Town managing director Ian Milne believes that it’s going to get tougher for established Championship clubs to compete for promotion in seasons to come with relegated former Premier League sides set to receive parachute payments totalling around £86 million over three years from this summer, in addition to £90 million even for the side finishing bottom.
Milne says the increased wealth of the relegated clubs - as well as the cash spent by a number of other sides already in the Championship this season - will form part of the discussions between owner Marcus Evans and manager Mick McCarthy in the summer, if the Blues don’t promotion to the Premier League in May.
"I do agree with your assessment that it’s going to get tougher to get up and I think we’re going to have to take a view of what we do with the current squad going forward,” Milne told Saturday’s Life’s a Pitch on BBC Radio Suffolk.
"It’s a bit early to say that but nonetheless you have to review it in the summer. You have to look at the financial sustainability of the club, what funds are available, who’s gone, who’s coming in, what sales may or may not happen.
"It’s at that time then that that discussion goes on between Marcus and Mick on salaries, new players and what have you. But I can’t deny that it’s going to get tougher.
"We’re seeing a bit of that this year with Hull and the rest of them. It is going to get harder.”
Town announced their season ticket prices for 2016/17 last week with a lower tier adult seat now costing £417 - an increase of £6 - while last week’s opponents Huddersfield announced a cut to £179 for their first 10,000 adult season tickets with the Terriers offsetting the reduction against the additional £2 million in broadcasting revenue Championship clubs will each receive from the Premier League next season.
Milne says the Blues will use that cash, a relative drop in the ocean compared to the parachute payments, to strengthen the squad: "Huddersfield have got a lower attendance than we have, they want to build that attendance up. We have a very good attendance.
"Can I put it this way, do people want us to support the ticket price or support the first team squad? We want to put as much money into the first team squad.”
The level of owner Marcus Evans’s investment has been a subject of criticism from supporters this season, but Milne points out that it doesn’t just stop at funding the first team with Evans having covered what's usually been an annual shortfall of around £6 million.
"There’s also the investment in the academy,” he continued. "There’s been another £750,000 because of the 3G pitches, there’s all of that investment as well.
"We have to put in half a 3G pitch under the dome and a full 3G pitch outside [at Playford Road]. We have to do this as part of our EPPP requirement, whether that’s Category One or Category Two.
"We want to get to Category One status, but whether we stay in Category Two or go up to Category One, we still have to have this 3G pitch and that’s around an extra £750,000. That’s got to be found in addition to what we spend within the club.”
Milne added: "He is [putting his hand in his pocket]. I think we’ve been reasonable with the season ticket increase of 1.5 per cent but nonetheless he still has to put a big chunk of money in to support the club and its financial sustainability.
"We’ve all got budgets, we’ve all got money to put into it and club owners have a budget in their mind of what they’re prepared to put into it. It’s their money at the end of the day and there’s got to be respect for that.”
Despite not yet being Category One, having failed an audit by 0.3 per cent in July 2014, the academy is having a successful season with Andre Dozzell, Ben Morris and Nick Hayes all having won England U17 caps, while six players were recently offered professional contracts.
"Lee O’Neill, our assistant academy manager, did a study of how many of our players have got pro contracts and have gone into the first team squad compared to other Cat Two and Cat One clubs around us at our level,” the MD said.
"And we with our Cat Two status are way above a lot of the Cat One clubs. I think one’s got to work out the worth of it - do we need Cat One? That’s my personal question.”
He added: "We’re still investing into Cat One, but it’s very, very costly. Marcus is putting £2.5 million into the academy plus this 3G pitch as well, that’s in addition to the first-team squad. It’s a lot of money.”
Photo: ITFC