The FA Build a Sustainable Club

running a sustainable club

Budweiser

Club Futures

introduction This guide has been developed as part of the Budweiser Club Futures programme to help non-league clubs in the English football league pyramid become more sustainable. It includes hints and tips as well as sources of further information. The principles stated are valid for clubs of various sizes and structures who are looking to be more secure, sustainable and grow. The Budweiser Club Futures programme is a grant scheme for non-league clubs in Steps 5–7 of the English football pyramid. It is funded by the FA Cup lead sponsor, Budweiser. The programme will have provided grants of £50,000 each to selected clubs across the country over two seasons. The aim of awarding the grants is to enable the recipient clubs to become more financially sustainable by improving their facilities and infrastructure. Eligible projects include everything from building conference facilities, improving any part of a clubhouse (interior or exterior) to expanding the car park. Within reason, it will fund anything that can demonstrate that it will help a club to grow, become more financially sustainable and play an even more significant role in its local community. In each season, the eight chosen clubs will also have had the chance to win one additional £100,000 ‘super grant’ – as voted by football fans through the official FA Cup and Budweiser UK Facebook pages.

Contents 04

Planning Business for Your Club

Promoting Your Club

Effective Financial Management

Example Trading Accounts

Effective Facility Management

22 Environmental Stability 24

Responsible Management

Grant Winners 2012-13

Contact Details

The sixteen successful clubs will be given additional support to run community based Responsible Drinking activities in their area. These include promotion of a Designated Driver, encouraging families to talk with children about alcohol and responsible drinking through the Family Talk programme and Good Sport – a training programme in responsible bartending. The FA, in partnership with Pricewaterhouse Coopers and Sport England, have created the Club Leaders programme to support clubs in their business administration. These can be accessed free of charge at www.sportenglandclubleaders.com.

© The Football Association 2013 This booklet has been produced to provide you and your club with practical suggestions on how to boost the sustainability of your club and should not be used as a substitute for seeking your own legal/financial/other advice from suitably qualified persons. We make no statements or representations about the likelihood of level of success or profits. Enquiries should be addressed to: The FA, Wembley Stadium, Wembley, London HA9 0WS Postal address: The FA, Wembley Stadium, PO Box 1966, London SW1P 9EQ T: 0844 980 8200 E: FacilitiesInfo@TheFA.com W: TheFA.com/my-football

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Business Planning for Your Club

The first step to ensuring a sustainable future for your Club is to ensure that you have a well thought out, in depth business plan. Producing such a plan is one of the most important tasks when investing in (or asking others to invest in) your club.

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An effective business plan will help you set targets, collate all your ideas, plan coherently what you intend to do in the future, why, when, in what order and with what level of return on your investment. It will help you to assess and verify that your ideas are realistic and workable. It is also an essential tool to support your pursuit of external grants and other funding. Why bother? The business plan, which should, principally reflect the commitments to be made by and for your club and how and in what way partners are to be involved, should be used to: • Help you to bring together all your ideas and research into a structured format • Decide whether your proposal will add to and enhance the commercial viability and, thus, the sustainability of your club • Clarify your business purpose for yourself, to partners, employees etc • Predict and allow you to take account of and make allowance for future pitfalls and how you intend to address them before they threaten your viability or success • Set out the strategy for your business, and particularly your marketing strategy • Set targets and objectives, including membership, ‘sales’ and financial targets, so you can monitor performance on a continuing basis.

Your approach In this instance, if you are also hoping to use your business plan to convince an investor or lender to support your club, it is crucial to understand their objectives and requirements. If you address them fully in the plan, you will be certain of your capacity to meet their particular repayment or investment criteria. It is important to make your plan stand out from the crowd, so make it easy to read, comprehensive yet concise and ensure that all elements are complementary and there are no contradictory or unclear elements contained in it. For instance, check that the figures you include in the plan for expenditure on equipment directly reflect the amounts you set out in your financial forecasts; it is a regular failing and all too often these figures do not match and the business plan can lose credibility.

As early as possible, look to identify what your prospective investor wants to know about the club’s business. If you detail the assumptions made in reaching your conclusions (for example the market research results that led you to your calculated sales forecasts, why you have chosen to site this aspect of your business in a particular location or why you have opted for one building option ahead of another), the investor will not be left guessing as to your intentions or question whether you have addressed certain key issues. Be honest, clear and believable. Remember that the plan needs to be realistic and still convince grant funders and investors that the business can be successful. This means they will want to see evidence to back up any claims you make. Most importantly, make sure that you get someone you trust to run through and ‘sense-check’ all the business (in particular income, expenditure and capital cost – including VAT if applicable) assumptions you make so that you don’t find yourself tied to, for example repaying borrowing at a level that you can’t afford. A grant is a great idea as long as you don’t overreach trying to secure it.

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What should you include in the plan? Every club and situation is different, but the headings below are useful ‘stepping stones’ to include in your business plan. Using them will ensure that you address the key issues that an investor or a funding body is likely to interrogate: • Table of contents • Business plan summary • Present status • Project description and purpose • Legal status and licences • Management processes • Marketing strategy • Financial projections: • Market research • Implementation plan. Table of contents Include a table of contents listing the main sections and page numbers. If it is difficult to find key information among a mass of text that has no logical index the person assessing the business plan will be frustrated and less likely to consider the plan positively.

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Be sure to highlight recent successes the club has achieved to demonstrate that you are proactive, developing and moving forward.

