The Directors present the strategic report and financial statements for the year ended 30 June 2024.
Strategy and Business Model
Dundee United Football Club (the “company” and the “club”) is committed to being a sustainable and leading competitor within the upper echelons of the Scottish Professional Football League.
The club aims to achieve success in league and cup competitions. Its philosophy, both on and off the field, is continuous personal growth and team development supported by first-class facilities, staff, coaching, youth development, and club infrastructure.
It aims to be the club of choice for highly talented players and aspiring youngsters, and through a thriving senior football and Academy set-up it will ensure our players are developed to their highest level possible.
We are a club that continues to work alongside Dundee United Community Trust (DUCT) within our local community to improve the lives of people within Dundee and the surrounding areas.
Review of the business
Financial Overview
In the year ended 30 June 2024, Dundee United Football Club reduced its total costs by £3.8 million; a 29% reduction compared to the previous year. Through strict, robust budgetary control, improved processes and communication, the club made significant strides towards financial sustainability by reducing its loss to £1.6m (EBITDA). This was despite the increased challenges and economic consequences of dropping to the Championship.
Whilst never satisfied with a loss, the Board recognise the significant improvement in the financial performance compared to the prior year. It is a further belief that the economic, operational and cost management processes now in place will help drive the club towards the goal of financial sustainability moving forward into 2024-25.
The operating loss before interest and profit on the sale of players was reduced by 45% compared to the prior year despite the reduction in income that comes with relegation to the Championship. The loss, excluding player gains, was £2.3m compared to a £4.3m loss in the prior year. Achieved by the above-mentioned robust budgetary controls, enhanced operational processes and improved communication across the business, it is important to acknowledge the tireless hard work from all staff at Dundee United FC to achieve this reduction thus further aiding a strong foundation for our Premiership return. Total wage costs decreased by £1.7m (25%) to £5.2m and the wages/turnover ratio decreased to 81% from 86% in the prior year.
The net present value loan liability to OPG-4 UK dropped 34% from £10.1m to £6.6m strengthening the balance sheet.
Turnover held high at 6.4m although this was down from £8.1m in the prior year. The drop was largely down to a significant reduction in prize money and lower match attendances due to the substantially smaller away travelling supports in the Championship. The fantastic support of our fans continued, with season ticket sales remaining high and generating over £1m. Home matchday ticket sales also remained strong, with our fans showing great loyalty during a challenging time.
It is also important to note that the club continued to perform strongly in retail, commercial and across all other income streams to ensure that the turnover remained one of the highest in Scottish football despite relegation.
The profit on sale of player registrations was £0.7m with nearly £1m in transfer fee income generated.
Interest payable of £0.5m relates entirely to a notional interest charge on Mark Ogren’s loan account and the Scottish Government Covid-19 loan, as both these loans are provided interest-free and financial reporting standards require notional interest to be charged on them through the Profit & Loss Account. This charge is added back through Other Reserves to the P&L Reserve. The club do not pay out this interest.
The club expects a significant increase in turnover for season 2024-25 after gaining promotion back to the Scottish Premiership. The additional income combined with our improved financial management and controls has given the club a strong financial forecast for the 2024-25 Profit & Loss Account.
Review of Football Operations
Following relegation to the Scottish Championship at the end of the 2022/23 Season, the club committed to the retainment of the management team and extended the contracts of both first-team manager Jim Goodwin and assistant manager, Lee Sharp to lead the team into the following season with the sole objective of winning the league and gaining promotion back to the Scottish Premiership.
The club also obtained the services of experienced goalkeeping coach Paul Mathers ahead of the new season, with club legend Dave Bowman completing the first-team coaching staff.
As a result of the club’s relegation to the Scottish Championship, there was a serious requirement for the cost of the playing squad to be addressed. Following the substantial 2022/23 investment in player registrations and contractual obligations therein, the requirement to transfer the registration of several senior players became paramount.
Despite being faced with the consequential task of offloading costly player registrations in a difficult trading market position, the club were able to obtain transfer income totalling over £1m for several senior players.
Eleven other senior players also left the club for various reasons including the end of current deals, returning to parent clubs or termination of contracts.
The significant overhaul of the playing squad for a season in which there was only one objective meant that a targeted recruitment strategy was required to find players who were capable of achieving the principal objective the club had.
