The article below also appears in the Everton match programme:
After reading the pamphlet distributed at the ground on Saturday by TIL, we feel that the matters raised in it provide the club with the opportunity to respond on a wider basis to all our supporters.
When the Chairman decided to acquire a controlling interest and to help this Club, he believed, and he still believes now, that it was with the blessing of the majority of our supporters. It is our belief and vision that we (that's all of us) could turn the tide and over the next five years get this Club to where it belongs - in a New Stadium at Junction 12, and fighting to be in the Premiership.This still remains our principle objective.
Unfortunately, it has become evident over the past six months that there is an external faction that seems to have a different agenda from the current Board.
Consequently we would ask you this:
If you support this Club, would YOU (as a supporter) make public statements outside it urging supporters not to buy their season tickets, to boycott games, and threaten the club with protests, which have driven up the cost of both policing and stewarding games.These actions have significantly contributed not only to increased costs, but also to lost revenue. It is no surprise, therefore, that the Club faces losses greater than those identified at the time of the Chairman's takeover.
Transfer sales income received to date have all been used to help meet the Club's ongoing financial commitments and overheads, which include all payments related to the football business. We are fully aware of the extent, and on-going reason for the trading position the Chairman inherited, and all the staff at the Club are working hard to address these recognised issues. Not least of which are the increasing costs associated with the maintenance, running, and refurbishment of an ageing stadium, which we do not own.
Accordingly, we address the points raised by TIL in the order set out in their leaflet.
1 - Losses have increased largely due to a fall in revenue as explained above.
2 - Running costs (with the exception of Policing, Stewarding and Stadium) have not increased and are at a level anticipated prior to the recent takeover. However, we do have a continuing substantial liability for long-term player contracts, which cannot be sustained at our current revenue levels. Consequently, we are continuing to work towards a playing budget commensurate with our League status and revenue streams.
3 - Player sales are an unfortunate necessity for a Club such as Luton in its current home with its limited revenue streams and commercial opportunities. All of the funds received have been utilised in meeting the ongoing fiscal commitments of the Club. NONE of these monies have been taken out of the Club.
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4 - Yes, the planning application for Junction 12 has been delayed for three months.With the exception of the application made by David Kohler, no other application has been submitted by previous owners, therefore this short delay is insignificant and irrelevant. Previously there have just been a succession of pipe dreams.
However, we have been advised by the professional team that the application will be submitted in January.
Yes, we were previously advised it would be earlier, but we have to be guided by Goodmans (formerly known as Rosemound), the developer who are responsible for all costs other than the stadium design. For an update and the latest on the new stadium click here to view the new fly-through.
5 - The original projected stadium costs were an early estimate, which have, increased due to incorporating other facilities, which will increase the stadium's turnover and profitability (conference & banqueting rooms, exhibition facilities, additional bars etc). After viewing the stadium fly-through, we are sure you will agree it is worth the additional costs. given the scale and impact of the new stadium. The stadium cost currently stands at £55 million and will be covered by the contracted enabling contribution, naming rights and grants etc.Variances to previous estimates as stated by TIL are simply the inclusion of both the hotel and onsite training ground costs.
6 - We have never said that we OWN the training ground, but that it is our OWN! Again, in the past, no one has ever put any thought into having a dedicated training facility or had the foresight to deal with these issues. We have!
Previously the team has had to drive some distance to share pitches and changing rooms, with no physiotherapist facilities, no weight room, kitchen, teaching rooms etc.We now have our own bespoke training facility, which has clearly lifted the players' morale to new heights. Significant investment has gone into the new facility, which will pay for itself over the next three years saving the Club circa £200,000 per year going forward.This is clear evidence of some of the ideas being put into practice, to reduce the running costs of the Club, while also improving efficiency and control.
7 - A statement has never been issued quantifying the price paid by the Chairman for control of the Club nor will it be as this remains private and confidential information. The previous loans made by the Chairman were prior to his takeover and assisted the cash flow requirements of the Club at that time.The Chairman has a controlling interest in the Club and has many times described his dream to assist it to improve and stabilise its financial condition, also for it to be run in a more commercial and prudent fashion. His ultimate aim is to move the Club to an impressive new stadium, which can be the springboard for a more successful and less volatile future. He will not commit funds unconditionally - who would?
However, he has agreed to support the Club going forward with finance, management skill, contacts, ideas and commitment. Foresight and a desire to secure the long term future of the Club has seen much work and investment being put into it over the past six months, including:
- Upgrading the majority of the hospitality facilities at the Club.
- Investing in the new training facility.
- Stadium sound system installation.
- Real expansion and development of our Youth program.
- Strong local community engagement.
- Working partnership with Active Luton (Luton Borough Council).
- Developing relationship with local Chamber of Commerce.
- Ongoing investment in stadium design for the Club's Junction 12 relocation.
TIL representation on the Board:
We publish our previous press release (October 19) on this matter, which is self explanatory: "Following recent comments,The Board of Luton Town Football Club today wishes to clarify its position regarding the above and the recent reference to a 'TIL seat on the Club Board'. In order to clarify any misunderstanding, the Club has already made it clear to TIL that for the time being it has no intention of appointing any new directors to the Board.TIL had a representative on the Board who resigned in January 2007 and since then there has been no representative nominated by TIL for consideration by the Board as a replacement.
The Board understands that feelings may run deep on this issue, however, it is also conscious of its commitments and the sensitivities that surround the Club at the present time. In particular, the importance of any potential conflict of interests in respect of the Club's intended relocation and therefore it has to ensure that no other agendas are being pursued. The Board is currently looking at ways of involving all of its supporters more in the Club and of increasing its communication to them on a regular basis.
Finally, in respect of TIL's request for further financial information to what has already been provided to them, the Chairman of the Club David Pinkney will be forwarding a communication to the Chair of TIL on this matter".
In the answer to the questions raised on the back page of the leaflet, we comment as follows: Our "story" (but we prefer to use the term "business plan") remainsconsistent.We are not aware of any broken promises although in this business, as in all others businesses, things do change on a regular basis. As mentioned previously in this summary, we are fully aware of the magnitude and reason for our current business position.The new stadium cost currently stands at £55 million and will be covered by the contracted enabling contribution, naming rights and grants etc.Any shortfall will be underwritten.
The Board has not hidden and has no intention of hiding anything.We trust that this reply will resolve that concern. The previous Board made a decision to pursue a development opportunity that gifts the Club a 30 acre freehold site and £25 million (guaranteed) towards the stadium construction costs (combined value £50 million plus). In monetary terms no other local development can come anywhere close to this opportunity. The current Board agree with the previous decision and will support it through to its conclusion.
The FA investigation remains a concern and we would also welcome a speedy conclusion. As previously stated, player sales are a necessity for a Club like Luton in its current home, with its limited revenue streams and commercial opportunities. All of the funds received have been utilised on meeting ongoing fiscal commitments. The current financial constraints are well understood by both the Board and the football management. While new players have been brought in, the economics of this are well understood.The Club, in the future, will have to be prudent and able to live within its means, thus ensuring no repeat of our previous "Yo-Yo" existence.
The Board of Luton Town Football Club
For cross reference see the TIL website: www.trustinluton.org
