BDO, The Annual Survey of Football Finance Directors (2014)

focusing on the
polarisation of
football finances and
the impact of ffp
the annual survey of football club
finance directors 2014
CONTENTS
EXECUTIVE SUMMARY 2
METHODOLOGY 3
ANALYSIS OF KEY FINDINGS 4
BDO PROFESSIONAL SPORTS GROUP 32
The top six or seven clubs in the English
Premier League will be able to consolidate
their superiority whilst the rest of the league
are in a relegation battle.
Similarly, the impact of high parachute
payments and FFP may have the same
polarising effect in the Football League
Championship as we see in the Premier
League.
However, the number of clubs reporting
an interest from third party investors has
increased from 21% last year to 29% this
year, with the Football League Championship
and Football League 1 clubs having had
the most approaches (41% and 43%
respectively).
Financial performance is improving, and
there is still demand for football clubs,
though the preference still seems to focus
on taking on Football League clubs and
investing in seeking promotion to the English
Premier League rather than investing in a
English Premier League club. Possible reasons
for this might be the combination of the
lower initial capital outlay, the revenue gap
and the application of FFP rules preventing
investors from buying success.
We would like to thank all our contributors
for taking the time to participate and wish
every club a prosperous season ahead. For
every completed survey we have made a
donation to the PFA Benevolent Fund.
CHARLES BARNETT, TREVOR BIRCH
and IAN CLAYDEN.
In many areas we continue to see divergence
between the English Premier League and
the Football Leagues and, at the same time,
increased polarisations within the English
Premier League and within the Football
League Championship:
94% of respondents believe the gap
between larger and smaller clubs is
widening; 79% of English Premier League
(EPL) respondents and 76% of Football
League Championship (FLC) respondents
see the gap within their own league
widening
economic recovery has had an overall
positive impact across all revenue
streams for English Premier League
clubs whereas Championship clubs have
experienced an overall negative impact
across all revenue streams
there is a wide variation in condence
levels between leagues ranging from
the English Premier League and Scottish
Premiership (SP), where 86% and 83%
of respondents respectively are expecting
to make a prot (before player trading),
to the Football League where 35% of
Football League Championship, 21%
of Football League 1 (FL1) and 19% of
Football League 2 (FL2) expect to make
a prot
79% of English Premier League clubs are
seeing sponsorship revenues increasing
whereas in all other leagues the majority
of clubs are either seeing decreasing
sponsorship revenues or no change.
As this disparity widens, are we seeing other
factors, such as enhanced TV revenues,
increased parachute payments, Financial Fair
Play (in its many guises) and globalisation,
effectively locking-in this differential?
loss of income through relegation is
the primary concern for English Premier
League clubs whereas the other leagues
are more concerned with inexible player
salaries (presumably impacting on their
ability to invest in search of promotion),
attendances and their ability to attract
sponsorship revenues
90% of respondents say they have
complied with Financial Fair Play (FFP)
requirements, and the Scottish clubs
believe the Scottish Premiership should
adopt something similar.
However, is an unexpected consequence of
improved nancial security/performance
that owner investment is being stied?
21% of English Premier League
respondents believe that their owners
are considering a full or partial exit in the
next 12-18 months compared with none
in 2013
57% of English Premier League and
almost half (47%) of Football League
Championship respondents would be
prepared to invest more were it not for
FFP
where clubs are expecting to reduce
or hold constant playing squad payroll
costs in the next season, 43% of
Football League 1 respondents and
35% of Football League Championship
respondents decisions have been
inuenced by FFP to some or a
considerable extent.
FOREWORD
FD FOOTBALL SURVEY
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2014 02
EXECUTIVE SUMMARY
financing the club
For the third year running, a third of
respondents consider their clubs current
nancial position to be very healthy; 42%
say that their situation could be better
but is not bad while 25% of respondents
nances need attention or are a cause for
grave concern
While more than eight out of ten
(84%) respondents deny that owners
are considering an exit, 21% of EPL
respondents believe that their owners
next 12-18 months compared with none
in 2013
29% of clubs have been approached in
the last 12 months by external parties
with a view to taking an equity stake up
from 21% in 2013. The FLC and FL1 clubs
have had the most approaches (41% and
43% respectively).

club revenue and profitability trends
40% of respondents expect to make
a prot after player trading and
amortisation compared with just 29% in
2013.
There is an overall increase in condence
this year with 43% of respondents
expecting to the make a prot before
player trading and amortisation in their
next accounting period up from 36%
in 2013
There is clear evidence that the
resurgence of the UK economy over
the last 12 months has had a positive
impact on all revenue streams. The
EPL is the biggest beneciary of this
improvement. However, for all revenue
streams investigated, the majority of FLC
respondents have seen a decline rather
than no movement or an increase.
Finance directors are cautiously
optimistic that a strengthening economy
will positively affect revenue streams in
the forthcoming 2014/15 season
Almost half (49%) of respondents are
using the wages to turnover ratio as a KPI
of their clubs nancial health this year
up slightly from 44% in 2013.

club operations
The two top concerns of football nance
directors are the same as in previous
years - the loss of income if the club is
relegated and the inexibility of players
salaries albeit the order has changed
from 2013
More than six out of ten (61%) of
respondents think that the wealth gap
in their division is widening with the gap
being most evident in the EPL and FLC
clubs (79% and 76% respectively)
Condence among respondents that their
tax position on payments to players was
robust and defendable to HMRC rose
slightly from 77% in 2013 to 82%
The percentage of respondents who were
late making their tax payments fell to
13% from 20% in 2013.

financial fair play
There were high levels of compliance this
year 90% - with the requirements of
the nancial fair play and cost control
and sustainability rules (collectively
FFP) during the season. All respondents
will comply in 2014/15 up from
85% in 2013 with only 9% needing to
make signicant changes to achieve
compliance.
Only 38% agree that FFP regulations
meet their principal objective of
promoting sustainability but a further
46% say they are a step in the right
direction.
player costs, transfers and youth
development
More than half (57%) of respondents
have a higher budget for youth
development this year while 39% will
maintain the same level as last year
Over half (58%) of respondents do not
think that liquidity in the transfer market
has changed and only 13% think that it
has improved
The trend for clubs to put clauses in
players contracts stipulating a wage cut
if the club is relegated continues to rise
89% of respondents in 2014 up from
84% in 2013 and 79% in 2012
41% of respondents will be reducing the
size of the rst team squad compared
with 53% last year. Almost a quarter
(23%) of EPL clubs are increasing squad
size whereas for FLC and FL1 this falls to
only 6% and 0% respectively.
Seven out of ten EPL respondents will
be spending more on their rst team
payroll next season up from 42% in
2013. Conversely, nearly 6 out of 10 FLC
and FL1 respondents will be reducing rst
team payroll.
Over half (52%) of respondents will keep
their transfer budget the same as last
year compared with 64% in 2013. Only a
quarter (27%) of respondents will reduce
their transfer budgets this year compared
with 24% in 2013. SP has the most stable
transfer market with 83% citing no
change year on year.
More than two thirds of respondents who
are reducing or keeping their transfer
budget the same deny that their decision
has been driven by the fair play rules.
