These are some observations with regard to Kansas City Rugby Football Club and where it is going in the future. The present situation both on and off the field leaves the club at a crossroads. The choices are simple, stay on the present course with the current facilities and continue to win some and lose some games, or put together a business plan to develop the club.

It is our belief the direction the club must take is to go forward and utilize its principal asset, a squad of young dedicated players, and achieve the following goals based around a mission statement.

The format of this plan is as follows,

Financial section, including income statements for 1997 & cash flow. A projected income statement based on the requirements of the club to achieve the goals. This section is divided into two,

Section A. Opportunities to fund the day to day expenses of the club and meet the short term goals.

Section B. Requirements to achieve the long term goals of the club and funding ideas.

To be the premier rugby football club in Kansas City, the club of choice for all players and supporters.

To play in the USA national club championships.

To acquire a facility for playing and enjoying rugby, fields, lights and a clubhouse.

To develop rugby with schools and universities so as to ensure the growth of rugby.

Hire and retain a qualified coach for a minimum of three years.

Identify the funding requirements for the club.

Identify a playing area which has a minimum of two playing fields and a training area. Lights are a requirement.

Identify the requirements for developing the players.

Identify the requirements for attracting players to KCRFC.

The club must be in a financial position to purchase land, that will include three playing fields, two training areas, a clubhouse and parking. The site identified in year one of the plan may be available for a long term lease.

Field two senior sides, one old boys side, an under 21’s, high school side and a mini rugby development program for children.

Build relationships with sponsors to fund the capital expenditures for the club.

To put in place a group of qualified coaches that can develop rugby in high schools, colleges, universities.

Hire two overseas players, with jobs and salary. These players would be experienced players for Europe or the Southern hemisphere. They would work with the development squads as well as the local schools.

Self funding, through the use of the club house for functions, fund raising activities and corporate sponsorship.

The club has at present a squad of 44 players, the definition here is people who attend at least one training session a week. We field two senior sides every week. In the past two years, the club has gone from strength to strength. The adoption of a full time coach, Adrian Horre, has delivered outstanding results and has led to an influx of new players into KCRFC. However the success on the field has not been met with success off the field.

The club recognizes that if it is to continue to grow, attract new players, and achieve its goals, it must have facilities and a sound financial base.

At present the club operates on a budget that is insufficient to meet future demands and goals. The facilities are inadequate for our goals.

1. The club does not have its own field, or a clubhouse. During the season the club has to use two fields, both publicly owned, which do not meet our requirements. Gillam park does not have lights and we are not guaranteed the facility for training. The second facility which is used in winter, does have lights, but no football pitch or posts. These facilities are inadequate for the growth of the club.

2. The current financial situation(see appendix 1 for 1997 accounts) shows that in the new world of rugby, the club cannot sustain itself financially. Costs continue to increase, insurance, travel, fees due to the Union. The current fund raising efforts while laudable, will not be suffice for meeting the goals outlined in the mission statement.

3. To be competitive we have to strengthen our fixture list, the current fixture list which is based on the need to stay close to Kansas City, does not provide the level of competition the players require. To ensure success on the field, we need to travel further and this costs money. Many of our young players, are in college or studying part time and they cannot afford to travel.

On April 11th, the club traveled to El Paso, to play a qualifier for the Western Championships, this was the most important game of the year. The ultimate achievement in a year that has seen the club beat KU for the first time in 8 years. Yet, we had to subsidize 6 players, to the tune of $900, so that they could travel. This money came from individual members and the club.

If we want a premier club and we want to see premier club rugby in Kansas City with KCRFC, then the club must have the finances to travel.

4. As many of you are aware, rugby is now professional. We in KCRFC do not envision having to pay our players to pay rugby, but we are realistic to understand that to attract key players, we may have to pay money. The old days of overseas players coming to the US for to play rugby and party are over, these players stay one season if that and then disappear. We need a strong recruitment policy based on

A. Developing a close relationship with the high schools that play rugby in Kansas,

providing training, support, and sponsorship, so that they play their senior rugby in KCRFC.

