12th Finance and Governance Forum11th October 2011<br />
Welcome<br />John Crowther, Chair, <br />Finance and Governance Forum<br />
“The quest for sustainability: the need for NGBs to become commercial”<br />Sir Keith Mills, Deputy Chair, LOCOG<br />
The Last Ten Years<br />Until 2008 a strong economy<br />Public spending increases<br />Lottery funding growth<br />Olympi...
Where Are We Now?The Perfect Storm<br />Dire global economy<br />UK debt reduction<br />Real cuts in Government spending<b...
The 2012 Olympic & Paralympic GamesAn Opportunity or Threat?<br />Worldwide partners<br />Official partners<br />Official ...
UK Sporting LandscapeComplex and Confusing<br />Professional<br />Sports <br />Teams<br />Sporting<br />Talent<br />Sports...
NGB Current Sponsorship Model<br />
What Have You Got to Sell?<br />Sport naming rights<br />Athlete rights<br />Event rights<br />Volunteering<br />Technolog...
Commercial Return on Investment<br />Revenue<br />-<br />Cost <br />= <br />ROI<br />Employee<br />Attrition<br />Recruitm...
Working CollectivelyvWorking Individually<br />Example<br />Premier League<br />Tottenham Hotspur Plc<br /><ul><li> TV Rig...
Be Creative<br />Scottish Football Association<br />£750,000 PA Referee Sponsorship<br />
Conclusion<br />Funding for sport over the next 5 years is going to be tough<br />To maintain or increase funding will req...
“The quest for sustainability: the need for NGBs to become commercial”<br />Sir Keith Mills, Deputy Chair, LOCOG<br />
Break11:15am – 11:30am<br />
Kelvin King<br />Director, Valuation Consulting and BNP Paribas Business Assets<br />
Kelvin King, Senior DirectorBNP Paribas Business Assets Valuation Limited5 Aldermanbury Square, London, EC2V 7BPTel: +44(0...
18<br />WHO ARE VALUATION CONSULTING<br /><ul><li>100% owned subsidiary of BNP Paribas. Valuation Consulting was purchased...
Many years experience both from within the SV and in the accountancy profession
Members of the Society of Share and Business Valuers, authors, lecturers
RICS Registered Business Valuers
Law Society Registered Expert Witness accreditation/membership of the Expert Witness Institute
Experience in presenting testimony
Dedicated valuers – we value shares, businesses, intangibles and IPR</li></li></ul><li>19<br />INTANGIBLES ASSETS – CURREN...
Sponsorship
Merchandising
Endorsement
Licensing
Pension deficits
Infringements and Counterfeiting eg re major events</li></li></ul><li>20<br />BIG ISSUES – FOR WHO?<br /><ul><li>Organisat...
Governing Bodies
Clubs
Manufacturers
Individuals
Sponsors
Agents
Broadcasters</li></li></ul><li>21<br />THE LICENSEE/PURCHASER & LICENSOR/VENDOR<br />Four Calculations or Steps – ‘can Kel...
22<br />STARTING AT THE TOP AND TRYING TO BUILD DOWN<br />THE LAWS OF PHYSICS <br />AND VALUATION <br />SUGGEST THAT THIS ...
23<br />DEFINITION<br />&<br />IDENTIFICATION<br />
24<br />INTELLECTUAL PROPERTY<br />Those assets whose essential characteristics are derived from the Legal System, in this...
Trade Marks  - UK, CTM (TMA 1994)
Registered Designs - UK, CDR (RDA 1949)</li></ul>Unregistered Rights<br /><ul><li>Confidential Information (equitable and ...
Passing-off (common law)
Design Right (CDPA 1988)
Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
Miscellaneous: Performance Rights, Image Rights, Moral Rights, Database Rights, Malicious Falsehood (common law), Plant Va...
Customers</li></ul>Group Intangibles<br /><ul><li>Brands
Goodwill</li></ul>Characteristics of Economic Advantage<br /><ul><li>The spectrum of creative thought
Formulae, Recipes
Experience
Negative Knowledge
R&D and Information</li></li></ul><li>26<br />ACCOUNTING STANDARDS<br />The US FASB has created a list of what it consider...
Arrange a loan - securitisation
Tax purposes
Licensing
Balance Sheet
Joint Ventures
Pension deficits
Contract negotiations (eg Club brand vs Player brand)
Distress</li></li></ul><li>29<br />WHY ARE WE VALUING?<br /><ul><li> Tax Valuation and Open Market Value
 Fair Value
 Fair Market Value
 Commercial Value
 Investment Value
Owner Value</li></li></ul><li>30<br />METHODS OF VALUATION<br />Market based<br /><ul><li>Comparable market transactions</...
Lack of information
Separate values
Special purchasers
Different negotiating skills
Distorting effects of varying values
Assets not always comparable</li></li></ul><li>31<br />METHODS OF VALUATION<br />Cost based<br /><ul><li> Historical or re...
Duration of benefit and economic life
Obsolescence difficult to quantify
Maintenance
Time value of money</li></li></ul><li>32<br />METHODS OF VALUATION<br />INCOME APPROACH<br /><ul><li> Capitalisation of hi...
 Problems of extrapolating from past performance
 Decline & other key variables
 Net tangible assets not separately assessed</li></ul>Multiple<br /><ul><li>No reference point for price earnings multiple
 Often no regard to established marketplace
 Often no reconciliation with market capitalisation</li></li></ul><li>33<br />INCOME APPROACH: DISCOUNTED CASHFLOW MODELS<...
34<br />HOW MUCH?<br />(CASHFLOWS)<br />
35<br />TOOLS<br /><ul><li>Gross Profit Differential Method – Premium Prices/Premium Profits
Excess Profits Method
Relief from Royalty Method</li></li></ul><li>36<br />HOW LONG FOR?<br />(TIME PERIODS)<br />
37<br />USEFUL LIFE<br /><ul><li>Physical life
Functional life
Technological life
Economic life
Legal life</li></li></ul><li>38<br />AT WHAT RISK?<br />(COST OF CAPITAL)<br />
39<br />MONTE CARLO<br /><ul><li>Effectively a DCF multiplier
Numerous DCF calculations accounting for various scenarios, say of revenue, market share, costs, internationality and othe...
With just 4 scenario changes of the stated assumptions above this means 256 models!
That is 4 values for each of income, different market share, costs, international penetration i.e. 4 x 4 x 4 x 4 = 256</li...
Develops terminations (snakes) if a route identifies problems to suggest failure</li></li></ul><li>40<br />THE LICENSEE/PU...
