Hampshire chairman Rod Bransgrove gives members a full review of the many exciting developments taking place at the club
Quarterly Newsletter27-Nov-2001Hampshire chairman Rod Bransgrove gives members a full review of the many exciting developments taking place at the club. This letter was kindly reproduced by Andrew Renshaw from .The headline news can be summarised:Shares placing aims to raise £7 millionPavilion to be open for next seasonRepresentations made to ECB for staging International cricket at the Rose BowlMembers Club takes effect from November 1Plans submitted for golf driving rangeHopes of pop concert, opera, trade showsChairman’s letter to members:I should like to use this newsletter to bring you all up to date with the range and extent of the activities undertaken since our AGM in March.As you can imagine, this has been a very busy year – at times frenetic – but I believe we have made enormous progress in all areas and I am confident that first-class cricket in Hampshire will have a long and successful future as a result of these efforts.Cricket |Stadium |Financial |Structure |Members |Placing |Flotation |International |Fees |Pre-Season |Golf Range |Other | [Please click on the link to reach each category, press back button to return to this list]CRICKETLet’s start with the performance of our cricket teams. At the beginning of the season we asked the First Team squad to dig deep and summon all the strength of character they could muster. We wanted to get out of the habit of losing games and become more resilient; harder to beat. It is fair to say that the playersresponded superbly from the very first game and this resulted in our promotion to Division 1 of the CricInfo Championship.We were also determined this year to provide more opportunities to our younger players – particularly in the Norwich Union League – and they did not let us down. We narrowly missed promotion to Division 1 of the NUL but we can take heart from the fact that our younger players promise much for the future.Two of these players, Derek Kenway and Chris Tremlett, have been rewarded with selection for the National Academy based in Australia this winter and we wish them every success. Although our junior teams did not win any titles this season, several players achieved higher representative honours and theUnder 17 XI reached the semi-final of the ECB Championship.A number of Under 19 XI players gained experience in the Second Eleven who won their National Championship in such convincing style. My thanks go to all the managers and coaches who work tirelessly on behalf of our young cricketers. Their continued development augurs well for the future of Hampshire Cricket.I do not wish to dwell at this stage on individual performances, but I must congratulate our First and Second XI coaches, Jimmy Cook and Tony Middleton, on their mutual success this season and, of course, Robin Smith, who captained the 1st XI so well all year. I should also mention Nigel Gray and his team who have done a magnificent job during our first year on a new square. This was a huge challenge and I am very grateful to our excellent ground staff.STADIUMWith all hands to the pump throughout the first few months of 2001, we opened the season in our new 6,000-seater stadium. The Atrium bar was opened and a series of temporary marquees were set up to provide hospitality and catering as well as players’ changing facilities. Although far from perfect, I believe we were all very pleased and proud of our new home.During the year we completed some of the external works around the top of the berm as well as the fitting out of the Cricket Academy and Gymnasium.The response to our new ground has been breathtaking; visiting teams, umpires, members, guests, TV commentators and journalists alike have hailed it as the state-of-the-art. It has genuinely put Hampshire Cricket firmly on the map and our pride is well justified.However, there is still much to be done. I am very pleased and excited to be able to inform you that we now plan to start works to complete the Pavilion building, thus providing further facilities for members and guests, as well as permanent changing facilities for the players and some administration areas.Through good housekeeping and close budgetary control we are able to commence these works in October in order to be open for business by the start of next season. Several alternative plans have been considered for fitting out this building in an attempt to optimise the space and control costs.There are many other things we would like to do in preparation for next season; indeed, many as a result of members’ suggestions throughout the year. These include:Hand rails to certain designated areas for the elderly and infirm visitorsEntrance pavilions and turnstilesLighting to car parksCompletion of the surface around the top of the berm (ie ‘fixing’ of loose stones/gravel)Brick built toilets/cloakroomsImproved PA systemAll these works, and more, need to be done. However, they all require funds and we are obliged to ensure that any works undertaken in future can be continued to completion without causing the new company financial difficulties. We are now back in business and we intend to stay there.FINANCIALAn enormous amount of time has been expended over the last few months in reviewing – again and again – the exact financial status of the business and, in particular, the Rose Bowl project.This investigation has resulted in a full-time Project Manager, Geoff Cox, being recruited to run the entire project