Company registration no, 06233875 LEEDS UNITED FOOTBALL CLUB LIMITED Report and Financial Statements Year ended 30 June 2010 I HBSGTWZ" ast 0608/2011 @ COMPANIES HOUSE‘LEEDS UNITED FOOTBALL CLUB LIMITED REPORT AND FINANCIAL STATEMENTS 2010 CONTENTS Officers and professional advisers Directors’ report ‘Statement of directors’ responsibilities Auditor's report Profit and loss account Balance sheet Notes to the financial statements PageLEEDS UNITED FOOTBALL CLUB LIMITED REPORT AND FINANCIAL STATEMENTS 2010 OFFICERS AND PROFESSIONAL ADVISERS Directors KWBates S AHarvey Y SAllen P Lonmer Secretary SAHarvey Registered office Elland Road Leeds West Yorkshire Lsit OES, Bankers Bank of Ireland 15-16 Park Row Leeds LSt SHD Solicitors MeCormicks Solictore 37 East Parade Harrogate HG1 5LO Walker Moms Kings Court 12 King Street Leeds st 2HL Auditors Baker Tily UK Audt LLP Registered Auditor Chartered Accountanns 2 Whitehall Quay Leeds Ust 4c,LEEDS UNITED FOOTBALL CLUB LIMITED DIRECTORS’ REPORT ‘The directors present their report and the audited financial statements for the year ended 30 June 2040 Principal activities ‘The pnncipal activites of the company dunng the year were that of a professional football club and the provider of conferencing and banqueting facies Review of business activities, ‘The current playing squad 1s valued at £6,667,142 This 1s based on the average opinions of seven members of senior football management as at 1 September 2010 of the players registered with the club at this date This compares wath the net book value in the balance sheet of £,428,000 as at 30 June 2010 Future Developments ‘The promotion of the club at the end of the 2009/10 season in dramatic style at Elland Road in front of 38,234 fans reached the objectve of the Board on the field The club also benefited from 4 memorable cup ties agamst FAPL. ‘opposition Liverpool, Tottenham Hotspur and Manchester United The win at Old Trafford in the 3° Round of the FA, ‘Cup wail ive fong in the memory of everyone connected vath the club The Board wall continue their strategic investment in the playing squad whether that be by way of transfer fee or increased salary payments to Bosman type signings to supplement the exssting squad of players. Investment in the club's academy will continue against a full review of ts operation to ensure that best value is achieved ‘Work 1s now complete on the £2 0m Centenary Pavilion whicn wil further eniance the club's abiity to generate income ‘on non-matchdays to create a diverse and non result dependant tumover General improvements were also Undertaken around the Elland Road stadium for the benefit of both fans and comorate ticket holders Off the field the panty remains the implementation of the planning approval received for the East Stand Development which includes 340 bed hotel, new club superstore and office along with an arcade with retail consent ‘The Board are stil relying on the 2009 valuation undertaken hy King Sturge whereby the stadium was valued at £49 0m ‘and the development land to the East of the stadium was £5 72m, a total of £54 72m The freehold can currently be Purchased from landlord, Teak Commercial Levated, for £14 48m ‘The failure of England's bid to host the 2018 World Cup was a major disappointment but the club remains committed to the improvement of the facies at Elland Road Results and dividends ‘The profit for the year after taxation was £2,072,000 (2009 £15,000) for the company The directors do not recommend the payment of a dividend Directors: rectors serving the company dunng the year and since the year end were as follows KW Bates SAHarvey RM Taylor (Resigned 13" May 2010) Y § Allen (Appointed 13 May 2010) P Lonmer (Appointed 13" May 2010) Financial instruments ‘The company ensures that cash flows are closely monrtored on a dally basis Financial niks are kept to a mirumum wherever possible The company’s financial instruments comprise borrowings, cash and liquid resources, finance leases and vanous other items such as trade debtors and trade creditors that anise directly from ils operations The company does not engage in trades of @ speculative nature and has no foreign currency exposure The company ‘monitors its cash flow throughout the year and reviews its overall financial requirements on an annual basis Key performance indicators. ‘The performance of the team 1s monitored by publicly available League positon tables tn additon to this, the Commercial operations of the business are monitored against detaled budgets and benchmarking