LUFC Accounts

8/20/2019 LUFC Accounts

1/21

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


2/21

LEEDS

UNITED FOOTBALL CLUB LIMITED


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


3/21

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


4/21

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/—

^


5/21

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

-3 -


6/21

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.

- 4 -


7/21

LEEDS

UNITED FOOTBALL CLUB LIMITED

INDEPENDENT AUDITOR S

REPORT TO THE

SHAREHOLDERS

OF


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


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

- 5 -


8/21


LIMITED

PROFIT AND LOSS ACCOUNT


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.


9/21

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.

-7-


10/21


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.

- 8 -


11/21

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.


12/21


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


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.


14/21

_

LEEDS

UNITED FOOTBALL

CLUB

LIMITED



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-


15/21


LIMITED


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


16/21


NOTES TO THE


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


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


17/21

LEEDS UNITED FOOTBALL

CLUB

LIMITED

NOTES

TO THE FINANCIAL STATEMENTS


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


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


18/21

LEEDS

UNITED FOOTBALL

CLUB LIMITED

NOTES



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.


19/21


NOTES


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


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 -


21/21


NOTES TO THE



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

LUFC Accounts

Documents

Transcript of LUFC Accounts