B. A policy of identifying overseas players, who have the profile to work and live in Kansas city on a full time basis, over a period of 2/ 3 years. This policy would be based on obtaining employment and housing in the Kansas City area.

C. A policy of attracting US players to Kansas City through work or payment. This is a controversial issue, but we have players in the club who are receiving offers from other clubs in the US. We cannot bury our head and say it will not happen, it does and it will continue.

D. The provision of a qualified coach is a necessity to achieve success and attract players and sponsors to the club. This the club has now and it should not lose.

The business plan is divided into two sections for financial purposes, section A deals with the funding requirements for the day to day running of the club and section B, identifies the capital spending requirement’s to achieve the long term goals of the club.

It is clear from an analysis of the club accounts in 1997(see attachment 1) that if we want to achieve our goals, the funding for the club has to have a radical improvement. In the 1997, the income for the club was $20k, and the expenditure around $17.3k. To achieve our goals we estimate the club will need an income of $65k, to cover additional expenditures, such as leasing/mortgage payments on fields, fees for coach.

An analysis of our cash flow statement for 1997, shows that our income versus expenditure leaves months with negative cash flow, and this will have to be resolved by a more consistent cash flow into the club.( Attachment 2, A)

The key issue from the income statement and cash flow is that we depend on fund raising to meet our requirements and that our club dues are low relative to our player numbers.

In attempting to meet our short term goals for 1999 we have developed an income statement(Attachment 3) and from that a cash flow statement(Attachment 2,B) that would enable the club to achieve its short term financial goals. The analysis considers the following expenditures,

Coaching fees of $7,000 per annum.

Leasing of fields/Rental/Mortgage payments, $10,000 per annum.

Incentives for players, $7,000.

Away match subsidy, $12,000.

Normal expenditures as per 1997, $17,224.

Prize draw per month, $9,600.

All of these items are open to discussion, the objective here is to attempt to cost what we believe are items that will allow the club to achieve its goals. It is our opinion that this cost is at the top end of our requirements. The incentives for players is possibly unrealistic, or may not appeal to the club, but we will recognize the need for additional players in key positions. The away match subsidy is subsidize flights and hotels as we recognize the need for an improved fixture list. The prize draw per month is related to one of our fund raising ideas , which would give the club a source of consistent cash flow every month.

The estimate of $10,000 for fields is not based on any particular finance package, or the purchase of fields, but in the short term, renting or leasing of suitable grounds.

Funding the short term goals.

As stated previously, the current finances of the club cannot meet our short term goals and on this assumption we have developed the following proposals to generate income.

The requirement is simple, 20 people contributing $150 per month, through the foundation, which is tax deductible. This will generate $3,000 cash flow each month. A draw held each month, with one winner, who collects $800. The reminder goes to the club, $2,200 or $26,400 a year. This is more than the total income of the club in 1997.

This idea has worked successfully for rugby clubs in England and Ireland.

Similar to the gold circle, except the quarterly contribution is $100, 20 people, and a quarterly draw of $500. Additional income after draw, would be $6,000 per year.

In addition the club should hold four fund raising events, the golf tournament, a black tie dinner at Christmas bringing together all parties interested in KCRFC , a summer pig roast, and the Heart of America Tournament. We have been very conservative in our estimate of income from these events, at $5,000. Why. These events require organization, and we will be requesting people to pay into the Gold or Silver circle in addition to corporate sponsorship, there are only so many times you can go the well. The key requirement is people to organize these events.

All of these plans will achieve nothing unless there is a committee formed from the foundation and the club with a minimum of 6 people who are prepared to put the time and effort to achieve the goals.

The objective is to identify 4 sponsors who would contribute, $5,000 per annum to the club. In return, we the club would provide a package for these sponsors, so that they receive recognition. An example of a package would be, free ground advertising, company name on shirts, free attendance at fund raising events with guests.

Our target is $20,000 per annum. Potential corporate sponsors could come from local business’s, financial, legal, manufacturing, service providers or International companies.

