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Company registration no.

06233875

LEEDS UNITED FOOTBALL CLUB LIMITED

Report and Financial Statements

Year ended 30 June 2010

A51

06/05/2011 COMPANIES HOUSE

62

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 2 3 5 6 7 8 9

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LEEDS UNITED FOOTBALL CLUB LIMITED

REPORT AND FINANCIAL STATEMENTS 2010

OFFICERS AND PROFESSIONAL ADVISERS

Directors K W Bates S A Harvey Y SAlien

P Lonmer

Secretary S A Harvey

Registered office Eiland Road Leeds

West Yorkshire LS11 OES

Bankers

Bank of Ireland 15-16 Park Row Leeds

LS15HD

Sohcltors McCormlcks soucuorc 37 East Parade Harrogate

HG15LQ

Walker Morns Kings Court 12 Kmg Street Leeds LS12HL

Auditors

Baker Tilly UK Audit LLP Registered Auditor Chartered Accountants 2 Whitehall Quay

Leeds

LS14HG

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DIRECTORS' REPORT

LEEDS UNITED FOOTBALL CLUB LIMITED

The drrectcrs present their report and the audited financral statements for the year ended 30 June 2010

Prmclpal actrvrties

The pnncipal actrvrties of the company durrng the year were that of a professional football club and the provider of conferencmq and banquetmq facnmes

Review of business activities

The current playIng squad IS valued at £6,667,142 This IS based on the average opmions of seven members of senior football management as at 1 September 2010 of the players reqistered WIth the club at this date This compares With the net book value In the balance sheet of £1 ,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 Eiland Road In front of 38,234 fans \ reached the objective of the Board on the field The club also benefited from 4 memorable cup ties against FAPl Opposition liverpool, Tottenham Hotspur and Manchester Unrted The win at Old Trafford In the 3rd Round of the FA Cup Will live long In the memory of everyone connected With tile club

The Board Will continue their strateqic Investment In the playing squad whether that be by way of transfer fee or Increased salary payments to Bosman type slgmngs to supplement the existrnq squad of players Investment In the club's academy Will continue against a full review of Its operation to ensure that best value IS achieved

Work IS now complete on the £2 am Centenary Pavilion whtcn Will further enhance the club's abthty to generate Income on non-matchdays to create a diverse and non result dependant turnover General Improvements were also undertaken around the Eiland Road stadium for the benefit of both fans and corporate trcket holders Off the field the pnonty remains the rrnplementatron of the planmng approval received for the East Stand Development which Includes a 340 bed hotel, new club superstore and office along WIth an arcade WIth retail consent

The Board are strll relyIng on the 2009 valuation undertaken hy KIng Sturge whereby the stadium was valued at £49 am and the development land to the East of the stadium was £!) 72m, a total of £54 12m The freehold can currently be purchased from landlord, Teak Commercial Limited, for £14 49m

The faiture of England's bid to host the 2018 World Cup was a major drsappomtrnent but the club remains committed to the Improvement of the facitmes at Eiland Road

Results and diVidends

The profit for the year after taxation was £2,072,000 (7009 £15,000) for the company The directors do not

recommend the payment of a drvidend

Directors

Directors serving the company dunng the year and since the year end were as follows KW8ates

S A Harvey

R M Taylor (ReSigned 13th May 2010) Y S Allen (Appomted 13th May 2010) P Lorimer (Appomted 13th May 2010)

Financial Instruments

The company ensures that cash flows are closely monitored on a daJly baSIS Financial rrsks are kept to a minimum wherever possible The company's financial Instruments comprrse borrowmqs, cash and lrquid resources, finance leases and vanous other Items such as trade debtors and trade creditors that anse directly from Its operations The company does not engage In trades of a 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 perfonnance indicators

The performance of the team IS rnorutored by publicly available League POSition tables In addition to thrs, the commercral operations of the business are monitored against detailed budgets and benchrnarkmq exercises are undertaken to assess the company's performance Within tha sector The £3 911m nse In turnover from £23535m to £27446m represents an Increase of 166% and club maintained ItS POSition as havmq achieved the highest home attendance In league One

Employee Involvement

The company's employment pohcres are desiqned to attract, retain and motivate the best people The company Involves employees at all levels of the organisation through a broad base of regular cornrnurucanon meetings and bnefing sessions to understand current performance and communicate future developments

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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 opportunity IS made to ensure their employment with the company continues and that appropnate trammq 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

Auditors

Baker Tilly UK Audit LLP, Chartered Accountants, are deemed to be re-appornted under Section 487(2) of the Compames Act 2006

