Facts about the Future of Worcester City Football Club

Leaving St Georges Lane

• We have to vacate St Georges Lane in June 2013, so next season (the 2012/2013 season) will be the last at St Georges Lane. Discussions have been held with Careys who have bought St Georges Lane to ascertain whether they would be prepared to allow the Club to remain at St Georges Lane beyond June 2013. At this point in time this appears to be very unlikely.
• The Board are therefore currently investigating all ground share possibilities and will report on the outcome of these discussions shortly.

Move To Nunnery Way

• Outline Planning Permission for a new Stadium at Nunnery Way has been granted by Worcester City Council and the Club are currently working to facilitate a move as early as possible.
• In accordance with the City Council’s Planning Committee decision, St Modwen has drafted a Section 106 agreement which has been forwarded to the Council’s Solicitor. This Agreement was insisted on by the City Council and effectively ensures that the land allocated for the Stadium must remain for community use in the future.
• As highlighted in the report to the Planning Committee, an existing Public Right of Way across the site will require diversion or extinguishment. Work will shortly commence to begin this process, although it is anticipated that this may take some time to resolve.
• In an ideal situation, the Club would like to move directly to Nunnery Way. However St Modwen have confirmed it is very unlikely that a Stadium at Nunnery Way will be ready for the start of the 2013/2014 Season so an alternative ground share venue will be required.

The Cost of Building a Stadium at Nunnery Way

• In terms of future funding for the Stadium:-
- The remaining £1.3m due from Carey New Homes in June 2013 will go straight to St Modwen to fund land and infrastructure costs of the new Stadium
- Once the infrastructure works are complete, Worcester City Football Club will be responsible for building the Stadium. In order to keep the development affordable to the Club it is proposed to construct the Stadium on a phased basis and funds will need to be raised to cover all of these costs.
- Future Phases of the Stadium will be funded by specific fund raising initiatives. Any additional Grant Funding will also be sought where this is appropriate

Future Capital Gains Tax Liability Facing the Club

• St Georges Lane was sold for £3.06m and unless the Club can qualify for roll over relief the Capital Gains Tax demand could be in excess of £500,000.
• The Capital Gains Tax Liability is likely to crystallise during 2013 and to mitigate this and obtain roll over relief all money from the sale of St Georges Lane has to be re-invested in replacement infrastructure within 3 years (ie by December 2013). If re-investment is not possible during this timescale the Club hopes to persuade HM Revenues and Customs to grant an extension to the timescale.
• HMRC will extend the 3 year time limit if:-
- The Club can demonstrate that it had a firm intention to acquire new assets within the time limit;
- The Club was prevented from meeting the timescale by some fact or circumstance beyond its control; and
- After being prevented from meeting the time limit the Club acted as soon as they reasonably could.
• The Club is also currently seeking to persuade the District Valuer that the value of St Georges Lane is higher than his original (1982) valuation. If the Club can persuade the District Valuer that the value is nearer the Club’s own professional valuation then the CGT liability could reduce significantly. Such is the importance of this matter, the Club has engaged a leading Tax Expert to assist the Club with the CGT negotiations.
• Regardless of the outcome of the negotiations the fact remains that the more funds we can raise and invest in the Stadium before 2013 the less Capital Gains Tax we will have to pay. Put simply, if the Club could manage to raise £1.1m then the Capital Gains Tax liability would be avoided regardless of the outcome of any of the current negotiations.

Fund Raising ,

• The Club is currently looking at ways in which it may be able to raise sufficient financeto fund future phases of the Stadium build costs and mitigate the Capital Gains Tax Liability. As part of this, the Board are also looking at the Club’s Constitution to ascertain whether any changes to the way in which the club is currently structured may encourage future investment in the Club. The Board will report on its findings in the near future.

Securing the Future of Worcester City Football Club

• Should the situation arise where the Club is promoted then St Georges Lane meets all the criteria necessary to play Conference Premier football at St Georges Lane next Season. The Board continues to fully back Carl Heeley for a promotion push.
• The introduction of the Youth Structure from Under 12s to Under 18s has been a real success, along with plans to form an Elite U21s Development Squad. The natural progression of a player pool to support the first team has been established.
• Our Club has changed dramatically over the past year with many new supporters becoming involved in the club, but we have long way to go and the only way the Club’s future will be secured is if every single Worcester City fan plays a part.
• Every Supporter has a vital role to play if there is to be a future for Worcester City FC. This could involve a financial donation, assisting with fund-raising initiatives or bringing an expertise to assist the Club in moving forward.
• Worcester City Football Club is run in a completely open and transparent way and anyone with appropriate skill sets and who may be interested in helping the Club would be most welcome.