2014
|
FD FOOTBALL SURVEY 03
governance and propriety
One in ve respondents has a
remunerated non-executive independent
director on their clubs board, a slight
increase on the 2013 gure of 15%
Nearly three quarters (73%) of
respondents - up from 64% in 2013 -
agreed that they manage with a higher
level of corporate governance than they
would for a similar sized non-football
business.

national and international issues
Over half (51%) of respondents have a
policy to support international teams by
making their players available
More than half of respondents do
not feel appropriately compensated
for the disruption caused by players
international duty
Preferred means of compensations
for disruption caused by players
international duties were insurance
for injuries (80%) and full salary
reimbursement (54%)
There appears to be little support for
the FA Commissions proposals for a
Football League 3 (populated with EPL B
teams) and an increase in home-grown
player requirements with 42% saying
that they will have a negative nancial
impact; 28% saying that they will have
no impact; 13% saying that they will
have a positive nancial impact; and 14%
believing that the proposals will not be
implemented.
methodology
BDO UKs Professional Sports Group
commissioned an independent researcher
in May and June 2014 to undertake
structured telephone interviews with
nance directors of football clubs.
A total of 67 interviews were completed
with nance directors in the English
Premier League (EPL), English Football
League Championship (FLC), Football
Leagues One (FL1) and Two (FL2) and the
Scottish Premiership (SP).
Throughout this survey, results are
presented as column percentages
rounded to the nearest whole and
arithmetic means, unless otherwise
stated. League abbreviations are used in
the report to aid brevity.
league number of clubs % respondents
English Premier League 14 70%
Football League Championship 17 71%
Football League 1 14 58%
Football League 2 16 67%
Scottish Premiership 6 50%
FD FOOTBALL SURVEY
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2014 04
01: FINANCING THE CLUB
analysis of findings
1. How would you rate your clubs current nancial
position?
2. Is your club dependent on the principal shareholder(s)
to nance annual revenue shortfalls or operating
losses?
% ALL LEAGUES EPL FLC FL1 FL2 SP
Very healthy 33 57 35 21 20 33
Could be better but not bad 42 29 41 50 47 50
In need of attention 16 14 18 7 20 17
A cause for grave concern/on
the verge of administration
9 0 6 22 13 0
Yes 60 29 88 64 69 17
No 40 71 12 36 31 83
For the third year running, a third of
respondents consider their clubs current
nancial position to be very healthy but the
variation in fortunes has narrowed slightly
ranging from 57% of EPL respondents
(83% in 2013) enjoying good nancial health
compared with 20% of FL2 respondents.
With the exception of the EPL, a higher
percentage of respondents in the other
leagues say that their nances are very
healthy this year.
The percentage of respondents dependent
on the principal shareholder(s) to nance
losses has reduced slightly this year from
65% in 2013 to 60%. With the exceptions of
FL1 and FL2, the leagues have reduced their
dependence - EPL down to 29% from 50%,
FLC down to 88% from 94% and SP down to
17% from 40% in 2013.
Four out of ten (42%) say that their situation
could be better but is not bad while 25% of
respondents nances need attention or are a
cause for grave concern. FL2 and FL1 leagues
have the weakest nances with 33% and
29% respectively citing problems.
22% and 13% of FL1 and FL2 clubs
respectively stating that their nances are a
cause of grave concern is an indicator of the
continued pressure clubs in these leagues are
under to push for promotion.
We can see here the marked difference in the
nancing positions of the EPL and the FLC
and to a lesser extent FL1 and FL2. Owners
are subsidising FLC clubs in marked contrast
to the majority of EPL owners who have the
luxury of large TV revenues to fund the clubs.
Base: 66
Base: 66
EPL
29%
2014
a reduction
of 42% from 2013
a grave cause
for concern
very healthy;
could be better
but not bad
in need of
attention
a reduction
of 58% from 2013
SP
17%
2014
75% 16%
9%
This result is very encouraging with 75%
of respondents saying they are relatively
happy with their nancial position,
reecting the continuing effect of
nancial regulation rules, the impact of
an improving UK economy and the more
responsible view taken by many owners
in operating clubs in the last few years.
trevor birch
partner, professional sports
FD FOOTBALL SURVEY
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2014 06
01: FINANCING THE CLUB
3. Has your club used funding from a secondary source
(i.e. not main bankers) secured on any of the following
in the last year?
4. Are the current owners of the club considering a full or
partial exit within the next 12-18 months?
Advance on season tickets
one year
Yes: 3
No: 97
0
100
12
88
0
100
0
100
0
100
Advance on season tickets
two or more years
Yes: 0
No: 100
0
100
0
100
0
100
0
100
0
100
Player transfer fee receivables Yes: 3
No: 97
0
100
0
100
14
86
0
100
0
100
Other receivables Yes: 7
No: 93
21
79
12
88
0
100
0
100
0
100
Yes 16 21 18 29 6 0
No 84 79 82 71 94 100
The use of funding from secondary sources
continued to reduce in 2014 with only 3% of
clubs taking an advance on season tickets, all
of which were in FLC, and only 3% of clubs
securitising player transfer fees receivable; all
of whom were in FL1. However, 21% of EPL
While the overall picture is the same as
2013, with more than eight out of ten (84%)
saying that owners are not considering an
exit, the signicant change is that 21% of
EPL respondents believe that their owners
next 12-18 months compared with none in
2013.
and 12% of FLC respondents are securitising
other receivables to secure their debt.
These numbers again add weight to the view
that clubs are increasingly showing nancial
restraint.
It might be likely that there will be some EPL
owners seeking to maximise the return on
their investment with the new TV deal and
taking the view the clubs performance last
season was as good as it is going to get.
Base: 67
Base: 67
3%
of clubs used
secondary source
funding on player
transfer fee
receivables and
season tickets
Only
0% 21%
2013 2014
EPL respondents who believe that
their owners are considering a
full or partial exit in the next 12-18 months
2014
|
7. If the club has given a xed charge over the stadium as
a security for a loan, what was the purpose of the loan?
Build or expand the stadium 7 0 2 1 3 1
Provide cash ow for the club 12 4 3 3 1 1
Of the 19 clubs who have given a xed
charge over the stadium as security, 12 of
them have used the loan to provide cash
ow for the club while the other seven have
used the money positively to build or expand
their stadium.
6. Has your club given a xed charge over the stadium as a
security for a loan?
Yes 28 29 29 29 25 33
No 72 71 71 71 75 67
Just over a quarter (28%) of clubs have given
a xed charge over the stadium as security
for a loan. There is little change this year in
the overall picture and little variation in the
responses across the leagues.
28% of clubs leveraging their stadium
has always been a concern. However, it
is encouraging that this position has not
worsened.
Base: 67
Base: 19
5. As far as you are aware, within the last 12 months has
the club been subject to an informal or formal approach
from interested external parties with a view to taking
an equity stake in the club?
Yes 29 8 41 43 31 0
No 71 92 59 57 69 100
29% of clubs have been approached by
external parties up from one in ve in 2013.
The FLC and FL1 clubs have had the most
approaches (41% and 43% respectively).