Statement as to disclosure of mfonnatlon to auditors

The dtrectors who were In office on the date of approval of these financial statements have confirmed, as far as they are aware, that there IS no relevant audit mformanon 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 mtormauon and to establish that It has been commumcated to the auditor _

Approved by the board of directors and siqned on behalf of the board

SA Harvey Director

28th February 2011

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LEEDS UNITED FOOTBALL CLUB LIMITED

DIRECTORS' RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS

The directors are responsible for prepanng the Directors' Report and the financial statements In accordance with apphcable 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 Umted 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 that penod

In prepanng those financial statements, the directors are required to

a select suitable accounting pohcies and then apply them consistently,

b make Judgments and accounting estimates that are reasonable and prudent,

C prepare the financial statements on the gOing concem baSIS unless It IS mappropnate to presume that the company Will continue In business

The directors are responsible for keepmg proper accounting records that are sufficient to show and explain the company's transactions and disclose With reasonable 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 I rregu la nnes

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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 to 16 The finanoal reporting framework that has been apphed In their preparation IS apphcable 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, In accordance with Chapter 3 of Part 16 of the Companres Act 2006 Our audit work has been undertaken so that we might state to the company's members 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 responsibihty to anyone other than the company and the company's members as a body, for our audit work, for thts report, or for the opnuons we have formed

Respective responeibrhtres of directors and auditors

As more fully explained In the Directors' Responsibnmes Statement set out on page 5, 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 the financial statements In accordance With applicable law and International Standards on Audttmq- (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

A descnption of the scope of an audit of financial statements IS provided on the APB's website at www frc org ukJapb/scope/UKNP

Opinion on the 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 2010 and of ItS profit for the year then ended,

• have been properly prepared In accordance With uruted Kingdom Generally Accepted Accounting Practice, and

• have been prepared In accordance With the requirements of the Comparues Act 2006

Optruon on other matter prescribed by the Companies Act 2006

In our Opinion the Information given In the 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 Ad 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 speofied by law are not made, or

• we have not received all the Information and explanations we require for our audrt

Anthony Elston (Semor Statutory Auditor)

For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor Chartered Accountants

2 Whitehall Quay

Leeds

LS14HG

28th February 2011

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LEEDS UNITED FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
PROFIT AND LOSS ACCOUNT
Year ended 30 June 2010
OperatJons
excluding Player Year ended Year ended
player trading trading 30 June 2010 30 June 2009
Note £000 £'000 £'000 £'000
Turnover 2 27,446 27,446 23,535
Cost of sales (5,563) (5,563) (4,930)
Gross profit 21,883 21,883 18,605
Administrative expenses (22,553) (990) (23,543) (21,402)
Operating loss 3 (670) (990) (1,660) (2,797)
Profit on player trading 3,818 3,818 2,911
Profit on ordinary actrvrtres before interest (670) 2,828 2,158 114
Other Interest receivable and Similar mcorne 4 3 3 19
Interest payable and Similar charges 5 (89) (89) (118)
Profit on ordinary acnvrnes before taxation (756) 2,828 2,072 15
Taxation on profit on ordinary activmes 7
Profit for the financial year 16 (756) 2,828 2,072 15 The results for the year relate to continumq operauons

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

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LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

BALANCE SHEET 30 June 2010

Company registration no 06233875

Year ended Year ended
30 June 30 June
2010 2009
Note £'000 £'000
Fixed assets
Intangible assets 8 7,085 7,277
Tangible assets 9 4,401 3,686
11,486 10,963 Current assets
Stock 10 716 553
Debtors 11 4,010 2,669
Debtors due after more than one year 11 33 931
Cash at bank and In hand 3,670 387
8,429 4,540
Creditors amounts falling due within one year 12 (11,631) (10,202)
Net current liabilities (3,202) (5,662)
Total assets less current liabilities 8,284 5,301
Creditors amounts falling due after more than one year 13 (1,144) (233)
Net assets 7,140 5,068
Capital and reserves
Called up share capital 15 500 500
Profit and loss account 16 6,640 4,568
-
Equity shareholders' funds 16 7,140 5,068 The finanCial statements on pages 7 to 16 were approved by the board of directors and authonsed for Issue on 28th February 2011 and are signed on ItS behalf by

S A Harvey Director

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LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

1 Principal accounting pohcres

The financial statements are prepared In accordance with applicable United Kingdom accounting standards The pnncrpal accounting pohcres adopted by the directors are set out below'

