Peacehaven & Telscombe Community FC. Business Plan 2016/17

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1 Peacehaven & Telscombe Community FC Business Plan 2016/17

2 Disclaimer This business plan has been developed on the basis of open source information and material provided by the Interim Board of Peacehaven & Telscombe Community Football Club. Supporters Direct do not guarantee the accuracy and completeness of such information. Peacehaven & Telscombe Community Football Club accept responsibility for the reports contents and a sub-group of Board Members have reviewed it to ensure that every statement of fact and opinion in the document is fair, clear and not misleading. Peacehaven & Telscombe Community Football Club believe the information contained in this document is in accordance with the facts and the document makes no omission likely to affect the meaning of such information. The application of its terms to individual personal circumstances can vary. The forward-looking statements in this document are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. This document does not constitute, or form part of, any offer to sell or issue, or any solicitation of an offer to purchase or subscribe for, any shares or any other securities. In addition, it is not intended to form the basis of or act as an inducement to enter into any contract or investment activity and should not be considered as a recommendation by Peacehaven & Telscombe Community Football Club its respective directors or affiliates in relation to the Investment.

3 Executive Summary This business plan sets out the vision for a new sustainable future for Peacehaven & Telscombe Football Club. At the core of this vision is developing a new community football club that is at the heart of our communities. Key to long-term sustainability of Peacehaven & Telscombe Football Club is the creation of a community football hub at Peacehaven, this plan highlights how this this can be achieved through the creation of a community owned club. A fundamental aspect in developing a community owned club is the change of legal structure for the Football Club, this plan proposes that the Club should become a Community Benefit Society (CBS). This has a number of attractions, not least it will create a transparent and democratic structure that enables the community to become involved in the way that the Club is operated. In addition by virtue of being a CBS there are potential new funding opportunities. These include a cost effective way to raise money from individuals and organisations using community shares 1 as well as grant funding opportunities from public funding bodies and charitable funds. Running a sustainable community owned football club has many facets. There is, of course, the traditional football activities related with match days and training sessions. This is not just for the elite first team players but also the myriad of youth teams associated with the club. There is also utilising the Clubhouse to generate increased income and developing its use as a community venue. There is also developing the role that the football club plays within the wider community. This plan demonstrates how the Community Owned Football Club can be run on a financially viable basis, play an active part in local football development and contribute to the well-being of the local community. Those reading this plan have the opportunity to create a long-term sustainable future for Peacehaven & Telscombe Football Club. Establishing a community 1 More about community shares and their relevance to football clubs here -

4 owned football club will be a lasting legacy for future generations to enjoy and participate in. About Peacehaven & Telscombe Community Football Club Peacehaven and Telscombe Community Football Club is being created by merging three existing local football clubs, (Peacehaven & Telscombe FC, Peacehaven United, and Peacehaven Youth), with the aim of establishing a club that works for the benefit of our community. By pooling our knowledge, experience, volunteers and enthusiasm, we believe we can provide football for all for many years to come. Whilst we intend this Club will be about much more than the First Team results, we ll always recognise the positive effects a successful team can have on the community and inspire young players. Peacehaven & Telscombe FC has been an integral part of the local community since The club won the Sussex County premiership a record eight times and recently experienced unprecedented glory when it achieved promotion to the Ryman League South Division in 2012/13. The following season the club won promotion to the Ryman League Premier Division plus were crowned Sussex Senior Cup winners. The club was relegated from the Ryman Premier Division in 2014/15 and from the Ryman League South Division in 2015/16. The club s success resulted in the need to upgrade the ground to meet league standards. This and investment in the first team squad has contributed to the club now being in debt. Peacehaven United was formed 28 years ago and started out in the Brighton Football League. Under Mark Shutt the club has experienced its most successful period which cumulated in it being crowned Mid Sussex Premier League champions last season. Ex professional players to have worn the United shirt are include Izzy Iriekpen, Clement James and Glenn Burvill. Peacehaven & Telscombe Youth currently operate 14 teams in age groups from under 7s to under 16s. They organise weekly FA qualified coaching sessions for over 300 children who all compete in the Sussex Sunday League. Last season all but one Meridian Athletic team joined the club so their young players could take advantage of the club s resources and facilities. Professional players who started their football with Peacehaven Youth

