Town chairman David Sheepshanks has commented on the club agreeing a fee for Matt Holland with Aston Villa. Sheepshanks says the club were very reluctant to accept the undisclosed offer, describing the decision as "agonising and painful".
"We have today most reluctantly agreed an undisclosed fee with Aston Villa for
Matt Holland. The player is in Finland on International duty and has been informed by George Burley this morning.
"Since our relegation we undertook to inform Matt of any Premiership interest. He will meet with Aston Villa on his return to the UK His agent [Jonathan Barnett] is already in discussion with them.
"As agonising and painful as this decision has been for the Directors, George Burley and myself this sale was a necessity and it helps to stabilize our financial position.
"I know all supporters will share our dismay at having to part with such a special player, however, I warned in the middle of last season and on many occasions since of the serious consequences of relegation for our club. Nothing, which has happened since our demotion in May has altered my original judgement.
"The stark facts are that our television income last year amounted to over £20 million - this year in the Football League is it unlikely to amount to more than £750,000 - a gap of nearly £20 million.
"We receive a parachute of approximately £5 million which bridges only a quarter of the shortfall and even less when the inevitable decline of commercial income is added the equation."
The Holland fee is likely to be around the £4.5 million mark.
"In anybody's language this is a gap of £15 million, which I have publicly referred to throughout the summer.
"Banks are not charities and there are strict limits. We have therefore explored all options and taken steps to close this gap but it was always going to necessitate the sale of players. First, Titus Bramble to Newcastle, and now Matt Holland to Aston Villa. We negotiated to achieve the highest prices possible but supporters will understand there was no competition from other clubs bidding. In other words, the Villa bid for Matt Holland was the only bid on the table.
"We all know that relegation could not have happened at a worse time. Six crucial factors have contributed to the current depression in English football:
1. ITV Digital collapse - for our Club, £3 million Football League income was slashed to become a maximum of £750,000.
2. Expectations of a poorer outcome for the next Premiership television deal has further depressed the market where many clubs have been operating above their means and carrying excessive debt.
3. The economic downturn for Football has extended across Europe where very few transfers are being negotiated. The Italian season has been postponed for two weeks due to financial reasons. Apparently, according to today's press, Lazio have had three player transfers annulled owing to the club's debts.
4. The effect of the Bosman Ruling necessitated clubs retaining players on long term contracts to protect Transfer values and from having players poached.
5. The mandatory implementation of the new transfer deadline on the 31st August 2002. This has had an unprecedented restrictive effect on player trading.
6. The collapse of the Stock Market underlines the fragility of the football industry.
"It adds up to a buyers' market where relegated clubs suffer the most. There is no doubt that the effects of relegation this year are more crippling than ever before.
"Administration costs are dwarfed by player costs but even here we have adopted numerous austerity measures in the day to day running of the club in order to shake every pound possible out of the business - however there is a fine balance to be struck to avoid negatively impacting service and revenue generation.
I hope this explains to our supporters why this decision has been taken - plain and simple - it is the consequence of relegation at a time that the football market is depressed.
"Going forward as we must - as popular as Matt Holland is - this club is about a strong team of players and staff and an enviable army of supporters. It has long been the case in football that players come and go and this sale helps to stabilize our position.
"For the future, notwithstanding player sales, we can boast the squad with the greatest quality and depth in Division One and thanks to our investment in the Academy, our crop of youngsters is second to none. Last but not least, our supporters have proved time after time, most recently in Luxembourg and on Sunday at Portman Road, that they are the truest in the game. Now we must all rally to put it right in the best way possible and win promotion."