THE BLACKPOOL FOOTBALL CLUB LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Company Registration No. 00048409 (England and Wales)
THE BLACKPOOL FOOTBALL CLUB LIMITED
COMPANY INFORMATION
Directors
Mr B Gerrity
Mr S Sadler
Mr B Mansford
Company number
00048409
Registered office
Bloomfield Road
Seasiders Way
Blackpool
Lancashire
FY1 6JJ
Auditor
Champion Accountants LLP
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
THE BLACKPOOL FOOTBALL CLUB LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
THE BLACKPOOL FOOTBALL CLUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 1 -
The directors present the strategic report for the year ended 30 June 2022.
Fair review of the business
The principal activity of the Company is that of a professional football club. In the year under review the Club was in The Championship, the second tier of English professional football.
The Club participated in The Championship for the first season, after four years in League One. The Club had a successful year, retaining their Championship status by finishing 16th.
The Club was delighted to welcome supporters back to Bloomfield Road for the entirety of the season, after the impacts of COVID-19 prevented those from attending in our previous year.
Principal risks and uncertainties
The principal risk facing the Club continues to be its divisional status in the professional football pyramid due to the material effect a change in this has on all revenue streams. Furthermore, the Directors consider that any changes in regulations imposed by the football regulatory authorities could similarly impact on revenue streams.
The Group's board and senior management regularly meet to ensure risks are identified and appropriate action is taken.
Development and performance
The Directors are focused on progressing the Football Club. The strategy to achieve this objective includes the following key elements:
-
Identifying talented players through the Club’s scouting network and securing suitable players on contracts within financial parameters.
-
Developing young players through the Club's academy system.
-
Continuing to develop the Club as a long term community asset.
Key performance indicators
Season ticket sales are considered to be a key performance indicator. The numbers sold in the season under review were up in comparison to 20-21, due to the return of fans after COVID-19 guidelines ceased to be in effect. Due to the return of fans to football, the cessation of COVID-19 restrictions and promotion to The Championship, the turnover rose to £15.3m (£5.4m 20/21, £5.5m 19/20).
Mr B Mansford
Director
17 February 2023
THE BLACKPOOL FOOTBALL CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2022.
Principal activities
The principal activity of the company continued to be that of a professional football club.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B Gerrity
Mr S Sadler
Mr B Mansford
Auditor
The auditor, Champion Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr B Mansford
Director
17 February 2023
THE BLACKPOOL FOOTBALL CLUB LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE BLACKPOOL FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE BLACKPOOL FOOTBALL CLUB LIMITED
- 4 -
Opinion
We have audited the financial statements of The Blackpool Football Club Limited (the 'company') for the year ended 30 June 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 June 2022 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
THE BLACKPOOL FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE BLACKPOOL FOOTBALL CLUB LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and compliance with the Financial Fair Play regulations as set out by the English Football League (EFL).
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the company, together with discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
THE BLACKPOOL FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE BLACKPOOL FOOTBALL CLUB LIMITED
- 6 -
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to doubtful debt provisions and depreciation and amortisation methods.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key revenue lines, including cut-off, for evidence of management bias.
- Obtaining third-party confirmation of material bank balances.
- Documenting and verifying all significant related party balances and transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 this report, or for the opinions we have formed.
Mark Turner FCA
Senior Statutory Auditor
For and on behalf of Champion Accountants LLP
17 February 2023
Chartered Accountants
Statutory Auditor
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
THE BLACKPOOL FOOTBALL CLUB LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
15,290,369
5,412,064
Cost of sales
(1,080,346)
(393,436)
Gross profit
14,210,023
5,018,628
Administrative expenses
(15,940,885)
(10,749,217)
Other operating income
340,981
231,676
Operating loss
4
(1,389,881)
(5,498,913)
Interest payable and similar expenses
7
(2,648)
Profit/ loss on disposal of manager and player registrations
8
1,957,970
410,918
Profit/(loss) before taxation
568,089
(5,090,643)
Tax on profit/(loss)
9
284,122
255,803
Profit/(loss) for the financial year
852,211
(4,834,840)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE BLACKPOOL FOOTBALL CLUB LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