Basrs of preparation

At 30 June 2010 the company had net current liabilities of £3,202,000 Detailed forecasts have been prepared, Indicating that the company Will have sufficient resources to meet debts as they fall due durrng the next 12 months As a result, the directors consider that It IS appropnate to prepare the accounts on the gOing concern basis

Basts of accountmg

The financial statements are prepared m accordance with the historical cost convention

Cash flow statement

The directors have taken advantage of the exemptron In Fmancial Reporting Standard No 1 (Revised 1996) from rncludmq a cash flow statement In the financial statements on the grounds that the company IS wholly owned and ItS parent publishes a consolidated cash flow statement

Turnover

Turnover represents Income receivable from football and related commercial acnvities, exclusive of VAT

Gate receipts and other match day revenue IS recognised as the games are played

Revenue derived from season tickets IS credited to Income In the penod to which It relates Amounts received In advance are credited to deferred Income In the balance sheet

Sponsorship, advartrsmq and sirrular commercial Income IS recognised over the duration of the respective contracts Amounts received In advance are credited to deferred Income In the balance sheet

The fixed element of broadcasting revenues IS recognised over the duration of the football season whilst fees received for live coverage or hlqhhghts are taken when earned

Intangible fixed assets - Player Registrations _

In line With FRS 10 GoodWill and Intangible Assets, the costs associated With the acquismon of players' registrations are capitalised as intangible fixed assets and amorhsed, In equal annual Instalments, over the penod of the respective player's contract The transfer fee levy refund received dunng the year IS credited against additions to mt;lnglble assets Players' registrations are wntten down for Impairment when the carrying amount exceeds the amount recoverable through use or sale

Intangible fixed asseta- GoodWill

Goodwill IS being amortised In equal Instalments over 50 years based on the longeVity of the club and the strPllgth of the Brand

Intangible fixed assets " Trademarks

Trademarks are being amortised In equal Instalments 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 econorruc life of the asset concerned, as follows

Assets under the course of construction and leasehold land and bUildings

Fixtures and fittings

Alterations and Improvements

0" 22 years

1 " 10 years 2 - 10 years

SIgnmg-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 In which the player disposal IS made

Stocks

Stocks, which compnse goods held for re-sale, are stated at the lower of cost and net realisable value

Leases

Assets held under finance leases and hire purchase contracts are capitalised at their fair value on the inception of the lease and deprecated over their estimated useful life Fmance charges are allocated evenly over the penod of the lease

Operatmg lease rentals are charged to profit and loss In equal amounts over the term of the lease

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LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

Deferred taxation

Deferred tax IS provided In full on timing differences which result In an obliqanon at the balance sheet date to pay more tax, or 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 mclusion of Items of Income and expenditure In tax computations In penods different from those In which they are Included In financial statements Deferred tax IS not provided on turunq differences arising from the revaluation of fixed assets where there IS no commitment to sell the asset, or on unremitted earmngs of subsidianes and associates where there IS no commitment to remit these earnings Deferred tax assets are recogmsed 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

Pension costs

For defined contnbutron schemes the pension cost charged In the year represents contributions payable by the group to vanous pension schemes For defined benefit schemes the expected cost of providmq pensions, as calculated periodically by professionally qualJfied actuanes, 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

2 Turnover
Year ended Year ended
30 June 2010 30 June 2009
£'000 £000
Gate receipts 11,732 8,966
Televisron and broadcasting Income 802 169
MerchandiSing Income 5,509 4,918
Central drstnbutions 757 492
Other commercial revenue 8,646 8,990
27,446 23,535 All turnover relates to the prmcipal activity of operating a professional football club and arises from contmumq activities Within the UK

Operating loss IS stated after chargmg

Year ended 3D June 201 0 £'000

Year ended 30 June 2009 £'000

3 Operating loss

Amortisation

Amortisation of player registration costs Amortisation of goodWill

Amortisation of trademarks

DepreCiation of tangible fixed assets Owned assets

Assets held under finance leases Auditors' remuneration

Audit

Other, provided by an associate of Baker Tilly UK Audit LLP

Operating lease charges Land and buildmqs Plant and machinery Motor vehicles

990 115

1,295 114

663 549
71 46
43 35
9 2
1,756 1,732
16 32
107 107 10

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

4 Other interest receivable and similar Income

Year ended Year ended
30 June 2010 30 June 2009
£'000 £'000
Bank Interest 3 19
3 19 5 Interest payable and similar charges

