Bury FC Supporters’ Society Proposed Alternative Plan
Following the completion of the Q&A consultation, our members have asked us to provide a provisional plan should the merger proposal not pass. Please bear in mind that there are still lots of unknowns in relation to the business plan, the name and league placing. However, we have endeavoured to give members security that our future remains positive in every scenario.
This alternative plan would ensure a sustainable community stadium, with progressive plans for Elite Mens Football returning to Gigg Lane subject to a successful application to a league. With this route, an application would be made before the end of the year, and we would only find out if it has been successful in April / May 2023 (standard protocol for the National League System).
The figures produced by the society are now with the accountants to ratify and amend, they are with a basic overview of how we see Gigg Lane being operational for the next 12 months without an Elite Mens Football team playing there and running sustainably.
The figures are based on current costs for the stadium, which are inclusive of pitch bookings, ladies football and another Legends fixture. Over time there will be more opportunities to increase revenues across all areas through office rentals, room bookings, bar takings, filming shoots and more as part of our commercial community venue. This will still require the support of our fantastic volunteers alone, with no paid staff. We have offices earmarked for hire with potential clients but until they are agreed these will not be added to the budget.
The club shop rental agreement has now been signed with the new tenant and will begin soon subject to a credit check. This has been included in the budget.
We have excluded day to day bar takings and additional events (such as a community funfair and fireworks, a drive through cinema experience, live music and sporting dinners) which will bring vital income to the society. These fundraising events will all go towards our capital projects.
As mentioned in the recent AGM, the society memberships will change to reflect the change of model from solely donations and fundraising to one that now owns a huge community asset – the home of football in Bury since 1885. This will be determined once we know the outcome of the vote for the merger proposal.
Off the field revenues are key to a sustainable business model and the funding banked, pledged and donated all assist with the footballing business plan to submit to the leagues. For example, a figure already pledged towards season tickets gives us some certainty of potential home attendances to put in applications for league entry. Other clubs’ fanbases build their budgets from the likes of Build The Budget campaigns, additional benefactors and towards capex works we would be able to look at Community Share Offers.
It is important to note that there are no guarantees that we will be accepted into a league for the season 2023/24 if there is no amalgamation of Elite Mens Football at Gigg Lane. However, the society believes we will be given a FA affiliation number upon application, to then apply to the National League System for entry. With the support of the Football Supporters Association, we feel that we would have a good case to be accepted into a league should there be a vacancy. A robust business plan is completed and ready.
As per the current agreement with the Bury FC Foundation, we would continue to work with them. As well as all home games for the Bury FC Foundation womens team, there would be continued opportunities for international football fixtures for future stars, as well as the wonderful soccer camps. As part of this agreement we would be looking to expand the provision of community activities assisting with the usage of the stadium and pitch.
As part of the acquisition of Bury Football Club Company Limited, we obtained the intellectual property, history, memorabilia, trading name and stadium of Bury FC, which will all form part of our application. Should the FA not allow Bury FC to be used as our team name for season 2023/24, members will be updated upon the FA outcomes and agreements until such time Bury FC can be approved.
As part of the purchase, the society is now the majority owner of Gigg Lane Community Stadium similar to the German Football Model 50+1. Bury FC Benefactors Limited have already committed funding which was used to acquire the stadium. This new model would continue with the help of existing benefactors – with the society continuing to seek additional benefactors. There is still a remainder of the Government match funding from the Community Ownership Fund to bring drawn up, which will be matched £ for £. However, this is subject to us producing a revised plan and budget and finding the initial funds mainly through fundraising that are not yet included in the budget.
The running costs of this alternative plan will fluctuate, with costings increasing with more activity, but this would be variable and on a breakeven basis until Elite Mens Football returns.
It is understood that the society would lose out on £450k of funding from Bury Council should the merger proposal not be passed. Without this significant amount, the works required to continue to improve the condition and usability of the stadium would take a substantially longer period, and may rule out much of the work completely. Improvements will happen, but possibly on a smaller scale. The proposed redesigned corporate suite will provide a great opportunity to modernise the stadium, but the current facilities are feasible for short term or long term hire in the meantime. Because of this drop in investment, we would also have to downscale the initial designs for the community gymnasium to make sure it fits within the reduced budget. Projects such as this are not currently included in the budget and will need to be driven through fundraising and/or future profits.
The society already has an agreement in principle for a kit deal as well as some kit sponsorships should an Elite Mens Team play at Gigg Lane for 2023/24. There are also a number of businesses who are committed to supporting the club commercially once a league position has been granted.
Should the proposal for a merger not pass, any successful applications for grants from the Football Foundation Funding for an artificial pitch would reduce to approximately £100k which would be subject to an application inline with a local plan. This would also only allow us to build a FIFA quality pitch up to the step 3 of the National League System before that too would eventually need replacing. This would be a community pitch with up to 50 hours per week of use advised. If an Elite Mens Football team returns to Gigg Lane, and if it eventually progresses to tier 6, we would be eligible to apply for an additional £100k grant from the Premier League System.
The cost to install an artificial pitch is high so we would liaise with the membership to see if that is something we feel we should continue to strive for. Without the council funding, this project would likely have to be sacrificed unless significant additional funding could be generated.
If the funding for an artificial pitch is not secured, the current ground staff are comfortable continuing to maintain the existing grass pitch. The stadium currently provides a good quality grass surface, whilst also getting regular community usage. This would still contribute a reasonable level of income for the stadium. We would also have to then schedule a grass pitch rebuild regardless for next summer, which would be required as there has been minimal work done on it since the acquisition in February 2022. However, the current schedule would see us through with a good standard of pitch up to summer 2023.
In summary, if members do not vote in support of the merger proposal, our income is significantly reduced and we have uncertainty as to when we would be allowed use or the Bury FC name and whether we would be accepted into a league for the season 2023/24. Despite this we are confident we can run the stadium on a breakeven basis until such time that an Elite Mens Team can be established at Gigg Lane.
The alternative plan gives no guarantee as to what league an Elite Mens Team could enter at, but we are confident of obtaining a FA affiliation to form our league application. We will have a significant reduction in capital but would endeavour to make improvements overtime if profits and/or investments allow. As part of this the society, its members and community will be looking to seek additional revenues on top of the current projected to raise £150k before May 2023 (the board of BFCSS are confident that this is achievable) to give us the necessary cash flow to start operate a sustainable football club, this additional revenue could be from additional and current benefactors, events, community share scheme etc…
Thank you for your patience and support during this period of waiting and uncertainty.
