THE FA GUIDE TO ASSET TRANSFERS - BUILDING, PROTECTING AND ENHANCING SUSTAINABLE FOOTBALL FACILITIES
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The FA Guide to Asset transfers Building, Protecting and Enhancing sustainable Football Facilities
Welcome
Contents
This guide is aimed at community football clubs and leagues which are either
considering or in the process of negotiating a change in the way they manage
and secure the facilities which they use.
Opportunities for clubs and leagues to take on long-term leases and acquire football facilities
through ‘asset transfer’ will increase over the coming years. This process will present many 04 What is an Asset Transfer
clubs and community based organisations with great opportunities to set down permanent 08 Common Approaches to Asset Transfers
roots and further develop their football plans with the benefit of a secure tenure on their site.
10 Accountability and Governance
The process of acquiring long-term access to sites is often complex and demanding, the 12 Types of Tenure in Asset Transfer
purpose of this guide is to provide advice and practice examples to clubs and leagues that are
14 Who Needs to be Involved?
considering this approach.
16 Initial Feasability Study
Clubs and leagues are central to the longer term development of facilities. Those clubs best 20 Business Planning
placed to create revenues and re-invest are those that have sound foundations in the shape
22 Facility Development
of strong volunteer structures, security of tenure with facilities capable of supporting growth,
well thought through business and development plans, a growing participation base and a 24 Facility Handover and Beyond
good reputation for the delivery of quality coaching. 26 Case Studies
34 Further Reading
35 Contact Details
Enquiries should be addressed to:
The FA, Wembley Stadium, Wembley, London HA9 0WS
© The Football Association 2012 Postal Address: The FA, Wembley Stadium, PO Box 1966,
This guide has been prepared by The Football Association with contributions from: Sport England, London SW1P 9EQ
Locality, London Borough of Ealing, Middlesex FA, Kent FA, Alcester Town FC, Enfield Town FC, T 0844 980 8200
Southwark Community Sports Trust, Supporters Direct, Redcar Town FC, Wyrley Junior FC. E FacilitiesInfo@TheFA.com
W TheFA.com/my-football
The FA Guide to Asset Transfers
Building, Protecting and Enhancing Sustainable Football Facilities 03
What Is an
The FA Guide to Asset Transfers
Asset Transfer?
An asset transfer occurs when a public which can measured by an improvement in Asset or liability?
Local authorities are not obliged sector body, usually a Local Authority,
passes on the management and/or
economic, social and environmental well being.
This is known as ‘community asset transfer’.
It is important to realise that not all land and buildings are assets. They will only constitute
being assets if they are capable of generating net revenues within a given time frame.
ownership of facility to a community group. In some circumstances it means that an asset
to undertake community asset Local Authorities have the general power to
dispose of land in any way it wishes, (sections
can be disposed for very little or even no
consideration. Local authorities are not obliged
to undertake community asset transfer but
NOT SURE
Is there a need for it?
NO
transfer but many do as they
123 (1)/127 (1) Local Government Act 1972), many do as they recognise that transferring YES
including the sale of freehold interest and assets to another owner is likely to increase the
More investigation needed
granting a lease. When dealing with outdoor investment and sustainability of that asset. Is it what you really need?
recognise that transferring
space, metropolitan open land or public open
YES
space, the general professional advice is to This agenda has been around for some time,
retain the freehold interest in the site so that at least on a case by case basis, but the key Has it been well maintained?
assets to another owner is likely
a level of control is maintained assuming that difference in more recent times is the strategic
Liability
there has been full disclosure regarding the policy approach that successive governments YES
nature of the site. However the length of have sought to promote. Local Government
lease can be up to 125 years effectively will be seeking to deliver local services in a very Are the time limits realistic?
to increase the investment and meaning a disposal for commercial and
investment purposes.
different way in the future, concentrating on
efficiencies and cost savings as public spending
YES
is cut. For some clubs and leagues, this will Can you make it pay for itself?
sustainability of that asset Any such disposals are usually done on a
purely commercial basis because there is a
general legal requirement that the authority
create opportunities to take on some control/
management/ownership of facilities and
their maintenance and in so doing create
YES
Do you have the required skills set?
must achieve best price for the site, also strong foundations for future growth
known as ‘best consideration’. However, the through independence. YES
government has recognised that there may
be circumstances where it is appropriate It should be noted however that this approach There are no limitations of use?
for a local authority to dispose of land at would not suit all clubs and leagues – the
below market value – known as an ‘under taking on of management or maintenance YES
value’. These circumstances are when such a responsibility for facilities is a serious undertaking.
disposal will secure a benefit to the community
Asset
Source: Sport England Running Sport Resources
04 The FA Guide to Asset Transfers
Building, Protecting and Enhancing Sustainable Football Facilities
The FA Guide to Asset Transfers
Building, Protecting and Enhancing Sustainable Football Facilities 05
Why consider an asset transfer Reduce the risks in asset transfer Ten steps to a successful asset transfer 7 Openly consult stakeholders
There are many different reasons why clubs Drivers for a football club: Asset transfer is not new and whilst there are 1 Is there a clear football need? Jointly assess the strategic need for the Tools:
and Local Authorities might consider a change • Freedom to operate and have security many successful examples, there are equally What are the needs of your football club? facility and proposed use with relevant
of ownership/management for a particular of site provision many poor examples where insufficient How will your club meet the needs of the stakeholders (this helps to align the
Sport England Asset Transfer Toolkit
site. Local Authorities may consider asset • Improving the quality of the experience research and preparatory work resulted transferring body? political, policy and community support).