There is still demand for football clubs
and the preference remains to take on
Football League clubs and invest in seeking
promotion to the EPL.
Base: 67
FD FOOTBALL SURVEY
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2014 08
02: CLUB REVENUE AND PROFITABILITY
TRENDS
8. Do you expect to make a prot before player trading
and amortisation in your next accounting period?
9. Do you expect to make a prot after player trading and
amortisation in your next accounting period?
Yes 43 86 35 21 19 83
No 49 14 59 72 63 17
Dont know 8 0 6 7 18 0
Yes 40 42 29 43 31 83
No 42 29 65 43 38 17
Dont know 18 29 6 14 31 0
The overall results reveal an overall increase
in condence this year with 43% of
respondents expecting to make a prot in
their next accounting period up from 36%
in 2013.
However, there is a wide variation in
condence levels between leagues ranging
from the EPL (86%) and SP (83%) expecting
to make a prot compared with just 21% of
FL1 and 19% of FL2 respondents.
The prot outlook for the next nancial
year is brighter than 2013 with 40% of
respondents expecting to make a prot after
player trading and amortisation compared
with just 29% in 2013.
The percentage of respondents not expecting
to make a prot has fallen sharply from 65%
to 42%.
While two thirds (65%) of FLC respondents
expect to make a loss, this is still a decrease
from 88% in 2013.
The greatest increase in condence is from
FLC nance directors with 35% expecting to
make a prot up from just 17% in 2013.
Overall these results are encouraging
with the EPL understandably showing the
greatest condence on the back of increased
TV revenues. However, the FLC and FL1
continues to be a cause for concern which is
why FFP rules have been embraced by these
divisions.
The 83% of SP expecting to make a
prot seems very high and encouraging,
particularly when it is not reliant on transfer
fees. Overall the responses to this and the
prior question suggest that transfer fees have
no marked impact on prots in the FLC or SP,
unlike all other divisions.
However in the EPL we can see that
around half of prots before player trading
and amortisation convert to losses after
player trading and amortisation. Despite
protability and sustainability rules in the
EPL there is clearly still a need and scope
for shareholder support (through allowable
losses of up to 35m per season).
Base: 67
Base: 67
86%
EPL
83%
SP
43%
ALL
40%
ALL
35%
FLC
42%
EPL
83%
SP
43%
FL1
19%
FL2
29%
FLC
21%
FL1
31%
FL2
prot before
player trading and amortisation?
prot after
player trading and amortisation?
2014
|
10. What has been the impact of the economic conditions
on the following revenue streams in the current
nancial year?
Match tickets
Reduced 39 0 64 65 26 33
No impact 27 42 18 7 44 17
Improved 34 58 18 29 31 50
Merchandising
Reduced 30 14 47 35 25 17
No impact 36 22 35 36 50 33
Improved 34 64 18 29 25 50
Match day catering
Reduced 30 0 42 21 12 66
No impact 45 42 36 50 69 17
Improved 30 58 18 29 19 17
Corporate entertaining packages
Reduced 39 0 53 50 44 50
No impact 30 36 24 21 38 33
Improved 31 64 24 29 18 17
Season ticket sales
Reduced 27 0 53 35 25 0
No impact 37 50 18 29 56 33
Improved 36 50 29 36 19 67
Sponsorship
Reduced 31 14 59 21 31 33
No impact 34 28 17 43 50 33
Improved 33 58 24 36 19 34
The polarisation of the game between the
EPL and the rest is clearly shown in these
numbers. The strength of the league means
customers and sponsors alike are still willing
to pay a premium to be associated with it.
The most noticeable trend seen in these
results is that for all revenue streams
improved revenues was the most common
response from the EPL clubs whereas
reduced revenues was the most common
response from FLC clubs.
Improved economic conditions have driven a
very positive impact on corporate hospitality
revenues in the EPL (64% seeing an increase
with no respondents seeing a decrease).
However, this appears to be at the expense
of other leagues, each of which is reporting
reduced revenue as the most common
response.
Sponsorship revenue is increasing within the
EPL (58% reporting an increase with only
14% showing a decrease). However, this is
unique to the EPL as the highest positive
response of the other leagues was FL1 with
only 36% and the least positive response
was the FL2 with only 19%.
Base: 67
FD FOOTBALL SURVEY
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2014 10
02: CLUB REVENUE AND PROFITABILITY
TRENDS
11. What effect do you expect the state of the economy to
have on your 2014/15 revenue streams compared with
the season just ended?
Match tickets
Reduced 24 14 42 28 19 0
No impact 51 50 42 50 62 50
Improved 25 36 18 22 19 50
Merchandising
Reduced 15 7 24 14 19 0
No impact 49 43 47 57 56 34
Improved 36 50 29 29 25 66
Match day catering
Reduced 13 14 24 14 6 0
No impact 60 50 58 64 75 34
Improved 27 36 18 22 19 66
Corporate entertaining packages
Reduced 20 7 30 29 19 0
No impact 46 43 35 50 50 66
Improved 34 50 35 21 31 34
Season ticket sales
Reduced 25 14 42 35 19 0
No impact 45 57 29 29 56 66
Improved 30 29 29 36 25 34
Sponsorship
Reduced 18 7 36 14 19 0
No impact 45 22 29 64 56 66
Improved 37 51 35 22 25 34
Finance directors appear to be cautiously
optimistic that a strengthening economy
will positively affect revenue streams in the
forthcoming 2014/15 season with EPL and
FL2 and SP respondents anticipating net
improvement across all revenue streams.
FLC respondents are expecting a net decline
in match day and season ticket revenues but
no major changes in other revenue streams.
On balance, FL2 respondents are not
expecting any major changes to their
revenues in the forthcoming season.
Base: 67
2014
|
12. Do you use the wages to turnover ratio as a key
performance indicator of the clubs nancial health?
13. If yes in which range is your benchmark?
14. What wages to turnover ratio do you currently operate
in?
Yes 49 57 41 64 38 50
No 51 43 59 36 62 50
NUMBER OF CLUBS ALL LEAGUES EPL FLC FL1 FL2 SP
<50% 6 2 1 1 1 1
51-55% 12 3 0 5 4 0
56-60% 5 1 0 3 0 1
61-65% 3 1 1 0 0 1
>66% 7 1 5 0 1 0
<50% 10 22 6 7 6 17
51-55% 13 7 0 36 19 0
56-60% 9 7 0 21 6 16
61-65% 3 7 0 0 0 17
>66% 14 14 29 0 6 0
Not applicable 51 43 65 36 63 50
Almost half (49%) of respondents are using
the wages to turnover ratio as a KPI of their
clubs nancial health this year up slightly
from 44% in 2013. Given the increased
impact of nancial regulation rules, we may
have expected a more signicant increase in
focus on this ratio.
The percentage of FL1 respondents using
wage to turnover as a KPI has risen markedly
from 43% in 2013 to 64% this year.
While 18 of the 33 clubs have a benchmark
of not more than 55% this year an increase
on 12 clubs (54%) in 2013 there are also
more clubs with a benchmark of more than
66% - up to seven clubs from just two in
2013. Unsurprisingly, ve of these are in the
FLC, where salary pressure remains high and
revenues remain comparably low.
