Supporters Trust Open Meeting 23/05/18 Agenda

• Season Review

• Financial Review

• The Model

• Questions Alex Tunbridge

Chief Executive Agenda

• Club Update

• First Team • Retail • Match Day • Ticketing • GDPR • Academy • Community • Commercial • HR • Summary

• Questions Objectives

Objective 1 - Finance To be financially solvent and self sufficient.

Objective 2 – Player Development To develop talented players through the Clubs development pathway for future first team football.

Objective 3 – Community Engagement To use football as a vehicle to inspire and engage with the Clubs local community.

Objective 4 – Supporter Engagement To engage and develop the clubs supporter base, creating future generations of supporters. First Team

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

On Field Performance

• EFL League Two 11th Place Finished – 64 Points • Checkatrade Trophy – Group Stages • Carabao Cup 2nd Round • FA Cup 4th Round Replay

In Numbers • 36 players Used Inc 7 loans (41 – 2016/17) • Improved Discipline 79 Yellows & 3 Reds (105/4 – 2016/17) • First Team Management Stability • Six Scholar Debuts – Two Professional Contracts • 14 Players Engaged For 2018/19 Season Pre-Season

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

Date Opposition Details Wed 11th July Championship Club Newport Stadium - TBC

Fri 13th July Undy AFC Away – 7.00pm Sat 14th July Chippenham Town Away – 3.00pm Tue 17th July Championship Club Behind Close Doors Wed 18th July Penybont FC Away – 7.30pm Sat 21st July Hereford FC Away - 3.00pm Tue 24th July National League Club Away - TBC Sat 28th July Championship Club - TBC

• Players To Return Thursday 28th June & Friday 29th June For Testing • A Variety Of Team Building & Supporter Engagement Events • Mix Of Home, Away & Behind Close Door Matches Retail

Objective 1 – Finance Objective 4 – Supporter Engagement

• Retail Performance +% Year on Period 1st Retail Sales Prior Year Year July – 27th +/-% Feb • Two Attempted Burglaries 2015/16 £77,314.89 N/A

• Club Shop Relocation 2016/17 £68,565.33 -11%

• 2018/19 Kits – W/C 16th July 2017/18 £148,757.36 +117%

• Exploring New Online Store

Current Shop Hours Thursday & Friday: 10am – 7pm Match Days: 10am – Kick Off + 30 Mins After Full Time Online 24/7 OPEN TILL 1st JUNE 2018 – NEW STORE OPENS 2nd JULY 2018 Match Day

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

Home League Match Average Attendance No Matches 2016/17 2017/18 +/-% 23 Matches 2,516 3,492 38.79%

EFL Home Average Attendance

3500

3000

2500

2000

1500

1000

500

0 2013/14 2014/15 2015/16 2016/17 2017/18 Match Day

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

Junior Home League Match Average Attendance

No Matches 2016/17 2017/18 +/-% U6’s 75 85 13% U12’s & U16’s 251 490 95% U21’s 85 173 106% Total 411 748 82%

• Total 2017/18 League Attendance = 80,916 (+24%) • Total 2017/18 Attendance (inc Cups) = 103,778 • Record Rodney Parade Football Attendance = 9,836 • Season Ticket Holders = 1,635 (+120%) Match Day

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

EFL Family Excellence Award • Based Upon Two Mystery Shopper Visits • Seeks To Highlight & Reward Positive Family Engagement Experiences • Club First Award Family Excellence Status During 2016/17 Season

Staff Engagement

• Awarded EFL’s Most Engaging Club Award • League Two & Overall EFL Winner • Recognises Outstanding Levels Of Staff Engagement & Supporter Service • Evaluates Contribution Of Club Staff, Stewards, Stadium Staff & Volunteers

Ticketing

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

2017/18 • Theatre Ticket System – Not Fit For Purpose • Limited Functions & Parameters • Purchase History & Account Information Limited • Season Ticket Allocation • Seat & Patron Duplication • Online Purchase Processing Issues

2018/19

• Bespoke Football Specific System • Improved Customer Experience • Ability To Process High Ticket Volumes Ticketing

