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2 hours ago Mark Sennett said:
Our website is screwed up again so it's just been sent to members. Should flow as follows:
Last night OxVox held a meeting with Mark Ashton and Daryll Eales. We asked a number of questions on behalf of members, which can be viewed below.
The meeting was constructive and we look forward to continuing to work closely with the new board. The board highlighted their plans for growing all areas of the club and enthusiastically outlined their vision for the future.
OxVox has regularly asked questions over recent years about the club's debt level and how the club can sustain continual losses. This remains a concern but we look forward to engaging with the board on this matter and giving feedback on their plans to improve all areas of the club. Another area we still have questions on is the breakdown of the shareholding structure and the split between WPL and Ensco 1070 Ltd for the outstanding soft debt. The answers to these questions will be published in the next two sets of the club’s accounts.
We were grateful for the lengthy period of time given to us by the board and the commitment to meet regularly with OxVox. If you have an further questions for the board please do feel free to contact us and we will pass them on.
Regards,
The OxVox committee
OxVox meeting with OUFC
Date: 22/7/13
Present from OxVox: Mark Sennett, Simon Bradbury, Jeremy Faulkner, Matt Cavil, Michael North, Graham Butler
Present from OUFC: Daryl Eales, Mark Ashton, Tom Grunwald, Cheryl Cooper, Georgina Fell
MS thanked MA/DE for attending the meeting and outlined background on OxVox, the right to bid, and said that the questions had been sent in by members. The questions included:
1) What is the makeup of Oxford United Football Club’s shareholding since their investment and could they provide clarity on the board members’ voting rights?
DE said he and the board intend to be stewards of the club for the fans and in his eyes the real owners of the club are the supporters. He said that WPL owns over 30% of OUFC as does ENSCO 1070 Ltd. DE added that he will be the primary funder of the club moving forwards. ENSCO 1070 Ltd is primarily owned by DE and MA. Full clarity on the shareholding of OUFC would be made available when the impending set of accounts for the club are published in the near future.
2) What is Oxford United’s current level of debt?
DE confirmed that the level of soft debt that is owed by Oxford United is the same as it was prior to the takeover, which is circa £7.5m. He added that the debt is no longer entirely owed to WPL but is split between Ensco 1070 Ltd and WPL.
3) How much did you pay to buy shares in the club?
This is confidential information and due to legal agreements DE could not comment. He stressed that Ian Lenagan will not walk away with all his money back when all payments have been made for the share purchase. DE also confirmed that the payments have been spread over time rather than in one lump sum. He said he and the new board have nothing to hide and want to be transparent with fans about the running of the club. He added that Ian Lenagan’s investment in OUFC should be seen favourably as he has been a ‘net benefactor’ for the football club.
4) What is the forecasted profit/loss for OUFC this season?
DE expects the club to record a loss in excess of £1.5m this season. But strenuous efforts will be made to increase commercial and ticket revenue (by increasing attendances) to help try to reduce that loss. This figure does not budget for any extra television money, player sales, or cup runs/playoffs. He stressed that he and the new board don’t have an endless pit of money to invest but they have a strategy and vision they feel can help the club improve year on year in every department. They are currently budgeting across the business and are asking every department to explain how revenue targets will be achieved.
He added that he would like the club to move towards breakeven within a three-year period. The aim is to increase revenue and costs appropriately, which is hoped will lead to better infrastructure and progression on and off the pitch.
5) Has our wage budget increased? Can you say how much it’s increased by and how it compares with the rest of League 2?
MA said that the budget has seen further investment and they hope to bring in 2/3 more players in. The budget is competitive and puts OUFC within the top quarter of League 2. He added that it’s not all about budget but how you spend it that’s important. Improving infrastructure off the pitch has been a key area for investment. This has been demonstrated by the appointment of a new head coach, new assistant head coach, and a new video analysis expert. MA says this investment shows the board’s intent and it is a work in progress.
There are plans to shortly appoint regional scouts and a head of recruitment. These investments have been budgeted for as part of a 3-year-plan to change the first team management infrastructure.
DE said the risk of making this investment and it not resulting in progression was far smaller than the risk of the club not progressing if the management/recruitment side of the business were not strengthened.
6) Are the board members being paid and if so how much? Can you confirm Mark Ashton’s salary?
DE said that yes, board members are being paid non-executive directors’ fees by ENSCO 1070 Ltd and not the football club. The amount of these fees was not revealed.
Mark Ashton is also being paid by ENSCO 1070 Ltd and his salary was described as ‘the right amount for a man of his position’ and has bonuses built in based on success.
7) Why have you got involved in Oxford United?
MA and DE said they shared the same reasons for wanting to get involved. They believe OUFC has huge potential and a great geographical location. The deal was not influenced by any opportunity to make money from purchasing any stadia. They believe Oxford United is one of the few clubs that can be sustainable at Championship/Premiership level and the feedback from people they know in football is that OUFC is a club with great potential.