5 include: Matthew Wiltshire, Mike Ring, Paul Ifill, Darren Webb, Connor Tighe, Cameron Wiltshire and Kerry Mayo. By combining these three existing local football clubs, we create one club community owned football club, Peacehaven & Telscombe Community FC. This new community sports club will work for the benefit of the communities and be an umbrella body for local junior and youth football by providing routes for young players to progress within football and develop their life skills. So many football clubs at all levels rely on a wealthy benefactor to ensure their viability, but when that goodwill ends clubs are in danger of plummeting faster than they rose. We want to join a growing group of clubs that believe there biggest strength is being united under the banner of community ownership, where one member has one vote, and each person has an equal say in the running of their club. For community ownership to work, Peacehaven and Telscombe Community Football Club has to be run sustainably, and not be dependent on individuals to subsidise it. That s not to say we don t want a winning club, but we want it to be a sustainable winning club!

6 A New Community Model for Peacehaven & Telscombe FC Currently the club (Peacheaven & Telscombe FC) is unincorporated with no open membership. This means that with no separate legal existence contracts must be entered into by individual committee members which can put them at risk. It also means that with no open membership it s difficult to achieve the same level of buy-in from the community. To help address these points we have set up a Community Benefit Society (CBS) Peacehaven & Telscombe Community Football Club registered under the Co-operative and Community Benefit Societies Act 2014 in preparation for this share offer. If we can generate enough financial support for the club to become a CBS, we will have a more suitable legal and governance structure to build a club for the future. To achieve this outcome we are planning a community share offer when we hit the target of the share offer we will open up an affordable annual membership to the community, but we need to reach our community shares target first otherwise we can t move forward. As a CBS, operates on the basis of one-member one-vote, providing a vehicle for the democratic community ownership of Peacehaven and Telscombe FC. The rules of the CBS provide an asset lock that effectively prevents the disposal of Peacehaven & Telscombe Community Football Club s assets, including the football club, for private benefit. We are fortunate to own our clubhouse and stands. The Council own the pitch and we have 15 years remaining on the lease. There are positive, ongoing, discussions with the council with a view to extending the lease to 92 year.

7 A Community Owned Club The Concept of a Community owned Club Peacehaven & Telscombe FC believes that the best way for the club to have a secure and sustainable future within our communities, is by adopting a strong community-led business model which is supported by and working in partnership with: local youth and junior football teams, the local business community, local charities, local authorities, and Local community and health & well-being organisations. What is a Community owned Football Club? Football clubs are community assets. They can be held by the community for the benefit of all, but this requires an imaginative and inclusive approach from the clubs. When clubs were first established it was for a common cause and this must become the driving incentive again. The cash crisis in football means that a new settlement is necessary one that confers rights and responsibilities on all the participants in a club. 2 A football club can and should be a key component of any local community 3. A Community Football Club s appeal should be broad, open and inclusive, and not confined to football supporters. Well maintained football club facilities can be used for a wide range of community events and activities, for all ages and diverse interests, becoming an important resource in attracting new fans, as well as a valuable income stream. 2 Peter Hunt, extract from Back Home - Returning Football Clubs to their Communities, Chapter 3 Back to the Future Football and Communities Published 2003 Mutuo. 3 More about a club and its social value here -