exercises are Undertaken to assess the company’s performance within tha sector The £3 911m nse in tumover from £23 535m to £27 446m represents an increase of 16 6% and club maintained its positon as having achieved the highest home attendance in League One Employee involvement ‘The company's employment policies are designed to attract, retain and motwate the best people The company involves employees at all levels of the organisation through @ broad base of regular communication meetings. and bnefing sessions to understand current performance and communicate future developmentsLEEDS UNITED FOOTBALL CLUB LIMITED Disabled employees Applications for employment by disabled persons are always fully considered In the event of members of staff becoming disabled, every opportunty 1s made to ensure their employment with the company continues and that appropriate training 1s arranged It 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 Auditors Baker Tily UK Audit LLP. Chartered Accountants, are deemed to be re-appointed under Section 487(2) of the ‘Companies Act 2008 ‘Statoment as to disclosure of information to auditors The directors who were in office on the dato of approval of these financial statements have confirmed. as far as they are aware, that there 1s no relevant audit information of which the auditors are unaware Each of the directors have confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit iformaton and to estabish that i has been communicated to the auditor . ‘Approved by the board of directors and s:gned on behalf of the board EZ ‘SAHaney Drrector 28" Febnsary 2011LEEDS UNITED FOOTBALL CLUB LIMITED DIRECTORS’ RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS The directors are responsible for preparing the 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 1oss of the company for that period In preparing those financial statements, the directors are required to @ select sutable accounting polices and then apply them consistently, b make judgments and accounting estates that are reasonable and prudent, © —_prepare the financial statements on the going concem basis unless it is mappropnate to presume that the company wall continue in business ‘The directors are responsible for keeping proper accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financal 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 regularitiesLEEDS UNITED FOOTBALL CLUB LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LEEDS UNITED FOOTBALL CLUB LIMITED We have audited the financial statements on pages 7 10 16 The financial reporting framework that has been applied in their preparation 1s applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted ‘Accounting Practice) ‘This report is made solely to the company's members, as a body, m 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 members those rmatlers we are required to state to them m an auditor's report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibity to anyone other than the company and the company's members as a ‘body, for our audit work, for ths report, or for the opinions we have formed Respective responsibilities of directors and auditors. ‘As more fully explained in the Directors’ Responsibilities Statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they ave a true and fair view Our responsibilty ' {0 audit and express an opinion the financial statements in accordance with applicable law and Intemational ‘Standards on Auditing-(UK and Ireland) Those standards require us to comply with the Auditing Practices Board's (AP's) Ethical Standards for Auditors ‘Scope of the audit, A descaplion of the scope of an audit of financial statements is provided on the APB's website at ‘wun ftc oF uk/apb/scope/UKNP Opinion on the financral statements [nour opinion the financial statements, ve a true and fair view of the state of the company’s affairs as at 30 June 2010 and of is profit for the year then ‘ended, ‘+ have been property prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and ‘= have been prepared in accordance with the requirements of the Companies Act 2008 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors’ Repor for the financial year for which the financial statements are prepared 1s consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report n respect of the following matters where the Companies Act 2006 requires us to report to you f,m our opinion, ‘© adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not vsited by us, or ‘+ the financial statements are notin 