The Sport England Community Asset
transfer due to financial pressure or changes in for all its members/users in certain issues being overlooked which It may be appropriate to seek support from
Transfer toolkit is a bespoke, interactive
legislation. As with any proposed changes there • Opportunities to increase its ultimately turn the asset into a liability. 2 What options have been considered? other clubs or the relevant league.
web-based tool that provides step by step
are number of risks to be mitigated, but there membership Is an asset transfer the most effective guide through each stage of the asset
are also a significant number of opportunities. • Opportunities to increase its facilities These include: way of realising the sites potential whilst 8 Manage the risk
transfer process.
and progress through the National • Historic lack of investment in facilities protecting and safeguarding football and Protect the Football Club by not executing
www.sportengland.org/assettoolkit/
League system • Hidden structural problems the community interest on the site? the legal terms until a sustainable
Drivers for the local authority are: • Strengthen community relationships • Limited market demand for an asset due to solution is agreed and achieved in light of
• Response to legislation and guidance independent legal and financial advice.
Locality – Communities Ambitious
and support the development of changing tastes and needs by customers 3 Seek independent legal advice
• Focus for community-led • Poor location of an asset Early professional advice will help protect for Change
new partnerships Locality is a national network with over 700
service provision • Costly environmental liabilities such as the clubs interests. 9 Protect the asset
• Provide a solution to a failing site or a community-led organisations supporting
• Opportunity for new funding contaminated land or asbestos The site should remain open and current
and partnerships site at risk of closure community asset ownership. They provide
• Restrictive leases for clubs 4 Agree outline objectives between levels of operation/subsidy maintained
• More efficient and effective use • Strengthen the operational, legal and hands-on support to their members.
• Unrealistic expectations by all parties all parties whilst negotiating an alternative solution.
of assets governance structure of the club www.locality.org.uk/assets
• Lack of strategic alignment Set out in broad terms the expectations of
• Potential capital receipts • Help encourage new volunteers and
• Failure to explore all current and anticipated each organisation. 10 Adopt a partnership approach
• Unlocking latent enterprise and increase and develop skills / knowledge Can the Local Authority support you by
costs (management and maintenance)
volunteer commitment base of the club. providing access to specialist support
on the site. 5 Set realistic time scales
• New approach to a Ensure that the football club are afforded (project managers, grant funding
long-standing problem As a result of one or several of the above a the time to work up realistic and officers) small grants for feasibility and
• Reduce liabilities number of football sites fell into a state of deliverable proposals. professional fees, high quality historical site
• Cost savings. disrepair and unfortunately in some cases had information, maintenance contributions,
to be disposed of, with all football being lost on 6 Develop a business plan / feasibility plan low rent, procure any capital works
the site. You need to demonstrate a sustainable and capital investment as a lever for
solution for the club and the site. external investment?
Therefore The FA recommends that in taking
the initial decision to pursue an asset transfer
clubs should follow the guidance contained in
this booklet.
06 The FA Guide to Asset Transfers
Building, Protecting and Enhancing Sustainable Football Facilities
The FA Guide to Asset Transfers
Building, Protecting and Enhancing Sustainable Football Facilities 07
Common
The FA Guide to Asset Transfers
Approaches to
Asset Transfers
There are two main approaches to How to proceed Some local authorities will have an Asset Once you have been through a market testing
Most asset asset transfer: Key questions
These are some of the key questions you
may want to discuss at an initial meeting:
A local authority may refuse all asset transfer
requests. In such circumstances your only
Transfer Policy which will detail how they will
undertake the transfer. It is possible for the
exercise and you are the preferred bidder
you can then start negotiations with the local
1 Demand-led course of action is to lobby councillors for a local authority to deal exclusively with an authority based around the remaining sections
transfers take This is where a community organisation such
as a football club expresses an interest to the
asset owner to take over the ownership of
• Is the local authority in principle
amenable to undertaking an
change in policy. If, however, the local authority
does not rule out the possibility of a transfer
anchor organisation, eg‑. offering the freehold
to a club that has used a particular site for over
50 years.
of this guide. You may be asked to complete
an ‘expectation agreement’ or memorandum
of understanding which just sets out in broad
then it is worth moving onto the next stages
around 18
an asset. asset transfer? terms the details of the asset transfer and the
in this guide. It is important to reiterate that
most asset transfers take around 18 months to However it is more common for the steps both sides will undertake before the legal
2 Supply-led • Does the local authority have an Asset authority to undertake some kind of market transfer takes place. These documents are very
complete. Clarity at the outset is key; too many
Transfer Policy or some other policy
months to
This is where the asset owner - usually the projects flounder down the line due to a lack testing through an ‘expressions of interest’ helpful as they help keep both sides focused
local authority - makes an offer to transfer an commitment to support and help the or tendering exercise. This is not a strict and on track. They have no legal authority and
of understanding of each other’s expectations
asset to a community group . voluntary sector? requirement but it is often good practice for even after signing an expectation agreement
and what constitutes success in the long term.
complete;
local authorities to do this to ensure that it is you are not obliged to undertake the
Demand-led asset transfer often depends on • What are the terms on which the receiving best consideration for the asset. The asset transfer.