on-site. Geoff’s expertise and meticulous attention to detail has contributed enormously to savings made in respect of works both in progress and planned.In addition, we have negotiated endlessly with all contractors, sub-contractors, agents and advisers to reduce outstanding liabilities. This activity has yielded savings of some £0.5 million.Whilst we expect to show a very significant trading loss this year, we believe we are ‘turning the corner’.Our Profit and Loss Account in 2001 has been significantly hit by a number of factors:The delay in the opening of ‘Connors’ and some redundancies resulting therefromThe necessity for interim arrangements to provide catering facilities in 2001Significant rental costs for temporary buildingsRestructuring costsIn addition, the Accounts for 2000/2001 may well have to reflect some balance sheet amendments (for instance, the asset value of the Rose Bowl) and this could seriously affect the apparent financial results for this year. However, we believe that all this can be managed within our revised Business Planand yield profitable returns in the future. Naturally, we have taken, and will continue to take, specialist professional advice in respect of all these issues.STRUCTUREWith effect from 1st November 2001 the new Board of Directors will take control of the business.The structure of the new operation has required exhaustive input from legal and financial professionals in order:to protect against Capital Gains Tax exposure resulting from the sale of the old ground at Northlands Roadto preserve any Corporation Tax benefits accrued in the existing businessto take account of legislative requirements relating to both Friendly Societies and Limited Companiesto take account of the interests of membersto provide a tax-efficient mechanism for new investorsto provide Hampshire Cricket with long-term security, andto ‘unlock’ to the fullest extent the potential of our commercial operationsAll this has resulted in a new corporate structure but where the interests of the members is still preserved, as promised, by the Golden Share.The Board of Directors presiding over these companies will be constituted as follows:Chairman: Rod BransgroveChief Executive Officer: Graham WalkerDirector of Cricket: Tim TremlettNon-Executive Directors: Mark Nicholas, Feroze (‘Jan’) Janmohamed and Nick Pike.MEMBERS CLUBAs a result of the new corporate structure, the Friendly Society will cease trading on 31st October 2001 and the newly re-constituted Members Club will operate on behalf of the members from 1st November 2001.Members’ privileges will remain as before and it is hoped these will be significantly enhanced at the new ground.As you will recollect from the Members’ AGM and the subsequent EGMs, the major difference will be that the Members Club will not be directly involved in the actual running of the business. However, it will have a consultative role and two Appointees of the Members Club Committee will be entitled to attendBoard Meetings on those occasions when relevant cricket matters are under discussion.Since the existing Committees cease to have any purpose with effect from 31st October 2001 and you will not be electing your new Committee until the AGM, we have put into place interim arrangements whereby your interests will be served by a working party of existing Committee members who are prepared to stand for re-election to your new Committee.At the time of writing the intentions of all current Committee members are not known to me, but you will be informed of these in due course.In order to maintain consistency during this interim period, I have agreed to continue as Chairman of the Members Club until April 2002 and have appointed David Robinson and Roger Treherne as the two Appointees to attend Board Meetings as outlined above. Once you have elected the new Committee,it will appoint these officers from its own ranks.I hope you will agree that this is a fair way to protect your interests during this ‘limbo’ period from November 2001 to April 2002.PLACINGOur plan is to launch a Private Placing on 14th November 2001 in order to raise up to £7 million.Although this is a huge figure, you can be partly reassured by the fact that we have pledges up to about £4.25 million, leaving another £2.75 million still to raise.The minimum investment requirement for placees will be £10,000.00 and, therefore, for the majority of our members this would be prohibitive. However, according to our questionnaire earlier this year, we know that a significant number of members would like to participate in share ownership and we have, therefore, established a nominee company, known as Hampshire Cricket NomineesLimited (‘Nominees’), which will effectively constitute one placee. You will be able to subscribe for shares in Nominees and your subscription will then be used to acquire shares in the new trading company. Once the business is ‘floated’ on a stock market, Nominees will transfer to you your investment and you will hold your shares in the trading company individually.Those of you who indicated your desire to participate in share ownership will be receiving full details in November and, if you would like to be added to this register, please let us know as soon as possible.FLOTATIONWe have stated that it is our objective to include our new company on a suitable stock market when an appropriate moment arises.You will know that, at the time of writing, all stock markets are in a volatile state and we will be watching these developments carefully.However, we