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 Reames Trey i Ate UL Anthony Elston (Senior Statutory Auditor) For and on behaif of BAKER TILLY UK AUDIT LLP, Statutory Auditor Chartered Accountants 2 Whitehall Quay Leeds ist 4HG. 28" February 2011LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS PROFIT AND LOSS ACCOUNT Year ended 30 June 2010 operators excluding Player ‘Year onde Year ended Payertaang — vadng «30 une z010 30 June 2009, Now e000 e000 ‘©000 000 Tumover 2 27,448 - 27,446 23,535 Cost of sales (6.563) : (5,563) (4,930) Gross profit 21,883 - 21,883 18,605 Administrative expenses (22.553) (@90) (23,543) (21.402) Operating loss 3 (670) @90) (1.860) (@797) Profiton player trading = 3,818 3.818 2911 Profit on ordinary activites before interest (670) 2,828 2.168, 114 (ther interest recewable and similar wrcome 4 3 - 3 19 Interest payable and similar charges 5 ) : 189) (118) Profiton ordinary activiies before taxation (756) 2.828 2072 8 ‘Taxation on profit on ordinary activities z : : 7 2 Profit for the financial year 16 (756) 2,828 2,072 16 “The results for the year relate to continuing operations ‘There are no recognised gains and losses for the penod other than as stated in the profit and loss account Accordingly, ‘no statement of total recognised gains and losses has been presentedLEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS BALANCE SHEET Company registration no 06233875 30 June 2010 veer ended “ole me ie £200 0 Fixed assets Intangible assets 87,085 1207 Tangible assets 9 aaot 3.686 11,486 70.963 Current assets stock 10 n6 852 Debiors 1 4010 2869 Debtors due ater more than one year " 33 91 Cash at bank and in hand 3670 387 z 8,429 4,540 Creditors_amounts falling due within one year 12 (11634) (10,202) Net current habulities: (3,202) (5,662) Total assets less current habilties 3.784 5301 Creditors amounts falling due after more than one year 13144) (233) Net assets 7.440) 5.068 Capital and reserves Called up share captal 5 500 500 Prof and loss account 18-8640 4.568 Equity shareholders’ funds 16 7,440 6,068 ‘The financial statements on pages 7 to 18 were approved by the board of directors and authonsed for issue on 28° February 2011 and are signed on its behalf by ERS SAHarvey DrectorLEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS 4 Principal accounting policies ‘The financial statements are prepared in accordance with applicable United Kingdom accounting standards The pnncipal accounting policies adopted by the directors are set out below’ Basis of preparation ‘At 30 June 2010 the company had net current tabilites of £3,202,000 Detailed forecasts have been prepared, indicating that the company will have sufficient resources to meet debs as they fall due dung the next 12 months AS a result, the directors consider that it appropnate fo prepare the accounts on the going concern basis Basis of accounting ‘The financial statements are prepared in accordance with the historical cost convention Cash flow statement ‘The directors have taken advantage of the exemption in Financial Reporting Standard No 1 (Revised 1996) from including a cash flow statement in the financial statements on the grounds that the company 1s wholly owned and is parent publishes a consolidated cash flow statement Tumover ‘Tumover represents income receivable from football and related commercial actites, exclusive of VAT Gate receipts and other match day revenue 1s recognised as the games are played Revenue denved from season tickets 1s credited to income in the penod to which it relates Amounts recewed in advance are credited to deferred income in the balance sheet Sponsorship, advertising and similar commercial income 1s recognised over the durabon of the respective contracts ‘Amounts received in advance are credited to deferred income in the balance sheet The fixed element of broadcasting revenues 16 recognised over the duration of the football season whist fees received for ive coverage or highlights are taken when earned Intangible fixed assets - Player Registrations : ‘in kne with FRS 10 Goodwnll and Intangible Assets, the costs associated wilh the acquisition of players’ registrations are Capttalised as intangible fixed assets and amortised, m equal annual instalments, over the penod of the respective player's contract The transfer fee levy refund received during the year is credited against additons to intangible ‘assets Players’ regstrations are whiten down for impairment when the carrying amount exceeds the amount recoverable through use or sale Intangible