8 A community football club helps to bring the community together and, through mutually beneficial links with local businesses, be an important part of the economic structure of the local area. The people of the community should have pride in the club as a responsible representative of the region, regardless of whether or not they attend the games on match days, and they should genuinely wish to see their club succeed and flourish. Supporters of football clubs, especially young fans, love to meet and chat with their own players. There has to be, within any Community Club, a measure of player involvement in local community activities. The future adult supporters of Peacehaven & Telscombe FC are currently the youth of the area and the club must focus on reaching out to youngsters of all ages, to encourage involvement in the game and develop a passion for the Club. We will integrate junior and youth teams into the club and provide opportunities to develop their football and live skills. We will provide opportunities for young players to represent the Club in the first team and will hope that for some this will be a step to developing a professional footballing career. Benefits of Community Ownership A community ownership model has a range of unique features making it an ideal form for community-owned football clubs, including: Community investment: allows members to invest in the Club and build up its capital in a way that s fair to both the Club and the members. Democratic ownership: one-member-one-vote at AGMs, ensures everyone has a fair say in electing directors, and being involved in the big decisions that will have an influence on the long-term success of the Club. Asset protection: legal provision that prevents the Club being sold for private gain and removes speculative financial interest. Community objectives: protected and stated in the articles or rules of the Club. Limited liability: collective ownership of assets and liabilities, protecting the Club, its members and Directors.

9 The main benefits of community ownership 4 are: a) Financially sustainable, giving real security for the long term future of the Club. b) Stated community aims, meaning the Club would work more closely and in partnership with the local community. c) Access to community grants, giving a potential source of funding for one off schemes. d) Likely increase in volunteers, reducing ongoing costs and increasing community involvement. e) Increased attendance, resulting from increased community buy in. f) Increased transparency, no hidden agendas or personal gain involved. g) Attractive to sponsors, with increased prestige from involvement in a real community club. A community club has clearly stated community aims and has the local community at the heart of its endeavors. There is complete transparency and no one person has a majority interest. The Club would run within the finances made available to it in the normal course of business, with the aim of; Providing a financially sustainable community club playing at the highest level that the local community is prepared to support. 4 You can read more about potential business advantages, including case studies here -

10 Developing our membership As a new community benefit society a key priority will be to build our membership. We see this is important for a number of reasons: we want the club to represent the community, the democratic nature of the new club, with the rule of each member having one vote, will be enhanced by increased membership, we want to ensure that the local community is fully engaged with the club, to achieve our aims we need to keep building our membership. As a new Community Benefit Society we currently have the few founding members. However, we anticipate that membership will grow rapidly in the coming to over 500, by the start of the 2016/17 season. We expect over 200 adult members, comprising supporters, coaches and players, and over 300 junior members. All members will need to pay an annual membership fee, unless they have been granted life membership by investing 1,000 or more in the Community Share offer. An annual membership fee will be payable. This will be set at a low level to encourage a large, diverse membership. People who purchase community shares as part of this offer will pay 1 for the first year s membership only (taken from their investment). This 1 of the initial membership fee is applied to purchase an ordinary voting share in the Club For people joining after the community share offer, they will pay the annual membership fee of 10 for adults and 5 for under 16 year olds. Again 1 will be applied to purchase an ordinary voting share in the Club. The full rights, role and responsibilities of members are set out in the rules of the CBS which are available at Those who invest 1,000 or more in the Community Share Offer will become life members of the CBS and will not be required to pay an annual

11 membership fee, and those that invest between 100 and 999 during the offer period will have their first years annual membership included. Engaging with the community On average we currently rent to the club house on to the wider community twice a month. We feel there is significant potential for far more regular use of this facility and will be engaging with community groups to promote our facilities and identify what they would need tor the clubhouse ti be their venue of choice. As a club we will continue to hold functions at the clubhouse and aim to increase attendance through promoting these more widely within the wider community. We will also seek to utilise the pitch to generate further income. It is currently hired out for around ten local cup finals. We hope that use can be extended to use for semi-finals. The income from pitch hire for these events is moderate, but the use of the clubhouse bar and catering facility provides scope to increase our income. Our Plans for the future Our first priority has been to gain a full understanding of the financial position of Peacehaven & Telscombe FC. The financial analysis has sought to identify the existing debt within the club and we have been having positive discussions with creditors to establish their stance the monies owed to them. This has been a key to determinining if the new Community football club could raise the funds required to settle historic liabilities. Having established the current financial position we have been able to start planning for the future. Step 1 Build a Community Club 1. Community Share Offer Our immediate priority is to raise the funds required to settle existing liabilities and create a small amount of working capital, we will do this through a community share offer with a target of raising 35k. We have calculated that the minimum we need to raise is 30,000 that would settle the debts but leave us short on working capital. 2. Create a Community Football Club

