REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MAY 2022 |
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BARNSLEY FOOTBALL CLUB LIMITED |
REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MAY 2022 |
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FOR |
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BARNSLEY FOOTBALL CLUB LIMITED |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2022 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Independent Auditors' Report | 7 |
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Income Statement | 11 |
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Other Comprehensive Income | 12 |
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Balance Sheet | 13 |
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Statement of Changes in Equity | 15 |
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Cash Flow Statement | 16 |
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Notes to the Cash Flow Statement | 17 |
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Notes to the Financial Statements | 19 |
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BARNSLEY FOOTBALL CLUB LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2022 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditor |
12 Victoria Road |
Barnsley |
South Yorkshire |
S70 2BB |
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BANKERS: |
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10 - 18 Queen Street |
Barnsley |
South Yorkshire |
S70 2AJ |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2022 |
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The directors present their strategic report for the year ended 31 May 2022. |
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REVIEW OF BUSINESS |
Sporting Results |
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The Club finished the 2021/2022 EFL Championship campaign in 24th place and were relegated to League One, having collected only 30 points from six wins and 12 draws all season. This is in stark contrast to the 2020/2021 season, when the Club collected 78 points and a playoff position. Such contrast over a short period highlights the fragility of fortunes within English football, and the snowball effect of one summer of poor decisions. |
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The Club lost in the EFL Cup first round tie against Bolton on penalties. In the FA Cup, the Club exited the competition in the fourth round against Huddersfield Town, following a third-round win against Barrow. |
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Academy |
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The Academy continues to provide pathways for our young players in to first team football. In the 2021/2022 season, five debutants made first team appearances via the Academy. A total of 107 appearances of Academy produced players resulted in 6,935 minutes in first team matches. |
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Financial Results |
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Turnover of £15.0m (2021 - £12.5m) represented a 20% increase from the previous year. The increase is primarily attributable to the Club achieving greater matchday income compared to the previous year which was severely impacted by the COVID-19 pandemic. |
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Total staff costs of £13.1m (2021 - £14.4m) represent 87% of turnover (2021 - 115%). The decrease in total staff costs are largely attributable to the reduction in performance related player bonuses, compared to the successful 2020/2021 season. |
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An exceptional cost of £3m has been recognised during the year. This relates to the settlement reached as disclosed in note 7 of the financial statements. |
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Overall, the Club has incurred a total loss for the year of £6.8m (2021 - £4.3m). |
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The Club has debts of £2.8m due to the EFL relating to loans taken to support the Club throughout the pandemic. The Club continues to service these debts with a full repayment due by the end of 2026/2027 season. |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2022 |
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Other Matters |
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On 12 May 2022, the Club issued a statement that the Board of Directors had been reconstituted, following a change in ownership at the parent company, BFC Investment Company Ltd. This related to the expiration of an Investment and Nominee agreement between Pacific Media Group and a group of private investors who owned 20% of the share capital. |
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This Board reconstitution saw Paul Conway, Chien Lee, Dickson Lee and Grace Hung being voted off the board by the majority shareholders, and the appointment of Jean Cryne and Julie Anne Quay, as Directors. |
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FUTURE OUTLOOK |
Post Year End |
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The financial statements illustrate that the Club continues to operate at a loss and negative cashflow. |
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In May and June 2022, the Club raised £1m of cash by way of an equity rights issue to existing shareholders, in order to allow the Club to continue to operate. Further equity raises totalling £5.6m have been carried out post year end. |
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Since the capital has been raised by way of equity, there will be no repayment due, and no additional debt on the balance sheet. |
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Future Developments |
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The existing lease with Oakwell Community Assets Ltd, of Oakwell stadium is due to expire in 2028. The Club continues to work positively and collaboratively with Barnsley Metropolitan Borough Council with the common goal of securing a new long-term lease at Oakwell. |
