23/05/18 Agenda Season Review Financial Review The Model - - PowerPoint PPT Presentation

Supporters Trust Open Meeting 23/05/18

• Season Review
• Financial Review
• The Model
• Questions

Agenda

Chief Executive Alex Tunbridge

• Club Update
• First Team
• Retail
• Match Day
• Ticketing
• GDPR
• Academy
• Community
• Commercial
• HR
• Summary
• Questions

Agenda

Objective 1 - Finance To be financially solvent and self sufficient. Objective 2 – Player Development To develop talented players through the Clubs development pathway for future first team football. Objective 3 – Community Engagement To use football as a vehicle to inspire and engage with the Clubs local community. Objective 4 – Supporter Engagement To engage and develop the clubs supporter base, creating future generations

• f supporters.

Objectives

First Team

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• EFL League Two 11th Place Finished – 64 Points
• Checkatrade Trophy – Group Stages
• Carabao Cup 2nd Round
• FA Cup 4th Round Replay

On Field Performance

• 36 players Used Inc 7 loans (41 – 2016/17)
• Improved Discipline 79 Yellows & 3 Reds (105/4 – 2016/17)
• First Team Management Stability
• Six Scholar Debuts – Two Professional Contracts
• 14 Players Engaged For 2018/19 Season

In Numbers

Pre-Season

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• Players To Return Thursday 28th June & Friday 29th June For Testing
• A Variety Of Team Building & Supporter Engagement Events
• Mix Of Home, Away & Behind Close Door Matches

Date Opposition Details Wed 11th July Championship Club Newport Stadium - TBC Fri 13th July Undy AFC Away – 7.00pm Sat 14th July Chippenham Town Away – 3.00pm Tue 17th July Championship Club Behind Close Doors Wed 18th July Penybont FC Away – 7.30pm Sat 21st July Hereford FC Away - 3.00pm Tue 24th July National League Club Away - TBC Sat 28th July Championship Club Rodney Parade - TBC

Retail

Objective 1 – Finance

• Retail Performance +% Year on

Year

• Two Attempted Burglaries
• Club Shop Relocation
• 2018/19 Kits – W/C 16th July
• Exploring New Online Store

Period 1st July – 27th Feb Retail Sales Prior Year +/-% 2015/16 £77,314.89 N/A 2016/17 £68,565.33

• 11%

2017/18 £148,757.36 +117%

Objective 4 – Supporter Engagement

Current Shop Hours Thursday & Friday: 10am – 7pm Match Days: 10am – Kick Off + 30 Mins After Full Time Online 24/7 OPEN TILL 1st JUNE 2018 – NEW STORE OPENS 2nd JULY 2018

Match Day

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

No Matches 2016/17 2017/18 +/-% 23 Matches 2,516 3,492 38.79% Home League Match Average Attendance

500 1000 1500 2000 2500 3000 3500 2013/14 2014/15 2015/16 2016/17 2017/18

EFL Home Average Attendance

Match Day

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• Total 2017/18 League Attendance = 80,916 (+24%)
• Total 2017/18 Attendance (inc Cups) = 103,778
• Record Rodney Parade Football Attendance = 9,836
• Season Ticket Holders = 1,635 (+120%)

No Matches 2016/17 2017/18 +/-% U6’s 75 85 13% U12’s & U16’s 251 490 95% U21’s 85 173 106% Total 411 748 82% Junior Home League Match Average Attendance

Match Day

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• Based Upon Two Mystery Shopper Visits
• Seeks To Highlight & Reward Positive Family Engagement Experiences
• Club First Award Family Excellence Status During 2016/17 Season

EFL Family Excellence Award Staff Engagement

• Awarded EFL’s Most Engaging Club Award
• League Two & Overall EFL Winner
• Recognises Outstanding Levels Of Staff Engagement & Supporter Service
• Evaluates Contribution Of Club Staff, Stewards, Stadium Staff & Volunteers

Ticketing

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• Theatre Ticket System – Not Fit For Purpose
• Limited Functions & Parameters
• Purchase History & Account Information Limited
• Season Ticket Allocation
• Seat & Patron Duplication
• Online Purchase Processing Issues

2017/18 2018/19

• Bespoke Football Specific System
• Improved Customer Experience
• Ability To Process High Ticket Volumes