A smaller percentage of clubs are operating
below 55% - down from 42% in 2013 to just
23% in 2014. However, the percentage of
clubs operating above 61% has also fallen
sharply from 38% to just 17%.
Compared with 2013 results where 42%
of EPL and 66% of FLC respondents were
operating above 66%, these result may
indicate that clubs are more focused on
building a sustainable nancial foundation
for their clubs rather than taking a gamble on
either promotion or maintaining their place
in their leagues.
Base: 67
Base: 33
Base: 67
FD FOOTBALL SURVEY
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2014 12
03: CLUB OPERATIONS
15. What is the projected level of your non-player capital
spend during the next two years?
16. What are your two biggest concerns for your club over
the next 12 months?
<2.5m 61 14 58 79 81 83
2.5-10m 19 42 24 14 0 17
10-25m 9 22 6 0 13 0
>25m-50m 3 0 0 7 6 0
More than 50m 8 22 12 0 0 0
% OF MENTIONS ALL LEAGUES EPL FLC FL1 FL2 SP
1. Loss of income due to
relegation 43 % 1 2 2 1=
2. Inexible players salaries 38% 2 1 3= 2=
3. Falling attendances due to
current economic environment 28 % 1 3 1
4. Ability to attract sponsorship 28 % 3 1= 2=
5. Ability to raise new capital 21 % 3 3=
6. Other 21 %
7. Potential fall in TV income 11 %
8. Compliance with nancial
fair play regulations 9 %
9. Season ticket pricing 3 %
While the majority of clubs continue to
spend less than 2.5 million on non-player
investment, there is some evidence of
increasing levels of investment.
Fewer respondents are spending less than
2.5 million down from three quarters of
The top two concerns of football nance
directors are the same as in previous years -
the loss of income if the club is relegated and
the inexibility of players salaries albeit
the order has changed from 2013, most
likely due to the widening gap in central
league revenues between the leagues.
Falling attendances due to the current
economic environment is the main concern
for FL1 and SP clubs for the second year
running. The ability to attract sponsorship is
a major concern for FL2 clubs.
Compliance with fair play regulations was
only mentioned by 9% of respondents while
season ticket pricing was only an issue for
3%.
Again we see the spectre of relegation
haunting EPL clubs which reects the gulf
in revenues between the EPL and FLC, even
with parachute payments.
respondents in 2013 to 61% this year and
a small handful of clubs are spending more
than 50 million compared with just one
club last year.
One in ve (22%) EPL clubs plans to spend
more than 50 million (up from 8% in 2013)
Base: 67
Base 67: (The numbers 1-3 relate to the ranking of each leagues concerns.)
while a quarter (24%) of FLC respondents
plan to spend between 2.5 million and 10
million (up from 6% in 2013). Two FLC clubs
are planning to spend more than 50 million
which represents signicant long term
investment at that level.
spending less
than 2.5m
(down from 75%)
spending more
than 50m
(up from 1.5%)
61%
8%
2014
|
The
concern
over
falling
attendances
in the Scottish
Premiership is
almost certainly
due to the continuing
impact of Rangers being
out of the top division,
exacerbated by Hearts
and Hibs both having
been relegated at the
end of last season.
The teams in the
Scottish Premiership
may actually have lower
match attendances
than the second tier in
Scotland next season.
charles barnett
FD FOOTBALL SURVEY
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2014 14
03: CLUB OPERATIONS
17. Are your revenues from key commercial contracts such
as sponsorships:
18. Do you think suitable sponsors are:
Increasing 39 79 35 14 31 33
Largely unchanged 40 7 41 64 44 50
Falling 21 14 24 22 25 17
Becoming easier to nd 7 14 18 0 0 0
Becoming harder to nd 63 57 58 64 56 100
No real change 30 29 24 36 44 0
Although four out of ten (39%) of
respondents report increasing revenues
from sponsorship, the EPL is the only league
where a large majority (79%) of respondents
have increasing revenues from sponsorship
contracts.
Nearly two thirds (63%) of respondents
think that suitable sponsors are becoming
harder to nd, including 100% of SP
respondents. Only 14% and 18% of EPL and
FLC respondents think that sponsors are
becoming easier to nd, albeit this is better
than the experiences of FL1, FL2 and SP.
Only 14% of FL1 respondents reported
an increase. Outside of the EPL the SP is
showing the least instances of declining
commercial revenues. The polarisation
continues. Sponsors want to be associated
with success and large multinational
brands, seeking to target a wider and more
accessible international audience.
Sponsors are becoming more discerning
and sophisticated moving more towards a
partnership arrangement with omnichannel
brand activation.
Base: 67
Base: 67
79%
63% 0% 0%
the polarisation continues
14%
E
P
L
F
L
1
increasing revenues
from key commercial
contracts
of all respondents think
suitable sponsors are
becoming harder to nd
think suitable
sponsors are becoming
easier to nd
increasing revenues
from key commercial
contracts
FL1 FL2
2014
|
19. Do you think the wealth gap in your division is:
20. Do you think the wealth gap between larger clubs and
smaller clubs in general is:
Widening 61 79 76 50 38 66
Narrowing 12 14 6 14 13 17
Unchanged 27 7 18 36 49 17
Widening 94 100 82 93 100 100
Narrowing 0 0 0 0 0 0
Unchanged 6 0 18 7 0 0
More than six out of ten (61%) of
respondents think that the wealth gap in
their division is widening with the gap being
most evident in the EPL and FLC clubs (79%
and 76% respectively).
More than nine out of ten (94%) of
respondents think that the wealth gap
between larger and smaller clubs is widening
with 100% agreement from the EPL, FL2 and
SP.
This polarisation will continue to have a
major impact on the smaller clubs who will
face increasing difculties in attracting fans,
investors and sponsors.
Even though the EPL as a whole is a global
success, we see here that within the league
clubs believe the gap between top and
bottom is widening which might ultimately
be detrimental to the overall quality of the
league.
Responses to questions 17 to 20 raise the
question as to whether FFP regulations
limit the opportunity for FL1, FLC and the
smaller of the EPL clubs to bridge the gap?
A locking in of this differential could be an
unintentional consequence of FFP rules,
combined with the highest commercial
revenues tending towards the largest club
brands.
Base: 67
Base: 67
61%
94%
12%
widening
widening
narrowing
the wealth gap in my division is:
the wealth gap in general is:
FD FOOTBALL SURVEY
|
2014 16
03: CLUB OPERATIONS
21. HMRC has major on-going projects challenging
complex salary structures including certain image rights
payments and employee benet trusts. This could lead
to a potentially large PAYE bill for affected clubs. Which
of following statement best reects your view?
22. Was your club late on more than one occasion during
the year with payment of any tax (i.e. corporation tax,
PAYE/NIC, VAT) due to HMRC?