Kelvin King<br />Director, Valuation Consulting and BNP Paribas Business Assets<br />
Sponsorship- an update for rights holders and event organisers<br />Ian Lynam, Partner, Charles Russell<br />11 October 20...
What is sponsorship?<br /><ul><li>“An investment by way of cash or VIK in an activity, club, 	event or individual (the “Pr...
  	Hugely valuable industry (World Cup 2010 sponsorship value: 	$1.6 billion)
  	A key revenue stream for rights holders and event organisers
  	Future?  Impact of global recession, social media
  	Need for sponsors to reach target markets, exploit their brand 	and gain exposure</li></li></ul><li>Who can benefit fro...
  	National Associations and Governing Bodies (e.g. FA, British 	Gymnastics, English Netball)
  	Clubs/Teams (e.g. Manchester United FC, Mercedes GP 	Petronas)
  	Venue Owners (e.g. Wembley, the O2, Dorney Lake)
  	Players</li></li></ul><li>The FA’s Sponsorship Portfolio<br />	1. National Teams<br />Lead Partner: Vauxhall	Supporters...
Types of sponsorship<br /><ul><li>	Venue sponsorship
	long term association
 	crosses events and activities
 	e.g. Reebok Stadium, O2 Arena
	 Event sponsorship
 	sponsor an event or a title
 	Barclays Premier League, RBS Six Nations</li></li></ul><li>Types of sponsorship (continued)<br /><ul><li>	Secondary spon...
	ancillary events and projects
	 Official supplier
 	provider of products/services
	 Broadcast sponsorship
 	sponsor of the broadcast rather than the actual event
 	contract between sponsor and broadcaster
 	Player sponsorship</li></li></ul><li>Risks<br /><ul><li>	Negative association
	Financial risk
	Brand damage/dilution
 	Ambush marketing </li></li></ul><li>Rights Holders Checklist<br /><ul><li>	Authority
	does each party have the right to enter the contract?
	who owns the relevant intellectual property for 	exploitation?
	 Grant of rights, wide range of sponsorship package:
 	 naming rights
 	 official supplier rights
	 advertising and branding rights
	 Obligations of the Sponsor
 	 provision of equipment/services
	 financial contribution
	 assistance with promotion
	 compliance with legislation
	 non-compete</li></li></ul><li>Rights Holders Checklist (continued)<br /><ul><li>	Obligations of the Rights Holder
	Territory
	Exclusivity
	Conflicting Rights
	Fee structuring </li></li></ul><li>Rights Holders Checklist (continued)<br /><ul><li>	Fee Structure
	flat fees
	performance-based
	timing of payments
	bonuses
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12th Finance and Governance Forum.11.10.11

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Presentations from the Finance and Governance Forum held for NGB (National Governing Bodies) of sport on 11th October 2011. The forum was run by Sport England, the Sport and Recreation Alliance and UK Sport.

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  • Chris D
  • Chris D
  • Chris DEnsure everyone has the opportunity to learn to swimEnsure everyone has the opportunity to reach their full potential by having the world’s best talent pathway in placeEncourage more people to swimming more often enjoying the sport as part of a healthy lifestyleWin gold medals on the Olympic, Paralympic, World, European and Commonwealth stage
  • Morag T
  • Morag T
  • Morag T
  • Morag T
  • Chris D – emphasising that this has been delivered due to the resource and energy that BG have put behind
  • Morag T
  • Hollis sponsorship awards and we have just won Best Sport Sponsorship for Swimming beating nPower football, O2 Rugby and Aviva for athletes!! Grand prix award of the night - Sponsorship of the Year beating all the other brands that won.Sports Industry Awards – best Sponsorship
  • UK accounting has been slowly evolving away from a separately maintained UK GAAP. FRSSE was a big thing at the time, but was additional rather than wholesale change. Listed company move over to IFRS was a big event in 2005, followed by AIM in 2007Widespread acceptance of IFRS around the world now – even the US are looking to sign up to it.
  • The FRED includes an alternative view, and the ASB has made it clear that it will carefully consider all feedback to the FRED beforedeciding on the next step.one Board member believes that very small listed entities should not be included in tier 1. They consider that ASB has not heard from the users of those entities’ accounts – the implication is that those users do not want full IFRS accounts.the Board member questions the principle of minimal change to the IFRS for SMEs with the result that the FRED includes unnecessary burdens on business (e.g. preparation of deferred tax on the basis of IAS 12 incurs cost with no benefit).It is understood that BIS shares the second concern.
  • UK accounting has been slowly evolving away from a separately maintained UK GAAP. FRSSE was a big thing at the time, but was additional rather than wholesale change. Listed company move over to IFRS was a big event in 2005, followed by AIM in 2007Widespread acceptance of IFRS around the world now – even the US are looking to sign up to it.