Year ended 30 June 2010 £'000

Year ended 30 June 2009 £'000

Bank Interest Other loans

Finance leases and hire purchase contracts

1 76 12

92 26

89

118

6 Employees

The average monthly number of persons (Including executive directors) employed by the company dunnq the year was

Year ended Year ended
30 June 2010 30 June 2009
No No
Full-time plaYing staff 32 25
Apprentices 13 14
Football team management 13 12
ManagemenUadmlnlstratlon 126 138
184 189 In addrtron to the above employees, on match days the group employs approximately 710 (2009 570) casual part-time employees

Employee costs (including directors' emoluments) Incurred dunng the year were

Year ended Year ended
30 June 2010 30 June 2009
£'000 £'000
Wages and salanes 12,433 11,103
Social secunty costs 1,193 1,086
Other pension costs 95 92
13,721 12,281 Directors' emoluments In the year were £174,087 (2009 £150,000) and benefits paid to directors were £11,986 (2009 £13,170) K W Bates did not receive any emoluments or benefits dunng the year Pension payments of £16,600 (2009 £14,000) were made on behalf of the directors One director accrued retirement benefits under a money purchase scheme

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LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

7 Taxation on profit on ordinary activities

Year ended 30 June 2010 £'000

Year ended 30 June 2009 £'000

Current penod tax

UK Corporation tax charge for the year

Deferred Taxation

Origination and reversal of timing differences

The company has trade losses of approximately £48 million earned forward for use against future trading profits The losses have been transferred With the trade from another company upon the acquismon Corporauon tax has been charged at the standard rate of 28%

Profit on ordmary activities before tax

Year ended 30 June 2010 £'000

2,072

Year ended 30 June 20()9 £'000

15

Tax on profit on ordinary activities at standard rate of 28% Capital allowances In excess of depreciation

Deprectatton In excess of capital allowances

Adjustments arising on acquismon

Ineligible depreciation

Other short term timing differences

Expenses not deductible for corporation tax purposes Tax losses utilised

580

4

8

120

112 (23) 23 (117)

61 (769)

Total actual amount of current tax

8 Intangible fixed assets
Trademarks Player reglstrattons GoodWIll Total
£'000 £'000 £'000 £'000
Cost
At 1 July 2009 3,688 5,733 9,421
Additrons 10 786 250 1,046
Disposals (1,224) (1,224)
At 30 June 2010 10 3,250 5,983 9,243
Amortisation
At 1 July 2009 1,923 221 2,144
Charge for the penod 990 115 1,105
Impairment
Disposals (1,091 ) (1,091)
At 30 June 2010 1,822 336 2,158
Net book value
At 30 June 2010 10 1,428 5,641 7,085
At 30 June 2009 1,765 5,512 7,277 12

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

9 Tangible fixed assets
Assets under the course Alterations and Fixtures
of construcnon Improvements and fitlings Total
and leasehold land and
bUildings
£000 £'000 £'000 £'000
Cost or valuabon
At 1 July 2009 752 3,104 814 4,670
Additions 919 93 477 1,489
Disposals (46) (2) (48)
At 30 June 2010 1,671 3,151 1,289 6,111
Depreci all on
At 1 July 2009 34 625 325 984
Charge for the penod 2 389 343 734
Disposals (8) (8)
At 30 June 2010 36 1,006 668 1,710
Net book value
At 30 June 2010 1,635 2,145 621 4,401
At 30 June 2009 718 2,479 489 3,686 Included In the total net book value of fixtures and fittings are the following amounts In respect of assets held under finance leases and hire purchase contracts

Fixtures and fittings £'000

Cost

Accumulated deprecianon

329 (163)

At 30 June 2010

166

At 30 June 2009

130

The deprecration charge In respect of these assets was £71,236 (2009 £46,000)

10 Stock

30 June 2010 £'000

30 June 2009 £'000

Goods held for resale

716

553

11 Debtors
30 June 2010 30 June 2009
£'000 £'000
Trade debtors 757 764
Transfer fee debtors 25 17
Amounts due from group undertaking 441
Other debtors 1,396 582
Prepayments and accrued Income 1,391 1,306
Total 4,010 2,669
Debtors due after more than one year
Bonds 20 931
Transfer fee debtor 13
33 931
13 LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

12 Creditors amounts falling due within one year

30 June 2010 30 June 2009
£'000 £'000
Obligations under finance leases 42 11
Trade creditors 1,539 2,565
Other taxation and social secunty costs 1,585 846
Transfer fee creditors 202 241
Other creditors 231 163
Amount due to group undertakings 292
3,599 4,118
Accruals and deferred Income 8,032 6,084
11,631 10,202 Of the £8 032m accruals and deferred Income £6 848m represents prepayment of tickets and sponsorship that would only become a liability of the company should It fall to fulfil all of Its fixtures for the 2010/11 season