Not concerned, the tax position
on payments to our players is
robust and very defendable 82 57 88 71 100 100
Somewhat uncertain give
the pace of change of HMRC
enquiries 5 22 0 0 0 0
Somewhat concerned that a
sizeable challenge could create
a problem 13 21 12 29 0 0
Very concerned that a sizeable
challenge would create a
problem 0 0 0 0 0 0
Yes 13 0 29 7 19 0
No 87 100 71 93 81 100
Condence among respondents that their
tax position on payments to players was
robust and very defendable to HMRC rose
slightly from 77% in 2013 to 82% this year.
However, only 57% of EPL respondents
are condent that their tax position is
defendable with 22% somewhat uncertain
and 21% concerned that a sizeable HMRC
challenge could create a problem.
Almost a third (29%) of FL1 respondents
are also concerned that an HMRC challenge
would create a problem.
The percentage of respondents who were
late making their tax payments fell from
20% in 2013 to 13%. FLC clubs are most
likely to be late (29%) compared with no
EPL or SP clubs.
Of the clubs which paid late, six of them
had taken a risk in not formally agreeing the
delay with HMRC in advance.
Base: 67
Base: 67
13%
More than one late tax payment
Clubs who are condent in their robust
and defendable tax position
82%
77%
2014
2013
2014
|
23. Have you noticed any changes in HMRCs attitude to
pressing for the collection of tax due?
Yes, it is contacting us earlier
and/or more often 39 29 29 50 44 50
Yes, it is taking them longer to
get in touch 4 7 12 0 0 0
No 57 64 59 50 56 50
There has been a fall in the percentage of
clubs that have been contacted earlier or
more often by HMRC from 52% in 2013 to
39% this year. However, this is still a clear
indication that the football sector remains a
high interest area for HMRC.
Only 4% of clubs said that HMRC was taking
longer to get in touch.
Base: 67
52%
39%
2013
2014
the percentage of clubs which have been
contacted earlier or more often by HMRC
We will continue to see HMRC
focus on player remuneration
and broaden this to include
examining the tax position on
agents fees paid by clubs. This
is a complex area and the tax
position is not always clear, as
demonstrated by the decision
in the Glasgow Rangers appeal
which, whilst lost by HMRC, is
not the end of the matter. The
general hardening in attitude
towards perceived tax evasion
and increased Government
focus on tax planning in general
may lead to respondents seeing
increased activity in this area.
shawn healy
employment tax principal, professional sports
FD FOOTBALL SURVEY
|
2014 18
04: FINANCIAL FAIR PLAY
24. Financial sustainability rules are now in force in UEFA
club competitions and the top four tiers of English
football. Do you believe that similar rules should be
introduced by the SPFL?
25. Did your club comply with the requirements of
applicable nancial fair play and cost control and
sustainability rules (collectively FFP) in the 2013/14
season?
% ALL LEAGUES EPL FLC FL1 FL2
Yes 90 86 94 93 100
No 10 14 6 7 0
All six SP clubs who responded to the survey
believed that the SPFL should introduce
similar rules.
There were high levels of compliance 90%
- with the requirements of the FFP rules
during last season.
compliance with the requirements
of the FFP rules
Base: 66
90% 10%
yes no
2014
|
27. Do you believe FFP rules to be broadly workable as they
currently stand?
26. Domestic and/or UEFA fair play rules are in operation.
Do you expect that for next season your club will:
Yes 86 86 76 93 87 100
No 14 14 24 7 13 0
Comply with these rules with
minimal change to the business
model
91 93 88 86 100 83
Only manage to comply by
making signicant changes to
the business model
9 7 12 14 0 17
Will not comply, but plan to be
compliant within the next 2-3
years
0 0 0 0 0 0
Will not comply and have
not yet addressed the steps
necessary to become compliant
0 0 0 0 0 0
Almost nine out of ten (86%) respondents
believe that the FFP rules are broadly
workable as they currently stand. However, a
quarter of FLC clubs do not agree.
More than nine out of ten (91%) clubs will
comply with the FFP rules in 2014/15 with
only minimal changes to their business
model up from 85% in 2013, with only
9% needing to make signicant changes to
achieve compliance.
Base: 66
Base: 66
Although clubs are broadly complying and
think they are workable, as seen from this
and the two previous questions, the real
cause for concern is the FLC where clubs are
divided as to whether the rules are workable.
100%
all clubs will comply
with the FFP rules
86% 24%
believe that the
FFP rules are
broadly workable
of FLC clubs
do not agree
Clearly there is transition required for some
clubs in order to achieve compliance with
FFP rules. However, on the basis of these
responses we can say that very positive
progress is being made.
FD FOOTBALL SURVEY
|
2014 20
04: FINANCIAL FAIR PLAY
28. Do you believe the structure of the nancial fair play
rules, applicable to your division, to be appropriate?
29. Do you feel well represented by your league with
regards to nancial fair play/sustainability rules?
Yes 56 50 29 71 75 50
Not yet, some renement
required 30 22 47 21 19 50
No, a lot needs to change 14 28 24 7 0 0
Yes 76 64 65 93 96 50
No 24 36 35 7 6 50
Over half (56%) of the respondents agree
that the structure of the nancial fair play
rules, as applicable to their division, are
appropriate.
More than three quarters (76%) of
respondents feel well represented by their
league regarding the FFP rules with the
FL1 and FL2 respondents being the most
satised (93% and 83%).
Base: 66
Base: 66
However, 71% of FLC respondents think that
either some renement is needed or a lot
needs to change. Signicantly 28% of EPL
clubs say that a lot needs to change.
More than a third of EPL and FLC
respondents, however, do not feel well
represented.
There is a reasonably high level of concern
amongst clubs, particularly FLC clubs, that
the rules are not appropriate.
The effect of parachute payments, which
are not caught by the rules, has a distorting
effect on the relative revenue levels of the
clubs in the FLC and this, together with some
club owners not wanting to be fettered by
what they can spend in order to achieve
promotion to the EPL, is causing tensions.
76% 36%
feel well represented
by their league
of EPL teams do not
feel well represented
by their league
30. Do you believe that the FFP regulations meet the
principal objective of promoting sustainability?
Yes 38 14 41 43 53 34
No, but they are a step in the
right direction 46 50 24 57 47 66
No , there are better ways to
ensure sustainability 15 29 35 0 0 0
Regulation is not necessary 1 7 0 0 0 0
Opinions are split on whether FFP
regulations meet their principal objective of
promoting sustainability. Overall, 38% agree
that it does and a further 46% say they are
a step in the right direction. There is varying
opinion across the leagues.
Base: 66
Only 14% of EPL respondents agree that the
objective has been met compared with 53%
of FL2. Just under a third (29%) of EPL and
35% of FLC respondents think that there are
better ways to ensure sustainability.
These responses show that clearly there is
some work to do on the rules to ensure that
the majority of clubs are satised that they
operate effectively.
38% 46% 15%
Yes No, but they
are a step
in the right
direction
No, there are
better ways
to ensure
sustainability
FD FOOTBALL SURVEY
|
2014 22
31. In the absence of FFP regulations, would you or your
owner invest more money into trying to realise the
clubs ambition?
Yes, to a signicant degree 7 0 18 0 13 0
Yes, to some extent 26 57 29 14 0 34
No, the amount we are allowed
to invest is sufcient 38 29 41 50 40 17
No, there is no more to invest 29 14 12 36 47 50
While a third (33%) would be prepared to
invest more money, the remaining two thirds
are split between saying that the amount
they are allowed to invest is sufcient (38%)
or that there is no more money to invest
(29%).