  • 12th Finance and Governance Forum.11.10.11

    1. 1. 12th Finance and Governance Forum11th October 2011<br />
    2. 2. Welcome<br />John Crowther, Chair, <br />Finance and Governance Forum<br />
    3. 3. “The quest for sustainability: the need for NGBs to become commercial”<br />Sir Keith Mills, Deputy Chair, LOCOG<br />
    4. 4. The Last Ten Years<br />Until 2008 a strong economy<br />Public spending increases<br />Lottery funding growth<br />Olympic and Paralympic Games win<br />Sporting success<br />
    5. 5. Where Are We Now?The Perfect Storm<br />Dire global economy<br />UK debt reduction<br />Real cuts in Government spending<br />Lottery under pressure<br />Post 2012 Olympic overhang<br />Marketing budgets under pressure<br />
    6. 6. The 2012 Olympic & Paralympic GamesAn Opportunity or Threat?<br />Worldwide partners<br />Official partners<br />Official supporters<br />Official suppliers and providers<br />Official partner of the Paralympic Games<br />Aggreko, Airwave, Atkins, Boston Consulting Group, CBS Outdoor, Crystal CG, Eurostar, FreshfieldsBruckhaus Deringer LLP, G4S, GlaxoSmithKline, Gymnova, Heathrow Airport, Heineken UK, Holiday Inn, John Lewis, McCann Worldgroup, Mondo, NATURE VALLEY, Next, The Nielsen Company, Populous, Rapiscan Systems, Rio Tinto, Technogym, Thames Water, Ticketmaster, Trebor, Westfield.<br />Official supplier and provider of the Paralympic Games<br />Otto Bock<br />
    7. 7. UK Sporting LandscapeComplex and Confusing<br />Professional<br />Sports <br />Teams<br />Sporting<br />Talent<br />Sports<br />Science<br />Sports<br />Nutrition<br />Sports<br />Events<br />Country<br />Teams<br />Sports<br />Coaching<br />Community<br />Sport<br />Sport<br />for<br />Development<br />Individual<br />Sports<br />Olympic &<br />Paralympic<br />School<br />Sport<br />
    8. 8. NGB Current Sponsorship Model<br />
    9. 9. What Have You Got to Sell?<br />Sport naming rights<br />Athlete rights<br />Event rights<br />Volunteering<br />Technology<br />Participants/Fans<br />Product Supply<br />Nutrition/Science<br />
    10. 10. Commercial Return on Investment<br />Revenue<br />-<br />Cost <br />= <br />ROI<br />Employee<br />Attrition<br />Recruitment<br />Increased<br />Sales<br />Reduce<br />Costs<br />More<br />Profit<br />Product<br />Development<br />Not just about branding<br />
    11. 11. Working CollectivelyvWorking Individually<br />Example<br />Premier League<br />Tottenham Hotspur Plc<br /><ul><li> TV Rights £42.6m</li></ul>40% of total Club income<br />
    12. 12. Be Creative<br />Scottish Football Association<br />£750,000 PA Referee Sponsorship<br />
    13. 13. Conclusion<br />Funding for sport over the next 5 years is going to be tough<br />To maintain or increase funding will require a sophisticated and professional approach<br />Working together rather than competing makes sense<br />Need to be creative and demonstrate ROI<br />
    14. 14. “The quest for sustainability: the need for NGBs to become commercial”<br />Sir Keith Mills, Deputy Chair, LOCOG<br />
    15. 15. Break11:15am – 11:30am<br />
    16. 16. Kelvin King<br />Director, Valuation Consulting and BNP Paribas Business Assets<br />
    17. 17. Kelvin King, Senior DirectorBNP Paribas Business Assets Valuation Limited5 Aldermanbury Square, London, EC2V 7BPTel: +44(0)20 7338 4830 Fax: +44(0)20 7430 2628e-mail: kelvin.king@bnpparibas.comwww.valuation-consulting.co.uk<br />
    18. 18. 18<br />WHO ARE VALUATION CONSULTING<br /><ul><li>100% owned subsidiary of BNP Paribas. Valuation Consulting was purchased by BNPP in 2006 and recently re-branded.
    19. 19. Many years experience both from within the SV and in the accountancy profession
    20. 20. Members of the Society of Share and Business Valuers, authors, lecturers
    21. 21. RICS Registered Business Valuers
    22. 22. Law Society Registered Expert Witness accreditation/membership of the Expert Witness Institute
    23. 23. Experience in presenting testimony
    24. 24. Dedicated valuers – we value shares, businesses, intangibles and IPR</li></li></ul><li>19<br />INTANGIBLES ASSETS – CURRENT BIG ISSUES IN SPORT<br /><ul><li>Image Rights, corporate and personal
    25. 25. Sponsorship
    26. 26. Merchandising
    27. 27. Endorsement
    28. 28. Licensing
    29. 29. Pension deficits
    30. 30. Infringements and Counterfeiting eg re major events</li></li></ul><li>20<br />BIG ISSUES – FOR WHO?<br /><ul><li>Organisations
    31. 31. Governing Bodies
    32. 32. Clubs
    33. 33. Manufacturers
    34. 34. Individuals
    35. 35. Sponsors
    36. 36. Agents
    37. 37. Broadcasters</li></li></ul><li>21<br />THE LICENSEE/PURCHASER & LICENSOR/VENDOR<br />Four Calculations or Steps – ‘can Kelvin count’<br />Intrinsic value of Vendor<br />Intrinsic value of Purchaser<br />PLUS<br />Intrinsic value of Vendor<br />Intrinsic value of Purchaser<br />The capital values calculated are an essential step to calculate royalty rate or valuation - discuss<br />
    38. 38. 22<br />STARTING AT THE TOP AND TRYING TO BUILD DOWN<br />THE LAWS OF PHYSICS <br />AND VALUATION <br />SUGGEST THAT THIS IS NOT POSSIBLE<br />
    39. 39. 23<br />DEFINITION<br />&<br />IDENTIFICATION<br />
    40. 40. 24<br />INTELLECTUAL PROPERTY<br />Those assets whose essential characteristics are derived from the Legal System, in this case the UK<br />Registered Rights<br /><ul><li>Patents - UK, EP(UK) (PA 1977, EPC 2000)
    41. 41. Trade Marks - UK, CTM (TMA 1994)
    42. 42. Registered Designs - UK, CDR (RDA 1949)</li></ul>Unregistered Rights<br /><ul><li>Confidential Information (equitable and contract)
    43. 43. Passing-off (common law)
    44. 44. Design Right (CDPA 1988)
    45. 45. Copyright (CDPA 1988 and Copyright Computer Software Amendment Act 1985)
    46. 46. Miscellaneous: Performance Rights, Image Rights, Moral Rights, Database Rights, Malicious Falsehood (common law), Plant Variety Rights</li></li></ul><li>25<br />INTANGIBLE ASSETS – JUST A FEW EXAMPLES<br />Rights<br /><ul><li>Contracts</li></ul>Relationships<br /><ul><li>Workforce
    47. 47. Customers</li></ul>Group Intangibles<br /><ul><li>Brands
    48. 48. Goodwill</li></ul>Characteristics of Economic Advantage<br /><ul><li>The spectrum of creative thought
    49. 49. Formulae, Recipes
    50. 50. Experience
    51. 51. Negative Knowledge
    52. 52. R&D and Information</li></li></ul><li>26<br />ACCOUNTING STANDARDS<br />The US FASB has created a list of what it considers to be an intangible: nearly all of these exist in sport!<br />Market-related<br /><ul><li> Trademarks, trade names, service marks, trade dress, newspaper mastheads, internet domain names.</li></ul>Customer-related<br /><ul><li> Customer lists, customer contracts, customer relationships, customer agreements.</li></ul>Artistic related<br /><ul><li> Ballets, books, plays, articles, other literary works, musical words, opera, pictures, photographs, video and audiovisual material.</li></li></ul><li>27<br />ACCOUNTING STANDARDS CONT…<br />Contract-based<br /><ul><li> Licensing agreements, advertising or service contracts, lease agreements, construction permits, operating and broadcast rights, employment contracts.</li></ul>Technology-based<br /><ul><li> Patented technology, computer software, unpatented technology, databases, trade secrets, secret formulae.</li></li></ul><li>28<br />OCCASIONS FOR VALUING IP IN SPORT<br /><ul><li>Sale and Purchase