Ticketing

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• Three Year Partnership
• New WRU Stadium Box Office – Increased Opening Hours
• Season Ticket & Member Portals Via Client Reference No
• Bookings History
• Loyalty Points & Priority Purchase System
• New Online Booking Site
• Print @ Home Tickets & App Functionalities
• Streamlined Sales & Access
• Improved Efficiency
• Ability To Upscale

2018/19 Tickets

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• 2017/18 Season Ticket Holder Loyalty Rewarded
• Increased Savings & Value
• Season Ticket Seat Retention & Renewal Discount Available 1st June 2018
• Finance Options Via Zebra Finance
• New Ticket System & Functions

Season Tickets Match Tickets

• Online Price Reduction
• £1 Increase Ticket Office Purchase
• Increased Online Usage & Reduced Match Day Sales

GDPR

Objective 4 – Supporter Engagement Objective 3 – Community Engagement

• GDPR Legislation Implemented Friday 25th May 2018
• Contracted Third Party To Assist & Be Club’s Data Controller
• Variety Of Compliances Being Put Into Place Club Wide
• Tell Us If We Can Hold Your Data
• Choose The Data We Hold For You
• Tell Us What You Want To Be Communicated About
• Tell Us How You Want to Be Communicated To
• Change Your Preferences At Any Point In Time
• See The Data We Hold For You At Any Point In Time
• Opt-Out Of Communications & Your Data Being Held at Any Point In Time

Supporters Club

#CountyConnected

Academy – Overview

Objective 1 – Finance Objective 2 – Player Development

2017/18

• Academy Restructure – Increased To 400 + Players & 55 Staff
• Clearer Player Development Pathway
• Kit Delivery Issues – Resolved – 2018/19 = July 2018 Delivery
• 5 Scholar Debuts & 2 Professional Contracts
• U19 Wales International Call Ups – Foulston, Touray & Collins

2018/19

• Successful Application EFL/EPL EPPP Cat 3 Academy
• Increased Funding, Staff & Infrastructure
• EPPP Player Compensation Payments
• Increased Success Rate & Improved Player Pathway
• Future First Team Player & Income Stream

Community

Objective 4 – Supporter Engagement Objective 3 – Community Engagement

Internal

College Programme: 27 students across two year groups – 12 1st year & 15 2nd year students. 11 students attending UK Universities – 6 Cardiff Met, 2 Exeter, 2 Swansea, 1 Worcester 2 students attending Universities in USA – Georgia & New York Foundation Degree: 7 students across three year groups – 3 1st year, 3 2nd year & 1 3rd year student. Walking Football: 2 sessions held weekly at Llanwern High School - 36 different people in attendance during 2017/18 Cups & Festivals: 12 Schools Cups & Festivals over 2,000 people attending Mental Health 40 people registered - 20 attending regularly and have improved self confidence Programme:

Community

Objective 4 – Supporter Engagement Objective 3 – Community Engagement

Internal

Soccer Tots: 46 children attending aged between 3 and 6, since September 2017. Primary Schools: 450 children, across 6 schools Premier League Primary and Reading Stars 930 children Sport Move and Learn, across 19 Schools (Newport, Torfaen & Monmouth) 740 children Amber Education, across 15 Schools (Newport, Torfaen & Monmouth) Welsh Football Trust: 1,347 young people engaged in Football activities (over 1,000 Primary School girls from all over Gwent) Premier League Girls: 93 women & girls attending 5 sessions per week in Newport Streetgames: 25 young people and 12 Families attending Premier League Kicks: 146 young people aged between 10 and 18, attending 3 weekly sessions (Bettws, Alway & Newport Centre). Holiday Camps: 25 Soccer & Multisport Camps 2017/18 Engaging over 400 different 7 to 14 year olds

Commercial

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• Increased Brand Exposure & Growth
• Global Coverage & Multinational Brand Association
• Increased Hospitality Platform & Guests
• League Two Visiting Director Nomination
• New Events & Opportunities
• New Contacts & Customers

2017/18 2018/19

• Revised Commercial Packages & Pricing
• New Commercial E-Brochure
• Directors Focus Group & Additional Resources
• New Opportunities & Agreements

