leeds united football club accounts year ended june 2010

8/6/2019 Leeds United Football Club Accounts Year ended June 2010

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Company registration no. 06233875

LEEDS UNITED FOOTBALL CLUB LIMITED

Report and Financial Statements

Year ended 30 June 2010

A51 06/05/2011

COMPANIES HOUSE

62




REPORT AND FINANCIAL STATEMENTS 2010

CONTENTS

Officers and professional advisers

Directors' report

Statement of directors' responsibilities

Auditor's report

Profit and loss account

Balance sheet

Notes to the financial statements

Page

2

3

5

6

7

8

9

1




REPORT AND FINANCIAL STATEMENTS 2010

OFFICERS AND PROFESSIONAL ADVISERS

Directors

K W BatesSA HarveyY SAlienP Lonmer

SecretarySA Harvey

Registered office

Eiland RoadLeedsWest YorkshireLS11 OES

Bankers

Bank of Ireland15-16 Park RowLeedsLS15HD

Sohcltors

McCormlcks soucuorc

37 East ParadeHarrogateHG15LQ

Walker MornsKings Court12 Kmg StreetLeeds

LS12HL

Auditors

Baker Til ly UKAudit LLPRegistered AuditorChartered Accountants2 Whitehall QuayLeedsLS14HG

2



DIRECTORS' REPORT


The drrectcrs present their report and the audited financral statements for the year ended 30 June 2010

Prmclpal actrvrtiesThe pnncipal actrvrties of the company durrng the year were that of a professional football club and the provider ofconferencmq and banquetmq facnmes

Review of business activitiesThe current playIng squad ISvalued at £6,667,142 This ISbased on the average opmions of seven members of seniorfootball management as at 1 September 2010 of the players reqistered WIththe club at this date This compares Withthe net book value Inthe balance sheet of £1 ,428,000 as at 30 June 2010

Future DevelopmentsThe promotion of the club at the end of the 2009/10 season In dramatic style at Eiland Road In front of 38,234 fans

\ reached the objective of the Board on the field The club also benefited from 4 memorable cup ties against FAPlOpposition liverpool, Tottenham Hotspur and Manchester Unrted The win at Old Trafford In the 3rd Round of the FACup Willlive long Inthe memory of everyone connected Withtile club

The Board Will continue their strateqic Investment In the playing squad whether that be by way of transfer fee orIncreased salary payments to Bosman type slgmngs to supplement the existrnq squad of players Investment In theclub's academy Willcontinue against a full review of Its operation to ensure that best value ISachieved

Work ISnow complete on the £2 am Centenary Pavil ion whtcn Willfurther enhance the club's abthty to generate Incomeon non-matchdays to create a diverse and non result dependant turnover General Improvements were alsoundertaken around the Eiland Road stadium for the benefit of both fans and corporate trcket holders Off the field thepnonty remains the rrnplementatron of the planmng approval received for the East Stand Development which Includes a340 bed hotel, new club superstore and office along WIthan arcade WIthretail consent

The Board are strll relyIng on the 2009 valuation undertaken hy KIng Sturge whereby the stadium was valued at £49 amand the development land to the East of the stadium was £!) 72m, a total of £54 12m The freehold can currently bepurchased from landlord, Teak Commercial Limited, for £14 49m

The faiture of England's bid to host the 2018 World Cup was a major drsappomtrnent but the club remains committed tothe Improvement of the facitmes at Eiland Road

Results and diVidends

The profit for the year after taxation was £2,072,000 (7009 £15,000) for the company The directors do notrecommend the payment of a drvidend

DirectorsDirectors serving the company dunng the year and since the year end were as followsKW8atesS A HarveyR M Taylor (ReSigned 13th May 2010)Y SAllen (Appomted 13thMay 2010)P Lorimer (Appomted 13thMay 2010)

Financial InstrumentsThe company ensures that cash flows are closely monitored on a daJly baSIS Financial rrsks are kept to a minimumwherever possible The company's financial Instruments comprrse borrowmqs, cash and lrquid resources, financeleases and vanous other Items such as trade debtors and trade creditors that anse directly from Its operations The

company does not engage In trades of a speculative nature and has no foreign currency exposure The companymonitors ItScash flow throughout the year and reviews ItSoverall financial requirements on an annual baSIS

Key perfonnance indicators

The performance of the team IS rnorutored by publicly available League POSition tables In addition to thrs, thecommercral operations of the business are monitored against detailed budgets and benchrnarkmq exercises areundertaken to assess the company's performance Within tha sector The £3 911m nse In turnover from £23535m to£27446m represents an Increase of 166% and club maintained ItS POSitionas havmq achieved the highest homeattendance In league One