    53. 53. Arrange a loan - securitisation
    54. 54. Tax purposes
    55. 55. Licensing
    56. 56. Balance Sheet
    57. 57. Joint Ventures
    58. 58. Pension deficits
    59. 59. Contract negotiations (eg Club brand vs Player brand)
    60. 60. Distress</li></li></ul><li>29<br />WHY ARE WE VALUING?<br /><ul><li> Tax Valuation and Open Market Value
    61. 61. Fair Value
    62. 62. Fair Market Value
    63. 63. Commercial Value
    64. 64. Investment Value
    65. 65. Owner Value</li></li></ul><li>30<br />METHODS OF VALUATION<br />Market based<br /><ul><li>Comparable market transactions</li></ul>Caveats<br /><ul><li>Few sales
    66. 66. Lack of information
    67. 67. Separate values
    68. 68. Special purchasers
    69. 69. Different negotiating skills
    70. 70. Distorting effects of varying values
    71. 71. Assets not always comparable</li></li></ul><li>31<br />METHODS OF VALUATION<br />Cost based<br /><ul><li> Historical or replacement cost</li></ul>Caveats<br /><ul><li>Economic Benefits Excluded
    72. 72. Duration of benefit and economic life
    73. 73. Obsolescence difficult to quantify
    74. 74. Maintenance
    75. 75. Time value of money</li></li></ul><li>32<br />METHODS OF VALUATION<br />INCOME APPROACH<br /><ul><li> Capitalisation of historical profits</li></ul>DRAWBACKS<br />Profitability<br /><ul><li> Problems of averaging
    76. 76. Problems of extrapolating from past performance
    77. 77. Decline & other key variables
    78. 78. Net tangible assets not separately assessed</li></ul>Multiple<br /><ul><li>No reference point for price earnings multiple
    79. 79. Often no regard to established marketplace
    80. 80. Often no reconciliation with market capitalisation</li></li></ul><li>33<br />INCOME APPROACH: DISCOUNTED CASHFLOW MODELS<br />Modern valuation analysis is effectively DCF applied to the business enterprise under consideration<br /><ul><li>The Net Present Value (NPV) of a strategy or business is the sum of itsexpected free cash flows to a horizon (H) discounted by its cost of capital (r)NPV = Year 1 Cash Flow + Year 2 Cash Flow ... to say Year 5 Cash Flow</li></ul> (1 + r) (1 + r) ² (1 + r)HPLUS<br /><ul><li>The terminal value which is the value of the business at a horizon (HV)HV = Cash Flow</li></ul> (r - growth)Also discounted back to present value<br />
    81. 81. 34<br />HOW MUCH?<br />(CASHFLOWS)<br />
    82. 82. 35<br />TOOLS<br /><ul><li>Gross Profit Differential Method – Premium Prices/Premium Profits
    83. 83. Excess Profits Method
    84. 84. Relief from Royalty Method</li></li></ul><li>36<br />HOW LONG FOR?<br />(TIME PERIODS)<br />
    85. 85. 37<br />USEFUL LIFE<br /><ul><li>Physical life
    86. 86. Functional life
    87. 87. Technological life
    88. 88. Economic life
    89. 89. Legal life</li></li></ul><li>38<br />AT WHAT RISK?<br />(COST OF CAPITAL)<br />
    90. 90. 39<br />MONTE CARLO<br /><ul><li>Effectively a DCF multiplier
    91. 91. Numerous DCF calculations accounting for various scenarios, say of revenue, market share, costs, internationality and other risks
    92. 92. With just 4 scenario changes of the stated assumptions above this means 256 models!
    93. 93. That is 4 values for each of income, different market share, costs, international penetration i.e. 4 x 4 x 4 x 4 = 256</li></ul>Real Options<br /><ul><li>Probability trees = snakes and ladders, develops the Monte Carlo analysis
    94. 94. Develops terminations (snakes) if a route identifies problems to suggest failure</li></li></ul><li>40<br />THE LICENSEE/PURCHASER & LICENSOR/VENDOR<br />Four Calculations or Steps – ‘can Kelvin count’<br />Intrinsic value of Vendor<br />Intrinsic value of Purchaser<br />PLUS<br />Intrinsic value of Vendor<br />Intrinsic value of Purchaser<br />The capital values calculated are an essential step to calculate a royalty rate or valuation – discuss<br />JG<br />
    95. 95. Kelvin King<br />Director, Valuation Consulting and BNP Paribas Business Assets<br />
    96. 96. Sponsorship- an update for rights holders and event organisers<br />Ian Lynam, Partner, Charles Russell<br />11 October 2011<br />
    97. 97. What is sponsorship?<br /><ul><li>“An investment by way of cash or VIK in an activity, club, event or individual (the “Property”) in exchange for the ability to exploit commercial and marketing potential connected with that Property”
    98. 98. Hugely valuable industry (World Cup 2010 sponsorship value: $1.6 billion)
    99. 99. A key revenue stream for rights holders and event organisers
    100. 100. Future? Impact of global recession, social media
    101. 101. Need for sponsors to reach target markets, exploit their brand and gain exposure</li></li></ul><li>Who can benefit from sponsorship?<br /><ul><li> International and Continental Governing Bodies and Associations (e.g. FIFA, UEFA, ICC, IOC)
    102. 102. National Associations and Governing Bodies (e.g. FA, British Gymnastics, English Netball)
    103. 103. Clubs/Teams (e.g. Manchester United FC, Mercedes GP Petronas)
    104. 104. Venue Owners (e.g. Wembley, the O2, Dorney Lake)
    105. 105. Players</li></li></ul><li>The FA’s Sponsorship Portfolio<br /> 1. National Teams<br />Lead Partner: Vauxhall Supporters: Umbro and Mars Suppliers: Carlsberg, Lucozade, Nivea and Marks and Spencer2. The FA Cup Lead Partner: Budweiser Supporter: Umbro3. Development Areas Men’s Football Partner: Carlsberg Small-sided Football Partner: Umbro Community Partner: McDonald’s Adult Football Partner: Mars FA Skills Partner: Tesco<br />
    106. 106. Types of sponsorship<br /><ul><li> Venue sponsorship
    107. 107. long term association
    108. 108. crosses events and activities
    109. 109. e.g. Reebok Stadium, O2 Arena
    110. 110. Event sponsorship
    111. 111. sponsor an event or a title
    112. 112. Barclays Premier League, RBS Six Nations</li></li></ul><li>Types of sponsorship (continued)<br /><ul><li> Secondary sponsorship
    113. 113. ancillary events and projects
    114. 114. Official supplier
    115. 115. provider of products/services
    116. 116. Broadcast sponsorship
    117. 117. sponsor of the broadcast rather than the actual event
    118. 118. contract between sponsor and broadcaster
    119. 119. Player sponsorship</li></li></ul><li>Risks<br /><ul><li> Negative association
    120. 120. Financial risk
    121. 121. Brand damage/dilution
    122. 122. Ambush marketing </li></li></ul><li>Rights Holders Checklist<br /><ul><li> Authority
    123. 123. does each party have the right to enter the contract?
