12th finance and governance forum.11.10.11
DESCRIPTION
Presentations from the Finance and Governance Forum held for NGB (National Governing Bodies) of sport on 11th October 2011. The forum was run by Sport England, the Sport and Recreation Alliance and UK Sport.TRANSCRIPT
12th Finance and Governance Forum11th October 2011
Welcome
John Crowther Chair
Finance and Governance Forum
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
The Last Ten Years
bull Until 2008 a strong economybull Public spending increasesbull Lottery funding growthbull Olympic and Paralympic Games winbull Sporting success
Where Are We NowThe Perfect Storm
bull Dire global economybull UK debt reductionbull Real cuts in Government spendingbull Lottery under pressurebull Post 2012 Olympic overhangbull Marketing budgets under pressure
The 2012 Olympic amp Paralympic GamesAn Opportunity or Threat
Official partners
Worldwide partners
Official supporters
Official suppliers and providersAggreko Airwave Atkins Boston Consulting Group CBS Outdoor Crystal CG Eurostar Freshfields Bruckhaus Deringer LLP G4S GlaxoSmithKline Gymnova Heathrow Airport Heineken UK Holiday Inn John Lewis McCann Worldgroup Mondo NATURE VALLEY Next The Nielsen Company Populous Rapiscan Systems Rio Tinto Technogym Thames Water Ticketmaster Trebor Westfield
Official partner of the Paralympic Games
Official supplier and provider of the Paralympic GamesOtto Bock
UK Sporting LandscapeComplex and Confusing
ProfessionalSports Teams
SportingTalent
SportsScience
SportsNutrition
SportsEvents
CountryTeams
SportsCoaching
CommunitySport
IndividualSports
Olympic ampParalympic
SchoolSport
Sportfor
Development
NGB Current Sponsorship Model
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Welcome
John Crowther Chair
Finance and Governance Forum
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
The Last Ten Years
bull Until 2008 a strong economybull Public spending increasesbull Lottery funding growthbull Olympic and Paralympic Games winbull Sporting success
Where Are We NowThe Perfect Storm
bull Dire global economybull UK debt reductionbull Real cuts in Government spendingbull Lottery under pressurebull Post 2012 Olympic overhangbull Marketing budgets under pressure
The 2012 Olympic amp Paralympic GamesAn Opportunity or Threat
Official partners
Worldwide partners
Official supporters
Official suppliers and providersAggreko Airwave Atkins Boston Consulting Group CBS Outdoor Crystal CG Eurostar Freshfields Bruckhaus Deringer LLP G4S GlaxoSmithKline Gymnova Heathrow Airport Heineken UK Holiday Inn John Lewis McCann Worldgroup Mondo NATURE VALLEY Next The Nielsen Company Populous Rapiscan Systems Rio Tinto Technogym Thames Water Ticketmaster Trebor Westfield
Official partner of the Paralympic Games
Official supplier and provider of the Paralympic GamesOtto Bock
UK Sporting LandscapeComplex and Confusing
ProfessionalSports Teams
SportingTalent
SportsScience
SportsNutrition
SportsEvents
CountryTeams
SportsCoaching
CommunitySport
IndividualSports
Olympic ampParalympic
SchoolSport
Sportfor
Development
NGB Current Sponsorship Model
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
The Last Ten Years
bull Until 2008 a strong economybull Public spending increasesbull Lottery funding growthbull Olympic and Paralympic Games winbull Sporting success
Where Are We NowThe Perfect Storm
bull Dire global economybull UK debt reductionbull Real cuts in Government spendingbull Lottery under pressurebull Post 2012 Olympic overhangbull Marketing budgets under pressure
The 2012 Olympic amp Paralympic GamesAn Opportunity or Threat
Official partners
Worldwide partners
Official supporters
Official suppliers and providersAggreko Airwave Atkins Boston Consulting Group CBS Outdoor Crystal CG Eurostar Freshfields Bruckhaus Deringer LLP G4S GlaxoSmithKline Gymnova Heathrow Airport Heineken UK Holiday Inn John Lewis McCann Worldgroup Mondo NATURE VALLEY Next The Nielsen Company Populous Rapiscan Systems Rio Tinto Technogym Thames Water Ticketmaster Trebor Westfield
Official partner of the Paralympic Games
Official supplier and provider of the Paralympic GamesOtto Bock
UK Sporting LandscapeComplex and Confusing
ProfessionalSports Teams
SportingTalent
SportsScience
SportsNutrition
SportsEvents
CountryTeams
SportsCoaching
CommunitySport
IndividualSports
Olympic ampParalympic
SchoolSport
Sportfor
Development
NGB Current Sponsorship Model
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
The Last Ten Years
bull Until 2008 a strong economybull Public spending increasesbull Lottery funding growthbull Olympic and Paralympic Games winbull Sporting success
Where Are We NowThe Perfect Storm
bull Dire global economybull UK debt reductionbull Real cuts in Government spendingbull Lottery under pressurebull Post 2012 Olympic overhangbull Marketing budgets under pressure
The 2012 Olympic amp Paralympic GamesAn Opportunity or Threat
Official partners
Worldwide partners
Official supporters
Official suppliers and providersAggreko Airwave Atkins Boston Consulting Group CBS Outdoor Crystal CG Eurostar Freshfields Bruckhaus Deringer LLP G4S GlaxoSmithKline Gymnova Heathrow Airport Heineken UK Holiday Inn John Lewis McCann Worldgroup Mondo NATURE VALLEY Next The Nielsen Company Populous Rapiscan Systems Rio Tinto Technogym Thames Water Ticketmaster Trebor Westfield
Official partner of the Paralympic Games
Official supplier and provider of the Paralympic GamesOtto Bock
UK Sporting LandscapeComplex and Confusing
ProfessionalSports Teams
SportingTalent
SportsScience
SportsNutrition
SportsEvents
CountryTeams
SportsCoaching
CommunitySport
IndividualSports
Olympic ampParalympic
SchoolSport
Sportfor
Development
NGB Current Sponsorship Model
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Where Are We NowThe Perfect Storm
bull Dire global economybull UK debt reductionbull Real cuts in Government spendingbull Lottery under pressurebull Post 2012 Olympic overhangbull Marketing budgets under pressure
The 2012 Olympic amp Paralympic GamesAn Opportunity or Threat
Official partners
Worldwide partners
Official supporters
Official suppliers and providersAggreko Airwave Atkins Boston Consulting Group CBS Outdoor Crystal CG Eurostar Freshfields Bruckhaus Deringer LLP G4S GlaxoSmithKline Gymnova Heathrow Airport Heineken UK Holiday Inn John Lewis McCann Worldgroup Mondo NATURE VALLEY Next The Nielsen Company Populous Rapiscan Systems Rio Tinto Technogym Thames Water Ticketmaster Trebor Westfield
Official partner of the Paralympic Games
Official supplier and provider of the Paralympic GamesOtto Bock