However, 57% of EPL and almost half (47%)
of FLC respondents would be prepared to
invest more.
Base: 66
These responses seem to reect the view
that with some further revisions reecting
the ability of owners to increase their
subsidies the rules may be acceptable to a
majority of the clubs. The debate continues
on how to promote sustainability without
stiing investment.
yes
signicantly: 7%
to some extent:
26%
the amount we are
allowed is sufcient:
38%
there is no more to
invest: 29%
no
The threat of sanctions is going a long way to ensuring
compliance with FFP rules. However, our research suggests
that this should not be confused with wide-reaching levels of
satisfaction, particularly within the EPL and FLC.
Almost half of all clubs (44%) do not believe the rules to be
appropriate, a quarter of clubs do not feel well represented by
their league, only 38% believe the rules meet the objective
of sustainability (albeit most that do not, admit that they are
a step in the right direction) and a third feel that the rules are
stiing the investment of ambitious owners.
ian clayden
FD FOOTBALL SURVEY
|
2014 24
05: YOUTH DEVELOPMENT
32. For nancial year 2014/15, how does your youth
development budget compare to nancial year
2013/14?
33. If there is a change in the youth development budget,
is this directly due to nancial fair play/cost control and
sustainability rules?
Signicantly higher 18 22 12 14 19 34
Higher 39 50 29 50 31 33
The same 39 28 47 36 44 33
Slightly lower 1 0 0 0 6 0
Signicantly lower 3 0 12 0 0 0
Yes 6 0 0 14 12 0
No 55 78 53 50 44 66
More than half (57%) of respondents have
a higher budget for youth development
this year while 39% will maintain it at the
same level as last year and 4% have a lower
budget.
More than half (55%) of respondents deny
that any changes in the youth development
budget are directly due to FFP, rising to 78%
of EPL respondents.
A larger percentage of the premier leagues
(EPL 72% and SP 67%) will be spending
more on their youth development budgets
than last year.
Base: 67
Base: 67
57%
6%
39%
55%
4%
39%
Higher
yes
Youth development budget 2014/15 vs 2013/14
The same
no
Lower
Not applicable
The new Elite Player Performance Plans
(EPPP) are driving this increased investment.
It is hoped that these will lead to better
coaching and improved quality of players.
2014
|
06: PLAYER COSTS AND TRANSFERS
34. Is liquidity in the transfer market?
35. Do any of your players have clauses in their contracts
stipulating that their wages will be cut if the club is
relegated?
36. In your budget for 2014/15 will your rst team squad
size be larger, the same or smaller than the season just
ended?
Improving 13 22 18 14 6 0
Worsening 29 14 29 57 19 17
Unchanged 58 64 53 29 75 83
Yes 89 83 94 93 94 66
No 11 17 6 7 6 34
Greater 11 23 6 0 12 17
Same 48 69 35 57 38 66
Smaller 41 8 59 43 50 17
More than half (58%) of respondents do not
think that liquidity in the transfer market
has changed and only 13% think that it has
improved.
More than half (57%) of FL1 respondents
think that liquidity has worsened.
The trend for clubs to put clauses in players
contract stipulating a wage cut if the club is
relegated continues to rise up to 89% of
respondents in 2014 from 84% in 2013 and
79% in 2012.
The FLC, FL1 and FL2 clubs continue to be
the most likely leagues to have relegation
clauses in players contracts.
The trend towards reducing the size of the
rst team squad appears to have slowed
this year with only 39% planning to reduce
the numbers compared with 53% last year.
Almost a quarter (23%) of EPL clubs will be
increasing the size of their rst team.
Base: 67
Base: 65
Base: 66
The FLC has the highest percentage of
clubs (59%) that will reduce their squad
size and the FL1 is the only league where no
respondents will be increasing the size of
their rst team squad.
Half of respondents (48%) will maintain
their squads at the same level as last year
including 69% of EPL and 66% of SP
respondents.
41% 59%
planning to reduce
the numbers this year
FLC clubs reducing
squad size compared
with last year
FD FOOTBALL SURVEY
|
2014 26
06: PLAYER COSTS AND TRANSFERS
37. In your budget for 2014/15 will you spend more, the
same or less on the payroll cost of the rst team squad
than the season just ended?
38. If your club plans to spend the same or less on payroll
costs of the rst team squad in the 2104/15 season, to
what extent has this decision been driven by FFP rules?
More 30 70 18 14 25 34
Same 30 15 24 29 44 50
Less 40 15 59 57 31 17
Not at all 65 67 60 46 75 100
Yes, to a considerable extent 13 0 6 36 8 0
Across all the leagues, almost one in
three (30%) clubs will be spending more
compared with 17% last year. This gure is
distorted however by seven out of ten EPL
respondents who will be spending more on
their rst team payroll next season - up from
42% in 2013. This is unsurprising given the
increase in TV revenues. However, clubs will
need to manage this carefully in order to
comply with FFP rules.
Over a third (35%) of respondents admit
that their decision to spend less on rst team
payroll costs has been partly or largely driven
by the FFP rules.
Overall, 65% the respondents have not
taken FFP into consideration when spending
the same or less on payroll.
However, 54% of FL1 respondents and
40% of FLC respondents decisions have
been inuenced by the FFP to some or a
considerable extent.
Base: 66
Base: 45
The most budget conscious leagues
are the FLC and FL1 with 59% and 57%
respectively spending less on payroll. This is
a continuation of the trend seen in previous
years and would appear to be a result of the
bedding in of FFP and further pressures on
league and commercial revenues.
The percentage of clubs planning to spend
less has fallen from 56% in last years survey
to 40% this year.
30% 17%
clubs will be
spending more
compared with
last year
2014
|
39. Will you increase/reduce your transfer budget this year?
40. If your transfer budget for 2014/15 will reduce or
remain the same, to what extent has this decision been
driven by FFP rules?
Increase 21 24 41 0 19 17
Same 52 38 35 64 56 83
Reduce 27 38 24 36 25 0
Not at all 80 70 70 79 92 100
Yes, to a considerable extent 2 0 0 7 0 0
Responses to the above question are largely
mixed with around one in ve increasing
transfer budgets and one in three reducing
transfer budgets. Around half have an
unchanged budget.
This years results are very similar to last
years. 80% of respondents who are reducing
or keeping their transfer budget the same
deny that their decision has been driven by
FFP rules.
Base: 66
Base: 51
Only a quarter (24%) of FLC respondents
will reduce their transfer budgets this year
compared with 44% in 2013.
Only 20% say that FFP rules have had an
impact on their decision.
The percentage of clubs increasing their
transfer budget has risen from 12% in 2013
to 21%. The most notable increase is in the
FLC where 41% are increasing their transfer
budgets compared with 6% in 2013.
deny that their
decision has been
driven by the FFP
rules
claim FFP rules have
had an impact on
their decision
80%
20%
FD FOOTBALL SURVEY
|
2014 28
07: GOVERNANCE AND PROPRIETY
41. Does your board include remunerated non-executive
independent directors?
