You are on page 1of 17

Company registration no.

06233875

LEEDS UNITED FOOTBALL CLUB LIMITED

Report and Financial Statements Year ended 30 June 2011

A39

30103f2012
COMPANIES HOUSE

#31

LEEDS UNITED FOOTBALL REPORT AND FINANCIAL CONTENTS

CLUB LIMITED STATEMENTS 2011

Page
Officers and professional advisers Directors' report Statement of directors' responsibilities Auditor's report Profit and loss account Balance sheet Notes to the financial statements 2
3-4

5 6 7
8

9~16

1

LEEDS UNITED FOOTBALL CLUB LIMITED REPORT AND FINANCIAL STATEMENTS OFFICERS AND PROFESSIONAL
Directors
KW Bates SA Harvey Y SAllen P P Lonmer

2011

ADVISERS

Secretary
S

A Harvey

Registered office
Eiland Road Leeds West Yorkshire LS110ES

Bankers
Bank of Ireland 15-16 Park Row Leeds LS15HD

Solicitors
McCormlcks Sohcitors 37 East Parade Harrogate HG15LQ Walker Moms Kings Court 12Kmg Street Leeds LS12HL

Auditors
Baker Tilly UK-Audit LLP Registered Auditor Chartered Accountants 2 Whitehall Quay Leeds LS14HG

2

LEEDS UNITED FOOTBALL CLUB LIMITED DIRECTORS' REPORT
statements for the year ended 30 June 2011

The directors present their report and the audited financial Pnnctpal actrvmes The pnncipal activities of the company conferencmg and banqueting facilities

dunng the year were that of a professional

football

club and the provider

of

Review of business actlvmes The current playmq squad IS valued at £12,153,571 This IS based on the average opmtons of seven members of senior football management as at 1 September 2011 of the players registered with the club at this date This compares With the net book value In the balance sheet of £1 ,523,000 as at 30 June 2011 Future Developments The 2010/11 season saw the club return to the Championship after 3 seasons In League One Thrs first season was something of a step back Into the unknown after our penod of absence dunng which we waited to see how those players that had helped the club gain promotion faired at this higher level It IS of great credit to those players that we ended up disappomted, In flrushmq 7th In the table haVing occupied one of the play-off positions for the majonty of the season A FA Cup 3rd round tie at the Emirates Stadium and subsequent replay against Arsenal gave the club International profile agam while reminding our fans of the pnze that IS available for promotion IS to meet such clubs on a regular baSIS The target remains to achieve promotion to the Premier League at the earliest opporturnty As a result of the adoption of the Ehte Professional Performance Plan (EPPP) then the club IS reviewing structure to ensure we are best placed to benefit from ItS provisions Off the field, turnover relating to non football acnvmes continues our busmess our Academy

to Increase, which IS a key measure for the strength of

The East Stand development IS now progressing The 1st phase Includes the provision new or Improved lounges, museum and central access, neanng completion

of 24 new executive

boxes, 5

The opportumty stili exrsts to purchase Eiland Road from the current owner for £14 85m The 2009 valuation that with the East Stand planning consent the stadium and surrounding land was valued at £54 72m Results and dlvidands The profit for the year after taxation recommend the payment of a dividend

revealed

was £3,504,000

(2010

£2,072,000)

for the company

The directors

do not

Directors Directors serving the company dunng the year and Since the year end were as follows KW Bates SA Harvey Y SAllen P P LOrimer FinanCial instruments, RIsks and Uncertainties The company ensures that cash flows are closely-monitored on a dally baSIS Fmancial nsks are kept to a minimum wherever possible The company's finanoal Instruments compnse borrowmgs, cash and hquid 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 financral requirements on an annual baSIS Key perfonnance indicators The performance of the team IS monitored by pubhcly available League position tables In addition to trus, the commercial operations of the business are rnorutored agamst detailed budgets and benchmarkmg exercises are undertaken to assess the company's performance Within the sector The £5 232m nse In turnover from £27 446m to £32678m represents an mcrease of 1906% This was largely due to the promotion from League One to the Championship The club achieved the highest home attendance In the Championship Employee involvement _ The company's employment pohcies are deSigned to attract, retam and motivate the best people Involves employees at all levels of the organisation through a broad base of regular communication bneting sessions to understand current performance and communicate future developments

The company meetings and

3

----------------

LEEDS UNITED FOOTBALL DIRECTORS'

CLUB LIMITED

REPORT (Cont...)

