schem e
Certain other professional
footballing
staff are members of the Football League Limited Pension and Life Assurance
Scheme
( FLLPLAS ),
a defined benefit scheme. Under FRS 17: Retirement Benefits, the FLLPLAS would be treated as
a defined benefit multi-employer scheme. The assets of the scheme are held separately from those of the company,
being invested w ith insurance companies. Sufficient information is not available for
full
FRS
17
disclosure.
Following
a
review
of the Minimum
Funding Requirement ( MFR )
of the
FLLPLAS,
accrual o f
benefits
of the
final salary
section of the scheme was suspended as at 31 August 1999. In light of the exceptional circumstances affecting the
scheme, the trustees of the scheme commissioned an independent actuary's report on the MFR position and a
substantial deficit was identified. Under the Pensions Act 1985, participating employers
will
be required to contribute to
the deficiency. The latest actuarial valuation of the scheme was carried out as at 31 August 2014 and resulted in a
charge
to the
profit
and
loss account
of £172,946 The
allocation
of the
deficit under this valuation
is
repayable
at
£6,465
per month effective
from 1
September
2015.
17 COMMITMENTS UNDER OPER ATING
LEASES
At 30 June 20 15 the company ha d annual commitments under non-cancellable operating leases as set out below.
Operating leases which expire:
Within 1 year
Within
2 to 5
years
After
more than 5 years - £L\\ XM\
\̂Vonp
M̂
2015
Land and
buildings
£
35,090
1
,994,798
Other Items
£
84,410
4,614
2014
Land
and
buildings
£
35,000
1,943.000
Other Items
£
56,000
4,000
4,000
2,029,888
89,024
1,978,000
64
18 CONTINGENCIES
In the
event
of the
club becoming
a
member
of the FA
Premier League before
the
2017/18 Season
a liability of
£4,750,000 (2014: £4,750,000)
will
become payable to the liquidator of Leeds United Association Football Club Limited
under the provision of the sale agreement entered into on 4 May 2007.
Under the terms of the financial provisions relating to transfer of player registrations, future payments of up to £1,197,620
(2014: £1,062,000) may be payable dependent on the club's promotion to the FA Premier League and/or players
appearance s for the club. Promotion to the FA Premier League m ay also incur bon uses payable of £8,321 ,284 (2014:
£6,170,000)
conditional on the
performance
of
both players
and
football management throughout
the
2015/16 season.
At the year end there were a number of legal claims and various claims from H M Revenue and Customs outstanding
against
the
co mpany. These claims
are
being challenged
by the
directors
and so
there
is
significant uncertainty
over
their
outcome. For this reason no provision has been included in the balance sheet.
8/20/2019 LUFC Accounts
19/21
LEEDS UNITED FOOTBALL CLUB LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
YEAR ENDED
30
JUNE
2015
19 RELATED PARTY TRAN SACTIONS
Transactions with fellow
subsidiaries
of Eleonora Sport Limited
Yorks hire Radio Limited was advan ced £11,950 2014: £154,070) by Leeds United Foo tball Club Limited. The year end
trading balance
arising
from
this transaction
was
£1 1 ,950
2014: £154,070) Yorkshire Radio
Limited
was dissolved on 20
October 2015 and so the directors of Leeds United Football Club Limited have taken the decision to fully impair the year
end balance.
Leeds United Me dia Limited adva nced £113.566 2014: £219,568) to Leeds United F ootball Club Limited. The year end
balance due to Leeds United Media Limited was
£802,166
2014: £688,600).
Leeds United Centenary Pavilion Limited charged £250,000 2014: £250,000) to Leeds United Foo tball Club Limited an d
was
advance d £2,950 2014: £nil) by Leeds U nited Football Club Limited. The year end balance due from Leeds United
Centenary Pavilion Limited
was £1,837,600
2014: £2,085,650).
Leeds City Holdings Limited was charged £ 42,50 0 2014: £13,309,600) by Leeds United Football Club Limited. The year
end balance due from Leeds City Holdings Limited was £2,185,100 2014: £2,142,600).
Transactions
with shareholders
On 6 February 2014 the balances of £11,272,399 due to Brendale Holdings Limited and £2,012,807 due to Berrydale
Seventh Sport Holdings Limited were assigned
to GFH
Capital Limited.
During the
y ear, interest
w as
charged
on
these
loans totalling
Enil
2014: £1,506,201). Also the balance du e to Envest Limited of £1,708,231 was assigned to GFH
Capital Limited. During the period interest of
Enil
2014: £25,245) was charg ed on this loan. Envest Limited was a related
party due to its connection to Mr S S
Nooruddin,
a former director. During the year a repayment of £3,000,000 was made
to
GFH Capital Limited. Interest of £914,369 previously accrued was deducted from this loan during the year as it is no
longer payable. At 30
June
2015 the remaining balance on this loan due to GFH Capital Limited was £17,000,000 2014:
£20,914,369) At the year end interest of
Enil
2014: £319,623) had accrued on this
balance
The company repaid £281,357 2014: £8,428,192 advanced) to Eleonora Sport Limited, the immediate pare nt company.
During
the year £6,500,000 2014: Enil) of debt was converted into 6,500,000 £1 ordinary shares. At 30 June 2015 the
balance due to Eleonora Sport Limited was £1,646,834 2014: £8,428,192).
The company repaid £44.089 2014: £2,539,369 advance d) to Eleonora Immobiliaire Sp A. At the year end the balance
due to
Eleonora Immobiliaire
SpA was
£2,495,280 2014: £2,539,369) Eleonora Immobiliaire
SpA is
related
by
virtue
o f
its
shareholding in Eleonora Sport Limited. .
