Dear eagles,
Due to the great interest and public importance, and numerous questions about the club's plans and objectives to the team in the coming years, your attention and provide input a previously approved business plan for the development of FC Pirin Blagoevgrad.
The plan underwent some goatsemetic change, instead change the founding document referred to in phase one, because of the urgency of litsienzionnite requirements for obtaining a license in professional football, two representatives of the "Emireyst Welt", one of which is Mrs. Iva Warren, They will be appointed to operational posts for a smooth transition and to phase two of the business plan.
Financial terms are very conservative and represent the minimum eligibility, especially in the revenue part.
Particularly important points in the plan are:
- All future funds, voted and awarded by the Municipality of Blagoevgrad go into a separate account, designed exclusively for the youth academy of FC Pirin.
- Investment only “Emirates Fands Exchange” amounted to 1 500 000 Levs. the years.
- The budget provided 50% buffer ( funds provided over ), to ensure peace in excess of set monthly limits.
- Long term investment and ambition to develop the club in Second, and then in League One.
Forward and up, and only Pirin!
"Emirates FANDS Exchange" Ltd.
"Emirates Welty" JSC
g. Sofia, this is. Al.Stamboliyski 84-86, et. 4, office 18
========================================================================
BUSINESS PLAN
for
acquisition management partnership and joint ownership with the Municipality of Blagoevgrad "MUNICIPAL FOOTBALL CLUB Pirin" Ltd. (club) and improve its financial position
This business plan is made of "Emirates Fands Exchange" Ltd., EIK 201075627, g. Sofia and is intended for presentation to the Municipality of Blagoevgrad, Blagoevgrad City Council and the Mayor of Blagoevgrad. The business plan is consistent with the basic parameters of the Annual Financial Report 2018 g. of "regional football club Pirin" Ltd. (club), and with the justified expectations of the development of the Club.
The purpose of this business plan is to improve the management of the club, to provide funding for the formation of a team of football experts, coaches and players, to establish an effective system of training of adolescent school children (DYuSh) and the representative male team, so as to create a team of players, which can achieve high results participating in the Second Professional League and subsequently in First Professional League.
One of the main objectives of the plan is to outline steps to acquire managerial involvement "Emirates Fands Exchange" Club Ltd..
The plan include the expected investment, to be made in the maintenance and modernization of the stadium "Hristo Botev" and training facilities in. Riltsi and. Padesh from Budget Unit "Sports Properties", and cover running costs for preparation and participation in football championships. In this business plan we rely on the maintenance of sports facilities by the Municipality of Blagoevgrad so, as it was until.
The main sections of the business plan cover:
BUT) Phases of the acquisition of managerial involvement in the Club;
B) Investment Scheme to provide funding for the Club with a view to achieving the objectives in this Plan.
BUT) PHASES OF ACQUISITION MANAGEMENT OF PARTICIPATION IN THE CLUB. The acquisition of managerial involvement in the Club takes place 2 phase, as follows:
- 1. first phase. It requires a change in the company's contract Club, as it is LTD sole shareholder Municipality of Blagoevgrad. Changes in the company contract, we offer the following:
1.1. Appointment of second governor and a change in the manner of representation as managers represent and manage the club only together. The second governor to be proposed by "Emirates Fands Exchange" Ltd.. The proposed change is to acquire the capability "Emirates Fands Exchange" Ltd. have access to the management of the Club and monitor specific management actions, have access to operational problems, Emerging work, to propose and decide, and receive complete information on current income and expenses in the Club;
1.2. Appointment of the Financial Controller, proposed by the "Emirates Fands Exchange" Ltd.. The proposed change is "Emirates Fands Exchange" Ltd. have full access to financial flows and to control them, check document, concerning financial activities, accountability, and to identify any problematic issues and propose solutions to managers. Will maintain accountability of the controller and to the Municipality of Blagoevgrad;
1.3. A separate representative "Emirates Fands Exchange" Ltd. to provide access to electronic banking Club (passively, with the ability to monitor transactions, by management), and access to the accounts of the Club with a view to analyzing and reporting practices.
The first phase runs parallel with the already signed contract for advertising cooperation with "Emirates Welt" EAD 11.06.2019g.
In order to witness the seriousness of investment intentions, and previous commitments to the Club, point out, that Mr. Paul Belogour, as the owner of "Emirates Fands Exchange" Ltd., made donations and advertising payments totaling 410 000 Levs. Out of that amount provided funds for equipment and cover additional costs about 30 000 Levs.
- second phase. Forming Ltd jointly with "FOOTBALL CLUB Pirin" featuring "Emirates Fands Exchange" Ltd.. This phase is started after it passed the first stage and it will be implemented in-depth management of the Club of 'Emirates Fands Exchange "Ltd.. The elements of the second phase are as follows:
2.1. Establishment of a limited liability company (Ltd.), which partners with distribution of shareholding are: a) "MUNICIPAL FOOTBALL CLUB PIRIN" LTD - 25% participation in the capital; b) "Emirates Fands Exchange" Ltd. - 75% participation in the capital. The capital and the rights of a partner 25% Participation prevent blocking quota or extended the right to dividend.
