Ipswich Town Finance Director responds to club’s accounts announcement
IPSWICH TOWN’S finance director Mark Andrews has reassured supporters that plans are in place to comply with the new Financial Fair Play (FFP) regulations, that officially come into force next season.
Town made a loss of £15.96m in the financial year ending June 2012, with the club’s overall debt rising to £79.62m, while its turnover during the year to June 2012 was £15.04m, down on the previous year’s figure of £17.25m.
The club’s debt – which is owed almost wholly to companies owned by Marcus Evans – rose from £66.6m to £72.62m, while Town also have one of the highest wages to turnover percentages in the Championship at 119% (102% the previous year) – something that will need to be addressed as the new rules are gradually enforced over a period of time.
The new FFP rules limit investment from owners and curb total spending, while also preventing owners from funding their clubs through loans.
As an owner, Evans will be able to invest £5m in the Blues next season and £3m in the 2014-15 season, while from the 2015-16 campaign, Town will be allowed to make a £2m operating loss, as well as accept a £3m investment from Evans – allowing for a £5m overall loss.
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“We brought in some experienced players in the 2011/12 season, Paul Jewell’s first full season in charge, which kept the playing squad costs high but unfortunately did not have the desired effect of the promotion push we hoped for,” said Andrews.
“Most Championship clubs are carrying debt but the majority of debt carried at Ipswich Town is not external, it is owed to the Marcus Evans Group. Nothing has changed in that respect.
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“Marcus Evans has invested heavily in the playing squad with all the managers he has worked with and will continue to do so but with FFP regulations officially coming into force next season, 2013/14, we are readying the Club’s finances to fall in line and are making progress in achieving this aim and reducing losses accordingly.”