Transactions with other related parties
The com pany made payments totalling £1.311,183 2014:
Enil)
to Mr Massimo Cellino, a director and received advances
of
£31,034 2014:
£1,274,581).
At 30 June 2015 a balance of £5,568 2014: Enil), included in other deb tors, was due from
Mr
Cellino
and a
balance
of Enil
2014: £1,274,58 1), included
in
amounts
due to
related parties,
was due to Mr
Cellino.
The maximum overdraft balance during the year was £36,602 The loan is unsecured, interest free and repayable on
demand.
The company was charged £32,809 2014:
Enil)
by Oakwell Capital Limited for services provided prior to Mr Andrew
Umbers being appointed a direc tor. At 30 June 2015 the balance due to Oakwell Capital Limited was £10,261 2014:
Enil). Oakwell Capital Limited is a related party by virtue of the common Directorship of Mr Andrew Umbers.
20. SHARE CAPITAL
Allotted called
up and
fully paid:
Ordinary sh ares
of £1
each
2015
No
19,000,000 19,000,000
2014
No
4,500,000
£
4,500,000
On 27 May 2015 a debt of £6,500,000 was converted to sh are capital by the issue of 6,500,000 £1 Ordinary S hare s at £1
per
share.
A
further 3.000,000
£1
Ordinary Shares were also issued
on 27 May
2015
at
£1.67
per
share
for
cash
consideration. On 12 June 2015 a further 5,000,000 £1 Ordinary Shares were issued at £1 per share for cash
consideration.
•ZSA
17
8/20/2019 LUFC Accounts
20/21
LEEDS
UNITED
FOOTBALL
CLUB LIMITED
NOTES
TO THE
FINANCIAL
STATEMENTS
YEAR
ENDED
3
JUNE 2015
21.
RECONCILIATION
OF
SHAREHOLDERS
RESERVES
Balance brought forward
Loss for the
year
Other movements
New equity share capital
subscribed
Balance
brought forward
Loss for the year
Other movements
New equity share capital
subscribed
Balance carried forward
FUNDS
AND
Share capital
£
500,000
4,000,000
4,500,000
14,500,000
19.000,000
MOVEMENT ON
Share premium
account
£
4,000,000
4,000,000
2,000,000
6,000,000
Profit
and loss
account
£
908,681
(22,886,464)
21,977,783)
(2,012,342)
(23,990,125)
Total share-holders
funds
£
1,408,681
(22,886,464)
8,000,000
13,477,783)
(2,012,342)
16,500,000
1,009,875
22 RECONCILIATION OF OPERATING LOSS TO
NE T
CASH OUTFLOW FROM OPERA TING ACTIVITIES
Operating
loss
Amortisation
and
impairment
Depreciation
Loss/(Profit) on disposal of fixed assets
(lncrease)/decrease
in
stocks
Increase
in
debtors
Increase
in
creditors
Net cash outflow from operating activities
2015
£
(12,640,676)
3,514,380
1,346,723
786
(208,033)
(3,722,427)
1,632,490
(10,076,757)
2014
£
(17,841,564)
3,720,006
1,391,878
(5,549)
804,070
2,650,860)
7,043,675
(7,538,344)
23 RECONCILIATION OF NET
CASH
FLOW TO MOVEMENT IN NET DEBT
(Decrease)/increase
in
cash
in the
period
Movement in short-term borrowings
Net
cas h outflow from/ inflow) from long-term loans from group undertakings
Cash
outflow
in
respect
o f
finance leases
Cash outflow from/ inflow) from long-term loans from related parties
Change in net debt
resulting
from cash flows
Other non-cash changes in net debt
Movement
in net
debt
in the
period
Net debt at 1
July
2014
Net debt a t 30
June
2015
2015
£
1,175,375
325,446
139,726
4,274,581
564 78
7,637,353
11,201,731
21,555,686
2014
£
11,854,158
(75,437)
10,967,560
98,595
3,802,581
2,892,825
16,814,369
19,707,194)
(1,848,492)
(10,353,955) (21,555,686)
- 1 8 -
8/20/2019 LUFC Accounts
21/21
LEEDS UNITED FOOTBALL CLUB LIMITED
NOTES TO THE
FINANCIAL STATEMENTS
YEAR ENDED 3 JUNE 2015
24.
ANALYSIS
OF
CHANGES
IN NET
DEBT
Net cash:
Cash in hand and at bank
Debt:
Debt due with 1 year
Debt due after 1 year
Finance
lease agreements
Net debt
At
1
Jul
2014
£
12,113,047
222,984)
33,156,510)
289,239)
33,668,733)
21,555,686)
Cash flows
£
1,175,375)
4,600,027
139,726
4,739,753
3,564,378
Other changes
e
777,016)
8,414,369
7,637,353
7,637,353
At
30 Jun2 15
£
10,937,672
1,000,000)
20,142,114)
149,513)
21,291,627)
10,353,955)
Other changes in net debt relate to the conversion of
£6,500,000
debt into share capital see note 20) and the reversal of
£914,369 loan interest previously accrued see note 19).
25 POST B A LANCE SHEET EVENTS
On 3 July 2015 the company terminated its contract with Compass Services UK) Ltd to provide catering services. The
company was required to repay £900,000 of monies received in advance to Compass Services UK ) Ltd in addition to an
exit
fee of £125,000.
26 ULTIMATE CONTROLLING PARTY
fl
o
f ĉ£
Trust Sporting 2006, a trust registered in Italy, is the ultimate controlling party and Eleonora Sport Limited is the
immediate parent company.
off
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