HR Update

TBC COO Club Development Daily Management Hayley Ford Media & Engagement Media Channels Press Conferences Press Releases Engagement Activities Oversee Programme Ethan Foster Operations Manager Football Administration Match Day Preparations EFL Protocol First Team Support Volunteers Rebecca Hemming Commercial Manager Sponsorship Hospitality Partnerships Brand Development EFL Commercial Nigel Stephenson Accounts Manager Day To Day Processing Management Reports Debt Management Board Reports EFL Protocol TBC Graphic Design Apprentice Content Development Social Media Match Day Feeds Ben Lucey Intern Home & Away Tickets Season Tickets Volunteers Academy Support Poppy Reynish Accounts & Administration Assistant Accounts Processing Ticket Support

One Club One County

Objective 4 – Supporter Engagement Objective 3 – Community Engagement Objective 1 – Finance

• Learning Experience
• Improved Brand & Reputation
• Record EFL Attendances
• Wider Commercial Opportunities
• EFL Recognition & Awards
• New Relationships
• Increased Community Engagement
• Improved Supporter Experience
• Academy Growth & Future Platform

‘A season of experiences, learning, growth & success

both on and off the pitch’ – Lennie Lawrence

Summary – Oct 17

Product On The Pitch

Infrastructure To Support

Recruitment Strategy Pre-Season Planning Player & Staff & Welfare Training & Playing Facilities January Transfer Strategy Media Staff Multiple Platforms Video Content Brand & Identity Strategy Platform To Market Commercialise Engagement Commercial Manager Clear & Defined Opportunities Strong Retail Operation High Level Engagement Hospitality Platform Head of Supporter Services Willingness To Engage Customer Service / Accessible Ticketing Solution Resource Infrastructure 45% 35% 20%

Summary – March 18

Product On The Pitch

Infrastructure To Support

Recruitment Strategy Safety Cup Run Training & Playing Facilities Summer Transfer Strategy Media Staff Multiple Platforms Video Content Brand & Identity Strategy Platform To Market Commercialise Engagement Commercial Manager Clear & Defined Opportunities Strong Retail Operation High Level Engagement Hospitality Platform Head of Supporter Services Willingness To Engage Customer Service / Accessible Ticketing Solution Resource Infrastructure 40% 60% 0%

Summary - May 18

Product On The Pitch

Infrastructure To Support

Recruitment Strategy Safety Cup Run Training & Playing Facilities Summer Transfer Strategy Media Staff Multiple Platforms Video Content Brand & Identity Strategy Platform To Market Commercialise Engagement Commercial Manager Clear & Defined Opportunities Strong Retail Operation High Level Engagement Hospitality Platform Staff Engagement Willingness To Engage Customer Service / Accessible Ticketing Solution Resource Infrastructure 55% 45% 0%

2017/18 Summary

Product On The Pitch Platform To Market Commercialise Engagement Infrastructure To Support / /

• /

Questions Club Operations

Finance Review

Season 17/18

• £350k deficit last season – not debt – due to contractual pay offs, position of

team

• Significant increase in WRU for match staging costs
• Ongoing contribution to Desso pitch
• Lower than anticipated replay income
• Football bonuses
• To close the gap we have continued to:
• Review all expenditure – small group to drive out cost
• Commercial Group formed to increase income
• Management accounts now a feature of the reporting – enabling improved

forecasting

• Eliminate Academy subsidy

Shaun Johnson

Financial Context

Club Period Loss Chesterfield 2016/17 £506k Cambridge 2016/17 £700k Morecambe 2016/17 £574k Forest Green 2016/17 £2.1m Crewe 2016/17 £595k League 1 and League 2 Clubs’ pre-tax profits Clubs’ pre-tax profitability remained relatively stable across both League 1 and League 2 in 2015/16, with an average pre- tax loss per club of £1.6m and £0.5m, respectively. These deficits still need to be covered, in most cases, by the clubs’

• wners. Deloitte 2017

Shaun Johnson

Some context

• To set it in context of other supporter owned clubs:

Club Members Yearly Contribution Wycombe 180 Fans – regular donations 140 – one off payments £85k Exeter Donations & 31 Club £100k Wimbledon Subscriptions Blue and Gold Club (30) Over £100k £35k Newport County Subscriptions Donations £10k £25k "We're probably the richest club in the country - the reason I say that is because we don't owe anything," "But we could also say we're the poorest club because if something goes wrong there's no back-up.“ Julian Tagg, 2014

Shaun Johnson

Some Context

In summary I believe our board and team as a whole has delivered real but often underrated and little-appreciated stability. It has cleared all debts, has ensured prudence in terms of cash in reserve, developed a capital fund that means we are actually investing rather than firefighting, looking forward rather than around and behind us, and embarked upon a number

• f capital projects that will result in further benefit, stability and growth.

