Please log in or register. Registered visitors get fewer ads.
[Blog] Spin and Statistics
Written by SanityBlue on Sunday, 12th Dec 2010 11:52

One of the most alarming features of what has happened to our club since the Marcus Evans takeover has been the slide in attendances. But if you were to believe the main spin doctor, CEO Simon Clegg, Ipswich Town’s attendances are holding up relatively well by Championship standards .

This is what he had to say at the club’s AGM on 7 December: “Numbers this season are 5% down to date on where they were last season and we have fared better than most with our numbers only 2% down.”

Really? The Football League’s website shows that in the 2009/10 season the average Championship crowd was 17,935 and in the current season up to the time of the AGM the figure was 17,110. This indeed is a decline of 5%. However, Ipswich Town’s corresponding numbers were 20,840 and 19,465 which translates to a fall of 7%, not 2%.

If this was just a statistical blip there would be no cause for concern but attendance data over recent seasons shows a definite downward trend. In 2005/06 average attendances at Portman Road were 24,253. Our current season average of 19,465 means the decline is a disturbing 20%.

But perhaps the 2005/06 season should not be the basis for comparison. Although we finished 15th in the league in 2005/06, expectations had been high as we had almost achieved automatic promotion the previous season. Therefore, this would have been reflected in high season ticket sales.

The season 2006/07 would be a better basis for comparison because pre-season expectations were not high and this was borne out. The team with Jim Magilton as its rookie manager finished a modest 14th attracting average crowds of 22,445. Therefore, even with 2006/07 as the base, the decline is still a worrying 13%.

How has the Championship in general performed over the corresponding period? In 2006/07 average crowds were 18,189 and, as previously stated, in the current season up to the time of the AGM the figure was 17,110. Therefore, the fall in Championship crowds as a whole has been only 6%.

It is clear then that in recent seasons we have been losing fans at a significantly higher rate than our rivals and our claim to be one of the Championship’s bigger clubs now looks questionable. On current numbers we are only the ninth best supported club.

Another of Marcus Evans’s minions, the finance director, Martin Pitcher, had this to say at the AGM:

“In terms of what goes in and out of the bank account, which is more important than the notional accounting charges, it’s in the order of £5 million to £6 million a year, the difference between the cash income – tickets, money from the league, any commercial income – less the cash costs of running the club – salaries, any payments to any suppliers, police charges etc. That £5 million to £6 million is what Marcus funds per year and in addition he will fund any capital expenditure on player purchases.”

This doesn’t add up. A business that is operating at a loss can keep going only by obtaining new equity or debt funding. There is no indication Marcus Evans has injected additional equity into the club therefore any funding that he provides would have to show up in the year by year movement of the intra group loan. Let’s do some simple arithmetic.

The accounts as at 30 June 2009 reveal the club owed £33.7 million to the Marcus Evans group. We were informed that in the last year interest of £3.1 million accrued on the debt. If on the basis of Martin Pitcher’s statement we added a further say, £5 million, for the funding of operating losses, the intra group debt as at 30 June 2010 would come to £41.8 million. However, the information sent to the minority shareholders shows the debt to be only £36 million. The discrepancy would be even bigger if we included the net expenditure on player transfers that is said to be entirely funded by Marcus Evans.

Martin Pitcher pointed to operating losses of £5 million to £6 million per year but omitted to mention they have blown out under the current regime. My calculations indicate that in the last three seasons before the takeover these losses only averaged around £1.4 million.

Whatever the actual size of the contribution of Marcus Evans to the club’s coffers, it is a bit rich to trumpet this funding when it is the current regime’s own mismanagement of the club that is mainly responsible for the operating losses being as large as they are. There are five obvious reasons for the blowout:

1. The decline in attendances 2. Lower commercial revenue 3. Excessive player wages 4. Over-reliance on loan players 5. Generous salaries to Messrs Clegg and Keane

All of the unfavourable factors listed above can be sheeted home to the current regime. Each one deserves a detailed discussion but I will leave that for another time.