12 Establish the new community football club, Peacehaven & Telscombe Community FC as a Community Benefit Society and complete the registration with the football authorities. 3. Engage with the local community We want to develop the new Community Football club as an integral part of our communities. We will be providing a facility for young people to develop football skills, but also develop life skills and an understanding of the need to develop community values. Our clubhouse is an asset that should be accessible to local groups and societies and we will seek ways to develop wider community use. Step 2 Build a sustainable Club 1. Develop income streams For the new community club to be sustainable it needs to develop income streams. As a CBS we will be eligible to apply for grant funding that is not accessible to the existing Club. But we cannot rely on this, we also need to develop our sponsorship income through wider engagement with local businesses and enhance our clubhouse bar and catering revenue through wider use of our facilities. 2. Developing local football Our aim is to create a club where young people of all abilities can enjoy playing football. Some will have aspirations to develop their skills and play football in our first team and we must ensure that there is a viable route to realise their ambition. To be sustainable we will need to utilize the talent that comes through our network of junior and youth teams. 3. Developing our membership Having established the new Community Club we will develop membership with the local community. This will include our existing supporters, but also reach out to the wider community. We know that, for various reasons, there will be people in the community who do not attend matches, but we want to provide them with the opportunity to be part of a new community club that is seeking to add social value to our communities.

13 Financial History As part of the due diligence process prior to this community share offer, Supporters Direct reported ( the SD report ) to the interim board members Peacehaven & Telscombe FC on the following. Assessment of indebtedness of the club and options to manage or discharge debt; Estimate of scale of investment required from community share issue; Action required to ensure club can be financially sustainable; Budgeting and cash flow management following transition to community ownership. In broad terms, the report concluded that, if the new Community Club could reach a satisfactory arrangement with PTFC s historical creditors and manage its annual budget as it has proposed, then it was capable of operating sustainably in future seasons. In producing its report Supporters Direct had access to PTFC s accounting records for the last two seasons and obtained representations from the Club Treasurer. It is understood that prior to the treasurer becoming involved in February 2015 the accounting records were in a very poor state and, for this reason, there is some uncertainty about certain matters, not least historical liabilities. The SD report estimated liabilities far in excess of PTFC s resources and recommended various strategies to manage and discharge these debts. Since the report these creditors have been approached and negotiations are continuing to settle their claims by a variety of means. As at the date of this report, PTFC s liabilities are estimated to be 55-60,000, comprising amounts owing to the club s bankers, former players, club committee members, trade creditors, HMRC (in respect of both PAYE and VAT) and amounts still owing in respect of the ground redevelopment

14 undertaken in Although the football season has ended the club continues to trade and it is hoped that these liabilities might continue to reduce slightly from cash generated from club activity between now and the date the CBS commences operations. Based on negotiations to date, it is hoped that liabilities will be discharged as follows. Convert to community shares 8,300 Repay from proceeds of community share offer 14,300 Settlement in respect of ground development costs 18,600 Installment payments * 16,500 57,700 * Monthly repayments already being made Negotiations are on-going and will need to be finalised before the share offer closes on 30 June. As explained elsewhere, it is hoped that the proceeds of the share offer can be applied to discharging some of these historical debts, to paying the professional fees associated with the share offer and to providing a small amount of working capital for the club. With regard to the ground development costs negotiations with the main contractor may include the option of allowing partial repossession of elements of the stand and seating installed in Instalment payments will have to be met from cash flow generated from operations, as reported elsewhere, and are likely to need to be phased over a period of more than one year. The budget prepared for the new Community Football Club indicates a surplus can be generated.