(See attachment 5 for potential list)

The above are our ideas on how to finance the day to day operations of the club, taking into account the increased expenditures required to achieve our goals. It is clear that we could increase our fund raising number and we should by at least another $10,000. However we have to see commitment from a committee before we can increase this income number. The objective must be of focus on a few events and corporate sponsors and provide a quality package.

Success in these ventures will require careful financial management. The club must put in place adequate measures to control the flow of money. In my experience, cash should not be accepted under any circumstances. People should pay be check or credit card. The credit card option cost money but cash will cost more. The accounts will need to be audited every year, corporate sponsors will require this at a minimum. At least two signatures on all club checks and a monthly report on the club finances presented to the committee.

The long term goals for KCRFC require significant capital spending in the next five years, the section identifies the projects, estimated costs, and outlines the funding requirements.

A team to handle the project, should include, legal, real estate, and financial expertise.

Develop a plan with specific dates for each section.

Goal 1.

Purchase of land for playing fields and clubhouse.

Timing. June/ July 1998

Expenditure required, estimated at $140,000 for 24 acres..

Down payment required, estimated at $40,000..

KEY DATES.

Formation of team. June 1998.

Development of plan, to include responsibilities for,

Site requirements, number of pitches, training area, drainage, access to highways, safety, environmental issues. and site location.

Financial plan specific to funding for site location and development.

.

GOAL 2.

Building of clubhouse.

Estimated cost in at the end of year 2000. Estimated cost $150,000

Facilities to include,

4 changing rooms, large with access to showers and toilet facilities.

Entertainment room, suitable for dinners, dances, and rental to outside groups for functions.

Kitchen for preparation of food.

Bar, large for supporters, families.

Following a meeting with the foundation on May 19th, it is clear that two potential sites have been identified, both could require a purchase by the club, and there is a possibility of one site being donated to the foundation,

If the club has to purchase one of the two sites, then the decision must be approached on a financial basis, it will require a down payment and payments monthly to meet the finance charge. It is possible from Section A, to fund the monthly payments providing the fund raising goals are achieved.

In the business plan presented by the foundation the purchase of the fields and need to make the club self funding is discussed in detail.

I recommend that we merge both plans and use the foundation plan for section B. It shows how they.

At the start of this business plan, we identified the club was at crossroads, it is our opinion that the club should take road to building the premier club in Kansas City, providing facilities, developing player talent and allowing all members to enjoy rugby by being associated with the premier club.

The steps to achieve this are outlined, however it is easy to put it on paper, it requires a group of dedicated people to deliver. Four annual events, a monthly draw from 20 people and 4 corporate sponsors, that is the plan. If we cannot deliver this, then section 2, the purchase of a fields, and the building a clubhouse is a dream.

George Mullan. Contact number, 913,664,7024. Office.

Paul Scruggs . Contact number 913-338-1474. Office.

A brief history.

Founded in 1958 by -----------------------, who finding himself with time on his hands, decided to bring much needed culture to this city of football and baseball. The vision at the time was to bring together a group of individuals who enjoyed mild exercise, and excessive drinking. This of course was typical the world over, except in New Zealand, where they cheated and decided the game was about winning.

The club prospered through the 1960’s and 1970’s, with such memorable moments as---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Characters such as --------------------------------, who represented the club, at international level.--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The 1980’s were a high point for the club, with success on the field, the club won ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The early 1990’s saw the club virtually slide into oblivion, playing numbers dropped to below 15, which as you are well aware is a slight problem in rugby. Regular training sessions declined and with the reputation and performance of the club on the park. The survival of the club during this period is due to a few people, Danny--------, Paul Scruggs,----------------------------------------------------------------------------------------------.

The club survived this crisis and in the past two seasons has prospered. It is our job as members of KCRFC to ensure that this does not happen again, and to do that, we have to lay solid foundations for the club. Attack is the best form of defense, is a famous quote, and that is the basis of the business plan. We must attach the inertia of our members, build this club to its a position of strength.