I feel it is only right to add a final note that draws attention, albeit that the above report places us in a real position of progression and positivity, to what is happening elsewhere in football. Bristol Rovers taken over by a Jordanian consortium, Crawley by a Turkish consortium, a new

• wner of even Accrington Stanley, Northampton, I could go on. It will undoubtedly mean more

money being pumped into our direct competitors 20 + that are working from what is always said to be unsustainable models. That isn’t going to change any time soon. My point is that if we are going to make our Trust model continue to compete, we need to work harder, faster and smarter from our now strongly-established foundation with ever more continuity, unity and single-minded determination than ever before. JULIAN TAGG - CHAIRMAN OF THE BOARD, EXETER CITY FOOTBALL CLUB (2016)

Shaun Johnson

A Co-Opted View

• It’s difficult to run the Club on player sales and cup runs
• To set in context business turns over £2.2 million a year and the owner –Trust has

contributed £30k this year

• That is not enough as the major shareholder and why a debate is needed on the

model itself

• Its certainly not all doom and gloom – we have very little debt – our payment to

Les Scadding is it!

• We have an opportunity to have some honest conversations and engagement

with the owners on our future

• The approach to finances has improved significantly and that allows us to

commence the debate in a controlled manner

Mark Crook

Wider Debate

• Do the people of the City want professional sport in the

centre of Newport?

• There are a sequence of events that have led us to ask this question?
• WRU increase in cost base
• Looming end of agreement – 2023
• The positive publicity the city received from the cup run was

staggering – we are more than a football club. We have a brand.

• That is not something we can answer alone – it is a city decision
• It involves many different stakeholders – WRU, NCC, AMs, MPs, City Centre

businesses

• We have engaged with NCC to commence this debate and will be pushing for

this to happen

Kevin Ward

Model

• What are the options:
• Supporter-owned – remain as we are, but with increased donations from a

greater number of Trust members

• Put the club up for sale – in total or in part
• Blend ownership of supporter, council and business – old Swansea model
• What is the timetable for the consultation?
• Survey will be live following tonight’s meeting
• It will be live for 6 weeks (close 4th July 2018)
• What happens following consultation?
• Answers will be drawn together into themes and shared with members
• Any change will be a decision for the members not the Board

Colin Faulkner

What Have We Done…?

• Finance
• Introduced a number of strict controls
• Introduced a tighter budget for forthcoming season
• In doing the above we have tried to get to the same outcomes but in a

different manner

• Commercial
• Introduced a small working group – as a result of Rebecca’s absence
• Produced a commercial brochure
• Identified a raft of targets – existing, old and new
• Have an agreed strategy to engage which will be launched this week in

earnest

• Engagement
• NCC and other stakeholders have been engaged at a senior level to

explore areas of assistance – A debate is needed on Sport in the City centre

Rob Santwris

How Can You Help?

• Consultation
• Complete the survey and offer your views and thoughts – they count
• Contribution
• If you can contribute more it would be appreciated
• This could be as a volunteer – match days/ in the week / it could

be remotely helping with the Trust membership

• It could be financially - either through a donation or making a

monthly contribution to the rewards and benefits

• Commercial
• If you have time to help with the commercial group please let us know

– you will welcomed

• If you work for a company that may well be interested in some of the

sponsorship packages then please let us know and we will follow up

• It is time for us all to pull together for our great club

Rob Santwris

Summary

• In summary this is about coming together as one united group for the club to

address the two challenges:

• WRU costs have increased and if they continue to do so playing at RP is

not sustainable

• The supporter-owned model can only work if more money is contributed
• n a regular basis by its owners
• To address the above:
• We continue to engage with WRU around the cost base
• Engaged with Newport City Council to start the debate around sport in

the centre

• Commenced the consultation process around the model
• How can you get involved and help:
• Engage in the consultation process being launched
• Join the wider commercial group

Gavin Foxall

Questions Directors