DE also said that he would like to be at the club in 15 years’ time having created a legacy at the club.
How season ticket sales going and what is the budgeted average attendance for this season?Current season ticket sales stand at 2506 compared to a final total last season of 3350. The club today began a telemarketing campaign to engage with lapsed season ticket holders. The targeted budget average attendance for next season is circa 6,000.
9) How will you address the drop in attendances over recent seasons?
A lot of focus will go into the community aspect of the club and the marketing plans. By targeting schools, families and the wider local community the club is confident this will lead to growth in attendances. Data capture is key to this plan. Communication is an area they will work hard on to improve the board is keen to see the club re-engage with businesses, schools, fans, media and key stakeholders.
They also want to improve the match day atmosphere and make coming to games more accessible and more fun. Current plans include working with the Yellow Army to explore the potential of improving colour at games, improving public transport options, provide a wider range of drinking facilities and match day entertainment. The club remains committed to working closely with the Yellow Army and OxVox in these areas and is fully supportive of YA’s attempts to raise additional revenue to support the Youth and Community Trust be it via entrance fee to the Manor Bar for non-season ticket holders, through events, and through memorabilia.
10) If OUFC owned a stadium would you welcome London Welsh remaining as a tenant?
MA said having experienced this situation before, he understands the commercial benefits but also states that he’s yet to see a pitch that can sustain playing professional rugby and professional football. He feels the poor state of pitches at dual-occupied grounds cost football sides points on the pitch and hinders the quality of football – and for him, that comes first; and for those reasons he’d rather see just football played at Oxford’s stadium.
11) Would you welcome supporter representation at board level?
DE said it’s a discussion point he’s willing to continue having. He is keen to meet with OxVox multiple times per year and feels these meetings act as a good forum for the Supporters’ Trust to have direct influence over the direction of the club.
12) Did you speak to Firoz Kassam before you bought into the club? Have you spoken to him since you’ve arrived?
DE said he has so far had no conversations with Mr Kassam but would welcome any conversation with him. MA said his only contact so far was to say hello when they were both in the stadium at the same time and he also hopes to have further dialogue with Mr Kassam soon.
13) Can you clarify Ian Lenagan’s role at the club?
DE said that Ian is now solely focussed on helping to try and drive the stadium purchase and/or Water Eaton. IL has resigned as a director of the Oxford United Youth and Community Trust and Oxford United WSL team.
14) Are you aware of the Right to Bid on the stadium and do you know its workings?
MA/DE said they were aware of the RTB but had not looked in depth at its workings.
MS/SB then explained the history of the RTB and the process in place should the stadium be put up for sale and/or an offer accepted on it.
15) Have you looked at the proposal to build a stadium at Water Eaton in any great detail
This topic had been discussed with Ian Lenagan but not in substantive detail. DE said they would have still bought into the club even if Water Eaton proposal had never been made. In addition, the new board has not got into a level of detail yet to produced plans for stadia acquisition, means of funding, facility enhancements in any level of great detail. But he stressed they will be responsible stewards of the club and are keen to work with key stakeholders to help make a stadium purchase a reality.
MA added that he has a vision for the kind of facilities he’d like to see at a stadium the club owned, which would include his preference for 4 stands, and 24/7 revenue generation that can be ploughed back into the club to help it progress.
16) Does the club have a written agreement, which would enable it to buy the Kassam Stadium at a certain price?
DE/MA confirmed the club does not have an agreement of this nature.
17) What’s the board’s view on safe standing?
MA/DE are open to the idea and keen to discuss further to help form an opinion.
18) Are plans in place to move the club shop closer to the ground?
A mobile unit will be placed by the fence end on match days that will sell club merchandise
19) A member raised concerns that prices for replica shirts have increased this season and stock levels in the club shop/quality of merchandise has decreased. Will the club be reviewing this?
MA said over the next year he will be looking at the club’s commercial operation.
20) Several questions were asked by members about ticket incentives (eg removing matchday surcharge, reducing U18 prices in all areas of the ground, removing booking fees etc). So what is the boards view on this and could it say when match day prices will be announced?
Match day prices are currently being discussed and will be revealed soon. Moving forwards MA is keen to work with OxVox to review ticket prices and help form a long-term strategy on prices that can keep watching football affordable. He wants fans to know where prices will be set for a period of time rather than year-by-year reviews.
21) When will you hold a fans forum?
MA said plans are in place to hold a fans forum next month. Details will be announced soon
22) Have you had discussions to reopen the Priory?
MA said this has not been looked into at this point.
23) How important is the youth system to the new board?
DE/MA said they are passionate about the development of home-grown talent. MA said he was the product of a youth system when he was a player and this is an area of the club they want to continue to build. This same passion was shared for the progression of the women’s team.
Meeting concluded.
Read more: http://yellowsforum.co.uk/thread/18411/ ... z38JB3TL3A