Supply-led asset transfer is becoming
the leadership of a community group, such as a local authority will undertake an market testing will detail the basis on which
increasingly common as local authorities seek
football club, realising that in order to develop asset transfer? the LA is willing to undertake the transfer such The local authority is not likely to undertake
to reduce their asset base. It is important that
clarity at the or sustain the organisation it needs to own its
own home. This could be a particular asset such • Are you interested only in one
particular asset/site or are you willing
any supply-led asset transfer takes place in an
orderly fashion. Beware of any organisation
as allowing an ‘under value’ if the community
benefits can be identified.
the transfer until it is satisfied that your
organisation is fit and proper to receive
as a playing field that the club already uses; simply offering you the keys; you do not know custody of a public asset. The next section will
outset is key it could also be a more general expression of to consider a range of options? help you ensure you are in good shape to meet
what risks or liabilities you could be taking
interest in securing ownership of a site within a on board. The disposal of an asset by a local this requirement.
given area. Answers to these questions will help you
authority should follow a transparent process
determine whether it is worth proceeding
where there is plenty of dialogue between the
Once a club has decided that it would like to with the idea of an asset transfer.
local authority and the receiving organisation
take on the ownership of an asset the most in order to identify the risks and expectations
important step is to start discussions with on both parties (see carrying out an
the local authority. When talking to the local initial feasibility).
authority it can be useful to involve both
officers and councillors in your discussions.
Local councillors can be a great source of
support. They will often help you by arranging
meetings with the right people at the local
authority as asset transfer often involves
several different departments.
08 The FA Guide to Asset Transfers
Building, Protecting and Enhancing Sustainable Football Facilities
The FA Guide to Asset Transfers
Building, Protecting and Enhancing Sustainable Football Facilities 09
Accountability
The FA Guide to Asset Transfers
and Governance
Clubs will need to demonstrate that Governance and management structure Clubs should also consider registering for
they are ‘fit and proper’ and as such it
Are you ready for an asset transfer?
Governance and management structure Community Amateur Sports Club (CASC) Tools:
is recommended that clubs look at Yes No must be considered from the outset of the status or applying to become a charity.
their internal structure and how they project. How a community based organisation Unincorporated associations, companies
Is the committee an elected body and is accountable to its members? The FA Club Structures Guide
are organised. is set up and what legal ‘vehicle’ it operates limited by guarantee and community benefit
The following document provides detailed
through will determine its powers of societies qualify and benefits include a range
information on the common forms that
Have you assessed your readiness for an asset Do you have a clear and agreed mission, aims and objectives which governance and management in relation to of tax relief including Gift Aid and business
football clubs can adopt together with some
transfer? This table asks some questions you have been defined through consultation and evidence of need? its assets. rate relief.
advantages and disadvantages of that form.
may wish to consider.
Does the governing structure prevent personal profit being made by
For any club that is wishing to own and/or A club should seek independent legal advice
members of the Board and any surpluses generated are re-invested
in relation to the most appropriate structure
Club Legal Structures
back into the organisation? manage its sports facility, it is important that
A table of comparisons for sports clubs
they have a robust governance structure and form that it should adopt and the steps
Do you have a business plan that describes the operational costs of At a glance comparisons between the
in place with a legal form which enables to be taken if a club is considering making
running the club? different legal forms of unincorporated
them to take on the responsibilities and any changes to its structure including but not
associations, limited companies
financial liabilities. limited to incorporation. Before making any
Do you have written financial procedures for subscriptions, and charities.
structural changes the club should give prior
bookkeeping, expenses, petty cash, late payments etc. with checks and
For many clubs this will mean incorporating notice to The FA (and the league and County
balances to avoid misuse of funds which are regularly reviewed? Tax Regimes for Sports Clubs
the legal form of the club of which there are FA of which it is a member), in relation to the
Do you have a Football Development Plan aligned to your aims and a variety of options to consider: application of football’s rules. At a glance guide of the regulation and
objectives that the committee actively reviews performance against? • Companies limited by guarantee incentives for clubs considering CASC
• Companies limited by shares or charitable status.
Have you developed a good and active relationship with the County FA
• Community Interest Company
and Club/League representatives? For all of the above areas, visit
• Community Benefit Society
(as defined under Industrial and www.TheFA.com/GetintoFootball/
Have you developed links with key agencies/stakeholder organisations
Provident Society legislation). parentsandvolunteers/runningaclub
in the local community/neighbourhood?
Do staff and volunteers have clearly defined roles and responsibilities Advice on Community Benefit Societies
and you have a plan to replace those people as and when they leave? Supporters Direct can provide advice and
guidance on establishing Community
Are you aware of the range of skills your members could provide if Benefit Societies in sport. They have
called upon? sponsored rules with the Financial Services
Do you have experience of managing a facility and understand the Authority, which can be tailored to your
requirements and legal undertaking? club’s requirements.
www.supporters-direct.coop
Do you have sufficient operating reserves to cover legal fees and any
start up costs required for a facility?