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The Club welcomes the recommendations of the Fan Led Review of Football Governance and is of the opinion that redistribution of finances throughout the pyramid, greater financial regulation, and the establishment of an independent regulator for football, will reduce dangerous financial exposure for EFL clubs, without damaging the Premier League or national game domestically or internationally. |
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The Board would like to take this opportunity to thank all supporters and partners for their support throughout the 2021/2022 season. It was not a season to look back on fondly from either a financial or sporting perspective. At the time of writing, the Club is occupying a play-off position with the hope of securing an immediate return to the Championship. |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2022 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the Club are: |
- The material impact on revenue dependent on divisional status. |
- Cash management within the constraints of available working capital. |
- A lack of influence on the principal revenue streams relating to central broadcasting contracts. |
- Increasing costs of energy, food, fuel and labour rates which negatively impact on the daily running costs of the Club. |
- Impairment of player registration values and onerous player contracts resulting from loss of form or long-term injury. |
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KEY PERFORMANCE INDICATORS |
The Board of Directors use a variety of financial and non-financial measures to monitor performance. Actual revenue, costs and cashflows are regularly monitored against detailed budgets and forecasts. |
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ON BEHALF OF THE BOARD: |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2022 |
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The directors present their report with the financial statements of the company for the year ended 31 May 2022. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a professional football club. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 May 2022. |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2021 to the date of this report. |
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Other changes in directors holding office are as follows: |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2022 |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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: |
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- | 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. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS |
The auditors, Gibson Booth Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
BARNSLEY FOOTBALL CLUB LIMITED |
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Opinion |
We have audited the financial statements of Barnsley Football Club Limited (the 'company') for the year ended 31 May 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 May 2022 and of its loss 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. |
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Basis for opinion |
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 Auditors' 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. |
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Material uncertainty 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. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
BARNSLEY FOOTBALL CLUB LIMITED |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Auditors' Report thereon. |
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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. |
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In connection with our audit of the financial statements, 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 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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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 identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
BARNSLEY FOOTBALL CLUB LIMITED |
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Auditors' 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 Auditors' 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We design audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Companies Act 2006. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
BARNSLEY FOOTBALL CLUB LIMITED |
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Use of our 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 Auditors' 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. |
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for and on behalf of
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Statutory Auditor |
12 Victoria Road |
Barnsley |
South Yorkshire |
S70 2BB |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 MAY 2022 |
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31.5.22 | 31.5.21 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS LOSS | ( |
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Administrative expenses | ( |
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(6,855,468 | ) | (7,573,915 | ) |
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Other operating income |
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OPERATING LOSS | 5 | ( |
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Trading of intangible assets | 7 | ( |
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LOSS BEFORE TAXATION | ( |
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Tax on loss | 8 |
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LOSS FOR THE FINANCIAL YEAR | ( |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2022 |
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31.5.22 | 31.5.21 |
Notes | £ | £ |
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LOSS FOR THE YEAR | ( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
( |
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( |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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BALANCE SHEET |
31 MAY 2022 |
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31.5.22 | 31.5.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
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Tangible assets | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