The permanent registrations of Ross Docherty, Kevin Holt, Louis Moult, Declan Gallagher and Liam Grimshaw, coupled with a number of senior players – including Scott McMann, Glenn Middleton, Craig Sibbald, Ross Graham and Tony Watt – who had been retained by the club meant that a competitive and strong squad had been assembled for the above challenge.
Several exciting young players already at the club were given the opportunity to play a part in the first-team squad that season. Kai Fotheringham, Miller Thomson, Chris Mochrie, Archie Meekison and Mathew Cudjoe-Anim all grasped the opportunity and played their parts in the successful campaign.
The club also secured the temporary registration of Jack Walton from English Premier League side Luton Town ahead of the new season.
The competitive season resumed on 15th July 2023 in the Scottish League Cup group stages. Disappointing results against The Spartans and Partick Thistle meant that the club did not qualify for the knock-out stages of the competition.
Subsequently, the team had a tremendous start to the league campaign, remaining unbeaten until mid-December and remaining top of the league for 32 out of 36 match weeks – including a continuous run at the top from match week 19 to the end of the season.
Losing only five matches across the 36-match campaign, the notoriously tough challenge of winning the Scottish Championship was met head-on by everyone across the club. All statistical targets and league-winning benchmarks set by the club and management before the start of the season were surpassed. The team finished the season with seventy-five points, six clear of the nearest challengers. A positive goal difference of fifty, thirty-four goals better off than the next best, a record number of clean sheets in the league (nineteen), and an average of more than two goals scored per game were some of the highlight statistics as the club secured the league title, officially confirming their status as Champions with one game to spare.
Domestic cup competition, against objective, yielded a disappointing return. Alongside the inability to reach the knock-out stage of the Scottish League Cup, a third-round exit at the hands of Queen of the South in the Scottish Cup ended our domestic cup hopes for the season. In the Scottish Challenge Cup, the club exited at the quarter-final stage.
Prior to the season and following the club’s relegation at the end of season 2022/23 to the Scottish Championship, a substantial review of the club’s football operations was carried out by senior leadership.
Review of Football Operations (continued)
The review concluded that the football department service level could continue to operate at a Premiership standard and potentially become enhanced by a more cohesive and prudent approach to expenditure, together with pragmatic budgeting, robust expenditure control and a regular reporting process.
Relegation to the Scottish Championship would mean an obvious and significant reduction in revenue generated from gate receipts and centralised income, however, the comprehensive review identified several expenditure lines that had become excessive and set out action points to control these moving forward, resulting in:
Consultancy Fees reduced by 84%;
Football Agent Fees reduced by 85%;
Football Department expenses excluding staff costs dropped by £1m
Significant reduction in playing budget whilst operating with legacy contracts and within the constraints of Championship expectations.
Other relevant football department expenditure was brought under tighter control through clear lines of communication, budget management and an improved reporting and accountability structure.
The club committed in Summer 2023 to renew our agreement with the University of St Andrews to remain as our training base for a further three seasons at least.
As part of the review of football operations, the club felt it was vital that the training centre remained a core pillar in the service and provision to our players and staff. The review and management of costs meant that protecting this service remained a viable option.
In addition, the review concluded that it was important for the club’s under-18 squad to return to the training centre in St Andrews permanently with the belief that the club’s young players benefit from utilising the same facilities as the men’s first team, including grass pitches, physical performance, analysis and nutrition – all key development tools for their future prospects. The alignment also allowed for greater communication and best practice sharing among the club’s full-time professional football staff and enabled the young players to benefit from the advice and guidance of senior players.
Overall, the decisions taken to address the significant previous over-expenditure in the football department resulted in the subsequent management of budgets and reduction in unnecessary costs.
Coupled with strong performance on the pitch, this approach has continued into the new season as the club aims to become a financially sustainable and successful organisation both on and off the pitch.
Review of Our Academy
The Chairman’s significant financial investment to the Academy continued in the 2023-24 season despite relegation to the Scottish Championship, our Elite CAS status has again been maintained, and the overall investment in the Academy Facilities and Football Operations since Mr Ogren acquired the club in December 2018 now nears £4.5million.