UK Sporting LandscapeComplex and Confusing
ProfessionalSports Teams
SportingTalent
SportsScience
SportsNutrition
SportsEvents
CountryTeams
SportsCoaching
CommunitySport
IndividualSports
Olympic ampParalympic
SchoolSport
Sportfor
Development
NGB Current Sponsorship Model
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
The 2012 Olympic amp Paralympic GamesAn Opportunity or Threat
Official partners
Worldwide partners
Official supporters
Official suppliers and providersAggreko Airwave Atkins Boston Consulting Group CBS Outdoor Crystal CG Eurostar Freshfields Bruckhaus Deringer LLP G4S GlaxoSmithKline Gymnova Heathrow Airport Heineken UK Holiday Inn John Lewis McCann Worldgroup Mondo NATURE VALLEY Next The Nielsen Company Populous Rapiscan Systems Rio Tinto Technogym Thames Water Ticketmaster Trebor Westfield
Official partner of the Paralympic Games
Official supplier and provider of the Paralympic GamesOtto Bock
UK Sporting LandscapeComplex and Confusing
ProfessionalSports Teams
SportingTalent
SportsScience
SportsNutrition
SportsEvents
CountryTeams
SportsCoaching
CommunitySport
IndividualSports
Olympic ampParalympic
SchoolSport
Sportfor
Development
NGB Current Sponsorship Model
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
UK Sporting LandscapeComplex and Confusing
ProfessionalSports Teams
SportingTalent
SportsScience
SportsNutrition
SportsEvents
CountryTeams
SportsCoaching
CommunitySport
IndividualSports
Olympic ampParalympic
SchoolSport
Sportfor
Development
NGB Current Sponsorship Model
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
NGB Current Sponsorship Model
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
What Have You Got to Sellbull Sport naming rightsbull Athlete rightsbull Event rightsbull Volunteeringbull Technologybull ParticipantsFansbull Product Supplybull NutritionScience
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Commercial Return on Investment
IncreasedSales
ReduceCosts
MoreProfit
EmployeeAttrition
Recruitment
ProductDevelopment
Revenue-
Cost =
ROI
Not just about branding
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Working Collectivelyv
Working Individually
ExamplePremier League
Tottenham Hotspur Plc TV Rights pound426m
40 of total Club income
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Be Creative
Scottish Football Association
pound750000 PA Referee Sponsorship
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Conclusion
bull Funding for sport over the next 5 years is going to be tough
bull To maintain or increase funding will require a sophisticated and professional approach
bull Working together rather than competing makes sense
bull Need to be creative and demonstrate ROI
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
ldquoThe quest for sustainability the need for NGBs to become
commercialrdquo
Sir Keith Mills Deputy Chair LOCOG
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Break1115am ndash 1130am
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Kelvin King Senior DirectorBNP Paribas Business Assets Valuation Limited
5 Aldermanbury Square London EC2V 7BPTel +44(0)20 7338 4830 Fax +44(0)20 7430 2628
e-mail kelvinkingbnpparibascom
wwwvaluation-consultingcouk
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
18
WHO ARE VALUATION CONSULTING
100 owned subsidiary of BNP Paribas Valuation Consulting was purchased by BNPP in 2006 and recently re-branded
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers authors lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditationmembership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers ndash we value shares businesses intangibles and IPR
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
19
INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
Image Rights corporate and personal
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
20
BIG ISSUES ndash FOR WHO
Organisations
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
21
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate royalty rate or valuation - discuss
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
22
STARTING AT THE TOP AND TRYING TO BUILD DOWN
THE LAWS OF PHYSICS
AND VALUATION
SUGGEST THAT THIS IS NOT POSSIBLE
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
23
DEFINITIONamp
IDENTIFICATION
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
24
INTELLECTUAL PROPERTY
Those assets whose essential characteristics are derived from the Legal System in this case the UK
Registered Rights
Patents - UK EP(UK) (PA 1977 EPC 2000)
Trade Marks - UK CTM (TMA 1994)
Registered Designs - UK CDR (RDA 1949)
Unregistered Rights
Confidential Information (equitable and contract)
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous Performance Rights Image Rights Moral Rights Database Rights Malicious Falsehood (common law) Plant Variety Rights
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
25
INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
Rights
Contracts
Relationships
Workforce Customers
Group Intangibles
Brands Goodwill
Characteristics of Economic Advantage
The spectrum of creative thought Formulae Recipes Experience Negative Knowledge RampD and Information
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
26
ACCOUNTING STANDARDS
The US FASB has created a list of what it considers to be an intangible nearly all of these exist in sport
Market-related
Trademarks trade names service marks trade dress newspaper mastheads internet domain names
Customer-related
Customer lists customer contracts customer relationships customer agreements
Artistic related
Ballets books plays articles other literary works musical words opera pictures photographs video and audiovisual material
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
27
ACCOUNTING STANDARDS CONThellip
Contract-based
Licensing agreements advertising or service contracts lease agreements construction permits operating and broadcast rights employment contracts
Technology-based
Patented technology computer software unpatented technology databases trade secrets secret formulae
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
28
Sale and Purchase
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress
OCCASIONS FOR VALUING IP IN SPORT
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
29
WHY ARE WE VALUING
Tax Valuation and Open Market Value
Fair Value
Fair Market Value
Commercial Value
Investment Value
Owner Value
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
30
METHODS OF VALUATION
Market based
Comparable market transactions