- 8 -
2022
2021
£
£
Profit/(loss) for the year
852,211
(4,834,840)
Other comprehensive income
-
-
Total comprehensive income for the year
852,211
(4,834,840)
THE BLACKPOOL FOOTBALL CLUB LIMITED
BALANCE SHEET
AS AT
30 JUNE 2022
30 June 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
10
1,553,598
765,808
Tangible assets
11
1,265,386
581,478
2,818,984
1,347,286
Current assets
Stocks
12
171,903
58,114
Debtors
13
5,344,760
3,001,951
Cash at bank and in hand
1,774,579
1,731,141
7,291,242
4,791,206
Creditors: amounts falling due within one year
14
(17,563,022)
(14,387,714)
Net current liabilities
(10,271,780)
(9,596,508)
Total assets less current liabilities
(7,452,796)
(8,249,222)
Creditors: amounts falling due after more than one year
15
(98,665)
(154,450)
Net liabilities
(7,551,461)
(8,403,672)
Capital and reserves
Called up share capital
19
37,500
37,500
Share premium account
1,860,174
1,860,174
Capital redemption reserve
2,335
2,335
Profit and loss reserves
(9,451,470)
(10,303,681)
Total equity
(7,551,461)
(8,403,672)
The financial statements were approved by the board of directors and authorised for issue on 17 February 2023 and are signed on its behalf by:
Mr B Mansford
Director
Company Registration No. 00048409
THE BLACKPOOL FOOTBALL CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 July 2020
37,500
1,860,174
2,335
(5,468,841)
(3,568,832)
Year ended 30 June 2021:
Loss and total comprehensive income for the year
-
-
-
(4,834,840)
(4,834,840)
Balance at 30 June 2021
37,500
1,860,174
2,335
(10,303,681)
(8,403,672)
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
-
852,211
852,211
Balance at 30 June 2022
37,500
1,860,174
2,335
(9,451,470)
(7,551,461)
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
- 11 -
1
Accounting policies
Company information
The Blackpool Football Club Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Bloomfield Road, Seasiders Way, Blackpool, Lancashire, FY1 6JJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Blackpool Football Club Holdings Ltd
. These consolidated financial statements are available from its registered office
,
3rd Floor 1 Ashley Road, Altrincham, Cheshire, WA14 2DT.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
Television and media income is recognised over the course of the season. Season ticket, gate receipt and match streaming income is recognised at the point the relevant match is played. Sponsorship income is recognised over the term of the contract. Catering, retail and merchandise sales are recognised at the point of sale.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets other than goodwill
Intangible assets represent guaranteed transfer fees and associated costs payable, in relation to the transfer of players' registrations. These amounts are amortised as follows:
Players' registrations
Over the remaining term of the contract
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
5% straight line
Plant and equipment
10% straight line
Fixtures and fittings
33% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 13 -
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 15 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Matchday
4,600,887
864,117
Football
8,546,113
2,845,391
Commercial
2,143,369
1,702,556
15,290,369
5,412,064
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
3
Turnover and other revenue
(Continued)
- 16 -
2022
2021
£
£
Turnover analysed by geographical market
UK
15,290,369
5,412,064
2022
2021
£
£
Other significant revenue
Grants received
231,676
4
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange gains
(2,128)
Government grants
(231,676)
Fees payable to the company's auditor for the audit of the company's financial statements
8,500
8,000
Depreciation of owned tangible fixed assets
175,336
114,767
(Profit)/loss on disposal of tangible fixed assets
5,551
Amortisation of intangible assets
797,213
568,138
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Footballers, coaches and managers
89
82
Administrative and other staff
40
25
Total
129
107
In addition, the company engaged on match days an average of 208 part-time temporary staff (2021- 58).
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
10,335,814
6,818,777
Social security costs
1,161,528
812,800
Pension costs
82,050
40,343
11,579,392
7,671,920
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 17 -
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
379,932
356,930
Company pension contributions to defined contribution schemes
10,263
33,200
390,195
390,130
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
364,932
341,930
Company pension contributions to defined contribution schemes
10,000
32,937
7
Interest payable and similar expenses
2022
2021
£
£
Interest on finance leases and hire purchase contracts
2,648
8
Other gains and losses
2022
2021
£
£
Profit/ loss on disposal of manager and player registrations
1,957,970
410,918
Profit/loss on
disposal of manager and player
registrations represents guaranteed transfer fees receivable, less the carrying value of those players at the date of disposal.
This figure also includes compensation receivable in respect of a former manager, and contingent transfer fees which have become receivable in respect of the transfer of players' registrations in previous periods.