Blagoevgrad municipality as the owner of "regional football club Pirin" Ltd. should take the responsibility to vote on budget Club, not less than 0.5% the annual budget of the municipality of Blagoevgrad, which for the most part will be used for the development of children's school (DYuSh).
The principal activities would be as follows: Create professional, amateur and children's - youth football teams, conducting training of players and the organization and administration of their participation in Republican, zonal and district championships, as well as in international football tournaments, registration and termination of Ineligibility of players, carry out transfers of footballers, acquisition and evaluation of advertising rights, television and radio broadcasting of sports events, organizing and conducting sports services for citizens, organizing schools and courses for training - training and sports - racing activity, construction and operation of sportswear and equipment, support the activities of citizens and organized football for practicing football, performing other activities, which are related to assistance, promotion and development of football, implementation of training and sports - competition for other sports, organization of training, racing and organizational - administrative activity, building, management and maintenance of sports facilities, development and promotion of physical education and sport, organizing sports tournaments, competitions, football matches and others., development of children – youth sports, detection and support sporting talent, and any other activity, prohibited by the Bulgarian legislation.
2.2. The Company will have its registered office and headquarters in the city. Blagoevgrad and will be managed and represented by 2 managers only together, one proposed by the "Emirates Fands Exchange" Ltd., and the other from "OFK Pirin". The capital is projected to be 10 000 Levs.
2.3. "MUNICIPAL FOOTBALL CLUB Pirin" Ltd. shall transfer its license rights in racing second professional league and championships BFU, the newly established company. We show, it is condition sine qua non for the realization of the second stage and the overall business plan. For the smooth administration of the business plan, The second phase should be completed as quickly as possible, we expect to occur no later than 3 months of the submission of the plan.
The purpose of the formation of the new Ltd is might "Emirates Fands Exchange" Ltd. to make targeted additional cash contributions CA and with them to achieve their goals, set out in this Business Plan. By target contributions gives greater interoperability, while retaining the ability advertising contracts to be concluded, as with "Emirates Fands Exchange" Ltd., and with its subsidiary 'Emirates Welt "JSC.
Expected development of the joint venture "FOOTBALL CLUB PIRIN" LTD in sports training and participation in tournaments.
- for Season 2019/2020 The club will rely primarily on their own players filed in this sport racing year and players from youth groups;
- The creation of the coaching staff and team of football experts, a proven track record and reputation, to launch and develop the recovery process positions Club and reaching the top places in League Two;
- Developing children's school and the establishment and development of relations with leading European schools and teams;
- Development of women's football at the Club in all its forms by holding talks with FC "Sportika" in this direction;
- The formation of marketing strategy. Building a positive approach to PR Club through local media and those at national level;
- Forming the budget for transfers and training, of adequate targets, as well as bonuses to employees, based on performance.
long-term goal: the realization of the investment program and properly structuring of resources in the Club and overall company, prior to 36 months may reasonably be expected, that club to return to the First Professional League, whereby to convert worthy 100 anniversary of its establishment.
B) INVESTMENT SCHEME TO PROVIDE FUNDING OF THE CLUB
Investment policy covers investments for creation of a team of coaches and players, expansion and support of repairs on the stadium and training facilities, purchase of necessary equipment and development of the youth sector.
Principles and Objectives:
Investment policy is built on the following principles:
- Construction and maintenance of sports facilities, to serve the participation of clubs in national leagues and tournaments;
- Construction and maintenance of sports facilities, to serve the training process of the newly established company "FOOTBALL CLUB Pirin" Ltd.;
- Construction and maintenance of sports facilities, Caters to matches and training process of youth development program;
- "Emirates Fands Exchange" Ltd. provides the formation of a financial buffer size 50% by laying budget, calculated on the basis provided by "Emirates Fands Exchange" means Ltd..
- Opening and maintaining separate accounts for: a) provided budget 6 to 12 months the Company; b) Advertisers and advertising revenue; in) for youth development program and its funding.
- Public statement for the month, made available no later than the 14th day of the following month by management;
Analysis of income and expenses in operating activities of joint venture, opportunities for profit.
In view of the development of the Company, "Emirates Fands Exchange" Ltd. predicts the following revenues and expenses (thousands. Levs).