Caveats
Few sales
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
31
METHODS OF VALUATION
Cost based
Historical or replacement cost
Caveats
Economic Benefits Excluded
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
32
METHODS OF VALUATION
INCOME APPROACH
Capitalisation of historical profits
DRAWBACKS
Profitability
Problems of averaging
Problems of extrapolating from past performance
Decline amp other key variables
Net tangible assets not separately assessed
Multiple
No reference point for price earnings multiple
Often no regard to established marketplace
Often no reconciliation with market capitalisation
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
33
Modern valuation analysis is effectively DCF applied to the business enterprise under consideration
The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)
NPV = Year 1 Cash Flow + Year 2 Cash Flow to say Year 5 Cash Flow (1 + r) (1 + r) sup2 (1 + r)H
PLUS
The terminal value which is the value of the business at a horizon (HV)
HV = Cash Flow (r - growth)
Also discounted back to present value
INCOME APPROACH DISCOUNTED CASHFLOW MODELS
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
34
HOW MUCH
(CASHFLOWS)
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
35
Gross Profit Differential Method ndash Premium PricesPremium Profits
Excess Profits Method
Relief from Royalty Method
TOOLS
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
36
HOW LONG FOR
(TIME PERIODS)
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
37
USEFUL LIFE
Physical life
Functional life
Technological life
Economic life
Legal life
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
38
AT WHAT RISK
(COST OF CAPITAL)
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
39
MONTE CARLO
Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios say of revenue market share costs internationality and other risks
With just 4 scenario changes of the stated assumptions above this means 256 models
That is 4 values for each of income different market share costs international penetration ie 4 x 4 x 4 x 4 = 256
Real Options
Probability trees = snakes and ladders develops the Monte Carlo analysis
Develops terminations (snakes) if a route identifies problems to suggest failure
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
40
THE LICENSEEPURCHASER amp LICENSORVENDOR
Four Calculations or Steps ndash lsquocan Kelvin countrsquo
1 Intrinsic value of Vendor
2 Intrinsic value of Purchaser
PLUS
3 Intrinsic value of Vendor
4 Intrinsic value of Purchaser
The capital values calculated are an essential step to calculate a royalty rate or valuation ndash discuss
JG
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Kelvin King
Director Valuation Consulting and BNP Paribas Business
Assets
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
What is sponsorshipbull ldquoAn investment by way of cash or VIK in an activity club
event or individual (the ldquoPropertyrdquo) in exchange for the ability to exploit commercial and marketing potential
connected with that Propertyrdquo
bull Hugely valuable industry (World Cup 2010 sponsorship value $16 billion)
bull A key revenue stream for rights holders and event organisers
bull Future Impact of global recession social media
bull Need for sponsors to reach target markets exploit their brand and gain exposure
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Who can benefit from sponsorshipbull International and Continental Governing Bodies and
Associations (eg FIFA UEFA ICC IOC)
bull National Associations and Governing Bodies (eg FA British Gymnastics English Netball)
bull ClubsTeams (eg Manchester United FC Mercedes GP Petronas)
bull Venue Owners (eg Wembley the O2 Dorney Lake)
bull Players
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
The FArsquos Sponsorship Portfolio1 National Teams
Lead Partner VauxhallSupporters Umbro and MarsSuppliers Carlsberg Lucozade Nivea and Marks and Spencer
2 The FA CupLead Partner BudweiserSupporter Umbro
3 Development AreasMenrsquos Football Partner CarlsbergSmall-sided Football Partner UmbroCommunity Partner McDonaldrsquos Adult Football Partner MarsFA Skills Partner Tesco
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Types of sponsorshipbull Venue sponsorship
o long term association
o crosses events and activities
o eg Reebok Stadium O2 Arena
bull Event sponsorship
o sponsor an event or a title
o Barclays Premier League RBS Six Nations
o
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Types of sponsorship (continued)bull Secondary sponsorship
o ancillary events and projects
bull Official supplier
o provider of productsservices
bull Broadcast sponsorship
o sponsor of the broadcast rather than the actual event
o contract between sponsor and broadcaster
bull Player sponsorship
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Risksbull Negative association
bull Financial risk
bull Brand damagedilution
bull Ambush marketing
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Rights Holders Checklistbull Authority
o does each party have the right to enter the contract
o who owns the relevant intellectual property for exploitation
bull Grant of rights wide range of sponsorship packageo naming rightso official supplier rightso advertising and branding rights
bull Obligations of the Sponsoro provision of equipmentserviceso financial contributiono assistance with promotiono compliance with legislationo non-compete
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Rights Holders Checklist (continued)bull Obligations of the Rights Holder
bull Territory
bull Exclusivity
bull Conflicting Rights
bull Fee structuring
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Rights Holders Checklist (continued)bull Fee Structure
o flat feeso performance-basedo timing of paymentso bonuses
bull Intellectual propertybull Termination and renewal
o agree duration (minimum versus maximum) o break clauseo morality clause o option to renew
bull Limitation of liability bull Public announcementsbull Governing law and jurisdiction
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Conclusionbull Benefit of sponsorship can be hugely positive BUT
bull Identify requirements
bull Understand each partyrsquos intention
bull Criteria to measure success
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Ian LynamPartner Sports LawCharles Russell LLP
Tel + 44 (0) 20 7203 5030Email ianlynamcharlesrussellcouk
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Sponsorship- an update for rights holders
and event organisers
Ian Lynam Partner Charles Russell11 October 2011