Employee InvolvementThe company's employment pohcres are desiqned to attract, retain and motivate the best people The companyInvolves employees at all levels of the organisation through a broad base of regular cornrnurucanon meetings andbnefing sessions to understand current performance and communicate future developments

3




Disabled employees

Applications for employment by disabled persons are always fully considered In the event of members of staffbecoming disabled, every opportunity IS made to ensure their employment with the company continues and thatappropnate trammq ISarranged It ISthe policy of the company that the training, career development and promotion ofdisabled persons should, as far as possible, be Identical to that of other employees

AuditorsBaker Tilly UK Audit LLP, Chartered Accountants, are deemed to be re-appornted under Section 487(2) of theCompames Act 2006

Statement as to disclosure of mfonnatlon to auditorsThe dtrectors who were In office on the date of approval of these financial statements have confirmed, as far as they areaware, that there IS no relevant audit mformanon of which the auditors are unaware Each of the directors haveconfirmed that they have taken all the steps that they ought to have taken as directors In order to make themselvesaware of any relevant audit mtormauon and to establish that It has been commumcated to the auditor _

Approved by the board of directors and siqned on behalf of the board

SA HarveyDirector28

thFebruary 2011

4




DIRECTORS' RESPONSIBILITIES IN THE PREPARATION

OF FINANCIAL STATEMENTS

The directors are responsible for prepanng the Directors' Report and the financial statements In accordance withapphcable law and regulations

Company law requires the directors to prepare financial statements for each financial year Under that law the directors

have elected to prepare the financial statements In accordance with Umted Kingdom Generally Accepted AccountingPractice (United Kingdom Accounting Standards and applicable law)

Under company law the directors must not approve the financial statements unless they are satisfied that they give a trueand fair view of the state of affairs of the company and of the profit or loss of the company for that penod

In prepanng those financial statements, the directors are required to

a select suitable accounting pohcies and then apply them consistently,

b make Judgments and accounting estimates that are reasonable and prudent,

C prepare the financial statements on the gOing concem baSISunless It IS mappropnate to presume that thecompany Willcontinue In business

The directors are responsible for keepmg proper accounting records that are sufficient to show and explain the company'stransactions and disclose Withreasonable accuracy at any time the financial POSitionof the company and enable them toensure that the financial statements comply Withthe Companies Act 2006 They are also responsible for safeguarding theassets of the company and hence for taking reasonable steps for the prevention and detection of fraud and otherIrregulannes

5




INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LEEDS UNITEDFOOTBALL CLUB LIMITED

We have audited the financial statements on pages 7 to 16 The finanoal reporting framework that has been apphed In

their preparation IS apphcable law and United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice)

This report IS made solely to the company's members, as a body, In accordance with Chapter 3 of Part 16 of theCompanres Act 2006 Our audit work has been undertaken so that we might state to the company's members thosematters we are required to state to them In an auditor's report and for no other purpose To the fullest extent permittedby law, we do not accept or assume responsibihty to anyone other than the company and the company's members as abody, for our audit work, for thts report, or for the opnuons we have formed

Respective responeibrhtres of directors and auditorsAs more fully explained In the Directors' Responsibnmes Statement set out on page 5, the directors are responsible forthe preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibil ityIS to audit and express an opinion the financial statements In accordance With applicable law and InternationalStandards on Audttmq- (UK and Ireland) Those standards require us to comply With the Auditing Practices Board's(APB's) Ethical Standards for Auditors

Scope of the auditA descnption of the scope of an audit of financial statements IS provided on the APB's website atwww frc org ukJapb/scope/UKNP

Opinion on the financial statementsIn our opinion the financial statements

• give a true and fair view of the state of the company's affairs as at 30 June 2010 and of ItSprofit for the year thenended,

• have been properly prepared In accordance With uruted Kingdom Generally Accepted Accounting Practice, and

• have been prepared In accordance Withthe requirements of the Comparues Act 2006

Optruon on other matter prescribed by the Companies Act 2006In our Opinionthe Information given In the Directors' Report for the financial year for which the financial statements areprepared ISconsistent With the financial statements

Matters on which we are required to report by exceptionWe have nothing to report In respect of the following matters where the Companies Ad 2006 requires us to report toyou If, Inour opinion

• adequate accounting records have not been kept, or returns adequate for our audit have not been received frombranches not VISitedby us, or

