'For an offer to succeed three boxes had to be ticked' - Evans on why he sold Ipswich Town
- Credit: Archant
Marcus Evans has outlined his reasons for selling Ipswich Town to American investors, in a deal understood to be worth in the region of £40m.
Evans has sold his controlling stake in the club to Gamechanger 20 Ltd, bringing an end his 13-year spell as owner following his purchase in 2007.
It’s understood the former owner received between 30 and 40 offers for the club over the course of his tenure but stressed he would only sell if he believed the interested party offered a long-term commitment to the club and a sustainable business model.
Evans now holds a 5% share in Gamechanger, meaning he remains involved with the club, but will very much be taking a backseat and has no decision-making power.
Gamechanger is 90% owned by ORG Portfolio Management, who are using money from the Arizona state pension fund, with the trio of Brett Johnson, Berke Bakay and Mark Detmer combining to own 5%. Evans own the rest.
Ipswich Town PLC, the group of shareholders who had interest in the club prior to Evans’ takeover, still own 12.5% but will soon be made an offer for their shares by Gamechanger.
“I have always said that, whilst not actively looking to sell, I would seriously consider an offer made to me by a credible party if it would invest in Ipswich Town in a way that provides secure long-term funding to help take our club forwards,” he said.
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“For an offer to succeed the following boxes had to be ticked:-
1) An irrevocable commitment to fund not just the purchase of the football club, but also to support a long-term business plan to invest in the team, infrastructure, our fans’ experience, the Academy and the Club’s role in the wider community.
2) Security for the Club’s employees, including a commitment to support the new manager
3) A fair treatment of the shareholders of ITFC PLC and ensuring that they are not left behind in any offer.
“Following several months of detailed due diligence by both parties, to ensure this will be a ‘marriage made in heaven’, an agreement approved by the EFL was signed today and I am satisfied that the above conditions have been met.
“A new company (Gamechanger 20 Ltd) has been formed specifically to purchase the Club for which a very fair price has been agreed for all of my equity, and in addition a payment for property and purchasing some of the debt previously owed to the ME Group including the debts acquired at a discount by the ME Group when buying the Club in 2007.
“As part of the transaction, a portion of that historic debt has in effect been written off, leaving the Club with a much smaller debt burden and with nearly all Club debt owed to the new owners.
“The new ultimate beneficial owner of the Club is a US investment fund called ORG, which manage funds on behalf of a large US pension fund and will own 90% of Gamechanger 20 Ltd. The ORG representative will be Ed Schwartz.
“In addition to the pension fund investment in Gamechanger 20 LTD (GC20) through ORG, there is additional investment in GC20 through the Three Lions fund. This is managed by three Americans – Brett Johnson, Berke Bakay and Mark Detmer, who will jointly own 5% of GC20.
“These three individuals will, alongside the new chairman, Mike O’Leary, formerly CEO at West Brom, oversee and manage the business. I will also keep a keen watchful eye on the Club and will invest in the new company, owning 5% of it. However, I plan to divorce myself from any day-to-day responsibilities and get back to following the Town as a highly interested, passionate and vested fan.
“The exact format of the transaction means that the pension fund will be the majority owner of the company that owns the Club. The remaining shares are owned by small shareholders, many of whom are supporters. The new company is obliged to make an offer to buy the shares of Ipswich Town PLC for the same par value at which I have sold my own equity, therefore providing a potential exit for the Club’s army of small shareholders.
“A key factor in reaching my decision to support the investment by a pension fund is the basic principle around which any such fund needs to invest. It has to see a return on its investment, and that return in all likelihood can only be achieved by way of promotion to the Premier League.
“The fund has deep pockets, but by the nature of a pension fund will be fiscally responsible in the use of those funds. In order to meet its investment responsibilities, it will need to invest to secure Premier League status, and it has already committed to making substantial investment in both the Club’s playing squad and infrastructure.
“I had always wanted to take the Club myself to the Premier League and sadly, for too short a window, at one time this had seemed possible. However, as important to me as my ambition for the Club was, if it didn’t work out I wanted to leave the Club in not only a more secure financial position than the perilous state in which I found it, but with ownership that provides triple A financial backing alongside a community ethos.
“I believe I have found this and I look forward to cheering the team on every week as we work our way back to where we all want to be.”
Evans is also understood to be retaining a small portion of the Blues’ training ground, an unused area on the Bent Lane side, which has previously been marked as having potential for housing.