|Sales See Town Make Profit|
Monday, 14th Nov 2011 12:15
The sales of Connor Wickham and Jon Walters saw the Blues make a rare profit of £136,000 before tax and interest in the year ending June 2011. But while Town made a surplus of £10.85 million on player trading, they made an operating loss of £10.72 million with the club’s overall debt now standing at £66.17 million.
The figures are revealed in an information sheet sent to shareholders in the PLC, which owns 12.5% of the club, outlining Town’s overall financial position. It is sent along with the PLC’s annual report and accounts ahead of its AGM, which will be held in the Sir Bobby Robson Suite at Portman Road on Monday 5th December.
In addition to the headline figures, player and coaching staff costs rose from £13.45 million in 2009/10 to £13.73 million in 2010/11. As a percentage of turnover player and coaching staff costs were down from 86.1% to 79.6%.
Overall staff costs were down from £17.08 million to £17.05 million, that’s 98.9% of turnover, compared with 109.4% in the previous year.
Turnover was up from £15.62 million in 2009/10 to £17.25 million in 2010/11, mainly due to an additional solidarity payment from the Premier League, with commercial income down from £5.22 million to £5.11 million with the P!nk concert included in the previous year’s accounts.
Income from the Football League, including TV and radio fees, was up to £5.5 million from £4.01 million a year earlier, with the Carling Cup semi-finals against Arsenal contributing to that rise. Gate receipts were up from £6.39 million to £6.64 million.
Direct costs rose from £19.3 million in 2009/10 to £19.9 million due to “player wages and additional match costs”, while the club made a “small saving” on administrative costs.
The £136,000 profit becomes a £3.17 million loss after interest on the club's debts is taken into account.
Town have given more information on the overall debt than previously. Last year’s total figure stood at £57.03 million with that figure increasing to £66.17 million by June 2011.
Largely that increase relates to "other group loans" (non-interest-bearing, £22.44 million, up from £15.63 million in 2009/10), which refers to additional funding from owner Marcus Evans. Aside from £2.04 million in loan notes made available in the period after the club’s administration, the debt is owed wholly to Evans and not to any outside institution.
Photo: Action Images
Please report offensive, libellous or inappropriate posts by using the links provided.
|Mark added 12:28 - Nov 14|
Thank goodness Marcus Evans is here to help us cope with these huge costs. The question is though, how much can he input when the new Financial Fair Play rules come into effect? This seems to be round the corner but not spoken about much.
Also, with a £10.72M profit on player trading perhaps all fans should be realistic about Town's chances. Can Paul Jewell really be expected to get us promoted with so little spent on transfer fees? Aside from Chopra, Cresswell and Emmanuel-Thomas, signings have been free or loans, no doubt due to financial contraints rather than Paul himself not wanting to spend money!
|MJallday added 12:42 - Nov 14|
ok so basically we need to sell a 10m player a year just to stay where we are?
thats really not good.
|Bergholtblue added 12:49 - Nov 14|
Whilst we keep hearing about Evans' deep pockets, it does make you wonder how long he will be prepared to keep putting his hand in them without getting the scuccess that he (and we) crave.
|clive_baker added 12:50 - Nov 14|
Staff costs at 98.9% of turnover? While an improvement on last year it's outrageous that any business or football club can be allowed to operate at such levels. I know we're not unique in this but for the good of the game it has to be capped and tightly regulated thereafter.
|RetroBlue added 12:52 - Nov 14|
Basically the "business" (ITFC) owes the owner Marcus Evans more money at the end of the financial year than the last one . It is an indication of how much Marcus Evans actually puts into his "business"(ITFC). Which he does not expect to re coup until the Club are promoted. All businesses tend to make losses in the early years( ie his ownership), and ME would not have been blind to the commitment he was undertaking , so CHILL ! I suspect we are no worse than 99% of all other Clubs, and that goes for "wonder breeches" ncfc!!
|Paulc added 12:57 - Nov 14|
This business model does not work! How long can the shareholders hold out for promotion? That is the only way we can turn a profit, which while the football fantasists among you may not think is important when you are asking to 'break the bank' for the likes of Billy sharp, it is in fact critical long term.
|simonsays added 13:01 - Nov 14|
Considering what we got from the Wickham sale this is quite poor!
|HARRY10 added 13:03 - Nov 14|
"Thank goodness Marcus Evans is here to help us cope with these huge costs"
You mean thanks to Marcus Evans we have these huge costs
Given that we made a huge surplus on transfers, overall costs are only 98% of turnover could someone tell me why the debt rose from £57.3m to £66.17m.