• the financial statements are not In agreement Withthe accounting records and returns, or

• certain disclosures of directors' remuneration speofied by law are not made, or

• we have not received all the Information and explanations we require for our audrt

Anthony Elston (Semor Statutory Auditor)For and on behalf of BAKER TILLY UKAUDIT LLP, Statutory AuditorChartered Accountants

2 Whitehall QuayLeedsLS14HG

28th February 2011

6




NOTES TO THE FINANCIAL STATEMENTS

PROFIT AND LOSS ACCOUNT

Year ended 30 June 2010

OperatJons

excluding Player Year ended Year ended

player trading trading 30 June 2010 30 June 2009Note £000 £'000 £'000 £'000

Turnover 2 27,446 27,446 23,535

Cost of sales (5,563) (5,563) (4,930)

Gross profit 21,883 21,883 18,605

Administrative expenses (22,553) (990) (23,543) (21,402)

Operating loss 3 (670) (990) (1,660) (2,797)

Profit on player trading 3,818 3,818 2,911

Profit on ordinary actrvrtres before interest (670) 2,828 2,158 114

Other Interest receivable and Similar mcorne 4 3 3 19

Interest payable and Similar charges 5 (89) (89) (118)

Profit on ordinary acnvrnes before taxation (756) 2,828 2,072 15

Taxation on profit on ordinary activmes 7

Profit for the financial year 16 (756) 2,828 2,072 15

The results for the year relate to continumq operauons

There are no recognised gains and losses for the penod other than as stated Inthe profit and loss account Accordingly,no statement of total recognised gains and losses has been presented

7



-----



BALANCE SHEET

30 June 2010

Company registration no 06233875

Year ended Year ended

30 June 30 June

2010 2009Note £'000 £'000

Fixed assets

Intangible assets 8 7,085 7,277

Tangible assets 9 4,401 3,686

11,486 10,963

Current assets

Stock 10 716 553

Debtors 11 4,010 2,669

Debtors due after more than one year 11 33 931

Cash at bank and In hand 3,670 3878,429 4,540

Creditors amounts falling due within one year 12 (11,631) (10,202)

Net current liabilities (3,202) (5,662)

Total assets less current l iabil ities 8,284 5,301

Creditors amounts falling due after more than one year 13 (1,144) (233)

Net assets 7,140 5,068

Capital and reserves

Called up share capital 15 500 500Profit and loss account 16 6,640 4,568

-Equity shareholders' funds 16 7,140 5,068

The finanCial statements on pages 7 to 16 were approved by the board of directors and authonsed for Issue on 28th

February 2011 and are signed on ItSbehalf by

SA HarveyDirector

8





1 Principal accounting pohcres

The financial statements are prepared In accordance with applicable United Kingdom accounting standards The

pnncrpal accounting pohcres adopted by the directors are set out below'

Basrs of preparation

At 30 June 2010 the company had net current liabilities of £3,202,000 Detailed forecasts have been prepared,

Indicating that the company Will have sufficient resources to meet debts as they fall due durrng the next 12 months As

a result, the directors consider that It ISappropnate to prepare the accounts on the gOing concern basis

Basts of accountmg

The financial statements are prepared m accordance with the historical cost convention

Cash flow statement

The directors have taken advantage of the exemptron In Fmancial Reporting Standard No 1 (Revised 1996) from

rncludmq a cash flow statement In the financial statements on the grounds that the company IS wholly owned and ItS

parent publishes a consolidated cash flow statement

Turnover

Turnover represents Income receivable from football and related commercial acnvities, exclusive of VAT

Gate receipts and other match day revenue IS recognised as the games are played

Revenue derived from season tickets IS credited to Income In the penod to which It relates Amounts received In

advance are credited to deferred Income In the balance sheet

Sponsorship, advartrsmq and sirrular commercial Income IS recognised over the duration of the respective contracts

Amounts received In advance are credited to deferred Income In the balance sheet

The fixed element of broadcasting revenues IS recognised over the duration of the football season whilst fees received

for live coverage or hlqhhghts are taken when earned

Intangible fixed assets - Player Registrations _

In line With FRS 10 GoodWill and Intangible Assets, the costs associated With the acquismon of players' registrations are

capitalised as intangible fixed assets and amorhsed, In equal annual Instalments, over the penod of the respective

player's contract The transfer fee levy refund received dunng the year IS credited against additions to mt;lnglble

assets Players' registrations are wntten down for Impairment when the carrying amount exceeds the amount

recoverable through use or sale

Intangible fixed asseta- GoodWill

Goodwill IS being amortised In equal Instalments over 50 years based on the longeVity of the club and the strPllgth of

the Brand

Intangible fixed assets " Trademarks

Trademarks are being amortised In equal Instalments over 10 years

Tangible fixed assets

Depreciation IScalculated to wnte off the cost of tangible fixed assets, less their estimated residual values, on a straight

line baSIS over the expected useful econorruc life of the asset concerned, as follows

