Ipswich Town make a loss of £15.96m
- Credit: Archant
IPSWICH 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 gate receipts, media and commercial income fell by around £2.2m, wages went up by £400,000 and ‘other expenses’ by £800,000.
Having made a £10.8m profit on player sales in the previous financial year – largely from the big money departures of Connor Wickham and Jon Walters – the club made a vastly inferior £248,000 profit on players in this period.
The club’s turnover during the year to June 2012 was £15.04m, down on the previous year’s figure of £17.25m.
It means that the club’s debt – which is owed almost wholly to companies owned by Marcus Evans – has risen from £66.6m to £72.62m.
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Town 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 new Finanical Fair Play rules are gradually enforced over a period of time.
The accounts show that former chief executive Simon Clegg was paid an annual wage of £193,000.
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They also show that the club’s Playford Road training ground was sold to Marcus Evans (Guernsey) Limited for £1.32m, with rent payable at the rate of £40,000 per year.
Under the section “principal risks and uncertainties”, the report reads: “The directors consider that the principal risk facing both this company and the subsidiaries of Ipswich Town Football Club Limited (‘the group’) is the performance and the divisional status of Ipswich Town Football Club. The implications that this has on the group’s ability to generate revenue streams are significant.
“In light of this risk and the levels of debt that the group now carries it remains dependant upon ongoing financial support from its principal shareholder MEIL. The directors have concluded the need for, and have requested, ongoing financial support from its principal shareholder MEIL.
“Such ongoing support, for at least 12 months from the date of these financial statements, has been given. This will allow the company and its subsidiary undertakings to continue in operational existence and meet their liabilities as they fall due for payment.
“Accordingly, the directors consider it appropriate to continue to prepare these accounts on a going concern basis.”