Business plan summary This should be a brief summary of the rest of your plan and be short and succinct (probably no more than two pages long). It is the first thing that a funder or investor will read and so it must be well written, should excite the reader and ideally should stand out from the many other business plans an investor or lender will receive. There are four key ingredients to a good executive summary: • What it is that makes your proposal, business idea, service or approach to your market unique or original, and gives you the edge over rival bidders and businesses? • What experience has your club in the line (or scale) of business you are looking to invest in, that will make a funder confident that you are capable of making it succeed. • How you have demonstrated, or at least illustrated, that your proposal is going to stack up financially, and will be viable and profitable. • How and when will it produce a return related to the commitments you make.

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You should also include in the executive summary: • Club title, legal status, owners/ shareholders and address • Details of the trading impact of your proposal • A summary of your target market and (if applicable current and likely future) competition • The overall amount of finance needed (irrespective of the potential grant), for what purpose and over what term • The amount of money the club (and other partners) intend to invest • Your aims, objectives and vision. The FA and other investors will wish to get a really good idea about the underlying motivations of the club with regard to this investment and future plans; it is, for example, important to consider the following types of questions: • Why this specific development and what do you want out of it? • Will it supplement an existing club income stream or will it be a new or additional source?

Present status The section should provide an overview of the club’s current position so that potential investment can be placed in the context of a full understanding of the history, background and membership of the club and its current track record; is the scheme designed to tackle a particular operational or financial problem or to build upon already successful business performance. It should not be extensive in length but is best used to help set the scene for the rest of the business plan. Be sure to highlight recent successes the club has achieved to demonstrate that you are proactive, developing and moving forward. This could be in the areas of increased membership, refurbished or developed facilities or even successes on the pitch.

Project description and purpose What exactly do you intend to do? Be as specific as possible about your proposal and the aspect of your club’s business that you are looking to enhance or initiate. If you plan to extend or open a bar or food outlet, for example, what do you sell now and do you intend to extend the variety; if so, what is the justification for this ambition? What will the key benefit of this investment be; faster service, wider range, capacity to serve more people more quickly etc? Do you face local competition for products you are intending to sell, how might competitors respond etc? When describing your business, think of it in terms of writing a mission statement. This should provide a clear summary of the purpose of (this aspect of) your business, and be easily understood by you, your staff, your supporters/customers and potential investors. If you cannot describe your business in these specific terms, you should rethink your business idea, focusing on your club’s core purpose and target audience.

Legal status and licences What is the legal status of your club or this element of it? This will affect your tax and VAT liability and have an impact on your cash flow. The legal status of the club may affect the propensity of others to provide grant funds or other forms of investment. It is worth checking that you have the most appropriate legal status to meet your future needs. Do you need any licences before you can start trading or expand your trading base? (If so, you need to demonstrate you are aware of what you need to apply for and that you have taken steps to do so.) Food and drink businesses, childcare businesses and businesses that involve animals are just a few examples of businesses that need to obtain licences from their local authority. What planning permissions or building regulations approvals are needed and how costly and time consuming is it to obtain them? Do you need any permissions from a landlord, mortgage provider or third party agent?

Answering questions like these will have a positive impact on the development of your business aims and strategy. Defining your vision will help the process of identifying clear (and challenging) objectives, and determine how you will go about achieving these as your venture evolves.

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Management processes How do you/will you manage your club? Getting organised will make club management more efficient and ultimately enjoyable. It is worth assessing key skills, responsibilities and management processes at this stage. Your business plan should consider the following key areas: • Marketing and sales • Finance • Recruitment and staffing • Product sourcing • General management • Administration. You will also need to set out how you plan to monitor club business performance (against objectives and targets), and to co-ordinate the roles of paid or voluntary staff.

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Marketing strategy To succeed you need a thorough understanding of the market at which your proposal is targeted and upon which the trading performance you are predicting will be dependent. How large is your current supporter/customer base? Will (how will) it increase and what do you intend to do to enable you to achieve this? With clear understanding of your market in terms of size, location, groups of potential supporters/customers and their profiles, potential competitors, trends and influencing factors, it’s easier to define your overall marketing strategy clearly. Further support to develop an effective marketing strategy plus some of the options you could use are detailed in the ‘Promoting your Club’ section of this guide.

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Financial projections In this section you need to detail the key financial implications associated with your business plan. Most include projections for three to five years depending on size and the level and timing of external funding being sought. In exceptional cases, the financial projections may need to run for longer to capture the totality of the proposal and its broader impact on the club’s development plans. It is valid for such forecasting to be more speculative and illustrative. Be sure to include detail with regard to key assumptions you make as part of your financial plans as well as projections for the income generated. Cash flow forecasts are vital. There will be periods during the season when income drops, due perhaps to fewer home games or when you normally have higher bills to pay. It is essential that these are planned for so that you can cover any deficit quickly. Demonstrating awareness of these and planning for their occurrence adds to funder and investor confidence. (Further information about this is to be found in the ‘Financial management’ section).

Market research If you have undertaken some level of research to underpin your financial forecasts or even to inform the assumptions made which underpin these forecasts it is valid and useful to summarise this. Not only will it boost the credibility of your proposal but it is also a demonstration of commitment. Implementation plan This is a key part of your business plan; it outlines how you intend to turn your proposals into action. There are several ways to present this information (such as project timelines, action plans or task lists). Whichever you choose it is important that your plan includes: • Details of all tasks required • Who is responsible for their completion • A deadline for each action • All the costs associated with each action • Identification of potential risks • Contingency plans the club has to counter anticipated (or unexpected) risks.