(in thousand)
| Statement of income and expenses | 2019-2020 | 2020-2021 | 2021-2022 | 2022-2023 | 2023-2024 |
| Income | 2070 | 2140 | 2510 | 2710 | 2930 |
| Revenue from games | 50 | 70
|
90 | 110 | 130 |
| sponsorship, advertising and merchandising | 50 | 70 | 100 | 150 | 200 |
| TV rights | 30 | 50 | 300 | 350 | 400 |
| Sales of Ineligibility | – | – | – | 50 | 100 |
| Youth development program and other (donations to youth development program) | 90 | 100 | 120 | 150 | 200 |
| Income from financing by the Municipality of Blagoevgrad | 350 | 350 | 400 | 400 | 400 |
| Own funds of the "Emirates fands Exchange" Ltd. | 1 500 | 1 500 | 1 500 | 1 500 | 1 500 |
| Operating expenses | 1525 | 1832 | 2169 | 2406 | 2643 |
| materials | 60 | 70 | 80 | 90 | 100 |
| external services | 250 | 300 | 300 | 300 | 300 |
| Staff | 1 200 | 1 350 | 1 600 | 1 800 | 2 000 |
| Costs for stadium and facilities | 10 | 15 | 20 | 25 | 30 |
| other | 200 | 240 | 260 | 280 | 300 |
| EBITDA | |||||
| Depreciation | 5 | 7 | 9 | 11 | 13 |
| operating profit | – | – | – | – | – |
| Other incomes (expenses), net | – | – | – | – | – |
| Financial income (expenses) net | – | – | – | – | – |
| Impairment of assets | – | – | – | – | – |
| Profit before taxes | 345 | 158 | 241 | 204 | 187 |
| taxes | 35 | 16 | 24 | 20 | 19 |
| Net profit | 310 | 120 | 217 | 184 | 168 |
| profit balance (current + previous year | 430 | 647 | 831 | 999 |
During the seventh year of investment expected increase in revenues from 20% and costs by 10% .In the period of '10 on investment we expect an increase in revenues from 30% and increase the cost of 15%.
Exit investment. Terms & features
"Emirates Fands Exchange" Ltd. as a business partner, who wants the development of the Club, It is able to withdraw from their investment intentions, if establish or prove any influence by third parties, concerning the sporting and technical and financial development of the Club, what impact does not rest on sports technical and financial arguments, It is not justified by such and not based on objective professional management evaluation.
"Emirates Fands Exchange" LTD accepts, that is contrary to its ethical, moral and business principles to prefer certain players over others of unprincipled basis, in vague grounds or directly based on ill intentions. In the presence of such data quitting the business-partner relationships is an option for "Emirates Fands Exchange" Ltd..
The same principles are shared by "Emirates Fands Exchange" LTD and when the third party outsourcing, service providers and / or consultants.
"Emirates Fands Exchange" Ltd. would like to receive from the Municipality of Blagoevgrad assurance, it will vote on the budget Club, as the role of "Emirates Fands Exchange" Ltd. would be to stabilize and support the development, but not within the power of private investor without the support of the Municipality of Blagoevgrad to achieve goals. In other words, We appreciate and rely on partnerships and joint support of the partners in this endeavor. The lack of such support could shake our confidence, because we believe, that collaboration implies a common vision, whose realization is by implementing this type of obligations by the partner - Municipality of Blagoevgrad.
ANALYSIS OF RESULTS AND CONCLUSIONS
By creating a business model and business plan development it became possible to trace in depth the key indicators, that can move this business plan. The main results can be summarized as follows:
1) The club is in good financial condition, because of missed opportunities over the years, and because of other factors. Without the proposed steps for joint management and penetration of private investor can hardly be expected in the foreseeable future club to restore their financial health and sporting deserved place in League One.
2) It is necessary to realize new revenue in the form of sponsorship and advertising, and to introduce a reasoned approach to business costs.
3) It is necessary to stabilize the position of the club in League Two and to seek participation in the First League.
4) It is necessary to invest in the youth academy, to have continuity and club have constantly growing income from the sale of own staff.
5) It is necessary to invest with DB "Sports Properties" in the expansion and reconstruction of the stadium "Hristo Botev" and training facilities, to be able to serve the sports-racing calendar, and be able to conduct training process (including. and YUSH) a high professional level.
6) The state of the club and its position in League Two, as well as state and analysis of sporting rivals, requires caution regarding the choice of the period for making new investments and their prioritization.
When adopted, this Business Plan, normal operations of the Club will be restored, this will lead to the generation of new additional cash to shareholders in the newly formed company - Blagoevgrad municipality and private investor.
CONCLUSION
This business plan is consistent with the realities about "regional football club Pirin" Ltd., demonstrated logical and financially, that partner relations with "Emirates Fands Exchange" Ltd. are a step in the right direction and start on the road not only to stabilize, but also for subsequent development of the new company FC Pirin.
The club has the potential to generate cash flows to employees, government and partners. This makes it possible in the medium term through joint participation in a new company and through advertising contracts, by additional cash contributions and revenues to operate, reinvest profits in new investments, sport facilities, Athletes and youth development program.
Not least in importance, stress, that the current business plan would have a comprehensive social response in the Municipality of Blagoevgrad and the region as a whole, as supporters of FC Pirin expect and welcome development team. Team became a symbol of successful athletes, team deserving of decent training and competition, team, playing in League One.
ONLY Pirin!
Manager of "Emirates Fands Exchange" Ltd.. Sofia, July 2019 g.