    124. 124. who owns the relevant intellectual property for exploitation?
    125. 125. Grant of rights, wide range of sponsorship package:
    126. 126. naming rights
    127. 127. official supplier rights
    128. 128. advertising and branding rights
    129. 129. Obligations of the Sponsor
    130. 130. provision of equipment/services
    131. 131. financial contribution
    132. 132. assistance with promotion
    133. 133. compliance with legislation
    134. 134. non-compete</li></li></ul><li>Rights Holders Checklist (continued)<br /><ul><li> Obligations of the Rights Holder
    135. 135. Territory
    136. 136. Exclusivity
    137. 137. Conflicting Rights
    138. 138. Fee structuring </li></li></ul><li>Rights Holders Checklist (continued)<br /><ul><li> Fee Structure
    139. 139. flat fees
    140. 140. performance-based
    141. 141. timing of payments
    142. 142. bonuses
    143. 143. Intellectual property
    144. 144. Termination and renewal
    145. 145. agree duration (minimum versus maximum)
    146. 146. break clause
    147. 147. morality clause
    148. 148. option to renew
    149. 149. Limitation of liability
    150. 150. Public announcements
    151. 151. Governing law and jurisdiction </li></li></ul><li>Conclusion<br /><ul><li> Benefit of sponsorship can be hugely positive BUT
    152. 152. Identify requirements
    153. 153. Understand each party’s intention
    154. 154. Criteria to measure success</li></li></ul><li>Ian Lynam<br />Partner, Sports Law<br />Charles Russell LLP<br />Tel: + 44 (0) 20 7203 5030<br />Email: ian.lynam@charlesrussell.co.uk<br />
    155. 155. Sponsorship- an update for rights holders and event organisers<br />Ian Lynam, Partner, Charles Russell<br />11 October 2011<br />
    156. 156. News Update<br />Sport England<br />Hilary Milne,<br />Head of Audit, Risk and Governance<br />
    157. 157. ‘Where we were, were we are, where we are going’<br />
    158. 158. Governance – one year on<br />
    159. 159. On-site audit<br />Drawing out the nuance – how is your governance, finance and control framework operating? <br />Increased clarity - <br /> e.g. amber /green overall but <br /> in areas X, Y, Z you are amber/red<br />Thematic reporting - where do you sit in the governance landscape? <br />Continuous improvement - Feeding back to Moore Stephens and SE/UKS on the audit process <br />
    160. 160. Self-assurance<br />
    161. 161. Self-assurance<br />Completion to 2011 deadline – thank you<br />Reports back - November <br />Feedback on 2011 process, December/January<br />2012 process – early April to end September<br />
    162. 162. Governance support<br />Things to Think About - 13,737 hits (1 Feb – 30 Sept 2011) http://www.sportengland.org/support__advice/governance,_finance__control.aspx<br />Supporting Good Governance workshops (SE/UKS/SRA)<br />Thematic reporting<br />
    163. 163. Governance – where next?<br />Investment principle 2013 -17<br />Key governance requirements <br />Continuing to raise the bar<br />Continuing to work with you <br />Continuing to work together <br />
    164. 164. News Update<br />UK Sport<br />Amanda Bennett<br />Acting Head of Governance <br />
    165. 165. Basic Assurance <br />Introduction of 20 UK Sport funded bodies to assurance process<br />Enables reflection and reinforcement of good practice<br />Assists planning for improved governance and controls <br />First step towards Self Assurance 2012<br />Contributes to annual review of sports against Key Governance Indicators <br />
    166. 166. 2013-17 Governance Investment Principle <br />UK Sport will seek to invest in sports bodies which demonstrate the required standards of leadership, governance, financial management and administration<br />Why?<br />Clarity around required standards <br />Seek commitment to continuous improvement <br />Recognise improvement in governance as an activity in its own right<br />
    167. 167. 2013-17 Governance Investment Principle<br />Work with partners to ensure support is available<br />Focus on leadership - NGB boards are accountable for the standards of leadership and governance<br />More effective use of compliance tools – tailoring and proportionality<br />
    168. 168. News Update<br />Sport and Recreation Alliance<br />Joy Tottman<br />Governance & Compliance Officer<br />
    169. 169. Governance Initiatives<br />Voluntary Code of Good Governance for the Sport and Recreation sector<br />Support: Smart Sport, Videos and Toolkit<br />Board Recruitment<br />
    170. 170. Logo and Certificate<br />
    171. 171. Organisations that have already signed-up<br />Army Sport Control Board<br />
    172. 172. Support Videos<br />Second Principle<br />Third Principle<br />Craig Hunter, BOA<br />Mary Tetley, BSAC<br />David Hemery<br />Steve Nelson, West of England Sport Trust<br />First Principle<br />Seventh Principle<br />Fourth Principle<br />Sixth Principle<br />Fifth Principle<br />Baroness Sue Campbell, UK Sport<br />Lisa Wainwright, Volleyball<br />Seb Coe, LOCOG<br />Richard Lewis, RFL<br />Dame Tanni Grey-Thomspon<br />Jane Nickerson, ASA<br />Sir Stuart Etherington, NCVO<br />Adrian Christy, Badminton<br />Timothy Dutton QC<br />Peter King, British Cycling<br />
    173. 173. How do you assess if an organisation has good standards, systems and controls?<br />Timothy Dutton, QC<br />
    174. 174. Smart Sport Resource Bank<br />
    175. 175. Request an example policy<br />
    176. 176. Board Skills for Sport<br />Tailored course for current and prospective board members in sport<br />Understand the role of a board member in the context of the sports sector<br />Marketed to blue chip companies as part of CSR programme<br />Build a database of ‘Board Members for Sport’ where organisations can go to find new independent board members that will have a base level understanding of the sector<br />
    177. 177. Board Skills for Sport<br />Consultation to be launched before Christmas<br />What skills you want your board members to be provided with on the course?<br />What skills you want newcomers to sport to be provided with on the course?<br />What information you would like to know about people listed on the Board Members for Sport database?<br />
    178. 178. Questions?<br />Joy Tottman<br />Governance and Compliance Officer<br />Sport and Recreation Alliance<br />jtottman@sportandrecreation.org.uk<br />
    179. 179. News Update<br />Sport England<br />UK Sport<br />Sport and Recreation Alliance<br />
    180. 180. Bribery Act Lunch1pm – 1:30pm<br />
    181. 181. How to make a partnership between an NGB and a PLC work<br />Morag Taylor, British Gas<br />Chris Denny, British Swimming<br />
    182. 182. “How to make a partnership between an NGB and a PLC work”<br />Chris Denny, Director of Marketing and Communications, British Swimming<br />Morag Taylor, Sponsorship Manager, <br />British Gas<br />From Sponsorship to Partnership<br />
    183. 183. From the Sport’s Perspective...<br /><ul><li>Opportunity to bring in additional commercial expertise and approaches
    184. 184. Huge pressure on resources
    185. 185. A true partnership can enhance existing initiatives and develop new opportunities
    186. 186. British Swimming and British Gas go above and beyond a traditional sponsorship</li></ul>From Sponsorship to Partnership<br />
    187. 187. Swimming’s Aim<br />World’s Best Swimming Nation<br />From Sponsorship to Partnership<br />
    188. 188. Swimming’s Objectives<br />Learn<br />Talent<br />Take Part<br />Win<br />From Sponsorship to Partnership<br />
    189. 189. Why British Gas and swimming?<br /><ul><li>Drive brand affinity among customer