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CREDITORS |
Amounts falling due after more than
one year |
15 |
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PROVISIONS FOR LIABILITIES | 18 | ( |
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NET (LIABILITIES)/ASSETS | ( |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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BALANCE SHEET - continued |
31 MAY 2022 |
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31.5.22 | 31.5.21 |
Notes | £ | £ | £ | £ |
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CAPITAL AND RESERVES |
Called up share capital | 19 |
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Share premium | 20 |
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Retained earnings | 20 |
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SHAREHOLDERS' FUNDS | ( |
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The financial statements were approved and authorised for issue by the Board of Directors and authorised
for issue on
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2022 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1 June 2020 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 May 2021 |
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Changes in equity |
Issue of share capital |
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- |
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Total comprehensive income | - | ( |
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Balance at 31 May 2022 |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2022 |
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31.5.22 | 31.5.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Tax received |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
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Purchase of tangible fixed assets | ( |
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Sale of intangible fixed assets |
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Net cash from investing activities |
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Cash flows from financing activities |
New loans in year |
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Loan repayments | ( |
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Capital repayments in year | ( |
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Share issue |
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Net cash from financing activities |
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(Decrease)/increase in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning
of year |
2 |
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770,104 |
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Cash and cash equivalents at end of
year |
2 |
1,006,121 |
3,472,427 |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2022 |
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1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.5.22 | 31.5.21 |
£ | £ |
Loss before taxation | ( |
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Depreciation charges |
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Amortisation | 2,619,107 | 2,668,574 |
Impairment of player registrations | 327,037 | 153,537 |
Increase in pension provision | - | (4,867 | ) |
Profit on player sales and compensation | (2,708,045 | ) | (3,263,242 | ) |
(6,681,095 | ) | (4,552,546 | ) |
Decrease/(increase) in stocks |
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( |
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Decrease/(increase) in trade and other debtors |
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( |
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Increase in trade and other creditors |
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Cash generated from operations | ( |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 31 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 1,006,121 | 3,472,427 |
Year ended 31 May 2021 |
31.5.21 | 1.6.20 |
£ | £ |
Cash and cash equivalents | 3,472,427 | 770,104 |
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BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2022 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1.6.21 | Cash flow | At 31.5.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,472,427 | (2,466,306 | ) | 1,006,121 |
3,472,427 | ( |
) | 1,006,121 |
Debt |
Finance leases | (587 | ) | 587 | - |
(587 | ) | 587 | - |
Total | 3,471,840 | (2,465,719 | ) | 1,006,121 |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2022 |
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1. | GENERAL INFORMATION |
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Barnsley Football Club Limited is a private company, limited by shares, registered in England and Wales. |
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The company's registered number and registered office address can be found on the company information page. |
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The financial statements are prepared in sterling which is the functional currency of the entity and rounded to the nearest pound. |
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The significant accounting policies applied in the preparation of these financial statements have been set out below. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The company made a financial loss for the year of £6,837,099 (2021 - Loss of £4,260,492) and has net current liabilities of £3,350,443 (2021 - £1,747,358) at the year end. |
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The Directors are required to consider whether the company can continue its operational existence for the foreseeable future, that is at least 12 months from the date of signing this report. In assessing the appropriateness of the going concern assumption, the Directors have reviewed detailed forecasts and projections, which consider all reasonably potential scenarios and uncertainties in relation to income and funding from all sources and associated expected future outgoings. |
