Town’s owner Gamechanger 20 Ltd has launched data and property companies, its accounts for the year to June 2024 have revealed.
Gamechanger 20 Ltd was the entity set up to purchase the club from Marcus Evans in April 2021 and invested substantial sums as the Blues won back-to-back promotions from League One and the Championship with the latest accounts covering the period of the season which ended in promotion to the Premier League for the first time in 22 years.
GC 20 Data Ltd, which more recently has been renamed Paradigm Sports Intelligence Limited, is understood to be a specialist data company focused primarily on football data. A similar model is operated by a number of other clubs with a growing focus on data and AI to produce a competitive advantage.
GC 20 Property Ltd has been set up to develop the land around the stadium with the club having long-held ambitions relating to hospitality and entertainment around the ground having purchased land behind the Sir Alf Ramsey Stand.
In his review of the business, chief financial officer (CFO) Tom Ball outlines Gamechanger’s position during a 12-month period in which the club brought in substantial new investment from US-based private equity firm Bright Path Sports Partners, who secured a stake of just over 40 per cent.
"During the year, the company secured significant and strategic capital to ensure it is able to execute its future intended investment activities,” he wrote.
"In securing this investment, the company is working with experienced parties who have both related and diverse investment backgrounds. Some of the costs associated with securing this investment are captured in the income statement for the company.
"The main performance indicator for the company is the value of its investments. At the balance sheet date, £116 million has been invested into Ipswich Town Football Club Company Ltd.
"The directors have considered the fair value of its investment in the club, which is estimated at £168 million. This represents a 45 per cent gain on the investment at the balance sheet date.
"The increase in value of the investment arises as a result of improvements to the club including its playing and non-playing infrastructure, in addition to the increased ability to generate revenues following promotion to the English Premier League
"The residual investments held by the company at the balance sheet date are predominantly in property assets. "Despite the increase in the group’s loss for the year, which was primarily caused by exceptional items, the financial position of the group has improved. Net assets have increased to £117 million due to the significant new investment raised during the period, with it noted that the investment raised will be drawn over a period, as and when investment needs arise.
"With regards to the performance of Ipswich Town Football Club, the 2023/24 season was another excellent season for the club, achieving a second successive promotion in what was another record-breaking season.
"The on-pitch success was also reflected off it with the club benefitting from fantastic support, resulting in excellent ticket, retail, venue and commercial revenues. This support is key to the club’s ongoing success.”
Gamechanger made an operating loss of £56.45 million, which relates to the loss the football club itself made, £39.3 million, plus its own overheads, some relating to the refinancing and bringing in of Bright Path, as well as settling earlier financial agreements.
The accounts show proceeds from the issue of shares of £43.94 million, which relates primarily to the Bright Path. In total, investments from all parties, totalled £115 million.
Not all of Bright Path’s investment came into the club immediately, with the company expected to draw funds as needed over time. In addition to the equity raised, the company also secured debt via purchasing loan notes held on the Cayman Island Stock Exchange, with the party who issued the loan note also an equity provider to the club. At the balance sheet date the company had borrowed £15 million using this facility.
"During the year, the company entered into an agreement for the issue of an unsecured variable funding note, which was listed on the Cayman Island Stock Exchange, with a maximum principal amount of £25 million and fixed coupon [interest] of 12 per cent,” the accounts explain. "As at 30th June 2024, £15 million has been drawn down by the company.”
Wages and salaries during the year totalled £46.7 million including £17.6 million in promotion bonuses to players, staff and club management.
At the date of the accounts, the remaining amounts and contingent liabilities on player transfers were £11.5 million. Since June 2024, following promotion to the Premier League, the club acquired player registrations totalling £111.9 million, with the potential of another £28.9 million in contingencies, overall incoming transfer business of more than £140 million.
Also since the year end, Gamechanger has acquired £56.38 million in shares in the club through further investment and dilution of existing shares.