Assets under the course of construction and

leasehold land and bUildings

Fixtures and fittings

Alterations and Improvements

0" 22 years

1 " 10 years

2 - 10 years

SIgnmg-on fees

Signing-on fees represent a normal part of the employment cost of the player and as such are to be charged to the

profit and loss account In the penod In which the payment ISmade, except In the Circumstances of a player disposal In

that case, any remaining signing-on fees due are allocated In full against profit on disposal of players' registrations In

the year In which the player disposal ISmade

Stocks

Stocks, which compnse goods held for re-sale, are stated at the lower of cost and net realisable value

Leases

Assets held under finance leases and hire purchase contracts are capitalised at their fair value on the inception of the

lease and deprecated over their estimated useful life Fmance charges are allocated evenly over the penod of the

lease

Operatmg lease rentals are charged to profit and loss In equal amounts over the term of the lease

9





Deferred taxation

Deferred tax IS provided In full on timing differences which result In an obliqanon at the balance sheet date to pay more

tax, or a nght to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax

rates and law Timing differences anse from the mclusion of Items of Income and expenditure In tax computations In

penods different from those In which they are Included In financial statements Deferred tax IS not provided on turunq

differences arising from the revaluation of fixed assets where there IS no commitment to sell the asset, or on unremitted

earmngs of subsidianes and associates where there ISno commitment to remit these earnings Deferred tax assets are

recogmsed to the extent that It IS regarded as more likely than not that they Will be recovered Deferred tax assets andliabilities are not discounted

Pension costs

For defined contnbutron schemes the pension cost charged In the year represents contributions payable by the group to

vanous pension schemes For defined benefit schemes the expected cost of providmq pensions, as calculated

periodically by professionally qualJfied actuanes, IScharged to the profit and loss account so as to spread the cost over

the service lives of employees In such a way that the pension cost IS a substantially level percentage of current and

expected future pensionable payroll

2 Turnover


30 June 2010 30 June 2009£'000 £000

Gate receipts 11,732 8,966

Televisron and broadcasting Income 802 169

MerchandiSing Income 5,509 4,918

Central drstnbutions 757 492

Other commercial revenue 8,646 8,990

27,446 23,535

All turnover relates to the prmcipal activity of operating a professional football club and arises from contmumq activities

Within the UK

Operating loss IS stated after chargmg

Year ended

3DJune 2010

£'000

Year ended

30 June 2009

£'000

3 Operating loss

Amortisation

Amortisation of player registration costs

Amortisation of goodWill

Amortisation of trademarks

DepreCiation of tangible fixed assets

Owned assets

Assets held under finance leasesAuditors' remuneration

Audit

Other, provided by an associate of Baker Tilly UK Audit LLP

Operating lease charges

Land and buildmqs

Plant and machinery

Motor vehicles

990

115

1,295

114

663 549

71 46

43 35

9 2

1,756 1,732

16 32

107 107

10



LEEDS UNITED FOOTBALL CLUB LIMITEDNOTES TO THE FINANCIAL STATEMENTS

4 Other interest receivable and similar Income


30 June 2010 30 June 2009

£'000 £'000

Bank Interest 3 19

3 19

5 Interest payable and similar charges

Year ended

30 June 2010

£'000

Year ended

30 June 2009

£'000

Bank Interest

Other loans

Finance leases and hire purchase contracts

1

76

12

92

26

89 118

6 EmployeesThe average monthly number of persons (Including executive directors) employed by the company dunnq the year was


30 June 2010 30 June 2009

No No

Full-time plaYing staff 32 25

Apprentices 13 14

Football team management 13 12

ManagemenUadmlnlstratlon 126 138

184 189

In addrtron to the above employees, on match days the group employs approximately 710 (2009 570) casual part-timeemployees

