Town announce big losses
IPSWICH Town Football Club have announced an annual loss, before taxation, of �14m for the year ending June 30, 2010. This follows losses of just over �12.5m for the previous 12 months.
IPSWICH Town Football Club have announced an annual loss, before taxation, of �14m for the year ending June 30, 2010.
This follows losses of just over �12.5m for the previous 12 months.
The figures are not surprising, given the influx of new players over the last year, with owner and chairman Marcus Evans bank-rolling the transfers and the resulting increased wage-bill. The precise loss on ordinary activities before taxation was �14.176m, as opposed to �12.674m from 12 months ago.
Town’s financial position is certainly not an isolated one, in the Championship. Earlier in the month, rivals Bristol City announced an annual record loss of �11.8m.
Commercial profit at Portman Road was down by approximately �0.25m during 2009-10, in comparison to 2008-09, with a profit of �1.87m as against �2.16m.
Interestingly, whereas the costs of players and coaching staff saw an increase of nearly �1.5m (from �12.03m to �13.45m), equating to a 108.1% of turnover, the costs of all staff went up by a smaller figure of just less than �1m (from �16.10m to �17.05m).
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Turnover increased from �14.7m in 2008-09, which was Marcus Evans’ first full year as owner, to �15.8m, due primarily to additional income from the Football League.
That extra income comprised mainly the solidarity award from the Premier League, and the Football League’s basic award distribution.
Gate receipts actually went down (from �6.702m to �6.362m), despite an increase in ticket sales. This was due to Town’s extended Carling Cup run, coupled with a lucrative FA Cup fourth round tie at Chelsea, during the 2008-09 campaign.
By contrast, Roy Keane’s men were knocked out of the Carling Cup in the second round last season, and exited the FA Cup at League One club Southampton in round four.
During the last financial year, the Club purchased six players at a total cost of �7.2m, and sold four players for proceeds of �1.1m.
Those to arrive included striker Tamas Priskin, from Watford, and the Sunderland duo of Grant Leadbitter and Carlos Edwards.
Since the end of the financial year, a further �0.8m has been committed on transfer fees, and �3.3m accrued from the sale of players.
The additional costs of players’ wages, due to the influx of new players during the summer of 2009, led to the Club’s direct costs rising from �18.7m to �19.4m.
All the above figures were included in the information sheets sent to shareholders in the PLC ahead of the AGM on Tuesday, December 7.