THE FINANCIAL IMPACT OF THE FA CUP

January 2012

This report contains financial and other supporting analysis by Deloitte

Introduction 4

Executive summary 7

Income generation for clubs 9

Club case studies 15

Appendix 1: Limitations 23

Contents page

4

• ThisdocumentcontainsfinancialinformationinrespectofTheFACupoverthetenyearperiodfrom2001/02to2010/11,including:

– AnnualTVandprizemoneypayments;

– Totalgatereceiptsgeneratedbycompetitionmatchesineachyear;and

– CasestudiesforasampleofEnglishfootballclubs,outliningtherevenueimpactofparticipatinginTheFACupinselectedyears.

• Thefinancialanalysisoutlinedwithinthisdocument,asdescribedabove,hasbeenconductedbyDeloitteinrespectofinformationprovidedtoitbyTheFA.

MethodologyTV and prize money payments

• DeloittehavesetouttheannualTVpaymentsandprizemoneydistributedbyTheFAtoclubsparticipatinginTheFACupforeveryseasonfrom2001/02to2010/11.DeloittehavealsosetoutTheFA’sforecastTVpaymentsandprizemoneydistributionsforthe2011/12season.

Gate receipts• Deloittehaveoutlinedthetotalgate

receiptsgeneratedannuallybyFACupcompetitionmatchesfortheperiod2001/02to2010/11.

• TotalgatereceiptsshownforeachyeararegrossfiguresbeforematchdayexpensesandVATarededucted.GatereceiptsreceivedbycasestudyclubsintheparticularyearDeloittehavefocussedonarenetamounts,after

matchdayexpensesandVATarededucted,andaccordingtoTheFA’srulesregardingtheproportionallocatedtothehomeclub,awayclub,andcentralpoolinrespectofcompetitionmatches.

• DeloittecalculationsarebasedoninformationprovidedtoDeloittebyTheFA.InsomecasesDeloittehaveestimatedgatereceiptsforcertainmatches,usingattendancedataandassumptionsonticketpriceandmatchdayexpenses.

Introduction

The FA Cup with Budweiser is the world’s oldest and greatest domestic cup competition. In the 2011/12 season, 763 clubs across England were accepted to play in the competition.

5

Case study clubs

• FurtheranalysisisprovidedinrespectoftheperformanceofselectedcasestudyclubsfromvarioustiersoftheEnglishfootballpyramidincertainyears.

• Inrespectofeachclubandtheselectedyear,Deloitteprovidedataonprizemoneydistributions,TVpaymentsandestimatedgatereceiptsreceived,aswellastotalestimatedFACuprevenuesasaproportionoftotalclubrevenuesfortheselectedseason.

• Totalrevenuesinrespectofeachcasestudyclubhavebeensourcedfromauditedfinancialstatements,orinsomecaseswheresuchinformationisunavailableDeloittehaveestimatedtotalclubrevenuesbasedoninformationavailableonthatclubforpreviousyearsand/oravailabledataforcomparablepeergroupclubs.

• Fortheavoidanceofdoubt,thescopeofworkhasnotincludedanydirectcontact,consultationwith,orinformationprovisionfromtheclubsconcerned.

• Thecasestudyclubs,andtheseasonformingthefocusofouranalysisaresetoutbelow:

– PremierLeague:StokeCity(2009/10,SixthRoundProper)

– ChampionshipMillwall(2003/04,RunnersUp)

– League1:LeytonOrient(2010/11,FifthRoundProper)

– League2:AccringtonStanley(2009/10,FourthRoundProper)

– ClubsoutsidetheFootballLeague:

> Havant&Waterlooville(2007/08,FourthRoundProper)

> BurtonAlbion(2005/06,ThirdRoundProper)

> CrawleyTown(2010/11,FifthRoundProper)

In total The FA Cup has delivered almost £650m in prize money, TV payments and gate receipts to participating clubs over the ten year period 2001/02 to 2010/11.

7

Executive Summary

Overview

• TheFACuphasdelivered£643minprizemoney,TVpaymentsandgatereceiptstoparticipatingclubsoverthetenyearperiod2001/02to2010/11,comprising:

• ThecompetitioncanprovideimportantfinancialbenefitsforparticipatingclubsatalllevelsoftheEnglishfootballpyramid.