As evidenced by the ongoing financial investment being made, the Board continues to view DUFC Academy as the “Cornerstone” of the Club’s future success and we are very excited at the high quality of the young players who have made first-team appearances or are on track to graduate to the first team.
In the 2023-24 Season, Academy Graduates Kai Fotheringham, Ross Graham, and Miller Thomson were regular first-team squad members in the Scottish Championship, with Kai Fotheringham posting 22 goal contributions (15 goals and 7 assists). The club also handed 16-year-old Academy graduates Owen Stirton and Scott Constable their senior competitive debuts. The total minutes played by Academy graduates in the Championship-winning 2023-24 Season was 33% of our team total.
Dundee United FC Academy players have also been selected regularly across the Scotland National youth squads. Jamie Forrest and Marcus Buchanan were selected to represent the Men’s U15 Squad, while Keir Gilligan was selected to represent Scotland U16s in June 2024.
At the Under-21 level, the club enjoyed healthy representation throughout the 2023-24 Season. Kai Fotheringham, Jack Newman and Archie Meekison were all called up throughout the campaign during the Under-21s UEFA European Championships 2025 qualifying campaign.
Review of Our Academy (continued)
Owen Stirton and Scott Constable, now featuring regularly in first-team matchday squads in the Scottish Premiership, also represented Scotland U17s during Season 2023-24.
The Board are delighted that the substantial investment being made in the Academy continues to reap benefits for the club with many youth team players graduating to the first team and aims to continue the long-term financial investment within the Academy to develop & attract the best talent around the country.
Dundee United Women’s Team
The Dundee United FC Women’s team retained their status as a top-flight side following a play-off victory over Kilmarnock FC Women in May 2024 – achieving the pre-season objective.
Season 2023-24 was the second season of the Womens team being held under the official umbrella of the club. It was also the teams second season in the Scottish Women’s Premier League.
The season was a challenging one overall with the team battling it out against Hamilton, Montrose and Spartans for survival, in an ever-growing professional league where several teams enjoy significant financial investment against a backdrop of diminutive, centralised revenues.
This has created a chasm between the sides competing against one another in the top division.
Head coach Graeme Hart left his post in January 2024 and was replaced by Suzanne Shepherd, who guided the team to survival, picking up crucial points across the post-split fixtures.
Significant progress was made across the team to professionalise the level of service provided to the players in order to become more competitive.
New revenue streams were opened up through the introduction of admission fees for match tickets, as well as enhancing the supporter experience through the use of the newly installed 200-seated stand at Foundation Park and the sale of matchday concessions.
The foundations have been laid for the team to continue on a journey of steady growth over the coming years, with the objective to remain in the top flight of Scottish Women’s Football in Season 2024/25.
Commercial
The Board and senior management team continue to explore new commercial opportunities and maintain our current strong relationships with our sponsors, associate and partners.
Commercial income continued to be a key strength of the business during 2023-24 with the club maintaining Premiership level revenues at £2.4m for the year. The growth of the commercial side of the business has been a major positive over the past five years with revenue increasing from £0.9m in 2019 to £2.4m in 2024, an increase of £1.5m.
The Board were pleased with the continued support of long-standing partners, with JF Kegs, QuinnBet and Paint-Tec remaining as kit sponsors and Clayton Caravan as the front of the Academy kit. A new, improved partnership strategy was implemented, with the club adopting many new partners and sponsors while building on the strong relationships with previous and current partners.
It is also important to note that in June 2024, the club entered a new partnership with the announcement of CalForth Construction as our stadium naming rights partner marking one of the most lucrative partnerships in our history.
As part of the agreement, our stadium will now be known as the CalForth Construction Arena at Tannadice Park until at least the summer of 2026.
The hospitality area of the club endured change during the summer of 2023 as we reached an agreement with highly renowned caterers, Regis Banqueting, to supply all hospitality food provisions for at least the next two seasons. The enhanced service and offerings provided alongside significant cost control reviews led to a far stronger operation within this sector during the financial year.
Commercial (continued)
On retail, Errea commenced as the club’s new technical partner with a lucrative agreement running for four years. The new kit designs proved very popular with fans during the 2023-2024 season, with high demand for a wide range of replica and training wear. The club are excited to explore the relationship with Errea as we move into the second year of the agreement.