Employee costs (including directors' emoluments) Incurred dunng the year were


30 June 2010 30 June 2009

£'000 £'000

Wages and salanes 12,433 11,103

Social secunty costs 1,193 1,086

Other pension costs 95 92

13,721 12,281

Directors' emoluments In the year were £174,087 (2009 £150,000) and benefits paid to directors were £11,986 (2009£13,170) K W Bates did not receive any emoluments or benefits dunng the year Pension payments of £16,600 (2009£14,000) were made on behalf of the directors One director accrued retirement benefits under a money purchasescheme

11





7 Taxation on profit on ordinary activities

Year ended

30 June 2010

£'000

Year ended

30June 2009

£'000

Current penod tax

UK Corporation tax charge for the year

Deferred Taxation

Origination and reversal of timing differences

The company has trade losses of approximately £48 million earned forward for use against future trading profits Thelosses have been transferred With the trade from another company upon the acquismon Corporauon tax has beencharged at the standard rate of 28%

Profit on ordmary activities before tax

Year ended

30June 2010

£'000

2,072

Year ended

30 June 20()9

£'000

15Tax on profit on ordinary activities at standard rate of 28%

Capital allowances In excess of depreciation

Deprectatton In excess of capital allowances

Adjustments arising on acquismon

Ineligible depreciation

Other short term timing differences

Expenses not deductible for corporation tax purposes

Tax losses utilised

580 4

8

120 112

(23)

23

(117)

61

(769)

Total actual amount of current tax

8 Intangible fixed assetsTrademarks Player reglstrattons GoodWIll Total

£'000 £'000 £'000 £'000

Cost

At 1 July 2009 3,688 5,733 9,421

Additrons 10 786 250 1,046

Disposals (1,224) (1,224)

At 30 June 2010 10 3,250 5,983 9,243

Amortisation

At 1 July 2009 1,923 221 2,144

Charge for the penod 990 115 1,105

Impairment

Disposals (1,091) (1,091)

At 30 June 2010 1,822 336 2,158

Net book value

At 30 June 2010 10 1,428 5,641 7,085

At 30 June 2009 1,765 5,512 7,277

12




9 Tangible fixed assetsAssets under the course Alterations and Fixtures

of construcnon Improvements and fitlings Total

and leasehold land andbUildings

£000 £'000 £'000 £'000

Cost or valuabon

At 1 July 2009 752 3,104 814 4,670

Additions 919 93 477 1,489

Disposals (46) (2) (48)

At 30 June 2010 1,671 3,151 1,289 6,111

Depreci all on

At 1 July 2009 34 625 325 984

Charge for the penod 2 389 343 734

Disposals (8) (8)

At 30 June 2010 36 1,006 668 1,710

Net book value

At 30 June 2010 1,635 2,145 621 4,401

At 30 June 2009 718 2,479 489 3,686

Included In the total net book value of f ixtures and fitt ings are the following amounts In respect of assets held underfinance leases and hire purchase contracts

Fixtures and fittings

£'000

Cost

Accumulated deprecianon

329

(163)

At 30 June 2010 166

At 30 June 2009 130

The deprecration charge In respect of these assets was £71,236 (2009 £46,000)

10 Stock30 June 2010

£'000

30 June 2009

£'000

Goods held for resale 716 553

11 Debtors30 June 2010 30 June 2009

£'000 £'000

Trade debtors 757 764

Transfer fee debtors 25 17

Amounts due from group undertaking 441

Other debtors 1,396 582

Prepayments and accrued Income 1,391 1,306

Total 4,010 2,669

Debtors due after more than one year

Bonds 20 931

Transfer fee debtor 13

33 931

13





12 Creditors amounts falling due within one year

30 June 2010 30 June 2009

£'000 £'000

Obligations under finance leases 42 11

Trade creditors 1,539 2,565

Other taxation and social secunty costs 1,585 846

Transfer fee creditors 202 241

Other creditors 231 163

Amount due to group undertakings 292

3,599 4,118

Accruals and deferred Income 8,032 6,084

11,631 10,202

Of the £8 032m accruals and deferred Income £6 848m represents prepayment of tickets and sponsorship that wouldonly become a liability of the company should It fall to fulfi l all of Its fixtures for the 2010/11 season

13 Creditors amounts failing due after more than one year

30 June 2010 30 June 2009

£'000 £'000

Obligations under finance leases 81

Transfer fee creditors 91 24

Pension (Note 17) 172 209

Accruals and deferred Income 800

1,144 233

Borrowmqs are repayable as follows

30 June 2010

£'000

30 June 2009

£'000

Finance leases

Within one year

Between one and two years

Between two and five years

42

42

39

11

123 11

Total borrowmqs

Within one year

Between one and two years

Between two and five years

42

42

39

11

123 11

Obligations under finance leases at 30 June 2010 were secured on the related assets