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
News Update
Sport England
Hilary Milne
Head of Audit Risk and Governance
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
lsquoWhere we were were we are where we are goingrsquo
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Governance ndash one year onbull Setting out our standards
bull Working together (SEUKS)
bull Improved processes and toolsbull Seeking and responding to
your feedback bull Providing support
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
On-site auditbull Drawing out the nuance ndash how is your governance
finance and control framework operating
bull Increased clarity - eg amber green overall but in areas X Y Z you are amberred
bull Thematic reporting - where do you sit in the governance landscape
bull Continuous improvement - Feeding back to Moore Stephens and SEUKS on the audit process
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Self-assurance2010
bull 3 months to completebull Functionality issuesbull Guidance and lsquohow torsquo
not clear enoughbull No help for new users bull No support tool
We sought your feedback so helliphelliphelliphelliphelliphellip
2011bull5 months to completebullRoll over forgotten password facility save button improved progress bar assurance rating pop-ups email confirmation etc etcbullNew user workshopbullThings to Think About bullBetter clearer reports
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Self-assurancebull Completion to 2011 deadline ndash thank you
bull Reports back - November
bull Feedback on 2011 process DecemberJanuary
bull 2012 process ndash early April to end September
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Governance supportbull Things to Think About - 13737 hits (1 Feb ndash 30 Sept
2011) httpwwwsportenglandorgsupport__advicegovernance_finance__controlaspx
bull Supporting Good Governance workshops (SEUKSSRA)
bull Thematic reporting
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Governance ndash where next
bull Investment principle 2013 -17
bull Key governance requirements
bull Continuing to raise the bar
bull Continuing to work with you
bull Continuing to work together
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
News Update
UK SportAmanda Bennett
Acting Head of Governance
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Basic Assurance
bull Introduction of 20 UK Sport funded bodies to assurance process
bull Enables reflection and reinforcement of good practicebull Assists planning for improved governance and controls bull First step towards Self Assurance 2012bull Contributes to annual review of sports against Key
Governance Indicators
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
2013-17 Governance Investment Principle
bull UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership governance financial management and administration
bull Whyndash Clarity around required standards ndash Seek commitment to continuous improvement ndash Recognise improvement in governance as an activity in its own
right
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
2013-17 Governance Investment Principle
bull Work with partners to ensure support is available bull Focus on leadership - NGB boards are accountable for
the standards of leadership and governance
bull More effective use of compliance tools ndash tailoring and proportionality
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
News Update
Sport and Recreation Alliance
Joy Tottman
Governance amp Compliance Officer
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Governance Initiativesbull Voluntary Code of Good Governance for the
Sport and Recreation sector
bull Support Smart Sport Videos and Toolkit
bull Board Recruitment
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Logo and Certificate
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Organisations that have already signed-up
Army Sport Control Board
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Support VideosFirst Principle
Seb Coe LOCOGRichard Lewis RFL
Seventh Principle
Baroness Sue Campbell UK SportLisa Wainwright Volleyball
Second Principle
Craig Hunter BOAMary Tetley BSAC
Third Principle
David HemerySteve Nelson West of England Sport Trust
Fourth Principle
Dame Tanni Grey-ThomsponJane Nickerson ASA
Fifth Principle
Timothy Dutton QCPeter King British Cycling
Sixth Principle
Sir Stuart Etherington NCVOAdrian Christy Badminton
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
How do you assess if an organisation has good standards systems and controls
Timothy Dutton QC
Smart Sport Resource Bank
Request an example policy
Board Skills for Sport
bull Tailored course for current and prospective board members in sport
bull Understand the role of a board member in the context of the sports sector
bull Marketed to blue chip companies as part of CSR programme
bull Build a database of lsquoBoard Members for Sportrsquo where organisations can go to find new independent board members that will have a base level understanding of the sector
Board Skills for Sport
Consultation to be launched before Christmas
1 What skills you want your board members to be provided with on the course
2 What skills you want newcomers to sport to be provided with on the course
3 What information you would like to know about people listed on the Board Members for Sport database
QuestionsJoy Tottman
Governance and Compliance OfficerSport and Recreation Alliance
jtottmansportandrecreationorguk
News Update
Sport England
UK Sport
Sport and Recreation Alliance
Bribery Act Lunch1pm ndash 130pm
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Request an example policy
Board Skills for Sport
bull Tailored course for current and prospective board members in sport
bull Understand the role of a board member in the context of the sports sector
bull Marketed to blue chip companies as part of CSR programme
bull Build a database of lsquoBoard Members for Sportrsquo where organisations can go to find new independent board members that will have a base level understanding of the sector
Board Skills for Sport
Consultation to be launched before Christmas
1 What skills you want your board members to be provided with on the course
2 What skills you want newcomers to sport to be provided with on the course
3 What information you would like to know about people listed on the Board Members for Sport database
QuestionsJoy Tottman
Governance and Compliance OfficerSport and Recreation Alliance
jtottmansportandrecreationorguk
News Update
Sport England
UK Sport