42. Do you regard yourself as a public interest business
with higher degrees of scrutiny?
43. Does the level of public interest in your club lead you to
manage the club with heightened corporate governance
in comparison to similar sized companies outside of the
football sector?
Yes 20 30 18 21 13 17
No 80 70 82 79 87 83
Yes 90 100 88 93 87 66
No 10 0 12 7 13 34
Yes 73 86 65 71 69 87
No 27 14 35 29 31 13
One in ve (20%) respondents have
remunerated non-executive independent
directors on their clubs board, a slight
increase on the 2013 gure of 15%.
Governance continues to be an issue within
the game but reects the ownership model.
An increase in paid independent non-
executive directorships is a positive move
however.
Almost all (90%) respondents
regard their football club as a
public interest business with
high degrees of scrutiny.
Nearly three quarters (73%)
agreed that the level of public
interest in their club leads
them to manage the club with
a higher level of corporate
governance than they would
for a similar sized business
outside the football sector.
The ndings of our survey
suggests a high level of
governance in the sector.
Base: 66
Base: 67
Base: 67
90%
73%
2014
|
08: NATIONAL AND INTERNATIONAL
ISSUES
44. As a club, do you have an explicit or implicit policy to
support international teams through availability of
players?
45. As a club, do you feel appropriately compensated for
the disruption caused by players international duty?
46. Do you think appropriate compensations should
include:
Yes 51 50 72 36 38 66
No 7 0 12 14 6 0
No policy either way 27 50 18 29 13 34
Yes 23 29 24 21 13 33
No 52 71 65 50 31 50
% OF RESPONDENTS ALL LEAGUES
Full insurance for injuries on international duty 80
Full salary reimbursement for period of international duty 54
Fixed fee per day of international duty 41
Partial salary reimbursement for period of international duty 28
Just over half (51%) of respondents have
a policy to support international teams by
making their players available. The FLC has
the highest percentage of respondents with
a positive support policy (72%). Half of EPL
clubs do not have a policy either way.
More than half of all respondents do not
feel appropriately compensated for the
disruption caused by players international
duty. Not surprisingly, given that EPL and
Whilst salary reimbursement is a popular
choice amongst respondents, clearly the
greater concern is the medium/long term
impact of injuries. Better security in this
area would not appear to be an unreasonable
request.
Base: 67
Base: 67
Base: 39 (52% who said no)
FLC clubs are most affected by international
call ups, this rises to 71% of EPL and 65% of
FLC respondents.
inappropriately
compensated for
international call ups
inappropriately
compensated for
international call ups
71%
EPL
65%
FLC
FD FOOTBALL SURVEY
|
2014 30
08: NATIONAL AND INTERNATIONAL
ISSUES
47. What impact do you expect the World Cup to have on
your summer 2014 player trading?
On average we expect like-for-like player prices to be:
Higher 34 50 47 29 6 50
Lower 0 0 0 0 0 0
No change 66 50 53 71 94 50
A third anticipated higher player prices during
the 2014 player trading period while two
thirds thought there would be no change.
Base: 67
Clearly a world cup year is expected to cause
some player ination pressure, increasingly so
at the higher league levels.
anticipate higher player prices
during the 2014 trading period
one third
2014
|
48. Greg Dyke recently announced English FA Commission
proposals for the introduction of a newly created
League 3, populated with Premier League B teams,
and an increase in the minimum home grown player
requirement for match day squads.
For English clubs: What do you expect to be the net nancial
impact of these proposals on your club?
For Scottish clubs: Would you welcome similar proposals
from the Scottish FA?
% ALL LEAGUES EPL FLC FL1 FL2
High negative impact 14 5 6 0 44
Low negative impact 28 50 18 36 19
No impact 28 29 41 29 19
Small positive impact 8 0 18 14 0
High positive impact 5 0 6 7 6
Proposals wont happen/work 14 14 6 21 13
No views 3 0 12 7 6
% SP
Yes, similar 17
Yes, in principal but with variation 50
No 33
Based on the nancial impact alone, the
results indicate little support for Greg Dykes
proposals with 42% saying that they will
have a negative nancial impact and 28%
say they will have no impact. Only 13% say
they will have a positive nancial impact.
Interestingly 14% do not believe that the
proposals will be implemented.
Almost two thirds (63%) of FL2 respondents
say that the proposals will have a negative
nancial impact, clearly a response to the
proposed new League 3 including Premier
League B teams and the perceived impact
that this will have on their league award,
attendance, and other commercial revenues.
Two thirds of SP clubs surveyed welcomed
similar proposals from the Scottish FA.
Base: 61
Base: 6
saying that
they will have
a negative
nancial impact
say they will
have no impact
say they will
have a positive
nancial impact
do not believe
that the
proposals will be
implemented
42% 28%
13% 14%
FD FOOTBALL SURVEY
|
2014 32
BDO PROFESSIONAL SPORTS GROUP
Our Professional Sports Group
client base extends across major
professional sports including
football, horse racing, rugby,
golf, cricket, and motor racing, as
well as other health and tness
businesses.
In professional football we have worked for
an array of high prole football clubs and
governing bodies providing specialist services
ranging from audit and accounting to tax
advice on image rights and agents fees to
insolvency assignments.
Our team of sector experts which includes
partners with experience of managing and
running top ight football clubs, can provide
football clubs with a complete range of
business advisory services including:
External and internal audit
Corporate tax
Corporate nance and nancial modelling
Business restructuring
Specialist VAT consultancy
Employment tax
Corporate governance
Forensic and fraud investigations.
professional sports group
key contacts
For more information on any of our services
for the football industry, contact the relevant
BDO expert in your region.
scotland
LONDON NORTH
south
charles barnett
Audit/Corp Finance
ian clayden
Audit
brian lovie
Tax
trevor birch
Business
Restructuring
james roberts
Audit/Corp Finance
andy mcnamara
Audit
ian cooper
Corporate Finance
julien rye
Audit
stuart lisle
Tax
bryan jackson
Business
Restructuring
tim ferris
Corporate Tax
billy cairns
Tax
andy goodman
Employment Tax
chris heatlie
Corporate Finance
jim gee
Forensic
0141 249 5203
020 7893 2372 0113 204 1306 020 7893 3437 0161 833 8362
020 7893 2830 0141 249 5249
020 7893 2678 0161 817 7505
023 8088 1861 0131 347 0366
020 7893 3733
01293 591 087 0141 249 5233
020 7893 3612
2014
|
our specialist services include:
Corporate nance and nancial modelling
We have signicant experience providing
transaction advisory and investigative
services across professional sports and
professional leagues to a number of clubs for
both vendors and acquirers. Our specialist
transaction services team performs due
diligence for potential investors and for FFP
planning and compliance, and our advisory
team specialises in leading sale processes
and procuring investment.
Business restructuring
We have been appointed administrators of
a number of clubs including Motherwell,
Oldham Athletic, Dundee, Portsmouth,
Dunfermline and Hearts. All completed
appointments have led to a successful
outcome whereby a dividend was accepted
by creditors under a Company Voluntary
Arrangement (CVA). All companies survived
following the CVAs and are continuing to
trade.