13 Creditors amounts failing due after more than one year

30 June 2010 30 June 2009
£'000 £'000
Obligations under finance leases 81
Transfer fee creditors 91 24
Pension (Note 17) 172 209
Accruals and deferred Income 800
1,144 233 Borrowmqs are repayable as follows

30 June 2010 £'000

30 June 2009 £'000

Finance leases Within one year

Between one and two years Between two and five years

42 42 39

11

123

11

Total borrowmqs Within one year

Between one and two years Between two and five years

42 42 39

11

123

11

Obligations under finance leases at 30 June 2010 were secured on the related assets

14 Provrsrons for liabilities and charges

Deferred tax

The company has not recognised a deferred tax asset on the losses as the availability of suitable profits against which these may be utilised cannot be predicted with sufficient certainty The net deferred tax asset unprovided IS £129 million (2009 £136 million) at the standard rate of corporation tax of 28%

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LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

15 Called up share capital
2010 2009
£'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
Share Profit and Shareholders'
Capital loss account funds
£'000 £'000 £000
At 1 July 2009 500 4,568 5,068
Profit for the year 2,072 2,072
At 30 June 2010 500 6,640 7,140 17 Pensions Creditor

Defined contribution schemes

Certain professional footbalhng staff of the group are members of the Football League Limited Players Retirement Income Scheme, a non-contnbutory defined contribution scheme In addition the company operates a defined contnbunon scheme open to all other employees The costs of all defined contribution schemes are charged to the profit and loss account In the year In which they accrue

Defined benefit scheme

Certarn professional footbalhng staff are members of the Football League limited Pension and Life Assurance Scheme ("FLLPLASft), a defined benefit scheme Under FRS 17 Retrrement 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 WIth Insurance companres

FolloWIng a review of the Mlnrmum Funding Requirement ("MFR") of the FLLPLAS, accrual of benefits of the final salary secticn of the scheme was suspended as at 31 August 1999 In the light of the exceptional circumstances affecttng the scheme, the trustees of the scheme cornrmssioned an Independent actuary's report on the MFR positron and a substantial deficrt was Identified Under the Pensions Act 1985 participating employers WIll be required to contrrbute to the deficiency The latest actuarral valuation of the scheme was eamed out as at 31 August 2008 The allocation of the deficrt under this valuation nonfied to Leeds Uruted AFC Limited and repayable by Leeds Unrted Football Club Lirmted IS fully provided for In the accounts and IS being repaid at £3,087 per month

18 Operating lease commitments

At 30 June 2010 the company was committed to making the followmq payments dunnq the next year In respect of operating leases

Plant & equipment Other premises Motor vehicles
2010 2009 2010 2009 2010 2009
Lease expires £'000 £'000 £'000 £'000 £'000 £'000
WIthIn one year 26
Wlthm one to two years 119
WithIn two to five years 109
After five years 1,835 1,729
26 1,835 1,729 119 109 15

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

19 Capital commitments

At 30 June 2010 the company had capital commitments totalling £1,758,816 (2009 £94,200)

20 Contmgent habumes

In the event of the club becoming a member of the FA Premier League before the 2017/18 Season then a lrabrlrty of £4,750,000 (2009 £5,000,000) wlil become payable to the hquidator of Leeds United Associatron Football Club limited (the) under the provrsions of the sale agreement entered into on the 4th May 2007

On 9th Apnl 2010 a Settlement Agreement with the hquidator resulted In a payment of £250,000 being made to the liquidator This amount, which has been capitalised within goodwill (note 8) as an additional cost of acqursmon, reduced the contingent liability 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 andl or players appearances for the club

21 Ulbmate controllmg party

The directors consider that the ultimate controlling party IS FSF Limited, a company registered In NeVIS

Leeds City Holdings Limited IS the Immediate parent, and IS the smallest and largest group for which consolidated accounts including Leeds United Football Club LImited are prepared

22 Related party transactions

Costs for legal services of £279,316 (2009 £129,571) were Incurred by Leeds United Football Club limited with Mark Taylor & Company, controlled by R M Taylor, a director of Leeds Umted Football Club Limited

The company has taken advantage of the exemption from disclosmq transactions with entmes within the Leeds City Holdmgs Limited group of compames on the grounds that the consohdated accounts of that group are publicly available from Companies House, Crown Way, Mamdy, Cardiff

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