Town’s next set of annual accounts will show a loss lower than the £15.96 million figure which was revealed last week as the Blues adjust to the new Financial Fair Play rules (FFP).
Finance director Mark Andrews, who was recently appointed to the board after eight years working at the club, explained the reasons for the losses during the year to June 2012: "We brought in some experienced players in the 2011/12 season, Paul Jewell’s first full season in charge, which kept the playing squad costs high, but unfortunately did not have the desired effect of the promotion push we hoped for.”
Town’s wage bill during that campaign was £15.96 million, 106% of turnover, with the FFP rules meaning that Championship clubs will only be able to spend what they generate themselves in the future, although with "acceptable deviations” as the system is introduced and with certain areas of spending, such as the academy, excluded.
Last year’s losses took Town’s overall debt to £79.62 million but Andrews says the Blues’ situation isn’t quite the same as many other sides: "Most Championship clubs are carrying debt but the majority of debt carried at Ipswich Town is not external, it is owed to the Marcus Evans Group. Nothing has changed in that respect.”
He says that while annual losses will be lower, owner Evans will continue to back Mick McCarthy, as he has other bosses: "Marcus Evans has invested heavily in the playing squad with all the managers he has worked with and will continue to do so.
"But with Financial Fair Play regulations officially coming into force next season, 2013/14, we are readying the club's finances to fall in line and are making progress in achieving this aim and reducing losses accordingly.”