    190. 190. Create positive customer experiences
    191. 191. Swimming – biggest participation sport in UK
    192. 192. Important to our customers
    193. 193. Only sport on National Curriculum
    194. 194. Integral part of local community</li></ul>From Sponsorship to Partnership<br />
    195. 195. Consumer<br />Increase the likeability of the British Gas brand to build brand affinity<br />and brand commitment<br />Business<br /> Build new business from swimming / leisure centres - showcase British Gas product and service offering<br />Employees<br /> Improve BG’s employees positivity towards the company, making them feel proud to work for the company<br />British <br />Swimming<br />Increasing swimming participation by 270k (2013)<br />BG objectives of the sponsorship<br />From Sponsorship to Partnership<br />
    196. 196. There are 4 key platforms to our sponsorship…<br />2. Support grass roots swimming<br />1. Drive swimming participation events<br />4. Leverage increased interest in British Team<br />3. Build on popularity of Great Swim Series<br />From Sponsorship to Partnership<br />
    197. 197. ‘3 Free Swims’ has been a massive success<br /><ul><li>110,000 customers and their families signed up, over 1m free swims
    198. 198. 27% of our employees took part
    199. 199. 16.8% of respondents who said it was something they never / rarely did now swim more frequently</li></ul>From Sponsorship to Partnership<br />
    200. 200. Raising the profile of our stars<br />From Sponsorship to Partnership<br />
    201. 201. From Sponsorship to Partnership<br />
    202. 202. Beyond a traditional sponsorship<br />Jointly owned projects<br />Internal Engagement – Swim Heroes<br />Founding Partner Panel<br />BG marketing manager seconded to BS <br />Joint agency resource<br />Energy solutions for the industry<br />From Sponsorship to Partnership<br />
    203. 203. Successes...<br /><ul><li>30,000 kids taught to swim through Pools 4 Schools
    204. 204. 1 million free swims to customers
    205. 205. Highest ever interest in British Swimming - 21%
    206. 206. 36% awareness of the BS/BG partnership
    207. 207. 75% of employees feel </li></ul> proud to work for BG<br /><ul><li>Customers – 50% more committed to British Gas
    208. 208. Multiple awards – Hollis Awards Best Sponsorship </li></ul>From Sponsorship to Partnership<br />
    209. 209. Key Learning<br /><ul><li>Early understanding of mutual AND separate goals
    210. 210. Work across all areas of the sport
    211. 211. Give yourself time
    212. 212. More than cash and VIK – people, expertise, reach
    213. 213. Value honest feedback</li></li></ul><li>How to make a partnership between an NGB and a PLC work<br />Morag Taylor, British Gas<br />Chris Denny, British Swimming<br />
    214. 214. Legal Panel: UK Bribery Act<br />Kitty Turner, Farrer & Co<br />Janice Shardlow, BEF<br />
    215. 215. Legal Panel <br />Compliance with the Bribery Act 2010<br />11 October 2011<br />Kitty Turner, Farrer & Co LLP<br />Janice Shardlow, British Equestrian Federation<br />
    216. 216. Introduction<br />Overview of the 4 offences and sanctions<br />Practical steps to help reduce the risks<br />Case studies<br />Questions<br />Agenda<br />
    217. 217. Introduction<br />Bribery Act 2010: In force (since 1 July 2011).<br />It is aimed at organisations involved in corruption – not at legitimate business dealings.<br />Useful Ministry of Justice Guidance available at: http://www.justice.gov.uk/guidance/making-and-reviewing-the-law/bribery.htm<br />See also S&RA notes.<br />
    218. 218. The offences and sanctions<br />Offences<br />Active bribery<br />Passive bribery<br />Bribery of a foreign public official<br />The corporate offence<br />Sanctions<br /><ul><li>Individuals: Maximum 10 years’ imprisonment, unlimited fines
    219. 219. Organisations: Unlimited fines
    220. 220. Plus reputational damage</li></li></ul><li>The elements of the offences<br />Each of these offences involve giving/receiving a financial or other advantage to another person with:<br />In the case of active/passive bribery, the intention of inducing or rewarding improper performance of a relevant function.<br />In the case of bribery of a foreign official, the intention of obtaining or retaining a business advantage (no requirement of impropriety but the offence will not be committed if the action is permitted by written law).<br />
    221. 221. The elements of the offences (cont.)<br />The offences are widely defined:<br /><ul><li>offering, promising, agreeing to receive (the financial/other advantage) are enough – no need to actually give/accept it;
    222. 222. any financial or other advantage – includes, potentially, corporate hospitality;
    223. 223. inducing or rewarding – ie before or after the conduct in question; and
    224. 224. covering almost any business decision – eg certainly the award of a tender/sponsorship deal.</li></li></ul><li>The elements of the offences (cont.)<br />BUT:<br />As we have seen, the Act is aimed at organisations involved in corruption – not at legitimate business dealings.<br />There is no offence of active/passive bribery if a reasonable person in the UK would not consider that the gift, hospitality etc was intended to breach an expectation of good faith.<br />Precise line where this will have arisen remains unclear but see MoJ Guidance and case studies.<br />
    225. 225. The Corporate Offence<br />Failure of a commercial organisation to prevent active bribery by an associate to obtain an advantage for that commercial organisation.<br />Does not apply to passive bribery – but reputational damage likely.<br />“Associate” is widely defined. It includes:<br />Employees<br />Trustees/governors<br />Agents<br />Trading subsidiaries<br />BUT: Defence if “adequate procedures” were in place.<br />
    226. 226. Adequate Procedures<br />Government guidance acknowledges that what is adequate will depend on the size, sector, resources and degree of risk each organisation faces. <br />The Government guidance sets out 6 principles to be followed:<br />Proportionality of procedures<br />Top level commitment<br />Risk assessment<br />Due diligence<br />Communication<br />Monitoring and review<br />See S&RA note and MoJ Guidance for details.<br />
    227. 227. Key risk areas<br />Provision of gifts and corporate hospitality<br />Awarding or applying for contracts or funding<br />As a recipient of gifts and corporate hospitality<br />See case studies for examples<br />
    228. 228. Practical steps<br />Carry out a risk assessment of bribery risk at your organisation.<br />Check existing policies/put in place a sensible anti-bribery policy. (See S&RA Toolkit.)<br />Maintain a gifts register (covering items received and given).<br />Appoint an anti-bribery officer responsible for overseeing compliance and carrying out regular reviews.<br />Communicate policy internally (and externally). Provide regular training.<br />Carry out due diligence on contracting parties.<br />Include an anti-bribery clause in contracts where relevant.<br />
    229. 229. Case Study 1<br />A staff member of an NGB is asked to identify potential companies who may wish to sponsor a tour of their national team around Italy. <br />A representative from one potential sponsor tells her that if she exerts her influence on the sponsorship panel to accept his company as the sponsor, but at a lower fee than the current asking price, she and her family will be sent on an all expenses paid trip to Italy with tickets to the final.<br /><ul><li>Has the potential sponsor breached the Bribery Act?
