The board of the Ipswich Town PLC has written to its shareholders confirming that its stake in the club has now reduced to less than one per cent and outlining that any dividends taken out of Town in future will go solely to majority owners Gamechanger 20 Ltd.
The PLC represents the shareholding of the club prior to Marcus Evans’s 2007 takeover with the majority of those owning the shares - who number around 3,500 - supporters who bought them as the club sought to raise cash following the 2003 period in administration.
Having opted to maintain a five per cent ownership of the club after the April 2021 takeover, its stake has been diluted multiple times as Gamechanger 20 Ltd injected new funds into the club, while more recently US-based private equity firm Bright Path Sports Partners took a 40 per cent stake in Gamechanger through a £105 million investment.
PSPRS, Arizona’s Public Safety Personnel Retirement System, retains a controlling stake of around 50 per cent in Gamechanger through US investment fund ORG, while the remaining 10 per cent is made up of smaller investors including the Three Lions, the PLC and former owner Evans, whose share will have similarly diminished over the last few years.
An email sent to shareholders by the PLC board reads: "As you may have read in the recent club announcement, Gamechanger 20 Ltd has committed substantial additional funding to allow the continued development of our football club, both on and off the pitch. Clearly that is excellent news and will provide opportunity for the momentum of the last three years to be sustained in the long term.
"As you know, it was recognised when majority ownership of the club was acquired by Marcus Evans, and more recently since the acquisition by Gamechanger 20, that further investment in shares in ITFC by the majority owner would result in ITPLC’s holding being diluted.
"Following the substantial investments already made, ITPLC's shareholding in the club has been diluted to c1 per cent with c99 per cent being owned by Gamechanger 20.
"Dilution will continue as Gamechanger makes further investments in ITFC and I am sure you would agree, that is a very positive outlook for all of us and we are hugely grateful for the support we are receiving from our majority owner as their involvement has led to a massive improvement in every aspect of the club.
"There may be occasions in the future when it may be possible for some funds to be returned to Gamechanger if cashflows permit. We think it is appropriate that Gamechanger should be the sole beneficiary of such returned funds given the investment they have made and continue to make.
"The most convenient way to achieve this and to avoid the club from introducing any debt in its structure, is for any return of funds to be by way of dividend. Your board is therefore fully supportive of the introduction of a mechanism to deal with dividends being made solely to Gamechanger.
"I am sure you’ll agree that none of us, as shareholders in ITPLC, bought our shares in expectation of a future dividend, and it is important that we give our support so that we can encourage Gamechanger 20 to continue their investment programme.
"There is no decision to be made by PLC shareholders in this matter as the board is empowered to act on shareholders’ behalf. We as always will continue to be transparent and have therefore prepared this letter to explain our positioning.
"It goes without saying that Gamechanger remains fully supportive of the existence of ITPLC as a minority shareholder.
"Hopefully 2024 brings the club similar success to 2023. I am sure you will join us in wishing management, [manager] Kieran [McKenna] and the team every success for the remainder of the current season.”
There are five members of the PLC board, chairman Roger Finbow and Richard Moore, club directors prior to Evans's takeover, current Town chairman Mike O’Leary, club associate director and former Supporters Club chair Elizabeth Edwards and local farmer Peter Over.