BUSINESS PLANNING DO’S AND DON’T Do

Don’t

Do ensure all font is the same size and type

Don’t handwrite your business plan

Do ensure the length is appropriate to your aims for the plan

Don’t limit your plan to a set number of pages or words – it is what it is

Do ensure you proof read your plan prior to showing potential investors

Don’t presume the reader of your plan is an expert in the industry

Do show your plan to an unbiased outsider to your club for feedback and comment

Don’t guess what costs might be

Do make sure any balance sheets you have included in your financial projections actually balance

Don’t forget to review the plan regularly – it should be a working document

Do share the plan with other members of the Club

Don’t bury the important information that readers will want to find quickly

Do commit sufficient time to completing your Club’s plan

Don’t forget to divide your plan into clear and understandable sections

Don’t ignore your competition Don’t think you will you complete your plan in a day or two – commit sufficient time

*Club Leaders Club Leaders is a free resource that aims to improve the business skills of people running football clubs. Supported by PwC and Sport England, club administrators can access business planning guidance and templates. Sign up for free at www. sportenglandclubleaders.com.

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Promoting Your Club

Promoting your club effectively will lead to new people visiting your stadium / ground to enjoy the match day experience as well as encouraging repeat visits from existing supporters.

As with other areas of club management and development, it is important that there is a cohesive approach to promoting your club to ensure success. A planned approach also ensures that your club gains a reputation for being professional and well organised. As part of your planning process you should: • Be clear about your current and any future target market • Know what you want your marketing to achieve • Consider your (realistic) options • Identify what you can afford to do – establish a mini budget and, as applicable, seek the necessary approvals • Keep the objective of marketing in mind while accepting that you can’t necessarily proactively appeal to everyone all of the time • Take account of the seasonal nature of your club’s activity – consider ways to maintain interest outside of the main competitive season • Keep marketing consistent – it should feel like everything comes from the same home. • If you have an online presence, keep it up to date • Evaluate marketing regularly – don’t waste resources on something that isn’t working There are several options you can use to promote your club. Each has its own benefits and specific uses; a selection is outlined in this guide.

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Working with the media Communication off the pitch is just as important as on it. Play to your strengths and identify a member of your club who can talk a good game to become your dedicated media officer. Your club media officer (CMO) should: • Ideally be able to write well, be connected to the internet as most contact is now by email and be comfortable picking up the phone to sell-in club news to journalists. S/he could be a parent, a player or you could even try using a student on a journalism course at a local college or university. Giving a young, eager student a chance for work experience in sports writing might also result in some media coverage for your club. • Set-up and maintain a contacts list. They should make contact with local media when starting the role and keep positive relationships going. • Record all media coverage secured and share this with members. This could take the form of a media scrapbook or noticeboard available for parents or players at a clubhouse, or in a newsletter or website. • Invite and look after all media attending matches or club events. This includes being comfortable as the club spokesperson if a journalist wishes to ask for a club’s point of view to include in a story.

Everyone at the club should be aware of who the CMO is and that they deal with media contact. Members or parents approached by a journalist or photographer should know to advise the CMO to deal with the approach. Ideally s/he should be on the club committee so they get to know your senior members, are clear about club plans and objectives, and are updated with everything that is going on. As contacts build up with local media, you can work out what they think makes a good story and there will be key events you choose to promote to them. Other tips to keep your club ‘in the news’ throughout the season (and off-season) include: • Set up a media calendar, with deadline days for local newspapers and magazines. You can add special days or weeks, such as National Women’s Day or Children’s Week, to use as a ‘hook’ or ‘angle’ to sell a story on your club into the local media. Plan out your big events, when tickets go on sale for fundraisers or when there may be a photo opportunity. This will help you time when to contact media and what to say. A calendar is also helpful if you have a club newsletter or to drive updating of your website.

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• Think about other channels and outlets as well as typical local media. Big local employers, such as the NHS, have newsletters and you can ask them to include information about teams looking to recruit players or fundraising events. You can also target local college, university newsletters or community newsletters. • Speak to other clubs in your area and your league to see what they do. They may have tips to pass on or contacts they are willing to share. • Do your local radio stations have a regular grassroots programme? If so, make contact with the presenter and producer to see if you can get your club news covered. If not, try speaking with the station’s sports editor to see if it is something s/he might consider. • Read the local newspaper regularly, listen to local radio programmes and watch the regional news on TV. This will give you an idea of what they find newsworthy.

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You need to get your tactics right to make the most of social media for your club. Just set one goal and go out to make it work.

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Writing a press release is a straightforward and often effective way of publicising your project. They are designed to get information over to journalists in an interesting way that makes them want to cover your story. Important things to remember include: • Make sure you have a good story to tell – think about what is interesting to local people. Talk about how your project will benefit them and highlight features that will help them to get involved or encourage them to talk about it • Keep the press release short and to the point – journalists are busy and are more likely to read it if the story is told clearly. Keep the first sentence short. Make sure your press release answers these key questions: Who? What? Where? Why? and When? It should be no more than two pages long, and one is better • Get the timing right – give journalists enough time to react. If you want them to come to your launch, give them a few days’ notice. Send a press release with an embargo (a note at the top that gives the first date that the story can be published) or a press calling notice. Be aware of each newspaper’s editorial deadline and when it is published • Include a quote – journalists want to hear from real people and if they can’t come

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to your event, they can use the quotes you provide. Try to make them opinionbased and talk about why the project is important. Avoid restating the facts at the beginning of the press release. As much as possible, find the human interest angle and back it up with a quote. For example, include comment from those who will benefit from this fantastic new project within your community. Use examples to bring the story to life • Attach a photo – they can dramatically improve your chance of gaining publicity. Make sure that anyone to be photographed has signed a photography consent form • Be available for interviews - make sure that someone in your group is available to speak to the media and can do radio and television interviews • Include your contact details – this is essential • Follow-up with a phone call – journalists receive lots of press releases each day and it will help if you give them a quick call to highlight your news. If time is an issue, select one or two key newspapers or radio stations.