Dundee United Community Trust (DUCT)
The club continues to partner with Dundee United Community Trust (DUCT). The relationship has been in place for six years, resulting in over £2.0m of action in our local community during this time.
During this financial year, DUCT has again raised the bar in its work alongside the club and within the local community to better the environment. Amongst those successful projects was the launch of the ‘Everyone United’ project, which allowed access to football for almost 2000 fans from 20 local organisations who helped distribute the beneficial access tickets. The strong partnership between the club and DUCT and its donors also ensured the distribution of over 150 hospitality and mascot packages during the 2023/24 season.
Our community trust has also been at the forefront of a new Scottish-wide initiative that saw them pilot a new youth club for people with a range of disabilities during the year, thanks to funding from the SPFL Trust’s Innovation Fund’.
Building on previous success, DUCT once again held the annual ‘Festive Friends’ project, supporting around 300 local people with a Christmas meal and gifts and generating a substantial profile for both the community trust and the club with the first minister’s attendance at the Christmas Eve event.
DUCT broke significant ground in the year through our long-running partnership with The Scottish Football Association by being one of the successful applicants to the ‘Extra Time’ project, funded by The Scottish Government. This project comes with an investment of over £100, 000 over multiple years, and will see the Community Trust provide activities after school and during the school holidays for local primary school children living with a disability or additional support needs. Other significant projects included: ‘Summer Play Para Sports Club Camps’, the long-running ‘CLD United’ peer-led divisionary football opportunity for 100s of young people in the city, and ‘Dundee United Dynamos’ which allowed us to sustain this important area of work and continue to provide opportunities for hundreds of children, young people and adults with a variety of disabilities to take part in sport each week.
The club remains proud of its partnership and community impact with DUCT.
Wage Costs
Total wage costs for the club decreased by 25% from £6.9m in the prior year to £5.2m as a result of robust financial management and budgetary control. Agent fees as previously mentioned were reduced by 85% compared to the 2022-23 season.
Despite the drop in staff costs, the club maintained its high quality of service, achieved Elite status within the Academy and created a competitive squad that went on to achieve promotion by winning the Scottish Championship.
Operational & Administration Costs
As stated in our previous Annual Report for 2022-23, direct and admin cost management was a real focus of the senior leadership team for 2023-24 and beyond. The club implemented fundamental changes in the summer of 2023 to update the controls, processes and structure across all areas of the business to manage costs within.
Direct costs, excluding wages, dropped from £3.5m in the prior year to £2.2m for the current year. Administration costs decreased by £0.3m. Therefore, total operational and administration costs decreased by £1.6m, 28% less than the previous year.
Net Assets
The net assets deficit of £4.5m, as reported in the balance sheet as at 30 June 2024, is distorted by the £6.6m (£7.8m undiscounted value) of funding provided by Mark Ogren to the above date being disclosed within Creditors. This funding has been provided to the club on an interest-free loan basis, with no intention in the short to medium term to seek any repayment of this debt.
Principal risks and uncertainties
Due to the company's principal activity, the business's revenues are inherently linked to on-field performance and the football team's success.
The principal risk to the business is the possibility of the team being relegated to the Championship. However, the owners and Board are committed to providing the required funding and infrastructure for the club to maintain a competitive team and a going concern in the Premiership. The Board will also continue to provide the platform to enhance the long-term prospects of a top-6 finish and qualification for UEFA Competition.
According to the Directors, other principal risks are the wider economy financial issues, which can impact match attendance. To address this, the club offers flexible and cost-effective ways to purchase tickets on a seasonal and match-to-match basis. The club froze season ticket prices for the return to the Premiership for 2024-25 despite a substantial increase in match operation and utility costs.
Since December 2018, when Mark Ogren took control of the club, over £13m has been invested in enhancing the infrastructure, the playing squad, the Academy and facilities.
The owner remains fully committed and is keen to build on the positives of the 2023-24 season which include winning promotion, streamlining costs, maximising commercial income and maintaining strong relationships with supporters, partners and other stakeholders. During the summer of 2024, the hard work continued as the club focused on building a playing squad that could compete in the Scottish Premiership while looking to achieve long-term financial sustainability.