Sport and Recreation Alliance
Bribery Act Lunch1pm ndash 130pm
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Board Skills for Sport
bull Tailored course for current and prospective board members in sport
bull Understand the role of a board member in the context of the sports sector
bull Marketed to blue chip companies as part of CSR programme
bull Build a database of lsquoBoard Members for Sportrsquo where organisations can go to find new independent board members that will have a base level understanding of the sector
Board Skills for Sport
Consultation to be launched before Christmas
1 What skills you want your board members to be provided with on the course
2 What skills you want newcomers to sport to be provided with on the course
3 What information you would like to know about people listed on the Board Members for Sport database
QuestionsJoy Tottman
Governance and Compliance OfficerSport and Recreation Alliance
jtottmansportandrecreationorguk
News Update
Sport England
UK Sport
Sport and Recreation Alliance
Bribery Act Lunch1pm ndash 130pm
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Board Skills for Sport
Consultation to be launched before Christmas
1 What skills you want your board members to be provided with on the course
2 What skills you want newcomers to sport to be provided with on the course
3 What information you would like to know about people listed on the Board Members for Sport database
QuestionsJoy Tottman
Governance and Compliance OfficerSport and Recreation Alliance
jtottmansportandrecreationorguk
News Update
Sport England
UK Sport
Sport and Recreation Alliance
Bribery Act Lunch1pm ndash 130pm
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
QuestionsJoy Tottman
Governance and Compliance OfficerSport and Recreation Alliance
jtottmansportandrecreationorguk
News Update
Sport England
UK Sport
Sport and Recreation Alliance
Bribery Act Lunch1pm ndash 130pm
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
News Update
Sport England
UK Sport
Sport and Recreation Alliance
Bribery Act Lunch1pm ndash 130pm
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Bribery Act Lunch1pm ndash 130pm
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
ldquoHow to make a partnership between an NGB and a PLC workrdquo
Chris Denny Director of Marketing and Communications British Swimming
Morag Taylor Sponsorship Manager British Gas
From Sponsorship to Partnership
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
From the Sportrsquos Perspective
bull Opportunity to bring in additional commercial expertise and approaches
bull Huge pressure on resourcesbull A true partnership can enhance existing
initiatives and develop new opportunities bull British Swimming and British Gas go above
and beyond a traditional sponsorship
From Sponsorship to Partnership
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Swimmingrsquos Aim
Worldrsquos Best Swimming NationFrom Sponsorship to Partnership
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Swimmingrsquos Objectives
From Sponsorship to Partnership
Learn Talent
Take Part Win
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Why British Gas and swimming
bullDrive brand affinity among customer
bullCreate positive customer experiences
bullSwimming ndash biggest participation sport in UK
bullImportant to our customers
bullOnly sport on National Curriculum
bullIntegral part of local communityFrom Sponsorship to Partnership
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
BG objectives of the sponsorship
Consumer
Business
Employees
British Swimming
Increase the likeability of the British Gas brand to build brand affinity and brand commitment
Build new business from swimming leisure centres - showcase British
Gas product and service offering
Improve BGrsquos employees positivity towards the company making them feel proud to work for the company
Increasing swimming participation by 270k (2013)
From Sponsorship to Partnership
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
There are 4 key platforms to our sponsorshiphellip
1 Drive swimming participation events 2 Support grass roots swimming
4 Leverage increased interest in British Team3 Build on popularity of Great Swim Series
From Sponsorship to Partnership
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
lsquo3 Free Swimsrsquo has been a massive success
bull 110000 customers and their families signed up over 1m free swimsbull 27 of our employees took partbull 168 of respondents who said it was something they never rarely did now swim more
frequently
From Sponsorship to Partnership
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Raising the profile of our stars
From Sponsorship to Partnership
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
From Sponsorship to Partnership
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Beyond a traditional sponsorship
bull Jointly owned projectsbull Internal Engagement ndash Swim Heroesbull Founding Partner Panelbull BG marketing manager seconded to BS bull Joint agency resourcebull Energy solutions for the industry
From Sponsorship to Partnership
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
bull 30000 kids taught to swim through Pools 4 Schools
bull 1 million free swims to customersbull Highest ever interest in British
Swimming - 21bull 36 awareness of the BSBG
partnershipbull 75 of employees feel
proud to work for BGbull Customers ndash 50 more
committed to British Gasbull Multiple awards ndash Hollis Awards
Best Sponsorship
Successes
From Sponsorship to Partnership
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Key Learning
bull Early understanding of mutual AND separate goals
bull Work across all areas of the sport
bull Give yourself time
bull More than cash and VIK ndash people expertise reach
bull Value honest feedback
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
How to make a partnership between an NGB and a PLC work
Morag Taylor British Gas
Chris Denny British Swimming
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Legal Panel
Compliance with the Bribery Act 201011 October 2011
Kitty Turner Farrer amp Co LLPJanice Shardlow British Equestrian Federation
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Introduction
Overview of the 4 offences and sanctions
Practical steps to help reduce the risks
Case studies
Questions
Agenda
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Introduction
Bribery Act 2010 In force (since 1 July 2011)
It is aimed at organisations involved in corruption ndash not at legitimate
business dealings