are hungry for success in the First Division and keen to stage International Cricket at the Rose Bowl. Our success in achieving these objectives combined with our business performance will dictate optimum time for a flotation. Naturally, we will keep you informed in this respect.INTERNATIONAL FIXTURESWe have made several representations to the ECB in respect of the staging of International Cricket at the Rose Bowl and I am hopeful that we will be rewarded with a One Day International by the summer of 2004.It is highly probable that we will be host to an Under 19 Test Match next summer and I think this will provide us with an opportunity to ‘audition’ for full International recognition. Let’s show the ECB how Hampshire supporters can rally behind our National Teams and turn out in force to watch the Test stars of the future in action.It goes without saying that our progress with the development of the Rose Bowl this winter will also significantly affect the potential for senior International Cricket at our stadium.FEES AND CHARGESClearly, the Rose Bowl project is a huge exercise designed to offer our members the best cricket facilities in the country.Our present level of membership fees is very modest in relation to the facilities and cricket on offer next season and, in an ideal world, we would like to increase these significantly. However, we are also acutely aware that, for many people, the Membership fee represents a sizeable sum and we donot wish to cause undue hardship.As a compromise, we are making only a modest adjustment to our basic membership fees for the season 2002 but we are asking every member who can afford it to make a voluntary supplemental payment of £20 directly to the Rose Bowl project. I would urge all members to contribute this supplement if you possibly can in order to enable us to provide you with the very best facilities possible.Since it is intended that the Pavilion will be open for business next year, we have made some adjustments to the Executive Club rates to reflect its relocation into the new building.We have made some further changes to our car parking fees in order to bring them into line with other sporting venues. However, we have made a significant discount against these for members purchasing car park season tickets.PRE-SEASON TOURHaving invested so heavily in both indoor and outdoor practice facilities the need to undertake an overseas pre-season tour is significantly reduced.Apart from Derek Kenway and Chris Tremlett, who are attending the National Academy in Adelaide, James Schofield, Iain Brunnschweiler and Irfan Shah are in Perth for winter coaching with Paul Terry, and Lawrence Prittipaul will be joining Jimmy Cook in South Africa. Other players may travel abroad for winter coaching after Christmas.In view of the above, therefore, we think it would be an inappropriate use of limited budgets to undertake an overseas tour prior to next season.GOLF DRIVING RANGEWe have now submitted detailed planning applications for a magnificent new golf driving range in association with The Playgolf Experience. We hope to start construction work on this project early next year.OTHER EVENTSWe are in early stage discussions to hold a number of other events at the Rose Bowl next year.Events under discussion include a pop concert, an opera and trade shows.Naturally, we will keep you informed of progress in respect of these events.Overall, therefore, you can see that we are making considerable progress on all fronts.From a personal point of view, I should like to say that, not only has this been a busy year, it has also been one of the most rewarding and enjoyable years of my business life.There are a number of people I must pay tribute to for their efforts in addition to those mentioned above:all staff involved in stewardship, catering, administration, scoring, golf management, the Hampshire Shop and other ground facilities. Throughout the entire summer our staff were helpful and cheerful and I am deeply grateful to them all;all Committee members who have been hugely supportive during a time of significant change. All committee meetings have been held in a constructive and convivial spirit which exemplifies the ‘Hampshire style’;the Executive Management who, more than anyone else, have had to continue the management of the Club at a new ground whilst coping with dramatic changes in style and circumstances. In particular, I must thank Graham Walker, the incoming Chief Executive, for his tireless efforts since April and Tony Baker, his predecessor, who has provided me with outstanding support and help at all times. He has been a truly magnificent servant of our Club for over 15 years and we will, no doubt, wish to mark his forthcoming retirement in an appropriate manner in due course.Finally, and most important of all, I should like to thank all our members for their fantastic support this year. The messages of encouragement, both written and spoken, have been enormously inspirational to me and I genuinely appreciate this.Whilst acknowledging that we still have much to do, I detect a great spirit amongst management, staff, players and members alike; a new sense of purpose whereby we all share in a mission to ensure a successful future for our Club – both on and off the field.During times of great change, of course, we will occasionally encounter difficulties but, if we can continue with optimism and an open dialogue, we will succeed.More than anything else, I look forward to sharing in that success with you all.Rod Bransgrove – Chairman