Please log in or register. Registered visitors get fewer ads.
Back Rent Row Rumbles On
Back Rent Row Rumbles On
Thursday, 6th Oct 2011 15:37

Ipswich Borough Council have warned Town that patience is running short regarding the disputed back rent due on Portman Road. In March, Blues chief executive Simon Clegg revealed that the rent on the land on which the stadium stands had risen by 743% with the new figure backdated to 2004 and with reports that the matter could potentially lead to legal action.

Since the Conservative-Liberal Democrat coalition was replaced with a Labour regime in May talks have continued, but current Borough Council leader David Ellesmere warns that patience is running out with their executive due to meet next week to talk about their options should the situation continue with legal action not ruled out.

He said: “You cannot have one rule for Ipswich Town and one for all the other businesses. We do want to be as helpful as possible but this has been going on for a long time.”

For the Blues, chief executive Simon Clegg, who will be given the opportunity to address next week's IBC executive meeting if he wants to present the club's position, says discussions still continue: “This is an ongoing situation with the council and we are continuing to have dialogue with them over the matter. There is nothing more we can add at this time.”

Town have been paying the revised figure for the last year with the back rent remaining the point of contention.

Speaking to TWTD in August, Clegg outlined how the impasse developed with the rent rising from £15,000 to £111,000, the overall back rent now totalling around £650,000 with interest: “[IBC] could have initiated a rent review in 2004, but they didn’t.

“Instead, they initiated it after Marcus acquired the club and they wanted a rise significantly larger than the 743% increase.

“So, we went to independent arbitration over the issue. The arbitrator decided to come down somewhere in the middle, considerably greater than the increase we had indicated we thought was appropriate and considerably less than the figure IBC was seeking.

“IBC then indicated that they wished to backdate that to when the rent review could have taken place in 2004.”


Photo: Action Images



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



beerhelps added 21:22 - Oct 6
The industry I work in tend to set rents between 8-12% of turnover, seems to me that £111k for a stadium near the centre of town, close to rail and bus links, is a bargin for the club, given the wage bill its small potatoes.

However, IBC would do well to remember that many of us spend time and money in the town before and after matches, and that ITFC is the towns leading brand.

Not sure either party should have let this become a 'media item', poor judgement.
0

Mutiny added 23:40 - Oct 6
Leave this to the expert to sort out - Clegg - no chance of that - keep him away from IBC or things could get worse. Get somebody to manage this who knows what he is doing.

Leave it to Carlos Edwards - he seems to be a lad with his head screwed on (back to front)
0

HARRY10 added 00:07 - Oct 7
"Stadium of light cost safc 26mill?! How did two stands cost us about the same?! "

They didn't. Sheepy had run up debts of over £8m which were rolled up into the overall loan. My understanding is that when the club found out how much was available to be loaned they added an extra stand to the amount originally schedualed to be borrowed.



'15k rent just shows how poor labour really was," eh !

That rent was being charged under the previous administration which was lib dem/con, as was the increase made in March. The clue is in the story, as in -
' Since the Conservative-Liberal Democrat coalition was replaced with a Labour regime in May'.

0

warwickblue added 00:37 - Oct 7
You can tell there's no game this weekend can't you, when all we've got to squabble about is the finer points of the political comings and goings of our council? For what it's worth, I think IBC has an appalling record of investment in our town - so why should we expect them to do the football club any favours? Selling off the airport, closing Broom Hill pool, shutting the Film Theatre, flogging off The Corn Exchange to Waitrose, draining the kids paddling pools, moving themselves into new offices, spending thousands on pointless and confusing road schemes....presiding over the slide of our Town Centre into a drab, lifeless and dirty mess. What else have we got to be proud of except our football team hey? Serve IBC right if we did relocate out of town.
0

Stu_Magoo added 05:11 - Oct 7
God I hate Labour.
0

hughesitfc added 07:31 - Oct 7
easy , marcus buy the land off the council or pay up or build a new ground , council ipswich town fc have brought in so much commerce to the town they have bought that ground a hundred times over as a gesture to that give us our ground ya tight arses
0

IvorFeeling added 08:14 - Oct 7
Classic cause of positioning by both parties. Council aren't going to get all they want and we are going to have to pay more than we want.

Council need a vibrant ITFC and we need support from the council in terms of running the club.
0

Marshalls_Mullet added 09:41 - Oct 7
Rosseden - ITFC rent the land, not the stadium, if they were to move then ME would have to pay for demolition, site clearance and remidiation. They will then be left to come to an agreement on how to move forward.

ME would still owe a rent, and IBC would not be in a position to redevelop the land due to the lease.
0

Marshalls_Mullet added 09:45 - Oct 7
Hollywoodginge - Seeking back dated rent is common practice in commercial property and is not underhand.

ITFC have obviously been accruing for some back dated rent but underestimated the sum.

I think ITFC should pay up, the sum was decided by an independent 3rd party and they owe the back rent. Get it paid.
0

petermorris added 10:06 - Oct 7
A real education ........ hope the 19th richest man in UK is reading all this expert advice.
0

blue_em_away added 13:27 - Oct 7
HighgateBlue

Is it nice to be an expert?

Remember....those in glass houses should not throw stones....
0

radiogaga added 14:09 - Oct 7
We don't know the ins and outs of the situation, but why the council can't deal with ITFC behind closed doors (rather than sulking to the media) is a bit puzzling...
0

churchmans added 21:54 - Oct 7
i like the comments regarding moving and building a stadium somwhere else! interesting how about on the docks right near the orwell bridge loads of land and dissued buildings that end.
like the first comment on the first page if we move IBC are stuffed no rent and lumbered with a stadium they cant afford to keep or regenerate!
win win for town.
i love ME he got eough money and has saved our club bug time from the admin days
0

churchmans added 22:06 - Oct 7
over by sandy hill lane they used to store thousands of volvos there and distribute them to the showrooms all over the uk and holland! thats the car parking sorted already! the power station has gone! go on ME builda 60,000 all seater with hotel and bars i dare ya DOUBLE DARE YA. think long term investment son!
0

BlueVelvet added 14:47 - Oct 9
churchmans - guess who has fingers in the pie that was the volvo car park?

what we need is a new stadium on the sugar beet factory in sproughton
0


You need to login in order to post your comments

Blogs 295 bloggers

Ipswich Town Polls

About Us Contact Us Terms & Conditions Privacy Cookies Advertising
© TWTD 1995-2024