10 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 11
Types of tenure
Description Advantages Disadvantages
FREEHOLD • Security of ownership • Expense of purchase
Buying the property as full owner through a • Creates a sellable asset • Cost of repairs and insurance
legal document entitles a ‘conveyance’ • Independence • May not be sellable if in poor condition or
• Can use asset to help raise debt and deeds forbid it
equity funding • Much harder for Local Authority to restrict
• Not subject to service charges future use of the premises than other forms
• Freedom to improve or redevelop the asset of tenure
Types of Tenure
and to attract grants to do so
The FA Guide to Asset Transfers
LONG LEASEHOLD • Security of ownership • Expense of purchase
In Asset Transfer
Buying a lease of 22 years or more and paying • Creates a sellable asset • Cost of repairs and insurance
a ‘premium’ (initial capital payment) then • Independence • May not be sellable if in poor condition or
a low annual ground rent; lessee has all the • Can use asset to help raise debt and deeds forbid it
responsibilities of a freehold owner equity funding
• Local Authority can restrict future use of
the premises using covenants placed on
any lease
LEASE • Security of tenure (usually) rights under • Expense of rent and service charges (which
Taking a lease for a fixed period of years at The Landlord and Tenant Act 1954 may increase regularly)
annual or ‘rack’ rent • Local Authority can restrict future use of the • Cost of repairs and insurance although LA
premises using charges placed on any lease. can retain some responsibility
• In some cases rent may be low • Shorter leases limit a group’s ability to
or peppercorn improve premises and to raise funds
• In some cases maintenance costs may be for improvement
shared with landlord
• The local authority may be better disposed
to granting discretionary rate relief
The main characteristics of the types
The type of of tenure used in asset transfer are
set out in the table opposite, together
Tools:
with a summary of the advantages and TENANCY AGREEMENT • Easily terminated by the tenant • Normally little security of tenure especially if
The FA Legal Support
tenure will disadvantages both for local authorities
and community groups.
With community asset acquisitions there
are several legal considerations that
A verbal or written open ended agreement
with a monthly, quarterly or annual rent and
• Rent may be cheaper
• Often less responsibility for repairs
verbal or for a period of less than six months
• May be restrictions on use of premises
which can be terminated by either side and insurance • Makes fundraising more difficult
clubs will need to seek independent and
determine
This is one of the ways of managing the risks giving notice • May have security of tenure
professional advice. To support clubs in
associated with asset transfer and the type of • More likely to have discretionary rate relief
the legal areas highlighted throughout this
tenure will determine the legal responsibilities
document The FA has joined forces with
the legal
and liabilities for the site. The options can vary
Muckle LLP to provide free legal support to
but for most transfers where external funding
FA Charter Standard Clubs and Leagues. LICENCE TO OCCUPY • As with a tenancy agreement, except no • May be restrictions on use of premises
is required to develop the asset, community
Permission (verbal or written) to occupy for a security of tenure • Local Authority may often need to give only
responsibilities
asset transfer is usually taken to mean a long
Any FA Charter Standard clubs or leagues short period (usually up to one year); can be • May be exempt from business rates a short period of notice
lease, of at least 25 years or a freehold.
can receive up to 30 minutes free terminated by either side giving notice. • May allow a new group a chance to
advice on any one subject by calling demonstrate its capacity to operate and its
Asset Lock
for the site
0191 2117799 or emailing case for occupying the premises on a more
An asset lock is a legal mechanism to protect CSLegalhelp@TheFA.com. secure basis
any public or community assets that are
transferred to ensure that there can be no It is likely that you will need more than 30
private benefit in the event of any sale or minutes’ phone consultation and therefore
development of the asset. special rates are available. TENANCY AT WILL • As with Licence To Occupy • As with Licence To Occupy
A licence to occupy at the will of the owner/
This includes ensuring that all profits are wwwTheFA.com/GetIntoFootball/ landlord; tenant may be evicted at any time on
reinvested into the organisation running parentsandvolunteers/Runningaclub/ as little as 24 hours notice
the asset and in the event of any sale or Settingupaclub/Legal
dissolution any funds are given to another
similar organisation.
Source: ‘Managing risks in asset transfer, Department for Communities & Local Government
By definition all charities and Community
Interest Companies have asset locks, while
Community Benefit Societies can also apply
an asset lock to their rules.
12 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 13
Who Needs
The FA Guide to Asset Transfers
to be Involved?
Managing a facility or a football site is a For some tasks, a club will require independent
A skills audit of the volunteers and demanding responsibility that requires not
only time and commitment from a team of
and professional support for example Legal
(see Legal Support on page 1 and technical
Tools:
people but also the necessary skills too. professionals. It may help to assign role
Community Rights
supporters available to you may It is vitally important that before embarking
on an approach to take on a facility/site, you
responsibilities to an appointed team member
with the relevant skills.
Support Programme
An advice service run by Locality will help
help to identify the right people
community groups to buy and manage
should assess the tasks that will need to be Whilst the individual may not be the ‘technical
land and buildings in community use. This
completed and the time and skills of people expert’, they must be able to convey the
include pre-feasibility and feasibility grants
available to the project to carry out those tasks. options clearly and concisely in order to
for capacity building tasks associated with
for the right tasks
understand the requirements and legal
community ownership and management
There are a number of key skills that the club undertakings for the club.
of assets.
may need to consider when embarking on an
www.mycommunityrights.org.uk/
Asset Transfer including but not limited to: A skills audit of the volunteers and supporters
community-right-to-bid/grants
• Negotiation skills available to you may help identify the right
• Financial skills, preparation of a budget and people for the right tasks.
business planning Sport & Recreation Alliance, Skills
• Project management Audit and Matrix for the Board
• Strategic planning and community consultation; A web based resource for sports clubs/
• Fundraising organisations assess the skills and
• Managing human resources experience that will help the club develop.
• Marketing skills www.sportandrecreation.org.uk/smart-
• Operational management skills sport/board-new/resources
• Legal
• Technical professionals, architects,
surveyors, planning etc.
• Property maintenance
• Pitch maintenance.
14 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 15
Feasibility Study
The FA Guide to Asset Transfers
It is prudent that a building surveyor carries • Essential and desirable community facilities
The feasibility study will enable out a condition survey of any buildings
that are considered to be part of the
outcomes for the site;
• Full disclosure of all financial liabilities and
Is it really needed?
In order to be objective you need to think
• How much is this going to cost and where
will the money come from?