Disabled employees Applications for employment by disabled persons are always fully considered In the event of members of staff becommg disabled, every opportunity IS made to ensure their employment with the company continues and that appropnate training ISarranged 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-appointed under Section 487(2) of the Companies Act 2006 Statement as to disclosure of mformauon to auditors The directors 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 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 mforrnanon and to establish that rt has been cornrnunrcated to the auditor Approved by the board of directors and Signed on behalf of the board

S A Harvey Director 22 December 2011

4

LEEDS UNITED FOOTBALL CLUB LIMITED

DIRECTORS' RESPONSIBILITIES OF FINANCIAL STATEMENTS
The directors are responsible applicable law and regulations for prepanng

IN THE PREPARATION
the Directors' Report and the financial statements In accordance with

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 apphcable 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 preparing those financial statements, a b
C

the directors are required to

select SUitable accounting

policies and then apply them consistently, estimates that are reasonable and prudent, to presume that the

make Judgments and accounting

prepare the financial statements on the gOing concern company will continue In busmess

baSIS unless It IS Inappropriate

The directors are responsible for keeping proper accounting records that are sufflctent to show and explain the company's transactions and dtsclose 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

rrreqularmes

5

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 financial reporting framework that has been applied In their preparation IS applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountmg Practice) This report IS made solely to the company's members, as a body, In accordance With Chapter 3 of Part 16-of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's 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 responsibility to anyone other than the company and the company's members as a body, for our audit work, for trns report, or for the opmrons we have formed Respective responsrbihtles of directors and auditor 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 give a true and fair view Our responsibility IS to audit and express an opinion on the financial statements In accordance With apphcable law and Intemattonal Standards on Auditing (UK and Ireland) Those standards require us to comply With the Audmnq Practices Board's (APB's) Ethical Standards for Auditors Scope of the audit of the financial statements A descnption of the scope of an audit www ftc org uk/apb/scope/pnvate cfm

of

financial

statements

IS provided

on

the

APB's

website

at

Oprruon on financial statements In our opinion the financial statements • give a true and fan view of the state of the company's affairs as at 30 June 2011 and of Its profit for the year then ended, • have been properly prepared In accordance With United Kingdom Generally Accepted Accounting Practice, and • have been prepared In accordance With the requirements of the Companies Act 2006 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given In the Directors' Report for the financial year for which the financial statements prepared IS consistent With the financial statements

are

Matters on which we are required to report by exception We have nothing to report In respect of the following matters where the Companies Act 2006 requires us to report to you If, In our oprruon • 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 accountmg records and retums, or • certam disclosures of directors' remuneration speofled by law are not made, or • we have not received all the Information and explanations we require for our audit

~t\bv 1;l{
RICHARD KING (se~

"tK A~~

LLf

Statutory Audrtor) For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor Chartered Accountants 2 Whitehall Quay Leeds LS14HG

22 December 2011

6

-----

-

-

---

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS PROFIT AND LOSS ACCOUNT Year ended 30 June 2011
Operattons excludmg player tradmg Note ['~OD Player trading Year ended 3D June 2011 Year ended 3D June 2010 ['ODD

£000

£'000

Turnover Cost of sales Gross profit Administrative expenses Operating profit ProfiU(loss) on player trading Profit on ordinary actrvitres before interest Other Interest receivable and Similar Income Interest payable and Similar charges Profit on ordinary actlvitles before taxation Taxation on profit on ordinary activities Profit for the financial year