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

• Three Year Partnership • New WRU Stadium Box Office – Increased Opening Hours • Season Ticket & Member Portals Via Client Reference No • Bookings History • Loyalty Points & Priority Purchase System • New Online Booking Site • Print @ Home Tickets & App Functionalities • Streamlined Sales & Access • Improved Efficiency • Ability To Upscale 2018/19 Tickets

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

Season Tickets

• 2017/18 Season Ticket Holder Loyalty Rewarded • Increased Savings & Value • Season Ticket Seat Retention & Renewal Discount Available 1st June 2018 • Finance Options Via Zebra Finance • New Ticket System & Functions

Match Tickets

• Online Price Reduction • £1 Increase Ticket Office Purchase • Increased Online Usage & Reduced Match Day Sales GDPR

Objective 3 – Community Engagement Objective 4 – Supporter Engagement

Club

• GDPR Legislation Implemented Friday 25th May 2018 • Contracted Third Party To Assist & Be Club’s Data Controller • Variety Of Compliances Being Put Into Place Club Wide

Supporters

• Tell Us If We Can Hold Your Data • Choose The Data We Hold For You • Tell Us What You Want To Be Communicated About • Tell Us How You Want to Be Communicated To • Change Your Preferences At Any Point In Time • See The Data We Hold For You At Any Point In Time • Opt-Out Of Communications & Your Data Being Held at Any Point In Time

#CountyConnected Academy – Overview

Objective 1 – Finance Objective 2 – Player Development

2017/18

• Academy Restructure – Increased To 400 + Players & 55 Staff • Clearer Player Development Pathway • Kit Delivery Issues – Resolved – 2018/19 = July 2018 Delivery • 5 Scholar Debuts & 2 Professional Contracts • U19 Wales International Call Ups – Foulston, Touray & Collins

2018/19

• Successful Application EFL/EPL EPPP Cat 3 Academy • Increased Funding, Staff & Infrastructure • EPPP Player Compensation Payments • Increased Success Rate & Improved Player Pathway • Future First Team Player & Income Stream Community

Objective 3 – Community Engagement Objective 4 – Supporter Engagement

Internal

College Programme: 27 students across two year groups – 12 1st year & 15 2nd year students. 11 students attending UK Universities – 6 Cardiff Met, 2 Exeter, 2 Swansea, 1 Worcester 2 students attending Universities in USA – Georgia & New York

Foundation Degree: 7 students across three year groups – 3 1st year, 3 2nd year & 1 3rd year student.

Walking Football: 2 sessions held weekly at High School - 36 different people in attendance during 2017/18

Cups & Festivals: 12 Schools Cups & Festivals over 2,000 people attending

Mental Health 40 people registered - 20 attending regularly and have improved self confidence Programme: Community

Objective 3 – Community Engagement Objective 4 – Supporter Engagement

Soccer Tots: 46 children attending aged between 3 and 6, since September 2017.

PrimaryInternal Schools: 450 children, across 6 schools Premier League Primary and Reading Stars 930 children Sport Move and Learn, across 19 Schools (Newport, Torfaen & Monmouth) 740 children Amber Education, across 15 Schools (Newport, Torfaen & Monmouth)

Welsh Football Trust: 1,347 young people engaged in Football activities (over 1,000 Primary School girls from all over Gwent)

Premier League Girls: 93 women & girls attending 5 sessions per week in Newport

Streetgames: 25 young people and 12 Families attending

Premier League Kicks: 146 young people aged between 10 and 18, attending 3 weekly sessions (Bettws, & ).

Holiday Camps: 25 Soccer & Multisport Camps 2017/18 Engaging over 400 different 7 to 14 year olds Commercial

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

2017/18

• Increased Brand Exposure & Growth • Global Coverage & Multinational Brand Association • Increased Hospitality Platform & Guests • League Two Visiting Director Nomination • New Events & Opportunities • New Contacts & Customers

2018/19

• Revised Commercial Packages & Pricing • New Commercial E-Brochure • Directors Focus Group & Additional Resources • New Opportunities & Agreements HR Update

