Progress could be made regarding Town’s rent row with Ipswich Borough Council at IBC’s executive meeting this evening. In March, it was revealed that the annual rent on the land on which the Portman Road stadium stands had risen by 743% from £15,000 to £111,500, backdated to 2004.
While Town have paid the new sum since the rent review was carried out last year - an independent arbitrator setting the new figure - the club has dug its heels in regarding the additional £654,702 owed from the period back to 2004 when the rent review was initially due. Blues chief executive Simon Clegg has been invited to put the club’s case at this evening’s meeting.
IBC have offered Town the opportunity to make the back payments over a four-year period in 16 quarterly instalments of £40,918.88, although payable in full if the Blues are promoted to the Premier League. Another rent review is due this year and the council has indicated that it will not be looking for a further increase.
If no amicable solution is ultimately found, the matter could result in legal action. In a worst case scenario, IBC could issue a winding-up order against the club, leading to administration and a 10-point deduction, however, it appears inconceivable that either party would allow the issue to reach that stage.
Town agreed the lease on the 8½ acre site in August 2001, the term lasting 125 years from June 1969. Rent reviews are carried out at seven-year intervals.
Meanwhile, ASD (Europe), the Ipswich-based company which made the club's own brand Punch replica kits until 2006, has ceased trading.
Photo: Action Images / Matthew Childs