Using social media You need to get your tactics right to make the most of social media for your club. Just set one goal and go out to make it work. Appoint a club member to manage this. This could be your CMO or the person who writes your newsletters and match programmes. S/he should understand social media and be comfortable using internet programmes. If your club has youth teams, this official should ideally have attended the FA’s Safeguarding Children Workshop to be aware of safeguarding issues. Detail about young people and social media is available at www.TheFA.com/footballsafe so do take the time to read this helpful guidance. There are many options (e.g. Facebook, Twitter, YouTube, Flikr) but if this is your first attempt start with just one. Decide what will help your club most; would you benefit from sharing photos or action content or should you look at different ways to communicate with supporters/ members? Ask committee, team managers, volunteers and supporters groups (of different ages) and consider whether and how this complements the club’s website and newsletters. Get familiar with FA best practice guidelines in this area.

You may need to put in time ‘up front’ to develop your ‘homepage’ or secure areas for file sharing. You need to get the feel of the technology and be comfortable using web tools to create and maintain your presence. You will also need to get information from within the club, be it film files to upload or pictures and your club crest (to illustrate a Facebook page). Share finished work with other club officials before you ‘launch’ it to your members; to make sure they are happy and ensure that you have got the appropriate consents for under-18s. Check that everything complies with best practice guidelines and then plan how often you intend to update your presence on the web. Can you (will you?) update photos to file share after every match or just once or twice a season? If you use a social networking website, you will need to moderate content on a daily basis to ensure nothing inappropriate or defamatory has been posted.

It is no use doing all this and to have no one see it. Promote your club’s presence on the web to all members (and beyond in the community). Make the most of existing opportunities you have to talk to members, for example notice-boards and newsletters. Spread the word among club officials and team coaches to share with players and parents. Once some people start using it and if it’s helpful, (web) word of mouth will help get more people to visit. Ensure all users know who to contact if they have concerns about the content you are hosting. Finally, monitor and review how well your ‘homepage’ or files are used. If they are not well used, try to work out the reason – did people know about it? Was the content updated to encourage people to come back? Was it interesting enough? Was it useful? If it’s not working, then don’t be afraid to stop it and either try again at a later date, or try something different. If it has been a success, get some feedback from users on how you could improve it or what other services would be helpful. Online marketing modules have been developed by Club Leaders and are free to access - sign up at www.sportenglandclubleaders.com.

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Deploying your mascot outside, in the hour or so before kickoff, would add to the atmosphere and make fans/ families feel immediately at ease.

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Communicating with your community Successful promotion of your club should result in more people coming to the ground to support it. They tend to reflect the diversity of your local community and each ‘segment’ has specific needs and expectations. You should ensure that the first and each exposure to the club is positive and that they continue to return. The following 10 steps will help to do this: 1. Make it easy Experience suggests that it can sometimes take four or five clicks to find the ticket office number on a club’s website, while poor signage can make the first journey to your ground a nightmare. Your club shop may be located in a position which makes it unlikely to be visited by new families and the half time queues at refreshments kiosks can put a family off spending money. It is, thus, important not to make assumptions and to take every opportunity to remove doubt from the first time (and regular) visitor. By taking the time to ‘walk’ the match day experience, from first visit to the website to getting into the ground, you will identify lots of opportunities for improvement. The most important thing you can do to ‘make it easy’ for families is to create a dedicated family area –this allows you to manage the different needs that this group has in a safe, controlled and welcoming area.

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2. Put yourself in their shoes If you take the time to see things through a fan’s eyes, you may realise that different thinking is needed. ‘Walking the match day experience’ allow you to pick up on the very different perspective of the existing/ new fan. New ones can feel vulnerable, be unsure of their surroundings and need help finding their way around. Websites, for example, are almost always solely targeted at existing fans; things that are clear to this constituency can be baffling to new visitors. That no club in the UK has yet installed a ‘new to us?’ button perhaps highlights how we are failing to consider the needs of new fans. Take the time to think about the match day experience from their perspective and options will start to emerge. 3. Make customer service a core activity Customer service is often an afterthought in football, or, worse still, regarded as only important when someone complains. This low profile works against the attraction of new and retention of existing fans. One League One club in England has appointed a customer service manager and his position in the structure (between the executive team and all the departments) ensures that all decisions are taken with the fan experience in mind.

4. It takes more than football and pricing to make them come back We know that pricing is important in attracting people to your ground and is a key part of the decision-making process about whether to attend a game. However, FA research shows that it is the overall experience that persuades new fans to return. Acknowledging this by putting on pre-match and half time entertainment or having activities in the family area, for example, can make all the difference when a game is 0-0 and the kids are bored.

7. Don’t let your conveniences inconvenience fans Many fans (particularly first timers) can focus perceptions of ‘off the pitch’ experience on cleanliness, appropriateness and functionality of toilet facilities. When these are poor, fans are entitled to draw certain conclusions about the club’s attitude to fans. However, when they are cleaned before (and during) the match, where child-friendly facilities are available and convenient to use, fans’ loyalty towards and advocacy for the club normally increases.