Useful Ministry of Justice Guidance available at httpwwwjusticegovukguidancemaking-and-reviewing-the-lawbriberyhtm
See also SampRA notes
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
The offences and sanctions
Offences
Active bribery
Passive bribery
Bribery of a foreign public
official
The corporate offence
Sanctions
Individuals Maximum 10
yearsrsquo imprisonment
unlimited fines
Organisations Unlimited
fines
Plus reputational damage
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
The elements of the offences
Each of these offences involve givingreceiving a financial or other
advantage to another person with
In the case of activepassive bribery the intention of inducing or
rewarding improper performance of a relevant function
In the case of bribery of a foreign official the intention of obtaining or
retaining a business advantage (no requirement of impropriety but the
offence will not be committed if the action is permitted by written law)
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
The elements of the offences (cont)
The offences are widely defined
- offering promising agreeing to receive (the financialother advantage)
are enough ndash no need to actually giveaccept it
- any financial or other advantage ndash includes potentially corporate
hospitality
- inducing or rewarding ndash ie before or after the conduct in question and
- covering almost any business decision ndash eg certainly the award of a
tendersponsorship deal
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
The elements of the offences (cont)
BUT
As we have seen the Act is aimed at organisations involved in corruption
ndash not at legitimate business dealings
There is no offence of activepassive bribery if a reasonable person in
the UK would not consider that the gift hospitality etc was intended to
breach an expectation of good faith
Precise line where this will have arisen remains unclear but see MoJ
Guidance and case studies
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
The Corporate Offence
Failure of a commercial organisation to prevent active bribery by an
associate to obtain an advantage for that commercial organisation
Does not apply to passive bribery ndash but reputational damage likely
ldquoAssociaterdquo is widely defined It includes Employees Trusteesgovernors Agents Trading subsidiaries
BUT Defence if ldquoadequate proceduresrdquo were in place
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Adequate Procedures
Government guidance acknowledges that what is adequate will depend on the
size sector resources and degree of risk each organisation faces
The Government guidance sets out 6 principles to be followed
1 Proportionality of procedures
2 Top level commitment
3 Risk assessment
4 Due diligence
5 Communication
6 Monitoring and review
See SampRA note and MoJ Guidance for details
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Key risk areas
Provision of gifts and corporate hospitality
Awarding or applying for contracts or funding
As a recipient of gifts and corporate hospitality
See case studies for examples
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Practical steps
Carry out a risk assessment of bribery risk at your organisation
Check existing policiesput in place a sensible anti-bribery policy (See
SampRA Toolkit)
Maintain a gifts register (covering items received and given)
Appoint an anti-bribery officer responsible for overseeing compliance and
carrying out regular reviews
Communicate policy internally (and externally) Provide regular training
Carry out due diligence on contracting parties
Include an anti-bribery clause in contracts where relevant
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Case Study 1
A staff member of an NGB is asked to identify potential companies who may
wish to sponsor a tour of their national team around Italy
A representative from one potential sponsor tells her that if she exerts her
influence on the sponsorship panel to accept his company as the sponsor
but at a lower fee than the current asking price she and her family will be
sent on an all expenses paid trip to Italy with tickets to the final
- Has the potential sponsor breached the Bribery Act
- Has the NGB staff member breached the Bribery Act
- Has the NGB breached the Bribery Act
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Case Study 2
A staff member of an NGB is asked to identify potential companies who may wish to
sponsor a tour of their national team around Italy
A potentially suitable sponsor is identified and the NGB suggests taking the CEO of
the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the
CEOrsquos hotel and takes the CEO for dinner after the site visit
- Has the NGB staff member breached the Bribery Act Has the NGB breached the
Bribery Act
- Has the potential sponsor breached the Bribery Act
- Would it be different if the CEO was based near the venue of the site visit andor the
NGB also paid for hisher family to come and stay there
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Case Study 3
A staff member of an IT company wants to win the tender of an NGB and early
conversations are underway with the NGB
The IT company has several ideas for helping to improve its chances of success ndash
which of these could result in a Bribery Act risk for the IT company (and the NGB if
accepted)
- Sending the CEO of the NGB and his family on a city break to Edinburgh
- Inviting the CEO to Edinburgh for a demonstration of the companyrsquos IT products and
taking him out to lunch afterwards
- Sending the CEO one of the latest Apple iPhones
- Sending the CEO a sample of the IT companyrsquos new tablet
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Case Study 4
An NGB gives one of its current sponsors a VIP ticket to the final of
the seasonrsquos championship as a thank you for support given to the
NGBrsquos grass roots programme As a result the existing
sponsorship agreement is renewed 3 months later for a further 3
years
- Has the NGB breached the Bribery Act
- Has the sponsor breached the Bribery Act
- Would it be different if it was a prospective sponsor
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Case Study 5
The agent for an NGB is negotiating a deal with a leading drinks company for
sponsorship of the NGBrsquos U18 womenrsquos team The NGB is trying to obtain an
above market deal to contribute towards the cost of upgrading the womenrsquos
changing rooms The agent takes the CEO of the company to one side and says
that if the company will accept the deal he will recommend a below market value