• Forexample,ManchesterCityearned£3.4minprizemoneyand£0.9minTVpaymentsfromwinningthecompetitionin2010/11.

• Forclubsfurtherdownthefootballpyramid,adrawagainstoppositionhigheruptheleaguesprovidestheopportunitytoreceiveawindfallfrombeingpartofatelevisedmatchandthroughitsshareofgatereceipts.

• TheFAisforecasttodistributeupto£24minprizemoneyandTVpaymentsin2011/12.

• DeloittehaveprovidedcasestudiesoffootballclubsatfivetiersoftheEnglishfootballpyramid,highlightingtherevenuesderivedfromparticipatinginTheFACupinparticularyearsandwhatproportionthiscontributedtooverallclubrevenues.

• ThecasestudieshighlightthesubstantialfinancialcontributionagoodFACupruncanhaveonaclub’srevenues.

TVpayments:£109m

Gatereceipts:£413m

Prizemoney:£121m

FA Cup revenues for selected clubsLeague Club Season Total revenue from

The FA Cup (£m)Proportion of total

club revenue

PremierLeague StokeCity 2009/10 2.1 4%

Championship Milwall 2003/04 2.9 29%

LeagueOne LeytonOrient 2010/11 1.4 30%

LeagueTwo AccringtonStanley 2009/10 0.1 10%

Non-League Havant&Waterlooville 2007/08 0.6 70%

Source:TheFA,clubs’annualfinancialstatements,Deloitteanalysis

9

Income generation for clubs

FA Cup TV payments and prize money 2001/02 – 2010/11 Season TV payments (£’000) Prize money (£’000) Total (£’000)

2001/02 13’080 12’650 25’730

2002/03 13’490 12’690 26’180

2003/04 12’170 10’690 22’860

2004/05 10’070 9’660 19’730

2005/06 10’600 9’670 20’270

2006/07 11’130 9’630 20’760

2007/08 9’010 9’650 18’660

2008/09 10’830 16’410 27’240

2009/10 9’210 14’950 24’160

2010/11 9’590 14’950 24’540

10yeartotal 109’180 120’950 230’130Source:theFA,Deloitteanalysis

• TVpaymentsandprizemoneypaidbyTheFAtoclubsinrespectofFACupmatchestotalled£25min2010/11.

• TVpaymentsandprizemoneyarelinkedtothequantumofrightsfeesreceivedfromTheFA’sbroadcastpartnersforthecompetition.

• Prizemoneypaymentstoclubstotalled£121mforTheFACupcompetitionsbetween2001/02and2010/11,with£109minTVpayments.

• Forthemostrecentseason(2010/11)atotalof£24.5mwaspaidout,splitbetweenprizemoney(circa£15m)andTVpayments(£9.6m).

• The2008/09FACuptotalprizefundpaymentsincreasedby70%fromtheprioryear,withanewprizemoneystructuremeaningindividualpaymentsincreasingforwinnersateachstageofthecompetition.Forthefirsttime,clubsreachingtheSemiFinalsandFinalwereguaranteedprizemoney

eveniftheylostinthatround.ThetwoclubseliminatedattheSemiFinalstageeachreceived£500k,withtherunnerupandwinnerreceiving£2mand£3mrespectivelyacrosstheSemiFinalandFinalmatches.

• Inthe2010/11competition,thetwoclubseliminatedattheSemiFinalstageeachreceived£450k,withtherunnerupandwinnerreceiving£1.8mand£2.7mrespectivelyacrosstheSemiFinalandFinalmatches.ManchesterCity,TheFACupwinnersin2010/11,receivedtotalprizefundpaymentsof£3.4m.

