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Town Make ÂŁ10 Million Loss - Ipswich Town News

Town made an operating loss of ÂŁ10.32 million in the financial year ending June 2009. The loss was expected with owner Marcus Evans bankrolling transfer purchases and player wages as he seeks to get the Blues into the Premier League.

The figures are revealed in an information sheet supplied to shareholders in the PLC, which owns 12.5% of the club, outlining the overall club’s financial position sent along with the annual report and accounts for the PLC ahead of its AGM in the Sir Bobby Robson Suite at Portman Road on Tuesday 24th November.

The club’s operating loss in the previous year was £4.29 million with the rise no surprise with the 12 months to June 2009 Marcus Evans’s first full year at the club after his takeover in December 2007.

During the year to June 2009, player and coaching staff costs rose from £8.34 million in 2007/08 to £11.88 million, as a percentage of turnover that’s a rise from 52.7% to 81.1%. Overall staff costs are up to £15.94 million from £12.57 million, which represents 108.8% of the club’s annual turnover compared with 79.5% a year ago.

While player costs have increased significantly, the club saved ÂŁ300,000 on administrative expenses during 2008/09.

Turnover was down from ÂŁ15.8 million in 2007/08 to ÂŁ14.7 million 2008/09 with commercial income down from ÂŁ6.94 million in 2007/08 to ÂŁ6.01 million and income from the Football League, including TV and radio fees, down to ÂŁ1.93 million from ÂŁ2.29 million a year earlier. Gate receipts were up from ÂŁ6.58 million to ÂŁ6.7 million.

The information sheet reveals Town’s current situation regarding debt: "At 30 June 2009 the club had…total interest-bearing debt of £35.7 million (intra-group debt £33.7 million, external debt £2 million). The external debt is the balance owed to the remaining loan note holders following settlement of £515,000 in July 2008. ITFC is not in debt to any financial institution.

"The club remains dependent on ongoing financing by the Marcus Evans Group (MEG). During the 2008/09 financial year the remaining funds invested by MEG at the time of the acquisition were spent and MEG has since provided a further £6.5 million in loans to the club.”

At the PLC’s AGM shareholders will vote on whether to re-elect PLC board members John Kerr and Martin Pitcher and whether to elect new chief executive Simon Clegg to the PLC board.

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