To conclude, the Board would like to express its thanks to all employees, players, supporters, and associates including sponsors and partners for their continued fantastic support.
Key Performance Indicators
| 2024 | 2023 | 2022 |
SPFL Premiership | N/A | 12th | 4th |
SPFL Championship Scottish Cup | 1st 3rd Round | N/A 5th Round | N/A Semi-Final |
Scottish League Cup | Group stage | Quarter-Final | Quarter-Final |
Turnover | £6.40m | £8.10m | £8.28m |
Operating Loss | £2.3m | £4.3m | £1.90m |
Wages to Turnover Ratio | 81% | 86% | 71% |
The directors present their annual report and financial statements for the year ended 30 June 2024.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The results for the year are set out on page 12.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and manipulating the company’s key performance indicators to meet targets. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the officers and other management (as required by the auditing standards).
We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
The income statement has been prepared on the basis that all operations are continuing operations.
The Dundee United Football Company Limited is a private company limited by shares incorporated in Scotland. The registered office is Tannadice Park, Dundee, DD3 7JW.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Amounts paid to third parties for football registrations, football league levies and agent commissions are capitalised as intangible assets and amortised on a straight line basis over the periods of the individual contracts. Gains or losses on fees receivable from other football clubs on the transfer of players' or manager's registrations are recorded in the profit and loss account in the accounting
period in which the transfer takes place.
Where contingencies are contained within those contracts for further payments, these costs are not recognised until it is probable that the events crystallising such payments shall take place. Payments or receipts which are contingent on the performance of the team or players are not recognised until the events crystallising such payments or receipts have taken place. Signing on fees are capitalised as intangible assets and loyalty bonuses are charged to the profit and loss account as incurred. However, future instalments that are contingent on continued service are not recognised until it is probable that the events crystallising such payments shall take place.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Grants from the Football Grounds Improvement Trust, in respect of capital expenditure, are credited to deferred income in the balance sheet, and are released to the profit and loss account over the expected useful life of the relevant asset in equal annual amounts.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Where there are indicators of impairment of individual assets, the company performs impairment tests based on fair value less costs to sell. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm's length transaction on similar assets or observable market prices less incremental costs for disposing of the asset.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The disposal includes values receivable as a result of sell on clauses contained within the players contracts. |
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
Amortisation of the players registration is included within cost of sales.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.
The company holds 1 ordinary share of £1 in the Scottish Professional Football League Limited for which a consideration of £1 was paid. This represents a 2.38% interest in the company.
Other creditors due after more than one year represent a loan from Mr M Ogren via his company OPG-4 UK Limited of £6,594,327 (2023: £10,116,160). As the loan is interest free and due after more than one year the loan has been discounted to reflect the net present value of the loan. The undiscounted value of the loan is £7,845,668 (2023: £11,328,560).
During the year OPG-4 UK Limited exchanged £5,058,080 of the loan for 1,320,000 10p Ordinary shares.
Other loans due represent a loan from the Scottish Government of £1,346,852 (2023: £1,335,691). As the loan is interest free and due after more than one year the loan has been discounted to reflect the net present value of the loan. The undiscounted value of the loan is £2,665,358 (2023: £2,700,583).
Football grounds improvement grants of £1,275,646 (2023: £1,328,650) are included in deferred income and released to the Profit and Loss Account at a rate equal to the depreciation rate of the asset to which the grant relates. Amounts falling due within one year are £53,004 (2023: £53,004).
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the club issued 1,325,000 Ordinary 10p shares for £5,058,080.
Post year end the club received a request from HMRC for repayment of tax relating to an R&D claim in 2021. The club have appealed against this and, with support from R & D tax experts, are engaging with the tax authorities to demonstrate that the qualifying R & D requirements were met. The outcome of the appeal and possibility of repayment cannot yet be determined therefore no provision has been made for this potential liability. If a payment is required to HMRC the R & D tax experts engaged are contractually liable to refund the club 20% of any such payment. The potential repayment estimation is anywhere between £0 - £0.6m.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the company entered into the following transactions with related parties:
The loan from Mr M Ogren is interest free and repayable after more than year. The net present value of the loan at the year end was £6,594,327 (2023: £10,116,160). The undiscounted value of the loan is £7,845,668 (2023: £11,328,560).