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Forecast 2011/12 income generation

FA Cup forecast live TV payments 2011/12 Round Number of live matches Fee per televised club (£) Fee per round (£)

Round1 3 67’500 405’000

Replays 2 33’750 135’000

Round2 3 72’000 432’000

Replays 2 36’000 144’000

Round3 5 123’500 1’235’000

Replays 2 62’000 248’000

Round4 5 123’500 1’235’000

Replays 2 62’000 248,000

Round5 5 212’000 2’120’000

Replays 2 106’000 424’000

Round6 4 212’000 1’696’000

Replays 2 106’000 424’000

Total 8’746’000

Note:Highlightspaymentsarealsomadeinrespectof3matches(6clubs)ineachofRounds1to5Source:TheFA

FA Cup forecast prize money payments 2011/12Round Number of teams Payment per

round winner (£)Total payments

per round (£)Cumulative

payments (%)

ExtraPreliminary 408 750 153’000 1%

Preliminary 334 1’500 250’500 3%

Q1 232 3’000 348’000 5%

Q2 160 4’500 360’000 7%

Q3 80 7’500 300’000 9%

Q4 64 12’500 400’000 12%

Round1 80 18’000 720’000 17%

Round2 40 27’000 540’000 21%

Round3 64 67’500 2’160’000 35%

Round4 32 90’000 1’440’000 45%

Round5 16 180’000 1’440’000 54%

Round6 8 360’000 1’440’000 64%

SemiFinals(losers) 2 450’000 900’000 70%

SemiFinals(winners) 2 900’000 1’800’000 82%

Final(losers) 1 900’000 900’000 88%

Final(winners) 1 1’800’000 1’800’000 100%

Total 14’951’500Source:TheFA

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• TheFAisforecasttodistribute£23.7minTVpaymentsandprizemoneyin2011/12

• Upto40livematcheswillbebroadcastlivein2011/12,comprising16matchesonITVand25onESPN(bothbroadcasterssharingtheFinal).

• Clubsalsoreceivepaymentsforfeaturinginhighlightsprogrammingandaspartofradiocommentary.

• Forlowerleagueandnon-leagueclubs,theprizefundsonofferthroughoutthecompetitionpropercanrepresentasignificantadditionalrevenuesource.

• Inkeepingwith2010/11,shouldTheFACupwinnerbeaPremierLeagueorChampionshipclubenteringattheThirdRoundstage,itwillreceiveatotalof£3.4minprizemoney.

Should The FA Cup winner be a Premier League or Championship club entering at the Third Round stage, it will receive a total of £3.4m in prize money alone.

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• Gatereceiptsgeneratedoverthetenseasonsfrom2001/02to2010/11areestimatedtototalinexcessof£400m,averagingcirca£41mperseason,drivenbytotalattendancesof22.7moverthesameperiod.Thesefiguresrepresentthetotalamountspaidbyspectators,includingVAT.

• ThetotalofgatereceiptsforagivenseasonisdependentonthetotalnumberofmatchesandnumberofhometiesplayedbythelargerPremierLeagueclubs.

• FormatchesfromtheThirdRoundProperuptoandincludingtheSixthRoundProper,netgatereceiptsfromeachmatcharesplitbetweenthetwoteamsinvolved,the‘Pool’andTheFA.NetgatereceiptsarethetotaltickettakingsforthematchlessVATandcertaincosts,forexampletravellingandaccommodationexpensesofthevisitingclub.

• Paymentsintothe‘Pool’aredistributedtoPremierLeagueandFootballLeagueclubswhichparticipatedinthecompetition;paymentstoTheFAaresubsequentlydistributedtonon-leagueclubswhoparticipatedintheFirstRoundProperofthecompetition.

• PriortotheThirdRoundProperofthecompetitioneachteaminatiewillreceiveatleast47.5%ofthenetgatereceiptsfromthatmatch.ForanytieuptoandincludingtheSixthRoundProperanon-leagueclubwillreceiveaminimumof47.5%ofnetgatereceipts.

• ForclubsinthelowerleaguesoroutsidetheFootballLeagueitisoftenmorefinanciallyattractivetobedrawnaway,ratherthanathome,againstabigteambecauseTheFACup’smechanismfordistributinggatereceiptsallowstheawayteamtobenefitfromgreaterattendances.Thishasledtosomenon-leaguesidesgeneratingwellinexcessof£0.5mfromasinglematchwhendrawnawaytoatopPremierLeagueclub.

• ClubsfromthePremierLeagueandFootballLeaguereceive45%ofnetgatereceiptsformatchesplayedbetweentheThirdRoundProperandSixthRoundProperofTheFACup(42.5%inrespectofreplayedmatches).