5. They are comparing your refreshments with other leisure destinations Having sampled the fare at a club, one parent remarked ‘I could buy four happy meals for less than a tenner at McDonalds’. Regardless of your views on fast food generally, it is evident that families expect to get good quality food at good prices in sufficient quantities, correctly prepared and served in hygienic conditions in a professional and friendly manner.

8. Make the most of your mascot Most mascots appear in the period of time before kick-off, exclusively inside the ground, greeting kids in the crowd and occasionally going through a repertoire of tricks. While this is often great fun for the kids involved, the lack of activity outside the stadium suggests that deploying your mascot outside, in the hour or so before kick-off, would add to the atmosphere and make fans/families feel immediately at ease.

9. Be friendly, approachable and welcoming It is vitally important for ‘fan-facing’ colleagues, such as stewards, ticket sales and catering staff to be proactive, friendly and welcoming. These are the people with whom your fans interact with and via whom first impressions of your club will be formed. 10. Start a dialogue with your supporters The case for consultation has been made. Keeping in touch with fans’ feelings, identifying what matters to them and make the necessary changes create interest and attract bigger crowds. Clubs are encouraged to develop consultation plans appropriate to their situation. Inexpensive online surveying options make it easy to identify, survey and consult with a large number of supporters. Emerging themes can then be used as subjects for more detailed improvement discussions with fans on a face-to-face basis.

6. Access to players is vital If you can arrange for kids (and families) to have access to players, to smell the deep heat, to get autographs (ideally just after the warm up) you are likely to generate ‘fans for life’. Squad (or injured) players can also play a part, perhaps by doing signing sessions in the club shop, in the ground, or where fans queue or assemble in the time before kick-off.

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effective financial management

Effective financial management is a key component in ensuring that your club is run sustainably and has a secure future.

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In its simplest form, effective financial management is about ensuring that expenditure does not exceed income but it is vital that a planned and structured approach is taken to finances. All those relevant to the processes via which a club generates income and manages expenditure should have some level of awareness about how its money works. It is often a club committee responsibility to develop and agree an annual budget. However finances should be overseen and managed by one responsible individual, normally the club finance manager or treasurer. The role of the club treasurer is to record and manage club finances on a regular basis. S/he is also responsible for reporting monthly finances back to club manager or, as applicable, its committee. To achieve this it is advisable to keep up-todate records, ideally a weekly account sheet. This should apply to all areas of the club’s business and all teams it runs.

Petty cash should be balanced against receipts. A cash book and all vouchers must be retained by the club for at least two seasons preceding the current season to be available for production to the County FA whenever required. HM Revenue and Customs or other bodies may need to view additional information and may have different time limits regarding the retention of information and it is the club’s job to ascertain exactly what will be required of it by way of financial reporting and evidence of income and expenditure. Every club should produce a set of annual accounts showing opening balance, income, expenditure and closing balance. These should be signed off by the club committee at its Annual General Meeting. A financial statement must be prepared and verified each year by an appropriately qualified person. A copy of the financial statement may, on demand, need to be forwarded to The FA. Secondly, set a subscription rate for players and members to meet your costs for the season. Carry out fundraising appropriate for the size of your club and seek local sponsorship for your club or teams to help raise finances. You could also contact your parent County Football Association for advice on grant aid available.

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Planning a budget The annual budget should take into account all finances required to run a club and be split into forecasts for income and for expenditure. The person who manages club finances (referred to as the treasurer from here on) must be able to report against this budget, so club management can track whether income from all the various sources from which it emanates is adequate to meet running costs. To prepare a budget, a range of information is needed, dependent upon the type of club you are and what activities you undertake. To make your budget plan work, you should map out key components and assumptions. Income assumptions relate to factors such as: • Match day income –from admission charges, sale of programmes etc • Catering income – from directly managed food outlines or franchises and concessions • Bar income • Conferences, events and room hire • Pitch and facility hire to external agencies • Pitch and ground advertising; hoardings etc • Car parking – match day and other • Sponsorship – what you have to offer to potential sponsors • Fundraising – generated through social events, lotteries, raffles • Membership – senior, junior, social • Subscriptions – match or training fees, charged weekly, monthly or annually.

Expenditure assumptions may include: • Player payments • Payment to coaches, grounds maintenance staff etc • Paying other club employees – bars/ catering staff, stewards, car park attendants etc • Travel – transport to away matches • Utilities – electric, gas, water • Training facilities – hire of public pitches or upkeep of your own pitches • Referees – match fee and travel expenses • Kit – new playing kit and replacement kit and equipment • Affiliations – county, FA and League registration fees for teams • Development Plan – coaching and medical course and CRB costs. Preparing a budget and knowing your income and expenditure is essential. Equally important is understanding how this translates into practice and what your cash flow is actually going to be. Realistically plotting when you expect income from say season ticket sales, sponsorship or fundraising to enter your bank account is essential so that you can anticipate whether you are likely to face a cash flow problem in any given month.

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Financial management health check As well managing day to day finances, it is also vital that your club regularly assesses its financial management practices. This should include checking that the following is in place: • A budget development and approval process • An approved rolling long term financial forecastbased on business plan objectives • An approved annual income and expenditure budget • Financial reports prepared and presented at club management meetings • An annual report is prepared and presented at the Club’s AGM • A comprehensive report against budget for each main trading area or for specific events • The required financial policies and procedures are in place and regularly reviewed • Accounting policies are compliant with legislation and accounting standards • Policies and procedures are communicated to, understood by and followed by relevant staff and volunteers. Simpler Finance, Budgeting & Getting Your Cash Flowing are online modules that can be accessed free of charge at www.sportenglandclubleaders.com.