• Have you consulted potential funders on
transfer. Ideally it is recommended that income streams – current and projected; about some of those “what if” questions:
you to gain local knowledge the transferring body (usually the Local • Full details relating to current and proposed • What would actually happen if the the eligibility, priority and viability of your
Authority) takes responsibility and meets maintenance programming on the site site closed? scheme? (Particularly important if you
the costs for undertaking the necessary including any liabilities arising from on-going • What alternatives are there? plan to secure funding from any public
of the site and to engage with the
site surveys and includes as part of any contracts with third parties for maintenance. • Where are the nearest accessible pitches? grant funding bodies)
expectation documents. • How many people actually use the site? • Will the local authority help you to
The club will also need to undertake a • How many people could use the facility? undertake this work?
local community, which will help
At the outset this should include: feasibility study, consulting with key local
• Existing site details and set out aspirations communities. This will provide you with How suitable is the facility for your How realistic are the time scales for
for the site (title deeds from the answers to key questions: club / organisation: the transfer:
• What facilities is your club going to need • How much time are the local authority
you gain an understanding of their
Land Registry) • Is it really needed? (See opposite)
• Legal tenure that Council is prepared • What can be accomplished? in the next 5, 10, 15, 20 years? giving us to develop our case to take on
to consider • Is it viable and sustainable in the long term? • Does the facility you are being offered the asset?
• Planning implications (including restrictions, meet those requirements? • Is this long enough to do the work that we
needs whilst mobilising support for listed buildings, floodlighting scheme etc.);
• Any restrictive covenants, way-leaves, or
The feasibility study will enable you to gain
local knowledge of the site/facility and to
• If not, can it be expanded/developed to
meet them?
• Do you know what condition the facility
need to do? (This should be an absolute
minimum of six to nine months, longer if
needing to raise capital investment)
rights of access for the site; engage with the local community, which will
your club in the local community • Site specific development order that will help you gain an understanding of their needs is in? • Do we as an organisation have the time to
indicate the proposed/desired future whilst mobilising support for your club in the • How have you assessed this? Is there an dedicate to acquiring the facility as well as
development of the site; local community. This will in turn influence the up to date condition survey and have you keeping our club running?
• Identify and make available site conditions local authority’s decision to transfer the site assessed its implications?
and building surveys; and may influence any planned development • How much work is going to need to be
• Assessment of current use and affiliated of the site that requires public support. done in the short, medium and long term
clubs (if any); to keep it up to standard or improve it to
• Strategic priorities and policies influencing Further information on feasibility studies can meet your needs?
the site (eg. LA Facilities Strategies, playing be found by accessing the Sport England Asset
Pitch Strategies etc.); Transfer toolkit.
16 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 17
Feasibility Study
The FA Guide to Asset Transfers
Is it really needed? (continued)
Is the site financially sustainable:
The more accurate information you can
collate at this stage the more likely you are
to formulate considered answers to these
Tools:
This will help in assessing the
• Do we have access to current income
The FA Football Development
risks involved with the transfer
and expenditure records for the site? questions. This will help in assessing the
• How much is the facility going to cost risks involved with the transfer and consider Planning Toolkit
to run? the options available to the club and the A football development plan will help
and consider the options
• How much income will it generate? site. The feasibility study will also be a good address the feasibility of a transfer and help
• Are there any other potential income starting point for the business plan that will develop a shared vision for the club.
sources that are realistic to achieve? scrutinize the data and assumptions in more wwwTheFA.com/GetIntoFootball/
available to the club
• Are there ways we can reduce detail to be able to assess with confidence
expenditure? eg. replacing paid roles the viability of the transfer. * Running Sport Asset
with volunteers Transfer Courses
• Can we attract in new users and do we Running sport is rolling out a programme of
have the proof that they will come? workshops aimed at sports clubs that want
• Have you spoken with a similar size club to know more about community
responsible for managing its site? asset transfers.
Are there any limitations to the use of
the site?
• Are there any restrictions on how
the facility can be used? Time, uses,
trading etc?
• If you need to develop additional facilities,
how likely are you able to get planning
permission? eg. Is the site suitable
to develop due to ground conditions,
contamination, impact on neighbours,
floodlighting, parking or traffic flow.
* Source: England Athletics: Asset Transfer Guide Fact Sheet,
with amendments by the author
18 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 19Business Planning
The FA Guide to Asset Transfers
It is vitally important that the club develop
The business plan should enable Tools:
check and challenge your business plan
a robust, long term business plan at the
outset, outlining how the club will utilise Yes No
the facility/site in line with its stated
The FA / Football Foundation
you to demonstrate that the objectives. It should clearly describe the
operational costs of running the club and
that projected income and expenditure
Do you have a detailed business plan?
Project Support Library
The support library offers essential
Have you established a break even figure for your activities?
asset can generate enough
guidance on the key elements of a project
profile should be based on real data and
including business planning guidance and
fully explained assumptions.
Are the basis of your income & expenditure based on real life income and expenditure templates.
information; are they cautious rather than hopeful? www.footballfoundation.org.uk/apply/
revenues for you to be
The business plan should enable you to
facilities-grants/facilities-grant/help-with-
demonstrate that the asset can generate Do you know what it costs to run the site under the current
your-application/project-support-library/
enough revenues for you to be financially management arrangements and are there any existing tenancies/
financially sustainable
sustainable. This in turn helps to satisfy bookings that will generate revenue from day one?
stakeholders that you understand what is Sport England Club Leaders website
needed and build confidence and support for Do you have accurate capital costs identified for the site, and have you A free web based interactive site.
your scheme. considered phasing any improvement works? The aim of the project is to help people
develop their business skills so that they are
Does the club have an agreed budget for the year, against which
A local authority will want to be satisfied better able to assist their club realise their
income and expenditure is regularly reviewed?
that the health and value of the asset do not full potential.
decline under your tenure, whilst you and your www.sportenglandclubleaders.com
Are management accounts presented regularly to Board/Committee?
members will want to ensure that you do not
incur financial liabilities that you are unable
Can your club cover fluctuations in income, current liabilities and
to meet.
unplanned expenditure?
