Accounts reveal how relegation and coronavirus hit Ipswich Town finances

File photo dated 28-11-2020 of A general view outside the stadium before the Sky Bet League One matc

New co-owner Mark Detmer has plans to improve Ipswich Town's Portman Road stadium. Photo: PA - Credit: PA

Ipswich Town's latest set of accounts reveal how big an impact both Championship relegation and the early stages of the coronavirus pandemic had on the club.

The club's turnover dropped by £7.4m for the year ending June 30, 2020 (£18m down to £10.6m), with the biggest hit having come from a major reduction in television and Football League income (£8.4m down to £2.8m).

The accounts show that the club received £1.1m in furlough payments during those first stages of the coronavirus pandemic, the League One season having been called to a halt in the middle of March, with £772k having been refunded to season tickets holders for the five cancelled games at the end of the campaign.

The wage bill dropped by £6.3m following relegation from the Championship (£19.2m down to £12.9m), but so did the profit made on players sales (£4m compared to £7.7m the year before).

Town's most expensive incoming transfer during that transfer period was Kane Vincent-Young from Colchester United (believed to be around £500k), while the club received fees for Ellis Harrison (Portsmouth) and Bartosz Bialkowski (Millwall) and scooped sell-on fees for Kieffer Moore and Adam Webster.

The accounts reveal that the club's debts - which were effectively growing losses against previous owner Marcus Evans' name - had reached the £117m mark.

And they also confirm that; 'As a result in change of ownership (Gamechanger 20 Ltd acquiring the club in April) there has been significant debt restructuring. In total, loans and other amounts due to group companies of £95,877,000 at the balance sheet date have been waived or settled on the Group's behalf."

Speaking after the takeover was completed, new chairman Michael O'Leary said: "Marcus has invested considerable money, time and energy in Ipswich Town. His decision to waive much of the club’s outstanding debt is one that deserves the gratitude of every single Ipswich Town fan." 

He added: "We have repaid, approximately, £21m of debt. Marcus has waived the balance of all other debts that were there. Actually, there’s a tiny bit left. There’s £400k of debt that remains and that’s debt between Ipswich Town PLC and Ipswich Town Ltd. That’s the only debt that’s left. Apart from that the club is debt free." 

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Next year's set of accounts will reveal the financial impact of playing virtually the whole of the 2020/21 campaign behind-closed-doors.

Evans said, in September last year, that the club could face a £10m loss for 2020/21, though news of an EFL 'rescue package' came in December with a £50m grant provided for League One and Two clubs.