9
Taxation
2022
2021
£
£
Current tax
Group tax relief
(284,122)
(255,803)
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
9
Taxation
(Continued)
- 18 -
The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit/(loss) before taxation
568,089
(5,090,643)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
107,937
(967,222)
Tax effect of expenses that are not deductible in determining taxable profit
9,860
Tax effect of income not taxable in determining taxable profit
(260,910)
Tax effect of utilisation of tax losses not previously recognised
(125,361)
Unutilised tax losses carried forward
794,742
Change in unrecognised deferred tax assets
(5,788)
Group relief
(93,183)
Taxation credit for the year
(284,122)
(255,803)
10
Intangible fixed assets
Players' registrations
£
Cost
At 1 July 2021
1,411,817
Additions
1,762,295
Disposals
(662,293)
At 30 June 2022
2,511,819
Amortisation and impairment
At 1 July 2021
646,009
Amortisation charged for the year
797,213
Disposals
(485,001)
At 30 June 2022
958,221
Carrying amount
At 30 June 2022
1,553,598
At 30 June 2021
765,808
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 19 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2021
152,026
1,162,735
267,026
13,500
1,595,287
Additions
747,497
89,930
21,817
859,244
At 30 June 2022
152,026
1,910,232
356,956
35,317
2,454,531
Depreciation and impairment
At 1 July 2021
7,996
786,035
217,809
1,969
1,013,809
Depreciation charged in the year
9,953
109,711
53,342
2,330
175,336
At 30 June 2022
17,949
895,746
271,151
4,299
1,189,145
Carrying amount
At 30 June 2022
134,077
1,014,486
85,805
31,018
1,265,386
At 30 June 2021
144,030
376,700
49,217
11,531
581,478
12
Stocks
2022
2021
£
£
Finished goods and goods for resale
171,903
58,114
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
926,195
783,363
Other debtors
3,625,007
1,812,280
Prepayments and accrued income
793,558
406,308
5,344,760
3,001,951
An impairment loss of £100,677 (2021: £26,950) was recognised against trade debtors.
An impairment loss of £243,250 (2021: £243,250) was recognised against other debtors.
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 20 -
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Other borrowings
16
60,800
60,800
Trade creditors
1,390,140
1,002,197
Amounts owed to group undertakings
12,345,409
9,444,951
Taxation and social security
911,523
992,537
Deferred income
17
2,462,621
2,118,167
Other creditors
34,422
35,161
Accruals and deferred income
358,107
733,901
17,563,022
14,387,714
15
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Other borrowings
16
61,200
122,000
Other creditors
32,450
Accruals and deferred income
37,465
98,665
154,450
16
Loans and overdrafts
2022
2021
£
£
Other loans
122,000
182,800
Payable within one year
60,800
60,800
Payable after one year
61,200
122,000
Other loans are interest free and secured upon future distributions from the English Football League (EFL). Full repayment of this loan is scheduled for 1 April 2024.
17
Deferred income
2022
2021
£
£
Other deferred income
2,462,621
2,118,167
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 21 -
18
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,585
40,343
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
37,500
37,500
37,500
37,500
20
Contingent transfer fees
Following the sale of certain players, additional transfer fees are expected to become receivable of £35,000 (2021: £208,333) at various stages in the future, contingent on the relevant players triggering certain appearance and performance based clauses.
Following the purchase of certain players, additional transfer fees are expected to become payable of £72,333 (2021: £40,000) at various stages in the future, contingent on the relevant players triggering certain appearance and performance based clauses.
21
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
10,236
17,166
Between two and five years
21,894
21,894
32,130
39,060
22
Related party transactions
2022
2021
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
12,345,409
9,059,954
Other related parties
-
392,997
THE BLACKPOOL FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
22
Related party transactions
(Continued)
- 22 -
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Other related parties
1,491,427
579,940
The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:
2022
2021
£
£
Other related parties
18,527
-
Other information
Balances due to and from related parties are unsecured, interest free and repayable on demand.
Blackpool F.C. Community Trust currently occupies offices within The Blackpool Football Club Limited's serviced accommodation rent free. A Deed of Assignment has been made between The Blackpool Football Club Limited and Blackpool F.C. Community Trust for the occupation of training offices in the stadium for a period of 25 years rent free.
Included within other debtors are amounts due from former related parties totalling £243,250 (2021: £243,250). The amount provided against these balances was £243,250 (2021: £243,250).
23
Ultimate controlling party
The parent company is Blackpool Football Club Holdings Ltd, registered office address: 3rd Floor 1 Ashley Road, Altrincham, Cheshire, WA14 2DT.
The ultimate parent company is Seaside Holdings Ltd, a company registered in the Cayman Islands. The registered office is The offices of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands.
The ultimate controlling party is Mr S P Sadler, shareholder of the ultimate parent company Seaside Holdings Ltd.
24
Football League Pension Costs
Certain ex-employees of the club are members of the closed Football League Limited Life Assurance Scheme, a defined benefit scheme. Due to the fact that the company is one of a number of participating employers in the scheme, it isn't possible to accurately identify a surplus or deficit. However, under Section 75 of the Pensions Act 1995, the company is liable to fund the deficit relating to the ex-employees who are members of the scheme.
The liability calculated by the trustees at 30 June 2022 and allocated to the company amounted to £37,465, and this amount has been accrued accordingly. The assets of the scheme are held separately from those of the company.
2022-06-30
2021-07-01
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