fixed asseis - Goodwill Goodwill is being amortised in equal instalments over 50 years based on the longemty of the club and the strength of the Brand Intangible fixed assets - Trademarks Trademarks are being amortised in equal mstalments over 10 years, Tangible fixed assets Depreciation is calculated to wnte off the cost of tangible fixed assets, less their estimated residual values, on a straight line basis over the expected useful economic ife of the asset concemed, as follows ‘Assets under the course of construction and 0-22 years Teasehold land and burldings Fixtures and ftings 1-10 years. Alterations and improvements 2-10 years 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 in the penod in which the payment is made, except in the circumstances of a player disposal In that case, any remaining signing-on fees due are allocated in full against profit on disposal of players’ registrations in the year n wich the player disposal s made Stocks ‘Stocks, which compnse goods held for re-sale, are stated atthe lower of cost and net realisable value Leases Assets held under fnance leases and hire purchase contracts are capitalised at thes fair value on the inception of the lease and depreciated over their estimated useful lfe Finance charges are allocated evenly over the period of the lease (Operating lease rentals are charged to profit and loss in equal amounts over the term of the leaseLEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS Deferred taxation Deferred tax 1s provided in full on timing differences which result in an obligation at the balance sheet date to pay more lax, oF a nght to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law Timing differences anse from the mcluston of tems of income and expenditure in tax computations in Penods different from those in which they are included in financial statements Deferred tax 1s not provided on timing differences ansing from the revaluation of fixed assets where there 1s no commitment to sell the asset, or on unremnited ‘earnings of subsidianes and associates where there is no commitment to remit these earnings Deferred tax assets are recognised to the extent that itis regarded as more likely than not that they wil be recovered Deferred tax assets and habiites are not discounted Pension costs For defined contnbution schemes the pension cost charged in the year represents contnbutions payable by the group to vanous pension schemes For defined benefit schemes the expected cost of providing pensions, as calculated periodically by professionally qualified actuanes, 1s 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 1s a substantially level percentage of current and ‘expected future pensionable payroll 2 Tumover Yesr ended ‘Yea ences sosune2010—-30June 2009, £000 000 Gale receipts 44,732 8,966 Telewsion and broadcasting income 802 169 (Merchandising income 5,509 4918 Central distnbutions 787 492 Other commercal revenue 8646 8,990 27,446 23,835 ‘Alltumover relates to the principal actly of operating a professional football club and anses from continuing activities within the UK 3 Operating loss Year ended Year ended 30one 2010 20.8 2000 Operating as stated ater cnarang ‘2000 2000 “Amortisation Amortisation of player regsstration costs. 990 1,295 Amortsation of goodwill 115 114 ‘Amortisaton of trademarks - : Depreciation of tangible fixed assets Owned assets 663 549 Assets held under finance leases n 46 ‘Auditors’ remuneration Audit a3 35 Other, provided by an associate of Baker Tily UK Audit LLP 9 2 Operating lease charges Land and buildings 1,756 4732 Plant and machinery 16 32 Motor vehicles 107 107 10LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS 4 Other interest recewable and similar income 0 June 2010 30.4 2008 £000 ‘2000 Bank interest 3 19 3 2 5 Interest payable and similar charges. ‘Year ences Year ences ouune 2010 20.4ne 2000 £000 £000 Bank interest 1 a ‘Other toans 76 92 Finance leases and hure purchase contracts, 12 28 39 18 6 Employees “The average monthly number of persons (including executwve directors) employed by the company durng the year was Yess ended Year ented aodune 2010 20 June 2000 No No Fulrime playing staff 32 25 Apprentices. 