WBA Football Development Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Hawthorns, West Bromwich, United Kingdom, B71 4LF. The principal activity of the company is that of operating a professional football development centre.
At 30 June 2023, the company's ultimate parent company was Yunyi Guokai (Shanghai) Sports Development Limited, a company registered in China. On 28 February 2024 Bilkul Football WBA, LLC – a company ultimately owned by Shilen Patel and Dr Kiran C. Patel – acquired an 87.8% shareholding in West Bromwich Albion Group Limited. The highest company for which group financial statements as at 30 June 2023 have been prepared is West Bromwich Albion Group Limited, a company incorporated in England and Wales.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000.
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. The company has therefore taken advantage of exemptions from the following disclosure requirements:
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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of West Bromwich Albion Group Limited. These consolidated financial statements are available from its registered office The Hawthorns, West Bromwich, West Midlands, B71 4LF.
These financial statements are prepared on the going concern basis. The directors assess going concern on a group wide basis. The directors have a reasonable expectation that the West Bromwich Albion group of companies, including WBA Football Development Limited will continue to operate for the foreseeable future. This being at least 12 months from the approval of the financial statements.
Following a second season within the EFL Championship in season 22/23, and the resultant reduction in revenues as compared to the English Premier League over subsequent seasons, the Board have paid due consideration to the overall club strategy, playing squad, and operating and financing cash flows, including all significant revenue streams, the operating cost base of the club, player trading and sources of finance.
The group prepares detailed cash flow forecasts each financial year considering a range of reasonable foreseeable potential scenarios in relation to income and costs, and has done so until the conclusion of season 24/25 – to 30 June 2025.
In December 2022, the group secured a 4-year £20m loan from MSD Holding UK Limited, which was further extended by £8m in November 2023.
On 28 February 2024 Bilkul Football WBA, LLC – a company ultimately owned by Shilen Patel and Dr Kiran C. Patel – acquired an 87.8% shareholding in West Bromwich Albion Group Limited.
As part of the acquisition by Bilkul Football WBA, LLC, a funding agreement has been agreed with the club and EFL to 30 June 2025 which has also led to the liabilities associated with the (i) 2014 loan between West Bromwich Albion Football Club and West Bromwich Albion Holdings Limited and (ii) the March 2021 Wisdom Smart loans between Wisdom Smart Corporation Limited and West Bromwich Albion Group Limited being novated to Bilkul Football WBA, LLC. The Wisdom Smart loans have since been repaid to West Bromwich Albion Group Limited by Bilkul Football WBA, LLC.
The sufficiency of the funding agreement in relation to projected cash requirements, the MSD loan, the expiration of a number of players contracts along with cash injection following the change of majority shareholding lead the directors to believe that the group will be able to meet its liabilities for a period of at least 12 months from the date of signing the financial statements.
The club retains a level of flexibility in its playing squad options and the directors will balance the financial needs with a squad that has the ability to still strive for promotion.
Based on the above, the directors remain confident the group will generate sufficient resources to meet its liabilities as they fall due for a period of at least 12 months and the Board has therefore concluded that it is appropriate for the financial statements to be prepared on a going concern basis.
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.
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.
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, 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 payments 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. Amounts 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.
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.
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.
There are no key estimates or judgements.
The average monthly number of persons (including directors) employed by the company during the year was:
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
As the Director's report and profit and loss account has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
In December 2022, West Bromwich Albion Group Limited secured a £20m loan facility from MSD UK Holdings Limited, which has been fully drawn down. The loan is secured by a fixed and floating charge over all of the assets of West Bromwich Albion Group Limited, West Bromwich Albion Football Club Limited, WBA Football Development Limited and West Bromwich Albion Heritage Limited. The loan facility was extended by £8m in November 2023.
On 28 February 2024 Bilkul Football WBA, LLC – a company ultimately owned by Shilen Patel and Dr Kiran C. Patel – acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the immediate parent company of WBA Football Development Limited.
At 30 June 2023, the company's ultimate parent company was Yunyi Guokai (Shanghai) Sports Development Limited, a company registered in China, and the ultimate UK parent was West Bromwich Albion Holdings Limited. The company's immediate parent company is West Bromwich Albion Group Limited, a company incorporated in England and Wales, United Kingdom. It is anticipated that the highest company for which consolidated accounts will be published which include this company will be West Bromwich Albion Group Limited. These accounts can be obtained from Companies House, Cardiff.
The ultimate controlling party of Yunyi Guokai (Shanghai) Sports Development Limited is G Lai by virtue of control over various trusts in place.
On 28 February 2024 Bilkul Football WBA, LLC – a company ultimately owned by Shilen Patel and Dr Kiran C. Patel – acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the immediate parent company of WBA Football Development Limited.