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Example trading accounts – club x income

expenditure Base

Year 1

Year 2

Year 3

Year 4

Year 5

Income (1)

Base

Year 1

Year 2

Year 3

Year 4

Year 5

Staff Costs

Pitch hires

55,000

69,984

87,480

89,667

91,909

94,206

Staff costs

75,388

77,273

79,204

81,185

83,214

Net gate receipts

53,119

74,367

85,522

87,660

89,851

92,097

Player costs

109,005

80,000

82,000

84,050

86,151

88,305

Prize money

9,300

Referees expenses

6,870

7,042

7,218

7,398

7,583

7,773

Raffle

258

Total staff costs

115,875

162,430

166,490

170,653

174,919

179,292

Net Lottery income

651

911

934

958

981

1,006

Supplies

Net programme sales

6,907

9,670

9,912

10,159

10,413

10,674

General repairs

4,325

7,500

7,688

7,880

8,077

8,279

Programme advertising

2,380

3,332

3,415

3,501

3,588

3,678

Rates

1,588

3,000

3,075

3,152

3,231

3,311

Sportsman’s/Auction income

-1,097

1,000

Electricity

5,224

9,500

9,975

10,474

10,997

11,547

Sponsorship & advertising

40,195

52,254

Gas

3,000

3,150

3,308

3,473

3,647

Bar rent

766

Water supplies

2,000

2,050

2,101

2,154

2,208

Interest received

Grounds maintenance

4,204

12,000

12,300

12,608

12,923

13,246

Other income

14,778

Cleaning supplies

1,250

1,281

1,313

1,346

1,380

Total Income

127,354

227,361

256,360

261,042

265,840

270,759

Refuse collection

695

900

923

946

969

993

Total Supplies

16,036

39,150

40,441

41,780

43,169

44,610

Income (2): bar trading Bar and catering income

32,314

184,403

206,098

216,945

222,369

227,928

Services

Tea bar income

3,012

4,518

4,631

4,747

4,865

4,987

Equipment - new

3,000

3,075

3,152

3,231

3,311

Vending

5,000

5,125

5,253

5,384

5,519

Service contracts

4,000

4,100

4,203

4,308

4,415

Burger bar income

5,176

7,764

7,958

8,157

8,361

8,570

First aid equipment

500

513

525

538

552

Less cost of sales:

Clothing and uniforms

300

308

315

323

331

Less match day entertainment

1,584

2,376

2,435

2,496

2,559

2,623

Printing and stationery

3,339

5,000

5,125

5,253

5,384

5,519

Less stolen stock

2,500

1,000

Programme costs

10,820

12,443

12,754

13,073

13,400

13,735

Opening stock

4,824

6,000

6,150

6,304

6,461

6,623

Holding company charges

1,602

Purchases

22,682

90,758

100,715

105,796

108,441

111,152

Legal & professional fees

2,363

3,500

3,588

3,677

3,769

3,863

Closing stock

6,000

6,150

6,304

6,461

6,623

Bank charges

1,306

3,000

3,075

3,152

3,231

3,311

Commission on bar sales

1,357

9,220

10,305

10,847

11,118

11,396

Postage

Bar and catering profit

7,555

86,331

97,056

102,355

104,939

107,587

Telephones

483

750

769

788

808

828

Insurance

1,522

9,500

9,738

9,981

10,230

10,486

Marketing

5,000

5,125

5,253

5,384

5,519

Licences

1,500

1,538

1,576

1,615

1,656

Sundry expenses

1,570

2,500

2,563

2,627

2,692

2,760

Cash collection

3,500

3,588

3,677

3,769

3,863

Football Association fees

4,070

4,500

4,613

4,728

4,846

4,967

Travel costs

2,577

2,750

2,819

2,889

2,961

3,035

Kit washing

2,812

500

513

525

538

552

Depreciation

2,346

50,000

Other

Total services

34,810

112,243

113,799

115,394

117,029

118,705

Total Expenditure

166,721

313,823

320,731

327,827

335,117

342,607

Surplus/(deficit)

(-31,812)

(-131)

32,686

35,570

35,662

35,739

Preparing a budget and knowing your income and expenditure is essential. Equally important is understanding how this translates into practice and what your cash flow is actually going to be.

Budweiser Club Futures

Running A Sustainable Club

Budweiser Club Futures

effective facility management

Facilities management is the running and maintenance of all club facilities to ensure that they are continually ready for use, meet supporter/customer expectations, conform to health and safety requirements and are refurbished or developed when required. Maintenance Maintenance is an essential component of facility management and although it can be cheaper in the short term to be reactive to need it is more sustainable for your Club to take a planned approach to this. The club should have a comprehensive planned programme of preventative maintenance. This encompasses the regularly scheduled repairs and maintenance required to keep the various building/site components working effectively and to extend their useful life. This should include periodic inspections, repairs and general maintenance throughout the year. This will help ensure the prolonged life of the various building elements, ensure a safe and sanitary environment for players, supporters and customers whilst uncovering potential problems that may lead to expensive failures if left untreated.