We recommend that you take the time to Have you fully explored the opportunity to transfer the site on a low or
thoroughly research the information contained nominal rent?
in your plan and consult other asset managing
clubs to understand what it really takes to It is possible that the local authority will be able to retain certain
manage its assets. Your County FA can help maintenance liabilities for the site?
you and there are also a number of tools and Have you explored the opportunity of a revenue/maintenance
templates online to get you started. contribution from the local authority to cover the ongoing maintenance
for a set period of time?
20 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 21Facility
The FA Guide to Asset Transfers
Development
In your initial assessment of the facility, To guide clubs through the processes and
Any capital programme will you may become aware of the need to
refurbish or upgrade the facilities to ensure
requirements for procuring quality provision
for sports facilities, The FA have produced
Tools:
that they are fit for purpose. a guidance document ‘Generic process for
The FA Generic Process for Facility
increase the risks of an asset For buildings this most likely refers to the
clubhouse/changing facilities for the site.
Facility Development’. It highlights various
stages of the process and the key stakeholders
involved. Assistance is available from The FA
Development Guidance Notes
This guidance note has been prepared
transfer in respect of the type of
to help sports clubs and voluntary
Please refer to the The FA guidance note on throughout the development stages of your
organisations to understand the processes
refurbishment of existing changing rooms. project and these are referred to within the
and requirements for procuring quality
various stages of the process.
provision for sports facilities.
development and suitability for
If the condition of the grass pitches is of
concern then it is recommended that an Any capital programme will increase the risks
agronomist is appointed to determine the of an asset transfer in respect of the type of The FA Guidance Notes
on Refurbishing Existing
the site, raising the finance and
condition of the pitches and identifies any work development and suitability for the site, raising
that needs to happen to improve the pitches to the finance and the time, skills and professional Changing Rooms
an acceptable standard. support required to deliver a successful project. This guidance note is designed to provide
We strongly recommend that you consult robust advice on the factors that need to be
the time, skills and professional For some sites it may not be feasible to alter or
upgrade an existing building (assuming there
your County FA at the earliest opportunity to
share your aspirations and explore the realistic
considered when looking to embark on such
a project.
are any) and that a new build is necessary investment opportunities that you are eligible
support required to deliver a in order to meet your needs. Whilst there
are several distinct phases to a capital build
project, some of which require professional
to apply to in support of your project. For all of the above areas, visit
www.TheFA.com/GetintoFootball/
parentsandvolunteers/runningaclub
successful project
input, there are key areas that can be discussed
by the club in order to facilitate the optimal
delivery of their facilities in line with your needs
and budget. The successful delivery of a capital
build project relies on a good project brief with
clear aims and objectives from the outset.
22 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 23Facility Handover
The FA Guide to Asset Transfers
and Beyond
The time spent on ensuring the feasibility Handover Management
Monitoring and evaluating and business plan is as accurate as possible
will help in preparing the club for what will
This is a crucial time, and if the transfer involves
some capital improvements there is no need to
Whilst there are many practical operational
tasks that consume the time particularly in
Tools:
be a very busy handover period. wait until practical completion of the building the early parts of a transfer it is vital that the The FA Your Game website –
progress will be a key task in The first operational year is a crucial period
to set the club on a sustainable path and
to start delivering. club doesn’t lose sight of their aspirations,
commitments and financial sustainability of
What’s Your Pitch?
An online marketing toolkit to help promote
The football development plan, sessions on the project.
demonstrating your success to
your club with a whole suite of information
ultimately towards a successful transfer. You the site, marketing the club, school club link
and templates to help you.
will start to deliver your activities and embed initiatives, in essence the people side of the It is important that the management
www.TheFA.com/GetintoFootball/
your operational procedures whilst maximising project, can start well before the physical committee take decisions that are consistent
parentsandvolunteers/Whatsyourpitch
the transferring body, your wider
the enthusiasm generated from the change. handover of the buildings. with the agreed football development plan
It is also a time when you iron out any and business plan. Monitoring and evaluating
unforeseen issues and put into practice progress will be a key task in demonstrating The Football Foundation –
Key operational tasks to consider Sustainability Toolkit
community and any grant giving
a staffing structure that will cope with your success to the transferring body, your
the change. • Monitoring any build programme – wider community and any grant giving bodies This guide has been designed to provide an
lead in time before handover, snagging that supported your project. introduction to consider when planning the
• Fully understanding any operating longer term sustainability of a project
bodies that supported your project manuals and procedures for the site
• Identifying and recording key
operational contacts, local contacts
Key management tasks to consider
• Financial procedures, cash flow,
or organisation.
www.footballfoundation.org.uk/your-grant/
sustainability-toolkit
• Implementing a maintenance schedule reporting and taxation
from annual tasks to daily routines • Asset registers for stock and HM Government – A short guide to
• Applying for licenses equipment to keep secure, maintain making your premises safe from fire
• Put in place the security arrangements and plan replacement Provides simple and practical advice to
and emergency procedures including • Rent, rates and rate relief people responsible for fire safety in small
opening and closing and medium sized businesses.