• IntheSemiFinalandFinalclubsreceivealowerproportionofgatereceipts,howeverthisiscounteredbyhigherprizemoneypaymentsinthefinalroundsofthecompetition.

Gate receipts

FA Cup gate receipts generated by clubs 2001/02 – 2010/11 Season Gate receipts (£’m)

2001/02 34

2002/03 35

2003/04 38

2004/05 42

2005/06 37

2006/07 48

2007/08 42

2008/09 50

2009/10 39

2010/11 48

10yeartotal 413Note:figuresaregrossgatereceiptsincludingVATSource:TheFA,Deloitteanalysis

Gate receipts generated over the ten seasons from 2001/02 to 2010/11 are estimated to total in excess of £400m, averaging circa £41m per season.

15

Club case studies

Case Study: Stoke City – Premier League

• StokeCity’sFACupperformancesin2009/10and2010/11havetogethergeneratedcirca£6minrevenueandqualifiedtheclubforEuropeancompetitionforthefirsttimeinitshistory.

• StokeCityreachedtheSixthRoundProperofthe2009/10FACupbeatingArsenalandManchesterCity,whobothfinishedinthetopfiveofthePremierLeague.Theylosttoeventualwinners,andPremierLeaguechampions,Chelsea.Therungeneratedincomeofcirca£2.1m,4%oftheclub’stotalincomefortheyear.

• ThePotters’2009/10FACuprungeneratedprizemoneyof£0.3mfromwinsagainstYorkCity,ArsenalandManchesterCity.

• Thekeydriveroftheclub’srevenuesfromthecompetitionweregatereceipts,withfourmatchesagainsttopPremierLeagueclubs.StokeCity’sshareofthegatereceiptsfromthesefourgamesisestimatedtohavedeliveredover£1m.

• Additionally,Stoke’shighprofileoppositionresultedinthreeoftheclub’sfivematchesbeingtelevisedlive,generating£0.7minTVpayments.

• In2010/11,thePotterswentevenfurther,progressingtoTheFACupFinalforthefirsttimeintheclub’shistory,resultinginthereceiptofcirca£3.5minprizemoney,TVpayments,andgatereceipts.ThedefeatintheFinaltoManchesterCitywasprecededbya5-0winoverBoltonWanderers,thebiggestwinningmarginatthatstageofTheFACupsince1939.

• Prizemoneyin2010/11delivered£2.5m,including£1.8mfromtheSemiFinalandFinalalone.

• TVpaymentsof£0.3min2010/11weredrivenbylivecoverageoftheSixthRoundPropertieagainstWestHamUnited.TotalprizemoneyandTVpaymentscombinedwithgatereceiptsmeanthattheclub’sFACuprevenuesfromthe2010/11campaigntotalledcirca£3.5m.

• StokeCity’sparticipationinthe2011/12UEFAEuropaLeague,forwhichtheyqualifiedviaTheFACup,couldbeworthcirca£15minadditionalincomeifthePottersgoontoliftthetrophy.

Stoke City’s FA Cup run 2009/10Round Opposition H/A Score Attendance

R3 YorkCity H 3-1 15’586

R4 Arsenal H 3-1 19’735

R5 ManchesterCity A 1-1 28’019

R5replay ManchesterCity H 3-1 21’813

R6 Chelsea A 0-2 41’322

Income generated from Stoke City’s 2009/10 FA Cup runSource £m

Prizemoney 0.3

TVpayments 0.7

Gatereceipts 1.1

Total 2.1

Proportionofclub’sannualincome 4%Note:gatereceiptsrepresenttheamountsrecognisedbytheclubasrevenueSource:TheFA,club’sannualfinancialstatements,Deloitteanalysis

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Case Study: Millwall – Championship

• In2004MillwallbecamethefirstteamoutsidethetopflightintwelveyearstoreachTheFACupFinal,withrevenuesfromthecompetitioncontributing29%oftotalrevenues.

• Ledbyplayer-managerDennisWise,MillwallenjoyedaruntoTheFACupFinalin2004,thefirstinitshistory,wheretheclubwasdefeatedbyManchesterUnited.Theclubreceivedprizemoney,TVpayments,andgatereceiptstotalling£2.9mfromTheFACup.