My views on the Marcus Evans takeover are well known. I believe the club should not have been sold. It would have done better to seek to negotiate a reduction of the debt with Norwich Union and if that failed it should have taken its medicine in the form of a second administration and then lived within its means. Its prospects of Premiership football in the foreseeable future would have been extinguished but at least it would have been independent.

As a stand-alone entity we would have enjoyed a higher reputation in the football world. Those entrusted with running the club would have had a greater respect for the club’s culture, traditions and fans. There would have been greater transparency and we would not be fed with information that is spin at best and distortions at worst.

Please report offensive, libellous or inappropriate posts by using the links provided.

Keaneish added 15:59 - Dec 12
Fascinating Blog post Sanity. Seems evident to me that Evans wants Keane to walk. The last thing he'll want to do is pay up his contract. So it's us left with a stand off between Keane's pride and Evans's wallet! Great...

I'll keep an eye out for your next blog on the 5 unfavourable factors. Seems to me that Keane and Clegg are taking a very, very big slice of the pie. Far more than i bet Evan's would like divulged given this disaster!


Vexorg added 16:50 - Dec 12
This is a very important debate. Keep it up Sanity

MVBlue added 19:08 - Dec 12
Blimey this is negative

tractorboy2434 added 21:07 - Dec 12
Yes, and given that the current attendances are distorted by absent but counted season ticket holders, recent gates are below 18K, the real figure is actually far worse, probably around 15K in reality, and probably will be on Sat, if he stays average gates will be less than 17K by January, sadly I feel the club is rotten to the core, poor management, poor coaching, poor tactics, poor marketing, I could go on but its so sad to see the decline of a once proud club, now a laughing stock.

WarkonWater added 06:28 - Dec 13
How can the CEO get something like that wrong? Either he deliberately gave wrong information to paint a rosier picture or he’s incompetent and can’t do simple maths. Either way he has to resign.

Did anyone else see in the EADT that they had parroted Simon Clegg about how Town’s fall in attendances wasn’t as big as most of the other Championship clubs? I thought the idea of the media was to challenge and not just take at face value everything they hear at press conferences and meetings. If the media swallows it of course we’re going to keep getting spin. Those in power at the club will think: if we can fool the media how are we going to be found out by the stupid fans? Scary.

I’m not sure I understood the bit about the numbers not adding up. If the debt is only £36mil instead of the £40 mil odd that you calculated, that’s a good thing isn’t it?


NorthStand added 14:59 - Dec 14
WarkonWater, are you seriously suggesting that Simon Clegg should resign for a silly mistake like saying our attendances have declined 2% when the real figure is 7%. I think Clegg is a bumbling fool but I don’t think he should hang for something like that.

I think what SanityBlue was trying to say about the debt was that Marcus Evans can’t have his cake and eat it too. If the debt was to Marcus Evans one year ago and is only £36 million today it is only because of the interest that has accrued. If he had bankrolled the club as was suggested for operating losses in the order of £5 million or £6 million plus player transfers the debt would in fact have been much higher than £36 million.


WarkonWater added 13:39 - Dec 15
NorthStand – if this was just an isolated mistake then I wouldn’t be calling for his head but attendances are the lifeblood of football. How can the fool turn up at an AGM and say how wonderful things are at Town because our attendances have fallen by a lesser amount than at other clubs when the statistics clearly show that we have actually suffered a bigger fall ie. 7%. A CEO has to be on top of details like that. Would the CEO of Sainsbur’s or BP get away with something like that?

I think I see what you’re saying about the debt situation. It has to be much higher than £36 million if ME is tipping in all the money that he’s claiming to be pumping into Town. The problem is that the financial information is only coming in dribs and drabs and no one is really challenging ME and his underlings about what the real position is.

You need to login in order to post your comments

Blogs 264 bloggers

About Us Contact Us Terms & Conditions Privacy Cookies Advertising
© TWTD 1995-2019