    230. 230. Has the NGB staff member breached the Bribery Act?
    231. 231. Has the NGB breached the Bribery Act?</li></li></ul><li>Case Study 2<br /> A staff member of an NGB is asked to identify potential companies who may wish to sponsor a tour of their national team around Italy. <br /> A potentially suitable sponsor is identified and the NGB suggests taking the CEO of the sponsor to a site visit of the venue of the tour final and arranges (and pays for) the CEO’s hotel and takes the CEO for dinner after the site visit.<br /><ul><li>Has the NGB staff member breached the Bribery Act? Has the NGB breached the Bribery Act?
    232. 232. Has the potential sponsor breached the Bribery Act?
    233. 233. Would it be different if the CEO was based near the venue of the site visit and/or the NGB also paid for his/her family to come and stay there?</li></li></ul><li>Case Study 3<br /> A staff member of an IT company wants to win the tender of an NGB and early conversations are underway with the NGB.<br /> The IT company has several ideas for helping to improve its chances of success – which of these could result in a Bribery Act risk for the IT company (and the NGB if accepted)?<br /><ul><li>Sending the CEO of the NGB and his family on a city break to Edinburgh?
    234. 234. Inviting the CEO to Edinburgh for a demonstration of the company’s IT products and taking him out to lunch afterwards?
    235. 235. Sending the CEO one of the latest Apple iPhones?
    236. 236. Sending the CEO a sample of the IT company’s new tablet?</li></li></ul><li>Case Study 4<br /> An NGB gives one of its current sponsors a VIP ticket to the final of the season’s championship as a thank you for support given to the NGB’s grass roots programme. As a result, the existing sponsorship agreement is renewed 3 months later for a further 3 years.<br /><ul><li>Has the NGB breached the Bribery Act?
    237. 237. Has the sponsor breached the Bribery Act?
    238. 238. Would it be different if it was a prospective sponsor?</li></li></ul><li>Case Study 5<br />The agent for an NGB is negotiating a deal with a leading drinks company for sponsorship of the NGB’s U18 women’s team. The NGB is trying to obtain an above market deal to contribute towards the cost of upgrading the women’s changing rooms. The agent takes the CEO of the company to one side and says that if the company will accept the deal, he will recommend a below market value sponsorship deal with the company to another of the agent’s clients.<br /><ul><li>Has the agent breached the Bribery Act?
    239. 239. Has the NGB breached the Bribery Act?
    240. 240. Has the company breached the Bribery Act?</li></li></ul><li>Any questions?<br />Kitty Turner, Associate<br />Farrer & Co LLP<br />kitty.turner@farrer.co.uk<br />0203 375 7110<br />
    241. 241. The BEF: Putting the Principles of the Bribery Act into Practice<br />Janice Shardlow <br />
    242. 242. 1. Top Level Commitment<br />Report to Board – summary note<br />Commercial Director allocated lead responsibility/Head of Governance and Legal = responsible officer <br />
    243. 243. 2. Risk Assessment <br />Key Risks for sporting organisations:<br />The provision of gifts and corporate hospitality<br />The receipt of a payment or other advantage from a bidder for a major contract or funding arrangement<br />The receipt of gifts and corporate hospitality <br />
    244. 244. Risk Brainstorm <br />NB emphasised benefits etc both given by us and received by us <br />Pins<br />Clothing<br />Tickets/Hospitality <br />Services e.g. Physio, advice <br />International deals <br />International hospitality <br />Services to our member bodies <br />
    245. 245. 3. Procedures <br />Gifts, hospitality and benefits provided <br />Gifts, hospitality and benefits received <br />Key elements: <br /><ul><li>Principles
    246. 246. minimum levels
    247. 247. register </li></li></ul><li>4. Due Diligence <br />Bribery policies in place <br />?<br />
    248. 248. 5. Communications <br />Staff note on bribery <br />Briefing <br />
    249. 249. 6. Monitoring and review <br />Annual board approval <br />Responsible officer review <br />
    250. 250. ANY MORE IDEAS ?<br />
    251. 251. Legal Panel: UK Bribery Act<br />Kitty Turner, Farrer & Co<br />Janice Shardlow, BEF<br />
    252. 252. Break2:30pm – 2:45pm<br />
    253. 253. Finance Workshop: Financial Policies and Reporting<br />Stuart Wetherly & Jake Wilson<br />Deloitte LLP<br />
    254. 254. Financial policies and reportingStuart Wetherly<br />October 2011<br />
    255. 255. Internal Financial Reporting<br />
    256. 256. Pillars of Financial Management<br />127<br />
    257. 257. Financial planning<br />128<br />
    258. 258. Controls and policies <br />129<br />
    259. 259. Reporting <br />130<br />
    260. 260. Less can be more<br />Reduced review time<br />Reporting - best practice<br /><ul><li>Automation – minimised re-keying leading to reduced errors
    261. 261. Standardisation – increased control and better information received in a standard format
    262. 262. Practice makes perfect – quarterly closes used to prepare for year end
    263. 263. Increased forecasting accuracy – used to reduce the time spent on variance analysis
    264. 264. Reporting volumes minimised – identify the non-essential
    265. 265. Exception based reports
    266. 266. Increased control over circulation of information
    267. 267. Understand the timetable and what is needed from who:</li></ul>Who – Role clarity round who owns what numbers and who reviews<br />Where – Where in the organisation each activity occurs <br />When – Timing is understood and mapped<br /><ul><li>Interrelation and dependencies between activities clearly understood – e.g. impact of changing profit on tax
    268. 268. Key judgements and new technical treatments are made and agreed in advance of year end