sponsorship deal with the company to another of the agentrsquos clients
- Has the agent breached the Bribery Act
- Has the NGB breached the Bribery Act
- Has the company breached the Bribery Act
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Any questions
Kitty Turner Associate
Farrer amp Co LLP
kittyturnerfarrercouk
0203 375 7110
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
The BEF Putting the Principles of the Bribery Act into Practice
Janice Shardlow
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
1 Top Level Commitment
bull Report to Board ndash summary note
bull Commercial Director allocated lead responsibilityHead of Governance and Legal = responsible officer
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
2 Risk Assessment
Key Risks for sporting organisations
bull The provision of gifts and corporate hospitality
bull The receipt of a payment or other advantage from a
bidder for a major contract or funding arrangement
bull The receipt of gifts and corporate hospitality
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Risk Brainstorm
NB emphasised benefits etc both given by us and received by us
bull Pinsbull Clothingbull TicketsHospitality bull Services eg Physio advice bull International deals bull International hospitality bull Services to our member bodies
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
3 Procedures
bull Gifts hospitality and benefits provided
bull Gifts hospitality and benefits received
Key elements
Principles minimum levels register
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
4 Due Diligence
bull Bribery policies in place
bull
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
5 Communications
bull Staff note on bribery
bull Briefing
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
6 Monitoring and review
bull Annual board approval
bull Responsible officer review
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
ANY MORE IDEAS
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Legal Panel UK Bribery Act
Kitty Turner Farrer amp Co
Janice Shardlow BEF
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Break230pm ndash 245pm
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Finance Workshop Financial Policies and Reporting
Stuart Wetherly amp Jake Wilson
Deloitte LLP
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Financial policies and reportingStuart Wetherly
October 2011
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Internal Financial Reporting
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Pillars of Financial Management
127
Planning
ControlsPolicies
Reporting
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Financial planning
128
How far outReview and challenge
Contingencies
Cash is king
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Controls and policies
129
Segregation of duties
Protection of assets
Compliance with
accounting and tax law
Up to date
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Reporting
130
Accurate Timely
Appropriate Analysed
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Reporting - best practice
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Automation ndash minimised re-keying leading to reduced errorsbull Standardisation ndash increased control and better information received in a standard
formatbull Practice makes perfect ndash quarterly closes used to prepare for year endbull Increased forecasting accuracy ndash used to reduce the time spent on variance analysis
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
bull Reporting volumes minimised ndash identify the non-essentialbull Exception based reportsbull Increased control over circulation of information
Rightfirst time
Less can be more
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
bull Understand the timetable and what is needed from whoWho ndash Role clarity round who owns what numbers and who reviewsWhere ndash Where in the organisation each activity occurs When ndash Timing is understood and mapped
Strong project management
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
bull Interrelation and dependencies between activities clearly understood ndash eg impact of changing profit on tax
bull Key judgements and new technical treatments are made and agreed in advance of year end
bull Review process not started too early
Reduced review time
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation currently ranks for each of the below themes
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
LeadingPerformers
Measure of PerformanceLaggingPerformers
Right first timebull Several
resubmissionsbull No errors
Efficient process
Reduced overall volume ofreporting
Strong project management
Reduced review cycle time
High performing culture amp capabilities
bull Delays financial close
bull Lack of clarity and direction
bull Many reviews
bull Large volumes of reports produced and not utilised
bull Report production minimised all reports utilised
bull Certainty over activities strongly managed
bull Single review
bull Pride in a fast close
bull Capabilities aligned with fast close reqursquot
Scorecard
Mark an X where you think your organisation should be
Annual Reporting Process
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
bull Data produced quickly and on time
bull Close not importantbull Insufficient or
inappropriately skilled staff
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
External reporting and governance update
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
UK Financial ReportingUK currently has a three-tier model
135
1990s
UK FRS ndash applied to all UK entities
1997
FRSSE ndash optional for small companies
2005
IFRS ndash mandatory for listed groups
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
136
The ASBrsquos 2009 vision for the futureA three-tier model
Ability to choose higher lsquoG
AA
Prsquo
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other
lsquoquotedrsquo (consolidated + parent) banks and insurance entities)
Tier 1
Tier 2
Tier 3
bull IFRSs for SMEsbull All non-publicly accountable UK entities (large
medium subsidiaries of listed groups)
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Small entities (as defined in law)
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Ability to choose lsquohigherrsquo G
AA
P
bull IFRSs as adopted by EUbull Publicly accountable entities (EU listed and other lsquoquotedrsquo
(consolidated + parent) banks and insurance entities)Tier 1
Tier 1S
Tier 2
bull FRSMEbull Non-publicly accountable entities and small prudentially