TBC COO

Club Development Daily Management

Hayley Ford Ethan Foster Rebecca Hemming Nigel Stephenson Media & Engagement Operations Manager Commercial Manager Accounts Manager Media Channels Football Administration Sponsorship Day To Day Processing Press Conferences Match Day Preparations Hospitality Management Reports Press Releases EFL Protocol Partnerships Debt Management Engagement Activities First Team Support Brand Development Board Reports Oversee Programme Volunteers EFL Commercial EFL Protocol

TBC Ben Lucey Poppy Reynish Graphic Design Intern Accounts & Apprentice Home & Away Tickets Administration Content Development Season Tickets Assistant Social Media Volunteers Accounts Processing Match Day Feeds Academy Support Ticket Support One Club One County

Objective 1 – Finance Objective 3 – Community Engagement Objective 4 – Supporter Engagement

• Learning Experience • Improved Brand & Reputation • Record EFL Attendances • Wider Commercial Opportunities • EFL Recognition & Awards • New Relationships • Increased Community Engagement • Improved Supporter Experience • Academy Growth & Future Platform

‘A season of experiences, learning, growth & success both on and off the pitch’ – Lennie Lawrence Summary – Oct 17

Product On The Platform To Commercialise Engagement Pitch Market

Recruitment Clear & Head of Strategy Media Staff Defined Supporter Opportunities Services

Pre-Season Multiple Strong Retail Willingness Planning Platforms Operation To Engage

Customer Player & Staff Commercial 45% Strategy Service / & Welfare Manager Accessible Training & 35% Playing Video Hospitality Ticketing Content Facilities Infrastructure To PlatformSupport Solution January Brand & 20% Transfer High Level Identity Resource Strategy Engagement

Infrastructure Summary – March 18

Product On The Platform To Commercialise Engagement Pitch Market

Recruitment Clear & Head of Strategy Media Staff Defined Supporter Opportunities Services

Safety Multiple Strong Retail Willingness Platforms Operation To Engage

Customer Commercial 40% Cup Run Strategy Service / Manager Accessible Training & 60% Playing Video Hospitality Ticketing Content Facilities Infrastructure To PlatformSupport Solution Summer Brand & 0% Transfer High Level Identity Resource Strategy Engagement

Infrastructure Summary - May 18

Product On The Platform To Commercialise Engagement Pitch Market

Clear & Recruitment Staff Media Staff Defined Strategy Engagement Opportunities

Safety Multiple Strong Retail Willingness Platforms Operation To Engage

Customer Commercial 55% Cup Run Strategy Service / Manager Accessible Training & 45% Playing Video Hospitality Ticketing Content Facilities Infrastructure To PlatformSupport Solution Summer Brand & 0% Transfer High Level Identity Resource Strategy Engagement

Infrastructure 2017/18 Summary

Product On Platform To Commercialise Engagement The Pitch Market

/ / - /

Infrastructure To Support

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Club Operations

Questions Shaun Johnson Finance Review

Season 17/18

• £350k deficit last season – not debt – due to contractual pay offs, position of team • Significant increase in WRU for match staging costs • Ongoing contribution to Desso pitch • Lower than anticipated replay income • Football bonuses

• To close the gap we have continued to: • Review all expenditure – small group to drive out cost • Commercial Group formed to increase income • Management accounts now a feature of the reporting – enabling improved forecasting • Eliminate Academy subsidy Shaun Johnson Financial Context

League 1 and League 2 Clubs’ pre-tax profits

Clubs’ pre-tax profitability remained relatively stable across both League 1 and League 2 in 2015/16, with an average pre- tax loss per club of £1.6m and £0.5m, respectively. These deficits still need to be covered, in most cases, by the clubs’ owners. Deloitte 2017

Club Period Loss Chesterfield 2016/17 £506k Cambridge 2016/17 £700k Morecambe 2016/17 £574k Forest Green 2016/17 £2.1m Crewe 2016/17 £595k Shaun Johnson Some context

• To set it in context of other supporter owned clubs:

Club Members Yearly Contribution

Wycombe 180 Fans – regular donations £85k 140 – one off payments Exeter Donations & 31 Club £100k Wimbledon Subscriptions Over £100k Blue and Gold Club (30) £35k Newport County Subscriptions £10k Donations £25k

"We're probably the richest club in the country - the reason I say that is because we don't owe anything,"

"But we could also say we're the poorest club because if something goes wrong there's no back-up.“ Julian Tagg, 2014 Shaun Johnson Some Context

In summary I believe our board and team as a whole has delivered real but often underrated and little-appreciated stability. It has cleared all debts, has ensured prudence in terms of cash in reserve, developed a capital fund that means we are actually investing rather than firefighting, looking forward rather than around and behind us, and embarked upon a number of capital projects that will result in further benefit, stability and growth.

