Chief executive Simon Clegg says supporters shouldn’t be unduly worried by the club’s debt reaching £66.17 million during the year to June 2011. Town made an operating loss of £10.72 million during that period, although transfer profits of £10.85 million led to a small pre-tax profit of £136,000.

Clegg told TWTD that the debt is unlikely to be reduced until the club is in the top flight: “The debt is a matter of fact. We are extremely fortunate to have the support of Marcus Evans as our owner and, whilst we would, of course, like to bring the debt down, realistically that won’t happen with the current parameters in place until such time as we reach the Premier League.

“Of course, those parameters could change by virtue of the Football League wishing to move to a break-even model, which will be further discussed by the owners and chief executives of Championship clubs at a meeting later this month.”

In June, Football League clubs agreed to adopt UEFA’s Financial Fair Play framework with Championship sides pledging to develop and approve new regulations by the beginning of the 2012/13 season.

Those regulations are likely to involve a wage cap - League Two clubs already operate what’s called the Salary Cost Management Protocol which limits player wages to 60% of turnover, which they will reduce to 55% - but Clegg wouldn’t be drawn on what he expects from this month’s meeting: “I’m not sure I want to comment on any of the proposals at this moment in time.

“We just need to wait and see how all the various Championship clubs feel about what is being proposed, and in particular what is included and what is not included in any break-even model."

Clegg reiterated his earlier comments to TWTD dismissing suggestions that the club might potentially re-enter administration as a result of the debt: “It’s an inter-company debt - Marcus owes money to himself. There is no chance of the club returning to administration.

“We’re very lucky as a club to have such an enthusiastic and supportive owner as we do in Marcus Evans.

“He’s very much taken the long-term view about the club and where he wants to take us to. His ongoing support is absolutely fundamental to reaching those aspirations.”

Reflecting on this year's profit of £136,000, Clegg says that in addition to transfer business, a couple of other factors were significant: “The profit is largely because of the sales of Connor Wickham and Jon Walters, and the increase in solidarity funding through the Football League from the Premier League as well.

“We should also mention the impact that the excellent run in the Carling Cup had, both from a gate revenue and media rights perspective.”

Since June and the end of period covered by the latest set of accounts, Town have committed another £1.2 million in transfer fees and Clegg says funds are still there should boss Paul Jewell have further targets: “Regarding the strengthening of the squad, the situation remains unchanged.

“That is that if the manager identifies additional talent that he wants to bring in to strengthen the squad, then that’s something that will be looked at and resources are available if appropriate.”

Photo: Action Images

Photo: Action Images

theblueginger added 14:14 - Nov 14 Correct me, but didn't ME pay off our debt? Surely we have not got 66 million of debt in 4 years or so?
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comrade_blue added 14:23 - Nov 14 So the club will not go into adminstration because of debt and we made a small trading profit - so will club now pay the back rent it owes the Ipswich tax payer?
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naa added 14:36 - Nov 14 theblueginger: it says in the story, we owe Marcus Evans. He bought off the debt and has funded player signings. But he isn't giving us the money out of the goodness of his heart, we still owe it all to him, it's just that now we're not being pressured to pay it off, as we were before.
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bluewein added 15:10 - Nov 14 Panic! Flouce! Worry! AAAAAAARRRRRRGGGGGGHHHHH!!!!!
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muhrensleftfoot added 15:17 - Nov 14 Just to clarify to theblueginger: Marcus Evans I believe paid the bank (was it Barclays?) around £6 or £8 million for ITFCs debt of around £40 million. The idea being that he would put a few million into the club to buy a quick promotion then with all the Premier league money, ITFC could pay him back the £40 million debt plus what ever extra millions he's invested in players, and ME makes a big fat profit of around £20-£30 million. My figures may be a million or two out, but what's that between friends. However the longer we fail to get promotion, the worse it gets for ME.

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HARRY10 added 15:39 - Nov 14 The problem is that Marcus Evans may well have paid Norwich Union £6 or £8 millionfor the oustanding debt of around £32m but he was charging the club interest on that full amount £32m not what he paid NU. Nice little earner The club is also being charged 8% interest on the original £8.1m loan (preference shares). I'm afraid Clegg must think we all live in cloud cuckoo ;land if he thinks taht us reaching the Premier league will ever clear those debts. I doubt tehre is not one single club in the Premier League who is not spending ALL they recieve and more just to stay there. How on earth does he think we are going to be able to pay off nearly £70 AND STILL stay inthe Premier League. There is NO fat profit to be made. If the "Salary Cost Management Protocol which limits player wages to 60% of turnover" kicks in then we will have to face at least a £3m cut in the player budget. We are barely keeping ourselves out of the bottom half as it is, let alone with ahefty drop in money available to the players. Once the Olympics are over I think things will become a little clearer with regard to ME's true intenT.

