BMFA National Flying Centre

[MattyB]

Posted by Martyn K on 07/12/2016 17:30:13:

Well - it appears to be on then:

NFC Update

An interesting read and bookings are being taken

Posted by MattyB on 08/12/2016 12:10:11:

It is certainly a more pragmatic plan than a land purchase, and I wish them luck with the achievement of their goals - the site is as good as we could reasonably expect given the resources available to the BMFA. However I still think the financial model is somewhat rose-tinted, and not as "risk free" to members as it is portrayed:

• The BMFA are investing £335k within the first four year term of the lease (figures in this presentation). Lease costs are £18k in year 1, £27.4k year 2 onwards.
• You can probably add at least another £20-25k per annum to that for grass cutting, security, amenity charges etc (that is the only key figure they have missed out of their deck), so to stand still the project will have to generate revenues of ~£45-50k per annum at a minimum to be self funding. More than that will be needed if the proposed additional facilities are to be added.
• The independent report into available grant funding (commissioned by the BMFA and released prior to the EGM, but now no longer available on the web) stated that it was highly unlikely that lottery, EU or Government grants would be available unless economic benefits/development for the area could be proven. As a result the vast majority of capex will have to come from other sources.

I hope I am wrong, but I worry there just won't be enough onsite in the early years to attract the numbers of paying people (both members and general public) needed to bring in the necessary revenue. If this is just a nice field with toilets and camping facilities for the first few years will BMFA members travel long distances to fly there rather than popping down to our local club? Unless there is a nice café, gift shop, museum etc. it's why will members of the public pay to visit outside of big events like the Nationals weekend?

If at the end of the first four year lease period opex costs are still outstripping revenue the decision will be a tricky one. Does the BMFA invest more from reserves and/or the membership fee in order to get the additional facilities needed to bolster revenues to the break even point? Or walk away from the project and the £300k+ capital investment we have made to date? I suspect neither option would be popular with the members, so let's hope attendance is robust and fundraising efforts are successful so we don't get to that point.

As this is the definitive thread on the subject, updating it with the news of the lease being signed and financials.

[Colin Leighfield]

There are many possibilities here. I don't see anything impossible and expect this to succeed. Best now to get behind the team and let them know that they have our support. I don't think they've disappointed so far.

[ChrisB]

Good luck to it! I hope it succeeds and I'll male use of it and will support it where I can.

[Erfolg]

I suspect you are correct in your assessment Matty. In that the first years are almost certainly going to be tough to break even.

It is probably the second and third year that will provide the direction of travel, be it towards sustainable income or always falling short, with the statement that next year will be different.

One of the clubs of which i am member, does indicate that income of the level indicated, can be be done. Then the same guy was ignored when advice on the cost of agricultural land was offered. Perhaps with the goal of making a success of things, people other than themselves should be listened to.

The present strategy does seem far more realistic, although it will take real drive and commitment to make it happen.

I wish them the best.

Although i have this one reservation, the focus will not be as sharply focussed on what is being done today and will have to shift, however slightly, unless additional staff are recruited. I really hope that non of the other balls are not dropped, such as EASA.

Again, we can only wish and hope for the best.

[john stones 1 - Moderator]

Considering pressures we have on us at present maybe there's never been a better time to give it a go, not competition minded myself but if there's other things i can get involved in, i'm all for it.

[MattyB]

For completeness...

• New BMFA Buckminster (the new name for the NFC) website launched...
• Modelflying thread about the new site (started by Andy Symons)

Edited By MattyB on 20/03/2017 13:55:01

[MattyB]

Latest figures on the expenditure on the BMFA National Centre can be downloaded here prior to the 2020 AGM. You need to request a password from the BMFA quoting your membership no; I'm not sure why, as none of thie info seems sensitive.

The budget for the whole of the Association is set out, and the NFC split out clearly - it is projected to make a small operational profit, but that is reliant on £10k annual support from BMFA funds plus ~£30k per annum from the sponsors. Overall they are predicting an NFC deficit of ~£16.5k in both years, but that is assuming zero donations which is unlikely (over the last 2 years they have averaged ~£27k, though last years was only £12k).

Personally I am glad no proposal for additional member support is being requested in year 5 (year 4 was the last year sponsorship was guaranteed). However, with Covid and a loss of membership of ~4000 since the NFC was instigated (and further falls projected) it appears a long way from being genuinely self funding. The income numbers for next year also look somewhat optimistic given the NFC is unlikely to be operating as it would normally by summer, though to be fair when these were prepared the huge uptick in cases and new national lockdown would not have been known

Edited By MattyB on 06/11/2020 12:02:08

[Erfolg]

Covid is a genuine problem that could not have been foreseen. Financial Risk programs would not have accommodated such an extreme low probability risk in any meaningful way. Any contingency component will not have been assessed at such a level that, it covered such a prolonged period of no income, that is without any overspend being avoided, inconjunction with some element coming in at below estimated cost.

The big question is what is to be done? Throwing the towel in now is accepting that current expenditure is money wasted. Continued funding requires a good plan, that is devoid of wishful thinking.

I expect that there will be attempts to access the funds held by the Areas. Although there appears to be a committment to make the grants to the areas for 2020-21 year, I expect at some point there will be a proposal to suspend the payment, on the basis that the expenditure of the Areas during the Lock Downs has resulted in minimal area spending.

Personally I would appose this as an approach, as it could be the thin end of a wedge on the automany, the ability of areas to be certain with any degree to committ to area support, such as events etc. I would be amenable myself for areas to volunteering to grant BMFA Leicester unspent fund for 2019-20 (financial year. The funds held by areas to be untouched, as I hoping that with the end of the UK Covid Virus pandemic, that the areas celebrate with a big fly-in type of event for their area, on a scale not normally envisaged, or something similar. Areas need a contingency fund for such ideas.

Where would that leave Buckminster (NFC), hopefully in a position where a one of payment from Leicester, would cover the finacial problem There needs to be a realistic long term plan. This plan should not have sponsorship from anyone who provides a service to the general membership other than specific events. Any significant donation should be viewed along the lines, is this level of sponsorship reasonable. Also BMFA officers time should be included in the running cost.

Perhaps there needs to be a plan to transfer the activities of head office to the NFC, which should reduce operational costs overall. Not being an accountant or a tax expert, there could be some changes of the present arrangements at the NFC, if this ever happened.

Above all we need to get away from wishful, half baked, notions on the operation of both the NFC and the BMFA. A Golden Age could be around the corner for either, yet the immediate future has to be based on what is known and what is realistic to anticipate.

Edited By Erfolg on 06/11/2020 12:48:15

Edited By Erfolg on 06/11/2020 12:48:51

Edited By Erfolg on 06/11/2020 12:51:08