13 14 Football team management 2 2 Managementadmunistration 126 138 184 189) {in addition to the above employees, on match days the group employs approximately 710 (2009 670) casual part-time ‘employees: Employee costs (including drrectors' emoluments) mcurred dung the year were ‘Year erges ‘Year enced soyune 2010 30.jypa 2000 £009, 000 ‘Wages and salanes 12,433, 71,103, ‘Social secunty costs 4,193 1.086 Other pension costs, 95, 2 13,724 12,284 Directors’ emoluments in the year were £174,087 (2009 £150,000) and benefits paid to directors were £11,986 (2009 £13,170) KW Bates did not receve any emoluments or benefits dunng the year Pension payments of £16,600 (2000 £14,000) were made on behalf of the directors One director accrued retirement benefits under a money purchase ‘scheme MWLEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS 7 Taxation on profit on ordinary actvites Year ended Year onde s0sune2010 30 Juno 2008 ‘£000 ‘£000. Current period tax UK Corporation tax charge for the year Deferred Taxation Ongmnation and reversal of tming differences The company has trade losses of approxmately £48 millon cared forward for use against future trading profits The tosses have been transferred vath the trade from another company upon the acquisition Corporation tax has been charged at the standard rate of 28% Yesr ended Yeas ences so.me20to 90 June 2000, 000 c00 Profit on ordinary activities before tax 2,072 15 ‘Tax on profit on ordinary actwites at standard rate of 28% 580 4 Capital allowances in excess of depreciation : Depreciation in excess of capital allowances 8 1 Adjustments arsing on acquisition . Ineligible depreciation 120 112 ‘Other short term timing differences @3) Expenses not deductible for corporation tax purposes. et 23 Tax losses utitsed (769) a Total actual amount of current tax = . 8 Intangible fixed assets ‘Tademarts Payerregstatens Goods Tal ‘£000 £000 £000. £000, Cost ‘Att July 2009 : 3,688 5,733 eat Additions 10 736 250 1,046 Disposals : (1.224) : (1,224) ‘At30 June 2010 10 3,260 5,983 9,243 ‘Amortisation ‘Att July 2008 - 1,923 224 2.144 ‘Charge for the penod : 990 415 4,108 Impairment : : - 2 Disposals : (1,091) : (1,081) ‘At30 June 2010 = 1822 336 2158 Net book value At30 June 2010 10 1,428 5647 7,085 ‘At 30 June 2009, 1.785 5512 7207 12LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS, 9 Tangible fixed assets Assets una tne course Aerators ane Fone foonstucton improvements and eng Tost ‘and eases land and bulaings £000 000 000 e000 Cost or valuation ‘Att July 2009 762 3,104 814 4870 Additions 19 93 azz 1,499 Disposals : (46) 2 (48) ‘At30 June 2010 1874 3151 7,289 ett Depreciation ‘ALt July 2008 38 625 325 984 ‘Charge for the penod 2 389 343 734 Disposals ®, : @ ‘At30 June 2010 36 1,006 668 1710 Net book value At30 June 2010 1,635 2.145, eat 441 ‘At 30 June 2009, 718 2.478 489) 3,686 Included in the total net book value of fitures and fittngs are the following amounts in respect of assets held under finance leases and he purchase contracts. Fania and 2 aa eS 000 Cost a5 Accumulated depreciation (163) ‘E30 June 2010 766 "ALO June 2008, 730 ‘The depreciation charge in respect of these assets was £71,236 (2009 £46,000) 40 Stock 30 June 2010 30 4yne 2008 2000 000 ‘Goods held for resale 716 353 11 Debtors 30 tune 2010 30 June 2009 £000 000. Trade debtors 757 764 Transfer fee debtors 25 7 ‘Amounts due from group undertaking 441 - Other debtors 1,308 582 Prepayments and accrued income 1,391 1,906 Total 4,010 2,669 Debtors due after more than one year Bonds 20 931 Transfer fee debtor 13 : 33 934 2BLEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS. 42 Creditors amounts falling due within one year 30 4on0 2010 30 yuna 2008 £000 £000 ‘Obligations under finance leases 42 1 ‘Trade creditors 1,539 2,865 Other taxation and social security costs 1,585 248 ‘Transfer fee creditors 202 2a Other creditors 23 163, Amount due to group undertakings : 292 3,599) 418 Accnrals and deferred income 8,032 6,084 71,631 10,202 ‘Of the £8 032m accruals and deferred income £6 848m represents prepayment of tickets and sponsorship that would ‘only become a labilty of the company should it filo fulfil all of ts fitures for the 2010/11 season 13 Creditors amounts falling due after more than one year 30 supe 2010 30 June 2009 £000 £000. ‘Obigations under finance leases at Transfer fee credtors a1 24 Pension (Note 17) 172 209 Accruals and deferred income 800 : 1144 233 Borrowings are repayable as follows 30.June 2010 20 June 2000 ‘2000 ‘£000 Finance leases Witun one year 42 " ‘Between one and two years 2 - Between two and five years 39 : 723 n Total borrowings: ‘Within one year 42 " Between one and two years 42 : Btwoon two and five years Ey : 123 a ‘Obligations under finance leases at 30 June 2010 were secured on the related assets 14 Provisions for liabilities and charges Deferred tax ‘The company has not