Budweiser Club Futures

Periodic maintenance should include: • Cleaning (after-match use as a minimum) of all areas, both internally and externally • Removal of any debris or materials/ equipment within inappropriate areas • Regular inspection and cleaning of all drains and gutters • Annual inspection and regular painting/ treatment of all timber components • Annual inspection and regular painting/ treatment of all steel components • Annual inspection and servicing of all mechanical and electrical systems. Including boilers, electrical systems, ventilation and heating units etc • Annual inspection and cleaning of all roof areas • Replacement of any damaged or defective brick or blocks • Replacement of any damaged or defective glazing • Replacement of any damaged or defective floor or wall tiles • Replacement of any damaged or defective seats • Replacement of any damaged or defective fencing • Decoration where required • Removal of vegetation or weeds etc.

Running A Sustainable Club

Raising funds from your facilities Well managed and maintained facilities can also be a valuable asset for your club and enable you to raise much needed funds. Your club will need to demonstrate high levels of enterprise to maximise the potential income generation of your facilities and an open mind to potential usage will aid this. The first step is to identify what ‘assets’ your club currently has that would be worthwhile to others. Take into account the various populations evident in your local community and the interests they have. Potential community usage of your facilities could include: • Meeting rooms for local businesses • Function rooms for social events • Venue for weekly community events • Facilities useable by other sports/clubs • Storage space for equipment or supplies • Use of car parks for car boot sales, motorcycle or car driving instruction. Community use of your facilities has many related benefits on top of the obvious generation of increased income. This includes increased promotion of the club and its activities, it being (or becoming) central to local community activity and greater community support for potential future planning applications. It is important to ensure there is a planned approach to the marketing and usage of these facilities and to check that they are being appropriately (competitively) priced and that bookings are appropriately and professionally managed.

Facility development By showing interest in the Budweiser Club Futures programme your Club has already demonstrated a desire to develop its current facilities. The ‘Business planning for your Club’ section of this guide will help you if you are looking to secure external investment for your project. However, it is also important to develop a specific project plan for the development you require. The successful delivery of a facilities project relies on a good project brief with clear aims and objectives from the outset. There are several distinct phases to the project life-cycle, some of which require professional input. Key areas should be discussed by the club in order to facilitate the optimal delivery of their facilities in line with the organisation’s requirements and budget. There are eight stages to a typical facility development project: Stage One: Project Inception This considers the club’s organisation, strategic need and justification, appointment of a project team, scoping project requirements and project programme.

Stage Two: Feasibility Study This looks at technical issues, outline plans, planning considerations and budget costings. Stage Three: Outline Proposal At this stage the club can review schematic layouts and proposals for their project based on the development of earlier stages. Decisions as to building configuration and operational flow of the building also need to be made. Also orientations to optimise access to pitches and to accommodate spatial requirements such as car parking are to be evaluated. Stage Four: Scheme Design This stage ascertains the final appearance of the building for planning purposes. Stage Five: Procurement This stage can be the most contentious. Choosing the correct procurement route is vital in ensuring successful project delivery at the requisite level of quality. Stage Six: Construction phase. During this stage the project team, architect and quantity surveyor will take control of construction. Regular meetings should be held to discuss progress throughout the contract and to deal with any issues that may arise that require club comment, decisions or input.

Running A Sustainable Club

Stage Seven: Completion This is the point of the project at which the facility is handed over to the client. Stage Eight: Maintenance and Management This is an important phase of the project life-cycle as it helps to retain the quality of the building. In the earlier design stages decisions are taken as to internal finishes, which have a bearing on the ease of maintenance and may well reduce refurbishment costs. The Generic Process for Facility Development guidance (available from the FA website - http://www.thefa.com/ GetIntoFootball/parentsandvolunteers/ Runningaclub/yourfacilities/ DevelopingFacilities) has been prepared to help clubs to understand the processes and requirements for procuring quality provision for sports facilities. It highlights various stages of the process and the key stakeholders involved. Assistance is available from both The FA and the Football Foundation throughout the development stages of your project. These are referred to within the various stages of the above mentioned guidance. Effective Facilities Management and Managing Capital Projects are online modules created by PwC to support clubs running their facilities; these can be accessed at www.sportenglandclubleaders.com.

Budweiser Club Futures

environmental sustainability

Prioritise action: based on your identified high costs, take action to reduce these. Some may be quick fixes (e.g. install energy saving light bulbs) but it might be more financially viable to look into more long term solutions (e.g. sensor activated lighting)

Budweiser Club Futures

Running A Sustainable Club

Just as effective financial and facility management can have numerous benefits for your club, so too can being mindful and aware of key environmental issues. Not only do you have a responsibility to do all you can to ensure that the club protects its environment but by doing so, running costs can be reduced and environmental sustainability increased. A key part of this is looking into your energy and water consumption and ways to reduce this. Research has shown that up to 20% of a Club’s annual energy costs are wasted as a result of energy inefficiency. The following four step process could help your Club counter this: • Understand your usage: check your bills and compare with last year’s costs • Identify areas for improvement: work out what your main costs or overheads are. • Prioritise action: based on your identified high costs, take action to reduce these. Some may be quick fixes (e.g. install energy saving light bulbs) but it might be more financially viable to look into more long term solutions (e.g. sensor activated lighting) • Make changes and continue to monitor: once you have made the changes identified it is important that you continue to monitor ongoing costs. This includes ensuring that your club is getting the best deal. As an example, online energy comparison websites can help you do this.