• Thebiggestcontributortowardsthis£2.9mrevenuefromTheFACupwasprizemoney,accountingfor£1.7m(68%)ofthetotal.TheSemiFinalvictoryagainstSunderlandgenerated£1minprizemoney,with£0.4mcomingfromtheSixthRoundProperwinagainstTranmereRovers.

• BothmatchesagainstTranmereRoversweretelevised,generating

£0.6mforMillwall.ReachingtheFinalwithouthavingfacedPremierLeagueoppositionmayhavehelpedtheclub’sprogressthroughthecompetition,althoughitdidn’treceiveanyTVpaymentspriortotheSixthRoundProperasnomatchesweretelevised.

• Theclub’sshareofgatereceiptsdeliveredcirca£0.6m,withcirca50%ofthatfigureattributabletotheSemiFinalagainstSunderlandatOldTrafford.ThetwomatchesagainstTranmereRoverstogethergeneratedcirca£0.2minrevenuefromgatereceipts.

• Over20,000MillwallfanswerereportedtohaveattendedeachoftheSemiFinalandFinal.

• Millwall’sperformanceinthe2003/04FACupearneditaplaceinthe2004/05UEFACup,theclub’sfirsteverparticipationinEuropeancompetition.TheywereeliminatedpriortothegroupstagebyHungariansideFerencvaros.

Millwalls FA Cup run 2003/04Round Opposition H/A Score Attendance

R3 Walsall H 2-1 6’977

R4 TelfordUnited A 2-0 5’589

R5 Burnley H 1-0 10’420

R6 TranmereRovers H 0-0 16’404

R6replay TranmereRovers A 2-1 15’510

SemiFinal Sunderland N 1-0 56’112

Final ManchestedUnited N 0-3 72’350Notes:SemiFinalplayedatOldTrafford,finalplayedatMilleniumStadiumSource:TheFA,SkySportsFootballYearbook,Deloitteanalysis

Income generated from Millwall’s 2003/04 FA Cup runSource £m

Prizemoney 1.7

TVpayments 0.6

Gatereceipts 0.6

Total 2.9

Proportionofclub’sannualincome 29%Note:gatereceiptsrepresenttheamountsrecognisedbytheclubasrevenueSource:TheFA,club’sannualfinancialstatements,Deloitteanalysis

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Case Study: Leyton Orient – League One

• LeytonOrientreachedtheFifthRoundProperofthe2010/11FACupwheretheytookArsenaltoareplay.Therungeneratedcirca£1.4minrevenuescontributingcirca30%oftotalclubrevenuefortheyear.

• LeytonOrient’s2010/11FACuprunsawthembeattwoChampionshipsidesinNorwichCityandSwanseaCity,bothofwhomwentontowinpromotiontothePremierLeague.TheyweresubsequentlyknockedoutbyArsenalinaFifthRoundProperReplayattheEmiratesStadiuminfrontofalmost60,000fans.

• TherunhadlookedindoubtintheSecondRoundProperreplayathometoDroylsden,asOrientwere2-1downwithtwominutesofthe90remaining.Anequaliserinthedyingminutesledtoextra-timeduringwhichOrientfoundthenetsixtimes,producinganimprobable8-2victoryandaThirdRoundPropertieawaytoNorwichCity.

• ProgressionthroughtotheFifthRoundProperofTheFACupsawOrientgenerateover£0.2minprizemoney,whichaccountedfor15%ofthetotalrevenuesearnedfromtheclub’sFACuprun.

• Theclub’ssuccesssawthembroadcastliveonTVfourtimes–threetimesonESPNandonceonS4C,earningthem£0.5mofTVrevenue,withthetwomatchesagainstArsenalaccountingforalmost80%ofthistotal.

• ThehomematchagainstArsenalattractedanattendanceofalmostdoubletheclub’saveragehomeleagueattendancefortheseason.This,togetherwiththereplayattheEmiratesStadium,earnedtheclubcirca£0.5mingatereceiptrevenue,withanadditionalcirca£0.2mingaterevenuesgeneratedfromtheearlierrounds.Totalgatereceiptrevenuesofcirca£0.7maccountedfor50%oftheclub’sFACupincomefor2010/11.