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irishtim added 16:11 - Nov 14 worrying times
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tomisamos added 16:17 - Nov 14 In fairness, most football clubs are in huge debt, although it isn't good and there's a lot of depth to the argument, I don't think we've got loads to worry about in relation to everyone else...
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grecianblue added 16:41 - Nov 14 Sounds worryingly like those who use to be in charge at Plymouth used to say here in Devon. "The debts manageable, blah, blah....when we get the world cup bid or reach the premiership, blah, blah....Don't worry the owners have promised to keep inputting money...." I guess the time to get really worried is when Peter Risdale turns up for a home match while on a supposed holiday in the region, you'll never be able to get rid of him!:)

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muhrensleftfoot added 17:20 - Nov 14 There's nothing to worry about here regading the finances. Far more worrying is the form of our team in recent games....
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Jesney_Havoc added 17:30 - Nov 14 Well it's the nearest we get to Italian football I suppose
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horsenotfitforwork added 17:35 - Nov 14 I know I'll probably be in a minority of one here, but I'd prefer to be a solvent, community-minded club in League One than a debt-ridden, Premier League corporation.
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arc added 18:27 - Nov 14 So we shouldn't be worried. But if we were to be relegated we would probably instantly go bust.
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Tractorboy24 added 18:41 - Nov 14 Whilst it's somewhat worrying the more debt we get ourselves in, I think I remember sheepshanks saying not long after the sale that me can't just cut and run, leaving the club in financial turmoil because of how me bought the debt.
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h32 added 18:49 - Nov 14 ....... interesting times ahead after the Olympics are over !!!!!!!!!!!!
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up_the_town4 added 18:54 - Nov 14 In debt the youth team better produce so we can sell AS PER!
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h32 added 19:07 - Nov 14 horsenotfitforwork - you're right - but at the moment we are 'still' a debt ridden Championship club - and the debt seemingly escalating !!! - even after selling prized assets, which won't continuously be available, looking at what is going on within the Club in terms of young promising players. Football in general, has long gone financially mad - along with many other Sports. Oh well -happy days.

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churchmans added 19:27 - Nov 14 'it's an inter company debt - marcus owes money to himself' cannot laugh at this qoute and realise how lucky we really are to have a mega bucks owner.
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churchmans added 19:28 - Nov 14 what i meant was cannot help but laugh! qaulity owner theres only one marcus evans!!
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nearly50yearsblue added 20:48 - Nov 14 Marcus Evans is not a knight in shining armour,he is a ruthless businessman who gobbled up an ailing business,he has a plan B already.Maybe offset his own debt as a tax loss to another company of his,inter-trading someone called it.( Lets baffle the paying fans,who cares.) Unfortunately as fans we have little option. 1,is to stay away, 2,try and fight for change, 3, see where the wind blows next summer.

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harlingblue added 20:58 - Nov 14 1...will the Academy grounds be sold for countless £££s, is Marcus a true ITFC supporter? Will the famous ITFC go into Administration? Time will tell! I hope that This Club is in good hands!
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Mr_Evans added 23:48 - Nov 14 I take it th you are all about 6-7 years of age and do not remember the dark days of being forced to sell Matt Holland, Darren Ambrose, Marcus Stewart for peanuts by the administrators!! ME saved this club!! Just take a look at Sheffield Weds, Bradford, Crystal Palace, Barnsley!! He has pumped millions upon millions into this club, Magilton more interested in sleeping with players wives cough* Dan Harding and yes most of it was wasted on Keane but when he signed we all thought we were destined for greatness!! Give the guy some credit, he is a businessman, football is a business.. If Ipswich makes profit, he makes profit.. But you make more profit in being a successful club.. That is his plan.

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bobble added 08:00 - Nov 15 i couldn't give a hoot how much these people owe
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Basil_Smallpiece added 10:44 - Nov 15 Forget the idea of profits being made at PR. The Club is insolvent. It trades at a loss and cannot pay its debts as they fall due. The auditors presumably qualify their report to that effect. To give an opinion, they must rely on the continuing commitment of the Chav With The Bag Over His Head. Boy, that takes some doing! They must be brave. Or foolhardy. Next year? More asset sales: Leadbitter and Cresswell from the playing side (who else?) and the properties that are owned. And finger-crossing every day in the boardroom that there is a Cup run, including a series of draws against NCFC, the sensibly-run Prem team nearby. Can someone ask the General why the debt, nearly doubled since the CWTBOHH took over, remains in the Club's books if our friend is such an altruist? And what happened to the Wickham/Walters cash, after the token spend on the usual dross (excl Cresswell)?

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Greybritain added 13:41 - Nov 15 Surely we didn't expect him to say anything else other than that. Did we hear RBS, Greece, Italy, the bloke down the pub, standing up and saying "Yes, the big f**k off debt I have run up, is a huge concern and we are about to go under". Yes, that would be the honest answer, but puppet boy Clegg is not going to state that. Yes ME holds all our debt. Yes, he is a businessman punting on us being a success. Eventually, a businessman cuts his losses, even if has been offsetting them among his other interests. I agree with nearly50yearsblue. Last season we sold Stead because we could not afford his wages. This season, we have signed more than one player on wages far exceeding Stead's. We now have a team that you expect of a club trying to stay in the Premiership - old & overpaid - not one trying to escape the Championship. Only one young player to be excited about in Cresswell. Even the other fringe youth player Carson, is refusing to sign his contract.

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