• Staffing policies and procedures –
• Establishing robust health and safety www.communities.gov.uk/publications/fire/
volunteer and paid roles
policies (eg., fire prevention and risk regulatoryreformfire
• Lease and any development
assessments, legionnaires surveys,
food handling safety, activity risk agreement undertaking
• Establishing any advisory / stakeholder HSE – Five steps to risk assessment
assessments etc.)
groups that helps to embed the club in This leaflet aims to help you assess health
• Marketing the site including a launch /
the local community and safety risks in the workplace.
opening event and updating websites,
www.hse.gov.uk/risk/fivesteps.htm
leagues, county FAs and clubs contact • Monitoring visits, reporting and
address (particularly if new to site). evaluation controls to report progress.
24 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 25Case Studies
The FA Guide to Asset Transfers
What is an Asset Transfer? Common Approaches
to Asset Transfers
Wyrley Junior FC Middlesex FA and London Borough of
Established in 1982, the FA Charter Ealing Asset Transfer Process Model
Standard Community Club now runs Middlesex FA and the FA developed a
45 teams and two training academies model asset transfer process with the Stage 1: Strategic assessment
for young players. London Borough of Ealing that has helped of facilities
to improve, protect and secure football
Needing a base, the club gained a 50-year facilities in the Borough.
lease from the Parish Council on a site
providing a new facility can be provided London Borough of Ealing had already
and is opened up to the community all developed a ‘best practice’ model recognised
year round. by Sport England and the FA involvement has Stage 2: Local Authority decision
helped to enhance this model. to market identified facility
Wyrley Juniors FC became a charity and the
committee members became Trustees of The five-stage process involves the The FA
the charity with the aim to access funding to throughout from initial strategic assessment
develop and sustain the club and demonstrate to the transfer and monitoring. It remains the
to its members and the community that responsibility of the Local Authority to lead and
the club is well managed in a regulatory
Stage 3: Marketing process
deliver the process and decide the outcome for
framework. Tangible benefits included, grants the site. for facility
to help fund the new build, zero VAT rating on
the construction project (as the new build was The County FA and The FA acts in an advisory
classified as a quasi-village hall by HMRC), 80% capacity and helps to shape the priorities.
mandatory rate relief and access on Gift Aid on Ealing have ensured a total project life cycle
donations and fundraising. approach to the transfer of its assets, support Stage 4: Development of proposals
is offered to preferred bidders as part of the
In October 2011 the club’s £1.15m investment
with preferred bidder
project development stage, and delivery of the
project at Long Lane, Essington opened. capital construction is often taken on by the
The club also created a subsidiary company local authority to achieve VAT savings.
(limited by shares) to operate and run a bar at
the new facility as this is outside the objects of There are currently five football sites which
the charity. The charity owns the only share of are being progressed, with a potential joint Stage 5: Transfer of site
the company, so all taxable profits are donated investment into football worth in excess and monitoring
back to the charity on which it can then claim of £6m.
Gift Aid to ensure that all pre-tax profits are
granted to the club.
26 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 27Case Studies
The FA Guide to Asset Transfers
Accountability and Governance Types of Tenure in Asset Transfer
Enfield Town FC Alcester Town FC in partnership with
Enfield Town FC was formed on 23rd June Alcester Town Council
2001, when the members of the Enfield Alcester Town football club is made up
Supporters’ Trust voted overwhelmingly to of 20 teams from under-7 through to
break away from the Isthmian League Club adult and is the largest youth club in
and start afresh. South Warwickshire.
Enfield Town Supporters Society Ltd, which owns Its objective was to find a home for the club to
the operating company, ETFC Ltd, is an Industrial secure its long term future. The club managed
and Provident Society. The first objective of to secure a 25 year lease on a 13 acre site
the Trust was to re-establish a club, bearing the (which was the former Alcester Golf Centre)
Borough name, in Enfield and set out to recreate with a potential clubhouse building from a
the many facets of the old club. These included local landowner in partnership with Alcester
thriving youth and ladies’ sections and a nationally Town Council.
recognised Football In The Community Scheme,
full membership of The FA and the playing of a The landlord was initially sceptical of agreeing
leading part in football within the County. to a 25 year lease for the football club. This
problem was overcome by involving Alcester
A significant barrier to the attainment of Town Council who offered to take on the lease
these wider objectives was the lack of a home. and sublease it to the football club. The club
Working with the Local Authority the Club formed a limited company ‘Alcester Town
redeveloped the site and started operations at Football Club (1927)’, limited to avoid exposing
its new base, the Queen Elizabeth Stadium in the directors to crippling financial burdens. The
Enfield in the 2011-12 season. club started using the site in 2010-11 season.
On completion of the stadium, the members of
Enfield Town Supporters Society Limited, with the
support and guidance of Supporters Direct, voted
to apply the Community Benefit Society Asset
Lock to help ensure the protection of this valuable
asset for current and future generations.
Enfield Town won promotion to the Ryman
League Premier Division in its first season at
their new home ground.
28 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 29Case Studies
The FA Guide to Asset Transfers
Who Needs to be Involved? Initial Feasibility Study
Southwark Community Sports Trust Spikes Bridge, Ealing
Dulwich Sports Ground, formerly known as Ealing Borough Council’s strategic
The London South Bank University Sports approach towards asset transfer has
Ground, closed the Turney Road sports unlocked the potential of a problem site.
ground in September 2010, due to the
financial pressures that the University faced. Formally Southall Municipal Sports Ground,
Spikes Bridge Park is located in the heart of
The 22 acre site included five full size football Southall. It is a 8.2 hectare open space site
pitches, two youth football pitches and three which was once the hub of an extremely
mini soccer pitches and was home to diverse community, however, a lack of
20 different sports clubs including many investment and intensive informal use had
football clubs. rapidly taken its toll on the ageing facilities.