2

32,678 (5,471) 27,207 (25,164) (1,104) (1,104) (53) 2,043 (1,157)

32,678 (5,471) 27,207 (26,268) 939 (53) 886 9 (36) (1,157) (1.157) 859 2,645 3,504

27,446 (5,563) 21,883 (23,543) (1,660) 3,818 2,158 3 (89) 2,072 2,072

3

2,043

4 5 7 15

9

(36) 2,016 2,645 4,661

The resuHs for the year relate to contmumq 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

7

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS BALANCE SHEET 30 June 2011
Company registration no 06233875

Note

Year ended 30 June 2011 £'000-

Year ended 30 June 2010 £'000

Fixed assets Intangible assets Tangible assets
8 9

7,061 5,734 12,795

7,085 4,401 11,486

Current assets Stock Debtors Debtors due after more than one year Cash at bank and
In

10 11
11

815 10,646 2,067 597 14,125

716 4,010 33 3,670 8,429 (11,631) (3,202) 8,284 (1,144) 7,140

hand

Creditors: amounts failing due within one year Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year Net assets Capital and reserves Called up share capital Profit and loss account Equity shareholders' funds

12

(15,316) (1,191 ) 11,604

13

(960) 10,644

14 15

500 10,144 10,644

500 6,640 7,140

15

The financial statements on pages 7 to 16 were approved by the board of directors and authonsed for Issue on 22 December 2011 and are signed on Its behalf by

S A Harvey Director

8

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS
1 Principal accounting policies The financial statements are prepared In accordance with applicable pnnctpal accounting pohcies adopted by the directors are set out below United Kingdom accounting standards The

BaSIS of preparation At 30 June 2011 the company had net current liabilities, after adding deducting due after one year of £3,258,000 Detailed forecasts have been prepared, indicating that the company will have sufficient resources to meet debts as they fall due dUring the next 12 months As a result, the directors consider that It IS appropriate to prepare the accounts on the gOing concem baSIS Basis of accounting The financial statements are prepared
In

accordance

With the historical cost convention

Cash flow statement The drrectors have taken advantage of the exemptron In Financial Reportmq Standard No 1 (Revrsed 1996) from including a cash flow statement In the financial statements on the grounds that the company IS wholly owned and Its parent pubIJshes a consolidated cash flow statement Tumover Turnover represents Income receivable from football and related commercial activmes, exclusive of VAT

Gate receipts and other match day revenue IS recognised

as the games are played In the penod to which It relates Amounts received
In

Revenue denved from season tickets IS credited to Income advance are credited to deferred Income In the balance sheet

Sponsorship, advertismq and similar commercial Income IS recognised over the duration Amounts received In advance are credited to deferred Income In the balance sheet The fixed element of broadcasting revenues IS recognised for live coverage or highlights are taken when eamed

of the respective

contracts

over the duration of the football season whilst fees received

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 amortised, In equal annual Instalments, over the penod of the respective player's contract The transfer fee levy refund received dUring the year IS credited against additions to intangible assets Players' registrations are wntten down for Impairment when the carrying amount exceeds the amount recoverable through use or sale Intangible fixed assets - GoodWill Goodwill relating to the football club IS being amortised In equal Instalments over 50 years based on the longeVity of the club and the strength of the Brand All other goodwill IS amortised over a 20 year penod Intangible fixed assets - Trademarks Trademarks are being amortised In equal Instalments over 10 years residual values, on a straight

Tangible fixed assets Depreciauon IS calculated to wnte off the cost of tangible fixed assets, less their estimated line baSIS over the expected useful economic life of the asset concemed, as follows Assets under the course of construction leasehold land and buildings Fixtures and fittings Alterations and Improvements Assets under the course of construction Signrng-on fees Signing-on fees represent a normal profit and loss account In the penod that case, any remaining slgnlng-on the year," Which the player disposal and 0- 22 years 1 - 10 years 2 - 10 years are not depreciated

until they are brought Into produetrve use

In which the payment

part of the employment cost of the player and as such are to be charged to the ts made, except In the Circumstances of a player disposal In fees due are allocated In full against profit on disposal of players' regIstrations In 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 Finance charges are allocated evenly over the penod of the lease. Operating lease rentals are charged to profit and loss In equal amounts over the term of the lease

