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.”
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