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Based on these forecasts the Club can meet its liabilities as they fall due and the Directors have concluded that it is appropriate for the financial statements to be prepared on a going concern basis. |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Significant judgements and estimates |
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. |
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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 only affects that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
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The directors do not believe there are any material judgements or sources of estimation uncertainty that require disclosure. |
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Turnover |
Turnover comprises income receivable from football and related commercial activities, exclusive of VAT. |
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Gate receipts and other match day revenue are recognised as the games are played. |
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Central distributions and solidarity payments from the Football League and the Premier League are recognised evenly over the course of the financial year. |
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Revenue derived from season tickets is credited to income in the period to which it related. Amounts received in advance are credited to accruals and deferred income in the Balance Sheet. |
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Sponsorship, advertising and similar commercial income is recognised over the duration of the respective contracts. Amounts received in advance are credited to accruals and deferred income in the Balance Sheet. |
|
Players' registrations |
The costs associated with the acquisition of players' registrations are capitalised as intangible fixed assets. These costs are amortised in equal annual instalments over the period of the respective players' contract. Players' registrations are written down for impairment when the carrying amount exceeds the amount recoverable through use or sale. Any transfer fees payable as a result of the occurrence of one or more uncertain future events are capitalised when it is probable such event will occur. |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
2. | ACCOUNTING POLICIES - continued |
|
Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended. |
|
Depreciation is provided at the following annual rates in order to write off each asset over its estimates useful life or if held under finance lease, over the lease term, whichever is the shorter. |
|
Freehold property | - Straight line over 3 to 10 years |
Plant and machinery | - Straight line over 3 to 10 years |
Fixture and fittings | - Straight line over 3 to 10 years |
Motor vehicles | - Straight line over 3 to 4 years |
|
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
|
Financial instruments |
The company has elected to apply the provisions of Sections 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments' of FRS 102 to all of its financial instruments. |
|
Financial instruments are recognised 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. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
|
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
|
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
|
Pension costs |
The company contributes to the Football League Limited Pension and Life Assurance Scheme, a multi-employer defined benefit pension scheme operated on behalf of all league clubs. The pension costs charged in the financial statements represent the contributions paid by the company and adjustments for actuarial revaluations. |
|
The company also paid into employees personal pension schemes. The annual contributions payable are charged to the profit and loss account. |
|
Operating lease agreements |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
3. | TURNOVER |
|
The turnover and loss before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
31.5.22 | 31.5.21 |
£ | £ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An analysis of turnover by geographical market is given below: |
|
31.5.22 | 31.5.21 |
£ | £ |
United Kingdom |
|
|
|
|
|
4. | EMPLOYEES AND DIRECTORS |
31.5.22 | 31.5.21 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
The average number of employees during the year was as follows: |
31.5.22 | 31.5.21 |
|
Footballing activities | 148 | 145 |
Administration and commercial | 16 | 19 |
Matchday staff | 122 | 15 |
|
|
|
31.5.22 | 31.5.21 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
31.5.22 | 31.5.21 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | OPERATING LOSS |
|
The operating loss is stated after charging: |
|
31.5.22 | 31.5.21 |
£ | £ |
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Players' registrations amortisation |
|
|
Foreign exchange differences |
|
|
Lease charges recorded as an expense |
|
|
Players' registrations impairment |
|
|
Legal settlement |
|
|
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
6. | AUDITORS' REMUNERATION |
31.5.22 | 31.5.21 |
£ | £ |
Fees payable to the company's auditors for the audit of the
company's financial statements |
10,000 |
10,000 |
|
7. | EXCEPTIONAL ITEMS |
|
Legal Settlement |
|
Included in administration expenses is an amount of £3,000,000. This relates to a settlement reached between Barnsley Football Club Ltd (The Club), BFC Investment Company Ltd and Oakwell Holdings Ltd. |
|
This litigation originated from a dispute concerning outstanding sums due for the purchase of The Club, and the terms of a call option regarding the purchase of Oakwell Stadium, which was incorporated in the original agreement at the time of change of control at The Club in December 2017. |
|
Oakwell Holdings Ltd will be paid the full amount due but have agreed to a long-term payment plan with payments beginning August 2023, this has been reflected within creditors accordingly. |
|
Trading of intangible assets |
|
31.5.22 | 31.5.21 |
£ | £ |
|
Profit on player sales and compensation | 2,768,369 | 3,446,472 |
Player registrations amortisation | (2,619,108 | ) | (2,668,574 | ) |
Player impairment | (327,037 | ) | (153,537 | ) |
Add on fees, sell on fees and unrecoverable transfer levies | (60,324 | ) | (133,037 | ) |
(238,101 | ) | 491,324 |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