regulated publicly accountable entities
bull Financial Reporting Standard for Smaller Entities (FRSSE)
bull Entities currently able to use the FRSSETier 3
bull IFRSs as adopted by EU ndash group policies but reduced disclosure
bull Qualifying subsidiaries of Tier 1 entities
Tier 2S
bull FRSME ndash group policies but reduced disclosurebull Qualifying subsidiaries of Tier 2 entities
The ASBrsquos 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure
= IFRS = UK GAAP
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
The ASBrsquos 2011 vision for the futureFurther review
138
September 2011 ASB announce they will issue a new Financial Reporting
Exposure Draft (FRED)
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
139
The UK government will continue to push for simplified
accounting rules for the smallest companies or ldquomicro companiesrdquo No effective date
or method has been set
Company law and corporate governance updateBudget 2011 Accounting Impact
Following the 2011 March Budget announcement changes have been proposed for accounting requirements within The Plan for Growth document Key points from the proposal for simplified accounting are
UK government will press the
European Commission to remove the mandatory audit
requirement for medium-sized companies
UK audit exemptions to be brought in line with EU law No
date for implementation but likely to see the benefits in
2012
Subsidiaries of any size would be exempt from producing
audited accounts provided their debts are secured by the parent company Legislation expected
2012
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Useful links
Financial Management on Sport England website httpwwwsportenglandorgsupport__
advicegovernance_framework_tool3_financial_managementaspx
Policies on Sport England website httpwwwsportenglandorgsupport__advicegovernance_finance__
controlfinancial_management7_financial_policiessupporting_outcome_71aspx
Contact details
Stuart Wetherly ndash swetherlydeloittecouk
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Wrap Up and Close
John Crowther Chair
Finance and Governance Forum
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-
Do not leave without giving us your feedback forms hellip
- 12th Finance and Governance Forum 11th October 2011
- Welcome
- ldquoThe quest for sustainability the need for NGBs to become comm
- The Last Ten Years
- Where Are We Now The Perfect Storm
- The 2012 Olympic amp Paralympic Games An Opportunity or Threat
- UK Sporting Landscape Complex and Confusing
- NGB Current Sponsorship Model
- What Have You Got to Sell
- Commercial Return on Investment
- Working Collectively v Working Individually
- Be Creative
- Conclusion
- ldquoThe quest for sustainability the need for NGBs to become comm (2)
- Break 1115am ndash 1130am
- Kelvin King
- Kelvin King Senior Director BNP Paribas Business Assets Valuat
- WHO ARE VALUATION CONSULTING
- INTANGIBLES ASSETS ndash CURRENT BIG ISSUES IN SPORT
- BIG ISSUES ndash FOR WHO
- THE LICENSEEPURCHASER amp LICENSORVENDOR
- STARTING AT THE TOP AND TRYING TO BUILD DOWN
- Slide 23
- INTELLECTUAL PROPERTY
- INTANGIBLE ASSETS ndash JUST A FEW EXAMPLES
- ACCOUNTING STANDARDS
- ACCOUNTING STANDARDS CONThellip
- OCCASIONS FOR VALUING IP IN SPORT
- WHY ARE WE VALUING
- METHODS OF VALUATION
- METHODS OF VALUATION (2)
- METHODS OF VALUATION (3)
- Slide 33
- Slide 34
- Slide 35
- Slide 36
- USEFUL LIFE
- Slide 38
- MONTE CARLO
- THE LICENSEEPURCHASER amp LICENSORVENDOR (2)
- Kelvin King (2)
- Sponsorship - an update for rights holders and event organisers
- What is sponsorship
- Who can benefit from sponsorship
- The FArsquos Sponsorship Portfolio
- Types of sponsorship
- Types of sponsorship (continued)
- Risks
- Rights Holders Checklist
- Rights Holders Checklist (continued)
- Rights Holders Checklist (continued) (2)
- Conclusion (2)
- Slide 53
- Sponsorship - an update for rights holders and event organisers (2)
- News Update
- lsquoWhere we were were we are where we are goingrsquo
- Governance ndash one year on
- On-site audit
- Self-assurance
- Self-assurance (2)
- Governance support
- Governance ndash where next
- News Update (2)
- Basic Assurance
- 2013-17 Governance Investment Principle
- 2013-17 Governance Investment Principle
- News Update (3)
- Governance Initiatives
- Logo and Certificate
- Organisations that have already signed-up
- Support Videos
- How do you assess if an organisation has good standards system
- Smart Sport Resource Bank
- Request an example policy
- Board Skills for Sport
- Board Skills for Sport (2)
- Questions
- News Update (4)
- Bribery Act Lunch 1pm ndash 130pm
- How to make a partnership between an NGB and a PLC work
- ldquoHow to make a partnership between an NGB and a PLC workrdquo
- From the Sportrsquos Perspective
- Swimmingrsquos Aim
- Swimmingrsquos Objectives
- Why British Gas and swimming
- BG objectives of the sponsorship
- There are 4 key platforms to our sponsorshiphellip
- lsquo3 Free Swimsrsquo has been a massive success
- Raising the profile of our stars
- Slide 90
- Beyond a traditional sponsorship
- Slide 92
- Key Learning
- How to make a partnership between an NGB and a PLC work (2)
- Legal Panel UK Bribery Act
- Slide 96
- Agenda
- Introduction
- The offences and sanctions
- The elements of the offences
- The elements of the offences (cont)
- The elements of the offences (cont) (2)
- The Corporate Offence
- Adequate Procedures
- Key risk areas
- Practical steps
- Case Study 1
- Case Study 2
- Case Study 3
- Case Study 4
- Case Study 5
- Any questions
- The BEF Putting the Principles of the Bribery Act into Practic
- 1 Top Level Commitment
- 2 Risk Assessment
- Risk Brainstorm
- 3 Procedures
- 4 Due Diligence
- 5 Communications
- 6 Monitoring and review
- Slide 121
- Legal Panel UK Bribery Act (2)
- Break 230pm ndash 245pm
- Finance Workshop Financial Policies and Reporting
- Financial policies and reporting Stuart Wetherly
- Internal Financial Reporting
- Pillars of Financial Management
- Financial planning
- Controls and policies
- Reporting
- Reporting - best practice
- Annual Reporting Process
- Annual Reporting Process (2)
- External reporting and governance update
- UK Financial Reporting UK currently has a three-tier model
- The ASBrsquos 2009 vision for the future A three-tier model
- Slide 137
- The ASBrsquos 2011 vision for the future Further review
- Company law and corporate governance update
- Useful links Financial Management on Sport England website h
- Wrap Up and Close
- Do not leave without giving us your feedback forms hellip
-