recognised a deferred tax asset on the losses as the availabilty of surtable profits against which these may be utlised cannot be predicted wih sufficient certamty The net deferred tax asset unprovided 1s £129 ‘milion (2009 £13 6 milion) at the standard rate of corporation tax of 28% 14LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS 15 Called up share capital 10 208 £000 000 ‘Authorised 500,000 ordinary shares of £1 each 500 500 Allotted, called up and fully paid {500,000 ordinary shares of £1 each 500 500 16 Reconciliation of movement in shareholders’ funds, sare Prot and Shareoldes™ ‘capial lees account nde 000 £000 000 ‘Att July 2008 ‘500 4568 5,068 Profit for the year : 2072 2072 ‘At30 June 2010 600 640 7,440 417 Pensions Creditor Defined contribution schemes Certain professional footbaling staff of the group are members of the Football League Limited Players Retirement Income Scheme, a non-contnbutory defined contnbution scheme In addition the company operates a defined Ccontnbution scheme open to all other employees The costs of all defined contnbution schemes are charged to the profit and loss account in the year in which they accrue Defined benefit scheme Certain professional footballing staff are members of the Football League Limited Pension and Life Assurance Scheme CFLLPLAS’), a defined beneftt scheme Under FRS 17 Retement Benefits, the FLLPLAS would be treated as a defined benefit mult-employer scheme The assets of the scheme are held separately from those of the company, beng invested with insurance companies Following a review of the Minimum Funding Requirement (‘MFR’) of the FLLPLAS, accrual of benefits of the final salary ‘section of the scheme was suspended as at 31 August 1999_In the 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 substanbal defict was identified Under the Pensions Act 1985 particpating employers wall be required fo contribute to the deficiency The latest actuanal valuabon of the scheme was carried out as at 31 August 2008 The allocation of the deficit under this valuation notified to Leeds United AFC Limited and repayable by Leeds United Football Club Limited 1s fully provided for in the accounts and ts being repaid at £3,087 per month 18 Operating lease commitments ‘At 30 June 2010 the company was committed to making the following payments dunng the next year in respect of operating leases Plant & equipment Other premises Motor votes 2010 2009 2010 2008 2010 72009 Lease expires £000 £7000 £000 000 £000 £000 ‘Within one year = 26 = 7 e ce ‘Within one to two years : : : 119 : ‘Within two to five years, - : : 4 - 109 After five years - : 1,835 4,729 : : 7 26 4,835 4,729, 119 108) 15| | | | LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS 18 Capital commitments ‘A130 June 2010 the company had captai commitments totaling £1,758,816 (2009 £94,200) 20 Contingent habiltes In the event of the club becoming a member of the FA Premier League before the 2017/18 Season then a liability of ££4,750,000 (2009 £5,000,000) wil become payable to the liquidator of Leeds United Association Football Club Limited (he) under the provisions of the sale agreement entered into on the 4" May 2007 ‘On 9" Apni 2010 a Settlement Agreement with the liquidator resulted in @ payment of £250,000 being made to the liquidator This amount, which has been capitalised wthin goodwill (note 8) as an additional cost of acquiston, reduced the contingent kabiity referred to above Under the terms of the financial provisions relating to transfer of players registrations then future payments of up to £1,500,000 (2009 £2,000,000) may be payable dependant on the clubs promotion to the FA Premier League andi or players appearances forthe club 21 Ulumate controlling party The directors consider that the ultemate controling party 1s FSF Limited, a company registered in Nevis Leeds City Holdings Limited is the immediate parent, and 1s the smallest and largest group for which consolidated accounts including Leeds United Football Club Limited are prepared 22 Related party transactions Costs for egal sermces of £279,316 (2009 £129,671) were incurred by Leeds United Football Club Limited with Mark Taylor & Company, controled by R M Taylor, a rector of Leeds United Football Club Limited ‘The company has taken advantage of the exemption from disclosing transactions with entities with the Leeds City Holdings Limited group of companies on the grounds that the consolidated accounts of that group are publicly available from Companies House, Crown Way, Maindy, Cardiff 16