15 The new club expects to participate in the Southern Combination Football League next season but must apply to transfer membership of the league from the existing club. The Leagues rules set out the criteria for approving a transfer of membership, to include evidence that all of the former club s creditors have either been paid or transferred to the new club. It is for this reason that the exercise to agree terms with historical creditors of Peacehaven & Telscombe FC has been necessary. Because of the unsatisfactory state of the club s historical accounting records it has not been possible for Supporters Direct to report with absolute certainty that all creditors have been identified. For this reason, the interim board of the Community Football Club is minded to provide an indemnity in favour of the former club in respect of any further claims against the former club, in the event that those claims can be proven. The new club will seek to build up a small cash surplus from both the share issue and trading operations to provide for any such claims. Financial Projections In developing a sustainable community football it is essential that we do not spend beyond our means. For this reason we have reviewed all that areas of expenditure to see if savings can be made and identified areas where further income could be generated. For the 2016/17 we are projecting a net surplus from trading of 13,090. In broad terms this surplus will be available to meet obligations to discharge historical liabilities but the club will wish to retain some working capital to fund

16 ongoing operations. These projections are based on historical information and we consider them conservative.. Adopting a sound financial strategy we will constantly review income and expenditure to ensure that in year performance is in line with our projections. Peacehaven & Telscombe Community Football Club Budget Proposals 2016/17 Income: Season Ticket Sales 800 Gate Receipts 5,640 Programme Sales 100 Bar & Kitchen Receipts 50,400 Sponsorship 3,000 Ball Sponsor 600 Social Nights 2,750 Club Draw 250 Room Hire 2,400 Academy 3,800 Phone Mast rental 1,500 71,240 Expenditure: Players Travel Expenses 5,200 Insurance 2,000 Licences & Registration 2,400 Kit 1,200 Food 7,200 Drink 16,800 Cleaning 1,080 Printing 500 Repairs 4,800 Heat & Light 3,150 Rates 8,900

17 Telephone 720 Website 300 Sundry 2,400 Bank Charges 1,500 58,150 Projected Surplus Available to Settle Old Liabilities 13,090 How will the money raised by Community Shares be used? We know that many clubs at our level live on a hand to mouth existence; which makes planning for the future extremely difficult. We want to give the new model of ownership the right platform to start from and have the resources to be able to plan effectively. That s why we have targeted raising 35,000 from the community share offer. Initially the money raised will help us improve operating cash flow and restructure debt. The money will also provide us with resource to start planning for the future. We have been very thorough working with the current committee to understand the financial position of the club and to satisfy liabilities so that we know what could come our way. We are also very fortunate in being able to call on the support of two chartered accountants within the steering committee. Despite that, and having what we believe to be a very realistic budget for season 2016/17, as we all know in football there can be costs or a lack of revenue that can be very hard to predict. Reaching our 35,000 target allows us to pay off the immediate club threatening debt and negotiate better repayment terms for the historical liabilities. We can then move forward with a fresh start, with adequate working capital, not hampered by historical debts. We have set the maximum to be raised by the share offer at 65,000, if we were to achieve that target we would be able to clear all historic debts now, thereby improving our operating cash flow. We will be committed to sound financial management and as a community owned club, any surplus will be reinvested back into the club.

18 How are we going to achieve this? Ensuring community ownership and the merging of PTFC, PTFC Youth and Peacehaven United FC Our long term vision will set targets for a First XI squad of players who have come through the club s youth structure. In the short term we want quality local players who can compete at County level while we rebuild the club. We have already appointed and under 18s manager and the senior team will compete in the Southern Combination Premier League with the reserves competing in the Mid Sussex Premier League. Engaging local people to develop a loyal fan base and sustainable future income. Football is nothing without its supporters. Community Ownership means supporters have the opportunity to create a better match day experience whilst also benefiting from the skills and capabilities within its supporter base. We want to reach out and show how we are a friendly and welcoming neighbour, and grow our membership and number of volunteers. Engaging local businesses, charities and government Build on the existing commercial performance to expand new sponsorship and advertising propositions and introduce a broad spectrum of new businesses to PTFC. We also want to actively promote the health benefits of football to the local communities, and believe we will have a better chance of securing other partnership funding for projects under the CBS model.