In response, a group of club volunteer A playing pitch strategy in 2007 had identified
representatives collaborated to keep the Spikes Bridge as a key site and the council
playing pitches and facilities open for decided to re-tender the opportunity to
use. Working with the London Borough of manage the sports facility in 2009.
Southwark, the clubs created a community
interest company to manage the facilities and An exciting community-led scheme involving
take over the remaining seven years of the two community based organisations – London
lease. The founding member clubs committed Tigers (a football club and community
funds and volunteers contributed considerable organisation), and Southall Community
time to re-open the facility in January 2011. Alliance (SCA – a local charity representing
a wide range of smaller community groups
In 2011-12, 546 games of football were played in Southall).
ranging from under-8 through to veterans
football. Having successfully demonstrated to A 25 year lease, a low rent and a revenue
the landlords they are capable of running the commitment from the council to cover grounds
site, the Trust are in the process of entering maintenance, (approximately £10k), and
into a new 25 year lease on the site. utility charges, will form the main terms of an
agreement to regenerate the sport and leisure
facilities in the park.
30 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 31Case Studies
The FA Guide to Asset Transfers
Business Planning Facility Development
Bury MBC The operating costs / cash forecast were Redcar Town FC
Bury MBC gave notice of their intention reviewed and discussions took place around Originally formed in the 1994-95 season,
to withdraw provision of football facilities the validity and level of accuracy with regards Redcar Town Football Club started from
across 11 sites in the borough with the aim to each plan, and the clubs in turn were able humble beginnings and involved just two
to offer the sites to clubs prepared to take to demonstrate to their members the actual teams at under 11.
on the asset. costs of running football at this level. The
collaborative business planning process that Redcar Town’s quality coaching, combined
It was agreed to work in collaboration with each club committed to was a fundamental with team success on the field of play, was the
the Local Authority to avoid the loss of any task that determined whether or not a catalyst for growth and the club very quickly
facilities. Good relationships already existed sustainable solution could be achieved for went from being a “small club in Redcar” to one
between Lancashire FA Development Team each site. of the biggest junior football clubs in the area.
and Bury Sports Development and a group was
established between the relevant stakeholders. It became paramount that if the club wanted
to continue to develop, they would need a
The participating clubs were all required playing facility they could call home and,
to complete the same template business more importantly, cater for all their teams’
plan with a standard cost code system to playing needs.
enable the group to compare and contrast
the data between clubs. It was emphasised In 2007 the club, in joint partnership with
therefore that accuracy of the information Redcar & Cleveland Borough Council, secured
was paramount. It enabled the group to a £420,000 grant from the Football Foundation,
understand the key issues at stake with regards to develop and new football facility at the Trunk
to the current running of clubs and enabled Road site at Dormanstown in Redcar, now
measures to be implemented with regards to home of Redcar Town FC.
collective working, negotiating with other key
stakeholder – eg., training facility providers,
identifying scope for investment with regards
to fund-raising capability.
32 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities
The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football Facilities 33Further Reading Contact Details
The FA Guide to Asset Transfers The FA Guide to Asset Transfers
The FA Facilities and Investment Team
Websites Specific funding for projects Print Senior Manager Regional Managers East
General information on Asset Transfers • The Social Investment Business – General information on Asset Transfers Peter Kay North West Mark Liddiard
• Sport England – Community Ownership and Management of • England Athletics – Peter.Kay@TheFA.com Eamonn Farrell Mark.Liddiard @TheFA.com
Community Sport Asset Transfer Toolkit Assets grants programme A Guide to Asset Transfers Eamonn.Farrell @TheFA.com 07984 003466
www.sportengland.org/assettoolkit http://www.sibgroup.org.uk/ National Manager 07904 266696
• Asset Transfer Unit communityrights Mark Pover London
atu.org.uk • Sport England – Funding Guidelines Mark.Pover@TheFA.com North East & Yorkshire Dylan Evans
www.sportengland.org/funding Mark Coulson Dylan.Evans @TheFA.com
• Locality • Football Foundation – Apply for a Grant Mark.Coulson @TheFA.com 07903 248817
www.locality.org.uk www.footballfoundation.org.uk/apply 07904 166858
South East
Developing the structure of Information on Community Benefit West Midlands Stuart Lamb
your organisation Societies and raising capital finance from Hannah Buckley Stuart.Lamb @TheFA.com
• Companies House this legal model Hannah.Buckley@TheFA.com 07932 391096
www.companieshouse.gov.uk • Supporters Direct 07960 148340
www.supporters-direct.coop South West
Conducting condition surveys and East Midlands Simon Wood
developing plans to develop facilities Matt Bartle Simon.Wood @TheFA.com
• The Institution of Structural Engineers Matt.Bartle @TheFA.com 07984 003460
www.istructe.org 07960 148357
• Royal Institute of British Architects
www.architecture.com
• Royal Institution of Chartered Surveyors
www.rics.org
• Royal Town Planning Institute –
spatial, sustainable, integrative and
inclusive planning advice
www.rtpi.org.uk
34 The FA Guide to Asset Transfers
Aiming to Build, Protect and Enhance Sustainable Football FacilitiesYou can also read