• Priorto2010/11,theclubhadnotreachedtheFifthRoundProperofTheFACupsincetheirSemiFinalappearancein1978.

Leyton Orient’s FA Cup run 2010/11 Round Opposition H/A Score Attendance

R1 Dagenham&Redbridge A 1-1 3’378

R1replay Dagenham&Redbridge H 3-2 2’901

R2 Droylsden A 1-1 1’762

R2replay Droylsden H 8-2 1’345

R3 NorwichCity A 1-0 18’087

R4 SwanseaCity A 1-2 6’281

R5 Arsenal H 1-1 9’136

R5replay Arsenal A 0-5 59’361Source:TheFA,SkySportsFootballYearbook,Deloitteanalysis

Income generated from Leyton Orient’s 2010/11 FA Cup runSource £’000

Prizemoney 0.2

TVpayments 0.5

Gatereceipts 0.7

Total 1.4

Proportionofclub’sannualincome 30%Note:gatereceiptsrepresenttheamountsrecognisedbytheclubasrevenueSource:TheFA,club’sfinancialstatementsfor2009and2010,Deloitteanalysis

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Case Study: Accrington Stanley – League Two

• AccringtonStanley’s2009/10FACupruntotheFourthRoundProperprovidedadditionalrevenueduringaseasoninwhichtheyfacedawindinguporderfromHMRC.

• AccringtonStanley’sFourthRoundPropertieagainstPremierLeagueFulhamwasthefirsttimesincetheclubwasre-formedinthelate1960’sthatithadprogressedthisfarinTheFACupcompetition,arunthatgeneratedcirca£150kinprizemoney,TVpaymentsandgatereceiptsfortheLeague2club.

• Theclubbenefittedfromprizemoneyof£113kresultingfromwinsagainstSalisburyCity(FootballConference,£18k),Barnet(League2,£27k)andGillingham(League1,£68k).

• AccringtonStanleygenerated£8kofrevenuefromthescreeningof

highlightsoftheclub’sFourthRoundPropertiewithFulham.

• Gatereceiptrevenueofcirca£30kwasgeneratedfromthefivematches,withcirca40%ofthisfigureestimatedtohavecomefromtheFourthRoundPropertieathometoFulham.

• The2009/10FACupruncameatatimeoffinancialuncertaintyfortheLeague2club,whohadacreditorinexcessof£0.3mpayabletoHMRCduringtheseason.

• AccringtonStanley’sCuprunisestimatedtohavedeliveredtheclub£150kinprizemoney,TVpaymentsandgatereceiptsequatingtocirca.10%oftheclub’srevenue.

• AccringtonStanleywentontofinish15thinLeague2in2009/10,aperformanceonwhichtheyimprovedin2010/11whentheclubfinishedin5thpositionthusreachingtheLeague2play-offs.

Accrington Stanley’s FA Cup run 2009/10 Round Opposition H/A Score Attendance

R1 Salisbury H 2-1 1’379

R2 Barnet H 2-2 1’501

R2replay Barnet A 1-0 1’288

R3 Gillingham H 1-0 1’322

R4 Fulham H 1-3 3’712Source:TheFA,SkySportsFootballYearbook,Deloitteanalysis

Income generated from Accrington Stanley’s 2009/10 FA Cup runSource £m

Prizemoney 0.11

TVpayments 0.01

Gatereceipts 0.03

Total 0.15

Proportionofclub’sannualincome 10%

Note:gatereceiptsrepresenttheamountsrecognisedbytheclubasrevenueSource:TheFA,Deloitteanalysis

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Crawley Town• CrawleyTownweredrawnawayto

ManchesterUnitedinthe2010/11FACup.Theclub’srungeneratedcirca£1.5mofrevenue,withcirca£1mcomingfromthetieatOldTraffordalone–acombinationofgatereceiptsandTVpayments.Prizemoneytothenon-leagueclubtotalled£0.2m.

CrawleyTownweredrawnawaytoManchesterUnitedinthe2010/11FACup.Theclub’srungeneratedcirca£1.5mofrevenue,withcirca£1mcomingfromthetieatOldTraffordalone.