As part of this process, the following could be possible actions that your Club could take to reduce your energy consumption: • Read meters regularly. This helps you to keep an eye on consumption, but also means that bills are based on actual use – not estimates. Always submit a true reading just prior to price rises so that you do not receive an estimated proportion of your bill at the new higher price. • Set heating control thermostats to 1ºC cooler. The difference is imperceptible and the savings can be significant. • Install draught proofing by sealing around windows, doors and floors. • Double glaze windows and dress windows with curtains/blinds to keep heat in. • Insulate roofs and walls. Modern solutions allow this to be done both outside and inside. • Turn lights off when not in use. Consider presence sensors in areas like changing rooms to turn lights on and off automatically depending on use. • Make sure all equipment is turned off when not in use. Remove battery chargers for portable equipment such as power tools. Don’t leave televisions on standby even if they are out of reach!

• Check that appliances are functioning properly: older fridges and freezers can consume more electricity than normal when temperature controls fail. • Use energy efficient lighting and consider day lighting technology such as solar tubes and skylights which are more efficient than windows in lighting spaces. • Consider the design of beer cooling in the bar – work out where exhaust heat goes and how this affects beer temperature. Make sure that cellars are insulated and use modern, efficient technology. Don’t leave ice machines on in the bar when not in use. In a similar vein, the following actions could be implemented at your Club to reduce your water consumption: • Know where the water meter and the main stop valve are. knowing how to turn the water supply off in an emergency is essential in the event of major leaks due to frozen pipes for example • Stop drips and repair leaks: although it may appear that only small amounts of water are being wasted – leaks are continuous 24 hours a day and the water wasted can soon add up

Running A Sustainable Club

• Don’t waste water in shower: warm showers are, of course, an essential part of any game but can be the largest use of water in a club. You can save water in showers by using water saving shower heads that reduce flow without noticeably reducing shower quality. Or use selfclosing shower valves (push-button type) to ensure water is not wasted in showers left on. • Reduce tap flow: fit self-closing taps (where you push the tap down to get flow) – this stops taps being left on accidentally (or deliberately). • Lag pipes or drain your water system to avoid leaks: make sure pipework is insulated with lagging to prevent it freezing, particularly where pipes run through unheated rooms and loft space.

Budweiser Club Futures

responsible management

As part of the management of your Club it is important to ensure the safety of members and supporters. Attending a match or experience at the club should be enjoyable for everyone and there are many programmes in place that can be used to promote safe and responsible behaviours.

Budweiser Club Futures

Running A Sustainable Club

Budweiser Designated Driver Designated Driver aims to increase awareness of the role of the designated driver when groups of people are ‘on a night out’. The objective is to reduce the number of people driving while under the influence of alcohol and indirectly, the number of casualties that occur as a result of drunk drivers. It can be promoted through TV and radio advertising, perimeter board advertising and on posters in bar. You may want to consider offering complimentary soft drinks to those visitors who choose to act as a designated driver. Numbers of local taxi firms should also be visible to customers visiting the bar area who may wish to leave their car at the ground.

Family Talk Recognising that parents and guardians have the greatest influence on their children’s decisions about drinking, AB InBev, Budweiser’s parent company, developed Family Talk. Family Talk encourages open, honest communication between parents and children. It is promoted via Facebook, posters, flyers and work with Mumsnet. Facebook provides an interactive method of communicating helpful resources and tips to its visitors that can easily be shared with their friends and families. More information including videos and leaflets on Family Talk can be found to download at www.facebook.com/familytalkuk

Budweiser Good Sport Good Sport looks to train event/venue staff and to reinforce a positive message of alcohol and sports to spectators. This is achieved with responsibility messaging on perimeter boards and posters around the venues, sensible drinking guidelines displayed in areas where alcohol is served and venue staff trained in responsible service. Its key message is that being a fan means behaving and drinking responsibly. More information on how to promote Responsible Drinking effectively at your venue can be found at www.beerandpub.com/hot-topics/ corporate-social-responsibility

Running A Sustainable Club

Budweiser Club Futures

2012-13 Club Futures Winners

contact details

Overall Winner Blyth Town FC (North East & Yorkshire)

Senior Manager Peter Kay Peter.Kay@TheFA.com

Regional Winners North West: AFC Blackpool North East & Yorkshire: Blyth Town FC East: Evergreen FC London: Raynes Park Vale East Midlands: Bardon Hill FC West Midlands: Pegasus Juniors FC South East: South Park FC South West: Camelford FC

National Manager Mark Pover Mark.Pover@TheFA.com Project Officer Andrew King Andrew.King@TheFA.com

Regional Managers North West Eamonn Farrell Eamonn.Farrell@TheFA.com 07904 266696 North East & Yorkshire Mark Coulson Mark.Coulson@TheFA.com 07904 166858 West Midlands Hannah Buckley Hannah.Buckley@TheFA.com 07960 148340

East Mark Liddiard Mark.Liddiard@TheFA.com 07984 003466 London Dylan Evans Dylan.Evans@TheFA.com 07903 248817 South East Stuart Lamb Stuart.Lamb@TheFA.com 07932 391096 South West Simon Wood Simon.Wood@TheFA.com 07984 003460

East Midlands Matt Bartle Matt.Bartle@TheFA.com 07960 148357

Sport England Club Leaders supported by The FA and Pricewaterhouse Coopers www.sportenglandclubleaders.com

Budweiser Club Futures

Running A Sustainable Club

Budweiser Club Futures

The FA Wembley Stadium, Wembley, London HA9 0WS Postal Address: Wembley Stadium, PO Box 1966, London SW1P 9EQ

Telephone: 0844 980 8200 Email: FacilitiesInfo@TheFA.com Visit: TheFA.com/my-football