    269. 269. Review process not started too early</li></li></ul><li>Scorecard:<br />Mark an X where you think your organisation currently ranks for each of the below themes<br />LeadingPerformers<br />Measure of Performance<br />LaggingPerformers<br />Right first time<br /><ul><li>Several resubmissions
    270. 270. No errors</li></ul>Annual Reporting Process<br />2<br />3<br />1<br />4<br />5<br />2<br />3<br />1<br />4<br />5<br />Efficient process<br /><ul><li>Delays financial close
    271. 271. Data produced quickly and on time</li></ul>Reduced overall volume ofreporting<br /><ul><li>Large volumes of reports produced and not utilised
    272. 272. Report production minimised, all reports utilised</li></ul>2<br />3<br />1<br />4<br />5<br />2<br />3<br />1<br />4<br />5<br /><ul><li>Certainty over activities, strongly managed
    273. 273. Lack of clarity and direction</li></ul>Strong project management<br />2<br />3<br />1<br />4<br />5<br />Reduced review cycle time<br /><ul><li>Many reviews
    274. 274. Single review
    275. 275. Close not important
    276. 276. Insufficient or inappropriately skilled staff</li></ul>High performing culture & capabilities<br /><ul><li>Pride in a fast close
    277. 277. Capabilities aligned with fast close requ’t</li></ul>2<br />3<br />1<br />4<br />5<br />
    278. 278. Scorecard:<br />Mark an X where you think your organisation should be<br />LeadingPerformers<br />Measure of Performance<br />LaggingPerformers<br />Right first time<br /><ul><li>Several resubmissions
    279. 279. No errors</li></ul>Annual Reporting Process<br />2<br />3<br />1<br />4<br />5<br />2<br />3<br />1<br />4<br />5<br />Efficient process<br /><ul><li>Delays financial close
    280. 280. Data produced quickly and on time</li></ul>Reduced overall volume ofreporting<br /><ul><li>Large volumes of reports produced and not utilised
    281. 281. Report production minimised, all reports utilised</li></ul>2<br />3<br />1<br />4<br />5<br />2<br />3<br />1<br />4<br />5<br /><ul><li>Certainty over activities, strongly managed
    282. 282. Lack of clarity and direction</li></ul>Strong project management<br />2<br />3<br />1<br />4<br />5<br />Reduced review cycle time<br /><ul><li>Many reviews
    283. 283. Single review
    284. 284. Close not important
    285. 285. Insufficient or inappropriately skilled staff</li></ul>High performing culture & capabilities<br /><ul><li>Pride in a fast close
    286. 286. Capabilities aligned with fast close requ’t</li></ul>2<br />3<br />1<br />4<br />5<br />
    287. 287. External reporting and governance update<br />
    288. 288. UK Financial ReportingUK currently has a three-tier model<br />135<br />1990s<br />UK FRS – applied to all UK entities<br />1997<br />FRSSE – optional for small companies<br />2005<br />IFRS – mandatory for listed groups<br />
    289. 289. The ASB’s 2009 vision for the futureA three-tier model<br />Ability to choose higher ‘GAAP’<br />Tier 1<br /><ul><li>IFRSs as adopted by EU
    290. 290. Publicly accountable entities (EU listed and other ‘quoted’ (consolidated + parent), banks and insurance entities)</li></ul>Tier 2<br /><ul><li>IFRSs for SMEs
    291. 291. All non-publicly accountable UK entities (large, medium, subsidiaries of listed groups)</li></ul>Tier 3<br /><ul><li>Financial Reporting Standard for Smaller Entities (FRSSE)
    292. 292. Small entities (as defined in law)</li></ul>136<br />
    293. 293. The ASB’s 2010 vision for the futureA three tier model with two sub-tiers for reduced disclosure<br />Tier 1<br />Ability to choose ‘higher’ GAAP<br /><ul><li>IFRSs as adopted by EU
    294. 294. Publicly accountable entities (EU listed and other ‘quoted’ (consolidated + parent), banks and insurance entities)</li></ul>Tier 1S<br /><ul><li>IFRSs as adopted by EU – group policies but reduced disclosure
    295. 295. Qualifying subsidiaries of Tier 1 entities</li></ul>Tier 2<br /><ul><li>FRSME
    296. 296. Non-publicly accountable entities and small, prudentially regulated publicly accountable entities</li></ul>Tier 2S<br /><ul><li>FRSME – group policies but reduced disclosure
    297. 297. Qualifying subsidiaries of Tier 2 entities</li></ul>Tier 3<br /><ul><li>Financial Reporting Standard for Smaller Entities (FRSSE)
    298. 298. Entities currently able to use the FRSSE</li></ul>= IFRS<br />= UK GAAP<br />
    299. 299. The ASB’s 2011 vision for the futureFurther review<br />138<br />September 2011 ASB announce they will issue a new Financial Reporting Exposure Draft (FRED).<br />
    300. 300. 139<br />The UK government will continue to push for simplified accounting rules for the smallest companies or “micro companies”. No effective date or method has been set. <br />Company law and corporate governance update<br />Budget 2011: Accounting Impact<br /> Following the 2011 March Budget announcement, changes have been proposed for accounting requirements within The Plan for Growth document. Key points from the proposal for simplified accounting are:<br />UK government will press the European Commission to remove the mandatory audit requirement for medium-sized companies. <br />UK audit exemptions to be brought in line with EU law. No date for implementation but likely to see the benefits in 2012. <br />Subsidiaries of any size would be exempt from producing audited accounts, provided their debts are secured by the parent company. Legislation expected 2012. <br />
    301. 301. Useful links:Financial Management on Sport England website http://www.sportengland.org/support__advice/governance_framework_tool/3_financial_management.aspxPolicies on Sport England website http://www.sportengland.org/support__advice/governance,_finance__control/financial_management/7_financial_policies/supporting_outcome_71.aspxContact details:Stuart Wetherly – swetherly@deloitte.co.uk<br />
    302. 302. Wrap Up and Close<br />John Crowther, Chair, <br />Finance and Governance Forum<br />
    303. 303. Do not leave without giving us your feedback forms …<br />

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