9

LEEDS UNITED FOOTBALL NOTES TO THE FINANCIAL

CLUB LIMITED STATEMENTS

Deferred taxation Deferred tax ISprovided In full on timing differences which result In an obligation at the balance sheet date to pay more tax, or a fight to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law Tlrnmq differences anse from the inclusion of Items of Income and expenditure In tax computations m penods different from those In which they are-Included In financial statements Deferred tax IS not provided on timing differences ansmq from the revaluation of fixed assets where there ISno commitment to sell the asset, or on unremitted earrunqs of subsidianes and associates where there ISno commitment to remit these eammqs Deferred tax assets are recognised to the extent that It IS regarded as more likely than nolthat they will be recovered Deferred tax assets and liabilities are not discounted Pension costs For defined contnbunon 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 pens.ons, as calculated periodically by professionally qualified actuaries, IS charged to the profit and loss account so as to spread the cost over the service lives of employees In such a way that the pension cost IS a substantially level percentage of current and expected future pensionable payroll 2 Turnover
Year ended 30 June 2011 £000 Year ended 30 June 2010 £'000

Gate receipts
Televrsion and broadcasting Income

12,711 821 6,064 4,637 8,445 32,678

11,732 802 5,509 757 8,646 27,446

MerchandiSing Income Central distributions Other commercial revenue

All tumover relates to the pnncipal activity of operating a professional football club and anses from connnumq acnvmes Withinthe UK 3 Operabng profit
Operating profit Is staled after chargmg Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

AmortJsabon Amortisation of player registration costs Amortisation of goodWill Amorusauon of trademarks Deprecratron of tangible fixed assets Owned assets Assets held under finance leases Auditors' remuneration
Audrt

1,104 119 1 843 25 39 14 1,829 8 108

990 115

663 71 43 9 1,756 16 107

Other, provided by an associate of Baker nlly UK Audit LLP Operating lease charges Land and bUildings Plant and machinery Motor vehicles 4 Other interest receivable and similar income

Year ended 30 June 2011 £'000

Year ended 30 June 2010 £'000

Bank Interest

9

3 3

9

10

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

5 Interest payable and similar charges
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Bank Interest Other loans Frnance leases and hire purchase contracts

1 25 10

1 76 12 89

36

6 Employees The average monthly number of persons (including executive directors) employed by the company dunng the year was
Year ended 30 June 2011 Year ended 30 June 2010

Full-time plaYing staft Apprentices Football team management Management/administration

No 38 12 15 142 207

No 32 13 13 126

184

In addition to the above employees, on match days the group employs approximately 662 (2010 710) casual part-time employees Employee costs (including directors' emoluments) Incurred dunng the year were
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Wages and salanes Social secunty costs Other pension costs

14,877 1,533 98 16,508

12,433 1,193 95 13,721

Directors' emoluments In the year were £299,237 (2010 £174,087) and benefits paid to directors were £11,986 (2010 £11,986) K W Bates did not receive any emoluments or benefits dunng the year Pension payments of £16,600 (2010 £16,600) were made on behalf of the directors One director accrued retirement benefits under a money purchase scheme

11

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS
7 Taxation on profit on ordmary actrvrtres
Year ended 30 June 201 1 £'000 Year ended 30 June 2010 £'000

Current penod tax UK Corporation tax charge for the year Deferred Taxation
Onqmatron and reversal of timing dIfferences

2,645 2,645

The company has trade losses of approximately £48 rmlhon earned forward for use against future trading profits The losses have been transferred wnh the trade from another company upon the acquismon Corporation tax has been charged at the standard rate of 26% (2010 28%)
Year ended 30 June 2011 £'000 Year ended 30 June 2010 £'000