8. | TAXATION |
|
No liability to UK corporation tax arose on ordinary activities for the year ended 31 May 2022 nor for the year ended 31 May 2021. |
|
A corporation tax refund of £197,095 was received in the year in as a result of surrendering tax losses in respect of research and development tax credits. |
|
Estimated tax losses available for set-off against future trading profits amounts to approximately £15,965,974 (2021 £8,782,651). This estimate is subject to the agreement of the current year corporation tax computation with HM Revenue & Customs. |
|
9. | DEFERRED TAX |
|
A deferred tax asset of £3,033,535 (2021 - £1,668,704) has not been recognised in respect of tax losses, as recoverability of these losses is not considered certain given the historic performance and budgets for the coming years. A deferred tax liability of £48,492 (2021 - £54,153 in respect of accelerated capital allowances has also not been recognised due to the significant tax losses available. |
|
10. | INTANGIBLE FIXED ASSETS |
Players' |
registrations |
£ |
COST |
At 1 June 2021 |
|
Additions |
|
Disposals | ( |
) |
Impairments | (327,037 | ) |
At 31 May 2022 |
|
AMORTISATION |
At 1 June 2021 |
|
Amortisation for year |
|
Eliminated on disposal | ( |
) |
At 31 May 2022 |
|
NET BOOK VALUE |
At 31 May 2022 |
|
At 31 May 2021 |
|
|
Amortisation is included within Trading of Intangible Assets in the profit and loss account (note 7). |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 June 2021 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31 May 2022 |
|
|
|
|
|
DEPRECIATION |
At 1 June 2021 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
At 31 May 2022 |
|
|
|
|
|
NET BOOK VALUE |
At 31 May 2022 |
|
|
|
|
|
At 31 May 2021 |
|
|
|
|
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 June 2021 |
|
Transfer to ownership | (19,648 | ) |
At 31 May 2022 |
|
DEPRECIATION |
At 1 June 2021 |
|
Transfer to ownership | (17,998 | ) |
At 31 May 2022 |
|
NET BOOK VALUE |
At 31 May 2022 |
|
At 31 May 2021 |
|
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
12. | STOCKS |
31.5.22 | 31.5.21 |
£ | £ |
Goods for resale | 69,581 | 119,595 |
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.22 | 31.5.21 |
£ | £ |
Trade debtors |
|
|
Transfer fees debtors | 745,044 | 1,550,816 |
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.22 | 31.5.21 |
£ | £ |
Hire purchase contracts (see note 16) |
|
|
Trade creditors |
|
|
Transfer fees creditors | 758,000 | 1,522,080 |
PAYE and NIC |
|
|
VAT | 216,943 | 365,576 |
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.5.22 | 31.5.21 |
£ | £ |
Other creditors |
|
|
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
31.5.22 | 31.5.21 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
|
Non-cancellable | operating leases |
31.5.22 | 31.5.21 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
The operating leases disclosed above include a lease for the land and buildings based on the current rental charge. This is subject to rent review dependant on the Club's league status. |
|
17. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
31.5.22 | 31.5.21 |
£ | £ |
Hire purchase contracts | - | 587 |
|
18. | PROVISIONS FOR LIABILITIES |
31.5.22 | 31.5.21 |
£ | £ |
Other provisions |
Pension provision (Football |
League Scheme) | 169,025 | 169,025 |
|
|
|
This provision relates to the Football League Limited Pension and Life Assurance Scheme. See note 21 for further details. |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
19. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.22 | 31.5.21 |
value: | £ | £ |
|
Ordinary | 0.001 | 2 | 2 |
|
On 31st May 2022 490 Ordinary shares were issued with a nominal value of £0.001 for a total consideration of £612,450. |
|
20. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
|
At 1 June 2021 | ( |
) |
|
1,396,539 |
Deficit for the year | ( |
) | ( |
) |
Amounts received | - | 612,500 | 612,500 |
At 31 May 2022 |
( |
) |
|
(4,828,060 | ) |
|
21. | EMPLOYEE BENEFIT OBLIGATIONS |
|
The company contributes to the Football League Limited Pension and Life Assurance Scheme, a defined benefit pension scheme operated on behalf of all league clubs. Under section 28 of FRS 102 the scheme would be treated as defined multi-employer benefit scheme. The assets of the scheme are held separately from those of the company, being invested with insurance companies. Sufficient information is not available for full disclosure. |
|
Following a review of the Minimum Funding Requirement of the scheme, accrual of benefits of the final salary section of the scheme was suspended as at 31 August 1999. In light of the exceptional circumstances affecting the scheme, the trustees of the scheme commissioned an independent actuary's report on the Minimum Funding Requirement position and a substantial deficit was identified. Under the pensions act 1985, participating employers will be required to contribute to the deficit. |
|
The latest actuarial valuation of the scheme was carried out as at 31 August 2020, as such the charge to the profit and loss in the year was £20,651 (2021: £20,651). The deficit is repayable in monthly instalments of £2,221 from 1 September 2021 increasing by 5% p.a from 1 September 2022. |
|
22. | ULTIMATE PARENT COMPANY |
|
The parent company of the entity is BFC Investment Company Ltd, a company registered in Hong Kong. Company registration number 2542075. |
BARNSLEY FOOTBALL CLUB LIMITED (REGISTERED NUMBER: 04573250) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
|
23. | CONTINGENT LIABILITIES |
|
Under the terms of certain contracts for the purchase of players' registrations future payments may be due if certain conditions arise after 31 May 2022. The directors have taken the view that these amounts are not certain enough to be recorded as provisions, but note that the maximum amount that could be payable in relation to these items is £834,487 (2021 - £1,054,550). |
|
24. | POST BALANCE SHEET EVENTS |
|
Further share capital was issued post year end with a total value of £5,609,500. |
|
25. | FINANCIAL INSTRUMENTS |
|
The carrying amounts of the company's financial instruments measured at amortised cost are: |
|
|
31.5.22 | 31.5.21 |
£ | £ |
|
Financial assets | 2,169,827 | 7,283,721 |
Financial liabilities | 7,079,881 | 5,374,422 |