Why was there an operating loss ?
What addirtional liabilities/outgoings did we have in that year ?
INTEREST PAYMENTS !
Even if they were nearly £10m the £10m from the transfer profit should have cancelled them out. But no, even with that extra £10m the debt rose by just over £9m.
Something, somewhere is badly wrong. Perhaps Phil could find out how much interest was charged to Ipswich Town Football Club Company Ltd in 20010/11 ?
|stringtheory added 13:16 - Nov 14|
HARRY10 - I'll tell you. you haven't read the piece carefully enough! Overall STAFF costs were 98.9% of turnover - that excludes other various named and unamed costs which have risen overall.
Hats of to Marcus Evans!
|walberswick added 13:44 - Nov 14|
Is he a good a business man? Why would you buy into and increase the debt of this asset? if we ever get back to the premiership he is only likely to break even.
Does anyone know what he's playing at?
|RYITFC added 13:45 - Nov 14|
Good analysis Phil
|radiogaga added 14:15 - Nov 14|
HARRY10 - The years 20010 and 20011 is quite a way away as yet!
|tomisamos added 16:14 - Nov 14|
*are quite a way away ... if you want to be pedantic
|arc added 16:18 - Nov 14|
If we made a (tiny) profit, why did the debt increase? Does the operating loss not include interest payments?
What a mess.
|jas0999 added 17:13 - Nov 14|
The decision to bring in PJ has not helped of course. He has spent a fortune on has been injury prone players wages and where will it get us? Nowhere - other than having to start from scratch again next Summer - when these players need to be replaced yet again.
|Mark added 17:29 - Nov 14|
Jewell has not spent a fortune, he has spent about £3M on transfer fees and the wages are probably not that much higher than the likes of Counago, Fulop, McAuley, Norris etc. who left the club.
Let's remember that Keane spent nearly £11M on transfer fees and goodness knows how much on wages, and we were 19th in the table when we left, heading fast towards relegation. Let's thank Paul Jewell for steering us away from that football and financial disaster - League One!
|Jesney_Havoc added 17:32 - Nov 14|
Well done Ipswich - rah rah rah for profitable times !
|up_the_town4 added 18:29 - Nov 14|
we will get even more money when man united buy connor we must have another sell on clause on the lad.
|Henno added 19:15 - Nov 14|
Town wouldn't have seen the Wickham cash straight away as it would be paid in installments, probably over a number of years. No doubt the debt would have increased as ME pumped money in for cash flow purposes.....SIMPLES!
The fact is though we need to get back to the prem ASAP as our wage bill is just not sustainable long term in the electric league!
|RegencyBlue added 19:33 - Nov 14|
If ME ever gets fed up with bankrolling us we are in deep, deep, trouble!
|TimmyH added 19:58 - Nov 14|
Almost a fraction of the debt teams like Chelsea, Liverpool and other Prem teams owe!
|IvorFeeling added 20:01 - Nov 14|
What we need is a transfer raid from here http://en.wikipedia.org/wiki/PIA_FC
an agent, a 4-1 tip from SE1 Blue then Bobble, Chops, Marcus and all to lump on. We will also have guys from e-on on standby just in case things are not looking good.
We may even hedge with sporting index on buying the number of times 10 or 11 is used by Jas in his posts over the next 6 weeks.
Debt clear and able to buy Man City and bus'em in to PR.
|s6blue added 20:20 - Nov 14|
You need to login in order to post your comments
Blogs 280 bloggers
Ipswich Town Polls