Profit on ordmary activities before tax Tax on profit on ordinary activities at standard rate of 26% (2010 28%) Depreciation Group rehef Expenses not deductJblefor corporation tax purposes Tax losses utilised Total actual amount of current tax
In

859 223 27 (2) 132 (380)

2,072 580 8 120 61 (769)

excess of capital allowances

Ineligible depreciatrcn

8 Intangible fixed assets
Trademarks Player regIStrations GoodWill Total

£'000

£'000

£'000

£'000

Cost At 1 July 2010 Additions Disposals At 30 June 2011 Amortisation At 1 July 2010 Charge for the penod Impairment Disposals At 30 June 2011 Net book value At 30 June 2011 At 30 June 2010 9 10 1,523 1,428 5,528 5,647 7,061 7,085 1 (1,112) 1,814 455 (1,112) 2,270 1 1,822 1,104 10 10 3,250 1,665 (1,578) 3,337 5,983 5,983 9,243 1,665 (1,578) 9,330 2,158 1,224

336
119

12

LEEDS UNITED FOOTBALL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

9 Tangible

fixed assets
Assets under the course Alterations and Leasehold land and bUildings Improvements FiXtures and fittings Total

of construction

£000

£'000

£'000

£'000

£'000

Cost or valuation

At 1 July 2010
Additions Intra group transfers Disposals At 30 June 2011 Depreciation At 1 July 2010 Charge for the penod Disposals At 30 June 2011 Net book value At 30 June 2011 At 30 June 2010

824 1,901

847 94 (821)

3,151 192

1,289 858

6,111 3,022 (821)

2,725

97 36 6 42

3,343 1,006 390 1,396 1,947 2,145
amounts
In respect

2,147 668 472 1,140 1,007 621

8,312 1,710 868 2,578 5,734 4,401

2,725 824

55 811

Included In the total net book value of fixtures and fittings are the following finance leases and hire purchase contracts

of assets held under

Fixtures

and fittings

£'000

Cost Accumulated depreciatron At 30 June 2011 At 30 June 2010 The depreciation charge In respect of these assets was £25,000 (2010 £71,000)

153 (50) 103 166

10 Stock
30 June 2011 30 June 2010

£'000

£'000

Goods held for resale

815

716

11 Debtors
30 June 2011 30 June 2010 £'000

Debtors due Within one year Trade debtors Transfer fee debtors Amounts due from group undertaking Other debtors Prepayments and accrued Income Deferred tax asset Total

£'000

1,789 988 4,574 1,212 - 1,455 628 10,646

757 25 441 1,396 1,391 4,010

13

LEEDS UNITED FOOTBALL NOTES TO THE FINANCIAL

CLUB LIMITED STATEMENTS

11 Debtors continued
30 June 2011 £000 30 June 2010 £'000

Debtors due after more than one year Bonds Transfer fee debtor Deferred tax asset 50 2,017 2,067 33 20 13

A deferred tax asset of £2,645,000 (2010 £nll) anslng from losses has been recognised In the year A further deferred tax asset of £9m (2010 £129m) has not been recogmsed The amount recogmsed IS based on an estimate of reasonably foreseeable future profits for the next four years including profits from player trading 12 Creditors: amounts falling due wlthm one year
30 June 2011 £'000 30 June 2010 £'000

Obligations under finance leases Trade creditors Other taxation and social secunty costs Transfer fee creditors Other creditors Amount due to group undertakings Other loans Accruals and deferred Income

57 3,739 677 569

42
1,539 1,585 202 231

228
255 975 6,500 8,816 15,316

3,599 8,032 11,631

Of the £8 816m accruals and deferred Income £8 071m represents prepayment of tickets and sponsorship that would only become a liability of the company should It faJl to fulfil all of Its fixtures for the 2011f12 season 13 Creditors: amounts falling due after more than one year
30 June 2011 £'000 30 June 2010 £'000

Obligations under finance leases Transfer fee creditors Pension (Note 16) Accruals and deferred Income

