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Holland: Without Owner's Backing I'd Be Worried About Administration - Ipswich Town News

Former skipper Matt Holland believes the Blues could have been pushed into administration by the financial impact of the coronavirus crisis had they not got the backing of owner Marcus Evans.

Championship Wigan went into administration last week, although apparently largely for reasons not connected to the pandemic, and other clubs in the lower leagues are expected to follow them.

Town are facing a loss of income which in a worst case scenario could push towards £10 million.

The club estimate the cost of refunding ticket money owed to fans, both season ticket holders and those with matchday tickets, at around £800,000 on top of approaching £1 million in income already lost from those games.

As reported last month, three-quarters of existing season ticket holders have renewed for 2020/21, however the missing quarter, around 3,000 fans, amounts to a reduction of £1 million in income on last year.

The club has also missed out on an anticipated commercial income of around £600,000 since the start of the crisis, while expected revenue from screening Euro 2020 games in the FanZone won’t now be brought in until next summer.

In addition, it’s understood that club and EFL sponsors have clawed back some of their cash due to the unplayed games. Town have also missed out on income from their iFollow service.

As things stand it appears certain that some of the new season will be played either behind closed doors or with few fans present. That is likely to mean the club will probably have to pay back some of the £3 million received for 2020/21 season tickets at some stage, while it’s estimated they will miss out on £4 million in matchday income from tickets, hospitality, sponsorship, advertising and concourse takings.

The Community Trust, which was relaunched early in the season, has also lost income of £100,000 due to the pandemic.

In order to cut costs, Town have furloughed most of their off-field staff since May - with owner Evans making up the other 20 per cent of their salaries - while it’s understood discussions are ongoing regarding further financial support for clubs in the lower leagues - from either the Government or Premier League - which would help facilitate a September start for the new season.

Even in a normal season, Evans covers a significant shortfall of around £5-£6 million unless cash is brought in via player trading.

"In the Premier League it’s the TV money that really counts but in the divisions below, matchday revenue is vital,” Holland told the club site.

"If you can’t get fans into games for a period of time - say for much of next season - you have a real problem. There will be a lot of clubs in serious trouble. It’s the biggest threat to the football pyramid, what is happening and could happen.

"Ipswich are obviously still my club and when I look at the size of the club, the attendances, the wage bill will be at the higher end for sure, it will be one of the hardest hit in League One. Sunderland and Portsmouth the same.

"I know Marcus Evans has got his critics but if he wasn’t at Ipswich now and putting the money he does into the club, I’d hate to think what would happen. You could be looking at administration. Without his backing, I’d be worried big time.

"I think other clubs will follow Wigan and go into administration, especially if they are safe in their league with the 12-point deduction.”

The ex-Republic of Ireland international, Town's skipper during their spell in administration in 2003, believes the current crisis is a chance for football to get its financial house in better order.

"There is talk of salary caps in League One and Two and I can see that happening,” he added.

"Then you look at the Championship. I read that at one club 107 per cent of turnover was being spent on player wages [Town’s was 106.97 per cent in 2018/19]. I’m not a mathematician but that can’t be right.

"If you are paying out a lot more than you are getting in, sooner or later you are going to be in trouble.

"Clubs are gambling on getting into the Premier League. Fans want you to spend fortunes on players as well because they want to get in the Premier League but there has to be some realism.

"It’s got to be sustainable model and maybe football will change now. I think it needs to change.”

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