19 Governance The Interim Board Members of the proposed new community football club, Peacehaven and Telscombe Community Football Club are all local people committed to developing a football club at the heart of the local communities. Jez Avens Jez is deputy Managing Director for Richer Sounds PLC, which is the largest independent Hi-Fi and TV retailer in the country. He is currently the chairman of Peacehaven Youth and has been a coach/manager with them for over 10 years. There are currently over 300 young people learning not just with their football skills but more importantly learning valuable life skills through playing football. Clive Blunt Clive owns a small local building company and been involved with Peacehaven & Telscombe Football Club since the age of 16 playing for under 18s, reserves and on a rare occasion appearing on the first team bench. He also played for Peacehaven United for seven years and captained them to the Sussex Junior Cup Final. He has been a coach at Peacehaven Youth for over 11 years and currently manages two Peacehaven youth teams consisting of more than 25 boys. Mike Bradbury Mike owns a local Teaching Supply Agency, Sussex Teachers, they have been trading successfully since He has worked in this area of business for the past 16 years previously working for an international FTSE 100 Recruitment company. Mike is a PTFC season ticket holder and current coach of an under 7s and under 11s team for Peacehaven Youth. He dedicates has weekends teaching over 40 children how to play football. Ian Brown Ian is a chartered accountant with nearly 18 years experience spread across roles in practice and industry in a variety of sectors including a professional football club. He started out as a manager and Treasurer of Meridian Athletic 5 years ago and came across last year to give his team access to the better facilities and prospects Peacehaven Youth offers.

20 Steve Davies Steve runs a small manufacturing company in Newhaven manufacturing bespoke weighing systems and a service and calibration service company based around Surrey. He was chairman of Telscombe based Meridian Athletic for 3 years and has coached junior and youth teams since Currently Steve sits as Vice chair of Peacehaven Youth and is a regular supporter at Peacehaven and Telscombe FC. Steve has a passion for youth 'football for all' and footballing opportunities after youth football. Dan Norwood Dan works in Customer Service for a large utility company. He has been involved with local football since the age of seven, first with Peacehaven Youth and later Peacehaven Reserves. He has been a passionate supporter of Peacehaven & Telscombe FC for many years. He is now Assistant Manager and goalkeeping coach for Peacehaven United. Sue Norwood Sue is employed full time by a large utilities company where she is a Functional Business Architect, with responsibilities to review and sign off technical system documentation. She has been involved with Peacehaven & Telscombe Football Club for 35 years; she has been secretary of the club, a committee member, volunteer working in the kitchen and bar, treasurer of the youth section and more recently. She is currently the acting chair of the Club. Sue is passionate about ensuring that Peacehaven & Telscombe Football Club develops a sustainable future. Phil Merry Phil runs his own media marketing business, Focus Media and previously worked for the Brighton Argus, the Daily Mail and The Mail on Sunday. He has lived in Peacehaven since 1983 and as a young footballer played for Luton Town and Bedford Town. He also I played as a full-time professional footballer in the Hong Kong First Division. Phil edits and produces content for the club s website under the pseudonym of Pitchside View. He contribute a monthly column on behalf of the club for The Peacehaven Directory and is manages media relations for the club. Dan Palmer Dan is the Club s social media correspondent, running the club's official Twitter and Facebook accounts and ensuring that Peacehaven & Telscombe fans can stay in touch, wherever they are in the world. He is also the chairman of the 1923 Supporters Club which was founded in 2015 to help the club raise funds for the club. Mark Shutt

21 Mark is the Head Coach of football at the University of Brighton, Eastbourne Campus. He first played for Peacehaven Youth and later went on to play for Peacehaven United, where he is currently player/manager. Phil Woodgate Phil is a chartered accountant and runs his own accountancy practice in Peacehaven - Woodgate Accounting Services. He did his training with Grant Thornton and then spent 15 years working in industry ending up as Finance Director of an award winning, multi-million pound turnover business. He is currently the treasurer of Peacehaven Youth.