92 133 135 600 960

81 91 172 800 1,144

Borrowmqs are repayable as follows
30 June 2011 £'000 30 June 2010 £'000

Finance leases Within one year Between one and two years Betweel'l two and five years 57 57 -35 149

42 42
- 39 123

14

LEEDS UNITED FOOTBALL NOTES TO THE FINANCIAL

CLUB LIMITED STATEMENTS

30 June 2011 £'000

30 June 2010 £'000

Other loans Within one year Between one and two years Between two and five years

975

975

Total borrowings Within one year Between one and two years Between two and five years 1,032 57

42 42
39 123

35
1,124

Obligations

under finance leases at 30 June 2011 were secured on the related assets

14 Called up share capital
30 June 2011 £'000 30 June 2010 £'000

Allotted,

called up and fully paid 500 500

500,000 ordrnary shares of £1 each

15 ReconcIliation

of movement

in shareholders'

funds Share Capital
£'000

Profitand lossaccount
£'000

Shareholders' funds
£'000

At 1 July 2010 Profit for the year At 30 June 2011

500

6,640 3,504

7,140 3,504 10,644

500

10,144

16 Pensions

Creditor schemes

Defined contribution

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

Certain protessionat footbalhng staff are members of the Football League LImited Pension and LIfe Assurance Scheme ("FLLPLAS"), a defined benefit scheme Under FRS 17 Retirement Benefits, the FLLPLAS would be treated as a defined benefit rnuln-ernployer scheme The assets of the scheme are held separately from those of the company, berng Invested With Insurance companies FolloWing a review of the Minimum FundIng Requirement ("MFR") of the FLLPLAS, accrual of benefits of the final salary seellon 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 substantial deficrt was Identified Under the Pensions Act 1985 participating employers Will be required to contnbute to the deficiency The latest actuanal valuation of the scheme was earned out as at 31 August 2008 The allocation of the defknt under thIS valuation notified to Leeds Uruted AFC Limited and repayable by Leeds United Football Club Limited IS fully provided for In the accounts and LS berng repaid at £3,087 per month

15

LEEDS UNITED FOOTBALL NOTES TO THE FINANCIAL
17 Operating lease commitments

CLUB LIMITED STATEMENTS

At 30 June 2011 the company was committed to making the following payments dunng the next year In respect of operating leases Plant& equipment Otherpremises Motorvehicles Lease expires Within one year Within one to two years Within two to five years After five years 11 7 30 1,831 1,861 1,835 1,835 141 119
2011 £'000 2010 £'000 2011 £'000 2010 £'000 2011 £'000 2010 £'000

4 141 119

18 Capital commitments At 30 June 2011 the company had capital commitments totalling £6,497,095 (2010 £1,758,816) 19 Contmgent habrhtres In the event of the club becoming a member of the FA Premier League before the 2017/18 Season then a lrabihty of £4,750,000 (2010 £4,750,000) Will become payable to the liquidator of Leeds Uruted ASSOCiation Football Club Limited (the) under the provrsions of the sale agreement entered Into on the 4th May 2007 Under the terms of the financial provrsions relating to transfer of players registrations then future payments of up to may be payable dependant on the clubs promotion to the FA Premier League andl or players appearances for the club
£875,000

20 Ultimate controlling

party
In

The directors consider that the ultimate controlling shareholder IS Mr K W Bates by virtue of his 100% shareholdmg Outro 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 21 Related party transactions Included In other loans (note 12) IS a sum of £975,000 due to Outro Limited, a related party by virtue of Its connection With Mr K W Bates Thrs was repaid after the year end The company has taken advantage of the exemption from disclOSing transactions With entities Within the Leeds City Holdmgs Limited group of companies on the grounds that the consolidated accounts of that group are publicly available from Companies House, Crown Way, Malndy, Cardiff 22 Post balance sheet events Leeds United Football Club Limited entered Into an agreement whereby It sold season tickets for both the 2012113 and
2013/14 season for a sum of £5,000,000 after the year end

16