I feel it is only right to add a final note that draws attention, albeit that the above report places us in a real position of progression and positivity, to what is happening elsewhere in football. Bristol Rovers taken over by a Jordanian consortium, Crawley by a Turkish consortium, a new owner of even Accrington Stanley, Northampton, I could go on. It will undoubtedly mean more money being pumped into our direct competitors 20 + that are working from what is always said to be unsustainable models. That isn’t going to change any time soon. My point is that if we are going to make our Trust model continue to compete, we need to work harder, faster and smarter from our now strongly-established foundation with ever more continuity, unity and single-minded determination than ever before.

JULIAN TAGG - CHAIRMAN OF THE BOARD, EXETER CITY FOOTBALL CLUB (2016) Mark Crook A Co-Opted View

• It’s difficult to run the Club on player sales and cup runs

• To set in context business turns over £2.2 million a year and the owner –Trust has contributed £30k this year

• That is not enough as the major shareholder and why a debate is needed on the model itself

• Its certainly not all doom and gloom – we have very little debt – our payment to Les Scadding is it!

• We have an opportunity to have some honest conversations and engagement with the owners on our future

• The approach to finances has improved significantly and that allows us to commence the debate in a controlled manner Kevin Ward Wider Debate

• Do the people of the City want professional sport in the centre of Newport?

• There are a sequence of events that have led us to ask this question? • WRU increase in cost base • Looming end of agreement – 2023 • The positive publicity the city received from the cup run was staggering – we are more than a football club. We have a brand.

• That is not something we can answer alone – it is a city decision

• It involves many different stakeholders – WRU, NCC, AMs, MPs, City Centre businesses

• We have engaged with NCC to commence this debate and will be pushing for this to happen Colin Faulkner Model

• What are the options:

• Supporter-owned – remain as we are, but with increased donations from a greater number of Trust members • Put the club up for sale – in total or in part • Blend ownership of supporter, council and business – old Swansea model

• What is the timetable for the consultation?

• Survey will be live following tonight’s meeting • It will be live for 6 weeks (close 4th July 2018)

• What happens following consultation?

• Answers will be drawn together into themes and shared with members

• Any change will be a decision for the members not the Board Rob Santwris What Have We Done…? • Finance • Introduced a number of strict controls • Introduced a tighter budget for forthcoming season • In doing the above we have tried to get to the same outcomes but in a different manner

• Commercial • Introduced a small working group – as a result of Rebecca’s absence • Produced a commercial brochure • Identified a raft of targets – existing, old and new • Have an agreed strategy to engage which will be launched this week in earnest

• Engagement • NCC and other stakeholders have been engaged at a senior level to explore areas of assistance – A debate is needed on Sport in the City centre Rob Santwris How Can You Help? • Consultation • Complete the survey and offer your views and thoughts – they count

• Contribution • If you can contribute more it would be appreciated • This could be as a volunteer – match days/ in the week / it could be remotely helping with the Trust membership • It could be financially - either through a donation or making a monthly contribution to the rewards and benefits

• Commercial • If you have time to help with the commercial group please let us know – you will welcomed • If you work for a company that may well be interested in some of the sponsorship packages then please let us know and we will follow up

• It is time for us all to pull together for our great club Gavin Foxall Summary

• In summary this is about coming together as one united group for the club to address the two challenges:

• WRU costs have increased and if they continue to do so playing at RP is not sustainable

• The supporter-owned model can only work if more money is contributed on a regular basis by its owners

• To address the above: • We continue to engage with WRU around the cost base • Engaged with to start the debate around sport in the centre • Commenced the consultation process around the model

• How can you get involved and help: • Engage in the consultation process being launched • Join the wider commercial group Directors

Questions