Case Study: Havant & Waterlooville – Conference South

Havant & Waterlooville• ProgressioninTheFACupby

clubsbelowtheFootballLeaguecandeliversubstantialfinancialbenefits,particularlyfromgatereceiptsandTVpaymentsshoulditdrawhighprofileopposition.

• Havant&WaterloovillereachedtheFourthRoundProperin2007/08,twicehavingledLiverpoolatAnfieldbeforefinallylosing5-2.

• Asaresultoftheirperformanceinthe2007/08FACup,Havant&Waterloovilleearnedcirca£0.6minprizemoney,TVpaymentsandgatereceipts,equatingtocirca70%oftheclub’sestimatedtotalrevenuesfortheyear.

• ProgressioninTheFACupbyclubsbelowtheFootballLeaguecandeliversubstantialfinancialbenefits,particularlyfromgatereceiptsandTVpaymentsshoulditdrawhighprofileopposition.

Burton Albion• In2005/06,BurtonAlbionforceda

replayagainstManchesterUnitedafteradrawathomeintheThirdRoundProper.Areported10,500BurtonfansmadethetriptoOldTraffordtoseetheirsidelose5-0totheclubplaced104leaguepositionsabovethem,agamewhichdeliveredcirca£0.5mingatereceiptrevenuetothenon-leagueclub.

• BothmatchesagainstManchesterUnitedwerebroadcastliveonTV,withtheclubearning£0.2minTVrevenues.Burton’sstrongFACupperformance,whichgeneratedtotalrevenuesofcirca£0.7m,wasfollowedbyitspromotiontotheFootballLeagueinthe2008/09season.

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Havant & Waterlooville’s FA Cup run 2007/08 Round Opposition H/A Score Attendance

2Q BognorRegisTown A 2-1 426

3Q FleetTown H 2-1 386

4Q LeightonTown H 3-0 378

R1 YorkCity A 1-0 2’001

R2 NottsCounty A 1-0 3’810

R3 SwanseaCity A 1-1 8’761

R3replay SwanseaCity H 4-2 4’400

R4 Liverpool A 2-5 42’566

Source:TheFA,Deloitteanalysis

Income generated from Havant & Waterlooville’s 2007/08 FA Cup runSource £m

Prizemoney 0.1

TVpayments 0.0

Gatereceipts 0.5

Total 0.6

Proportionofclub’sannualincome 70%Note:gatereceiptsrepresenttheamountsrecognisedbytheclubasrevenueSource:TheFA,Deloitteanalysis

Burton’s strong FA Cup performance, which generated total revenues of circa £0.7m, was followed by its promotion to the Football League in the 2008/09 season.

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Appendix 1: Limitations

Limitations

• Unlessotherwisestated,theinformationcontainedinthisreportanduponwhichitisbased,exceptwhereobtaineddirectlyfromTheFA,hasbeenobtainedfrompubliclyavailablefinancialstatements,websites,mediareportsandsportsbusinesspress/publications.Whilstallreasonablecarehasbeentakentoensurethatsuchinformationhasbeenaccuratelyextractedorderivedfromthesesources,neitherTheFAnorDeloittehavenotseparatelyverifiedtheinformation,norsoughttoestablishthereliabilityofthesources.

• Deloitte’sprocedureshavenotincludedauditorverificationwork.Deloittedonotexpressanyconclusionsoropinionsonanyinformationpresentedherein.

• Accordingly,neitherTheFAnorDeloitteacceptnoliabilityhoweversoarising,directlyorindirectly,fromanyerrororincompletenessoffactoropinioninthisdocumenttotheextentcausedbyinaccuraciesorincompletenessintheinformationonwhichDeloittehaverelied.

• Thisdocumenthasbeendevelopedbasedontheinformationavailableatthedateofthedocument.

Forfurtherinformation,pleasecontact:

MattPhillipsTheFACommunicationsDivisionTel:08449808200,Ext:4671E-mail:matt.phillips@TheFA.com

CharlieBossMarketingManager–TheFACupTheFACommercialDivisionTel:08449808200,Ext:6807E-mail:charlie.boss@TheFA.com