Specialist VAT consultancy
Some of our recent assignments have
included providing extensive VAT input on
the following:
Afnity card agreements
Overseas sponsorship issues
Testimonial/benet games for current
and former players
Stadium refurbishments and alternative
uses, catering issues, retail sales
Agents fees.
We have produced a VAT overview guide
for clients in connection with a number of
rules and treatments, including the place of
supply of goods & services, plus certain VAT
reporting requirements and a matrix relating
to the key income streams.

employment tax
Over the last twelve months our team of
specialists has provided advice in connection
with the complex area of reward. This is in
the light of heightened HMRC interest into
the use of complex remuneration structures,
sometimes involving Employer Financed
Retirement Benet Schemes (EFRBs),
Employee Benet Trusts (EBTs), contracts
for difference and the use of Image Rights
Companies. We have also assisted clubs with
investigations into the use of such structures
by HMRC Specialist Investigations.
Obviously, in their day to day business, many
clubs make payments to sports agents and
we have advised clubs on how these should
be correctly dealt with for income tax and
national insurance purposes.
corporate governance
Good corporate governance is essential
if clubs are to be managed effectively by
executive directors and legal obligations
discharged properly by non-executive
directors. Procedural issues include:
Transfer policy aquisitions and disposals
Disciplining regulations and rules
players and directors
Fraud protection
Anti-money laundering
Cost control regulation
Transparency measures
Diversity and community.

forensic and fraud investigations
We provide forensic accountancy,
investigatory and expert witness services to
a number of clubs. Working in a partnership
with the Centre for Counter Fraud Studies
at the University of Portsmouth, we are
also able to help organisations to measure
and reduce the cost of fraud. We deliver
real nancial benets often achieving a 12:1
return on the cost of the work.
FD FOOTBALL SURVEY
|
2014 34
BDO LEISURE AND HOSPITALITY
Alongside the Professional Sports
Group, our team works with
international businesses across
the leisure industries, including
betting & gaming, hotels,
restaurants, bars & pubs, and
travel & tourism.
betting & gaming
BDO has acted as auditors, tax advisers and
consultants to many UK and international
betting and gaming businesses, both
private and publicly quoted. Our clients
range from many of the major bricks &
mortar bookmaking and casino operators
to major offshore telephone and internet
sports books, casinos, poker and other
online gaming activities. As well as the more
traditional forms of betting and gaming, we
also act for FCA regulated businesses in the
nancial trading, nancial spread betting and
CFD sector.
Specialist advice we can provide to the
sector includes:
Audit and assurance
International tax planning and structuring
Corporate nancing and otations
Property and corporate acquisitions and
disposals
Financial Services Act regulations and
compliance
Installation of management reporting and
controls and internal audit functions
IT controls, environment reviews and
systems improvement advice.
hotels
Our expertise covers the entire spectrum of
investment and operating activities and our
involvement brings credibility, competence
and independence to any project. In short,
if you are active in the hotel industry then
you should be talking to BDO, the industry
experts.
Specialist advice we can provide to the
sector includes:
Audit and assurance
Feasibility studies
Business valuations
Litigation support and expert witness
services
Mergers and acquisitions including MBOs,
MBIs and otations
Fund raising and renancing
Financial investigations and dispute
resolutions
Systems reviews
Turnaround and distressed situations.
john barker stuart collins
020 7893 3980
john.barker@bdo.co.uk
020 7893 2604
stuart.collins@bdo.co.uk
2014
|
restaurants, bars & pubs
BDO can help realise opportunities and
value, and minimise the challenges
associated within roll-out growth just
as we have helped numerous clients to do
during our long established history as a
leading adviser in this sector.
We have advised clients as diverse as
international brands and national chains,
to owner managed businesses and outlets
looking to expand and/or diversify. Our
expertise will assist whether you are the
individual restaurateur, the group operator,
the restaurant franchisor or franchisee.
Specialist advice we can provide for your
sector includes:
Audit and assurance
BERR report, TRONCS, minimum wage
legislation
Tax efcient employee incentive plans
Property issues and the associated stamp
duty and capital allowances
Business acquisitions
Raising nance for business expansion
public and private, equity and debt
Franchise advice.
travel & tourism
The travel sector has undergone some of
the biggest changes we have witnessed to
one particular industry over the last few
years. It has been a roller-coaster ride of new
entrants and new technology, consolidation
and unpredicted new challenges to business,
such as SARS and terrorism. BDO has helped
its travel clients turn a turbulent time into
one of opportunity.
Our commitment to this sector has seen us
attract some of the best known names in
the business from owner managed private
businesses through to large listed companies
with international networks. BDO is an ABTA
Travel Industry Partner and provides the
section on Travel Agents and Tour Operators
for Butterworths Financial Reporting and
Accounting for Specialised Sectors. We have
members on the ICAEW/ABTA Working
Group instigated by ABTA and also on the
ICAEW/CAA Working Group instigated by
the CAA.
Specialist advice we can provide for your
sector includes:
Audit and assurance
ATOL applications
Tour Operator Margin Scheme
Industry regulation and compliance
Flotations, acquisitions and disposals
Tax planning and compliance for the
travel industry
Business continuity planning.
david campbell dominic stammers
020 7893 3610
david.campbell@bdo.co.uk
020 7893 2471
dominic.stammers@bdo.co.uk
1
4
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0
3
8
9
For more information please contact:
CHARLES BARNETT
Partner, Professional Sports
(SCOTLAND)
t: 0141 249 5233
e: charles.barnett@bdo.co.uk
IAN CLAYDEN
(ENGLAND)
t: 020 7893 3612
e: ian.clayden@bdo.co.uk
TREVOR BIRCH
(BUSINESS RESTRUCTURING)
t: 020 7893 3733
e: trevor.birch@bdo.co.uk
(See full of contacts on page 32)
This publication has been carefully prepared, but it has been
written in general terms and should be seen as broad guidance
only. The publication cannot be relied upon to cover specic
situations and you should not act, or refrain from acting, upon
the information contained therein without obtaining specic
professional advice. Please contact BDO LLP to discuss these
matters in the context of your particular circumstances. BDO LLP,
its partners, employees and agents do not accept or assume any
liability or duty of care for any loss arising from any action taken
or not taken by anyone in reliance on the information in this
publication or for any decision based on it.
BDO LLP, a UK limited liability partnership registered in England
and Wales under number OC305127, is a member of BDO
International Limited, a UK company limited by guarantee, and
forms part of the international BDO network of independent
member rms. A list of members names is open to inspection at
our registered ofce, 55 Baker Street, London W1U 7EU. BDO LLP
is authorised and regulated by the Financial Conduct Authority to
conduct investment business.
BDO is the brand name of the BDO network and for each of the
BDO Member Firms.
BDO Northern Ireland, a partnership formed in and under
the laws of Northern Ireland, is licensed to operate within the
international BDO network of independent member rms.
August 2014 BDO LLP. All rights reserved.
www.bdo.co.uk

BDO, The Annual Survey of Football Finance Directors (2014)

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