14 Provrsrons for liabilit ies and charges

Deferred tax

The company has not recognised a deferred tax asset on the losses as the availabil ity of suitable profits against whichthese may be utilised cannot be predicted with sufficient certainty The net deferred tax asset unprovided IS £129mill ion (2009 £136 million) at the standard rate of corporation tax of 28%

14




15 Called up share capital2010 2009

£'000 £'000

Authorised

500,000 ordinary shares of £1 each 500 500

Allotted, called up and fully paid

500,000 ordinary shares of £1 each 500 500

16 ReconcIliation of movement In shareholders' fundsShare Profit and Shareholders'

Capital loss account funds

£'000 £'000 £000

At 1 July 2009 500 4,568 5,068

Profit for the year 2,072 2,072

At 30 June 2010 500 6,640 7,140

17 Pensions Creditor

Defined contribution schemes

Certain professional footbalhng staff of the group are members of the Football League Limited Players RetirementIncome Scheme, a non-contnbutory defined contribution scheme In addition the company operates a definedcontnbunon scheme open to all other employees The costs of all defined contribution schemes are charged to theprofit and loss account In the year Inwhich they accrue

Defined benefit scheme

Certarn professional footbalhng staff are members of the Football League limited Pension and Life Assurance Scheme

("FLLPLASft

), a defined benefit scheme Under FRS 17 Retrrement Benefits, the FLLPLAS would be treated as adefined benefit multi-employer scheme The assets of the scheme are held separately from those of the company,being Invested WIthInsurance companres

FolloWInga review of the Mlnrmum Funding Requirement ("MFR") of the FLLPLAS, accrual of benefits of the final salarysecticn of the scheme was suspended as at 31 August 1999 In the light of the exceptional circumstances affecttng thescheme, the trustees of the scheme cornrmssioned an Independent actuary's report on the MFR positron and asubstantial deficrt was Identified Under the Pensions Act 1985 participating employers WIllbe required to contrrbute tothe deficiency The latest actuarral valuation of the scheme was eamed out as at 31 August 2008 The allocation of thedeficrt under this valuation nonfied to Leeds Uruted AFC Limited and repayable by Leeds Unrted Football Club Lirmted ISfully provided for Inthe accounts and ISbeing repaid at £3,087 per month

18 Operating lease commitments

At 30 June 2010 the company was committed to making the followmq payments dunnq the next year In respect ofoperating leases

Plant & equipment Other premises Motor vehicles

2010 2009 2010 2009 2010 2009

Lease expires £'000 £'000 £'000 £'000 £'000 £'000

WIthIn one year 26

Wlthm one to two years 119

WithIn two to five years 109

After five years 1,835 1,729

26 1,835 1,729 119 109

15




19 Capital commitments

At 30 June 2010 the company had capital commitments totalling £1,758,816 (2009 £94,200)

20 Contmgent habumes

In the event of the club becoming a member of the FA Premier League before the 2017/18 Season then a lrabrlrty of

£4,750,000 (2009 £5,000,000) wlil become payable to the hquidator of Leeds United Associatron Football Club limited

(the) under the provrsions of the sale agreement entered into on the 4th May 2007

On 9th

Apnl 2010 a Settlement Agreement with the hquidator resulted In a payment of £250,000 being made to the

liquidator This amount, which has been capitalised within goodwill (note 8) as an additional cost of acqursmon, reduced

the contingent liability referred to above

Under the terms of the financial provisions relating to transfer of players registrations then future payments of up to

£1,500,000 (2009 £2,000,000) may be payable dependant on the clubs promotion to the FA Premier League andl or

players appearances for the club

21 Ulbmate controllmg party

The directors consider that the ultimate controlling party IS FSF Limited, a company registered In NeVIS

Leeds City Holdings Limited IS the Immediate parent, and IS the smallest and largest group for which consolidated

accounts including Leeds United Football Club LImited are prepared

22 Related party transactions

Costs for legal services of £279,316 (2009 £129,571) were Incurred by Leeds United Football Club limited with Mark

Taylor & Company, controlled by R M Taylor, a director of Leeds Umted Football Club Limited

The company has taken advantage of the exemption from disclosmq transactions with entmes within the Leeds City

Holdmgs Limited group of compames on the grounds that the consohdated accounts of that group are publicly available

from Companies House, Crown Way, Mamdy, Cardiff

leeds united football club accounts year ended june 2010

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