Town MDs Jonathan Symonds and Ian Milne say fans shouldn’t be too concerned regarding the size of the club’s debt. Last year’s accounts showed that the Blues now owe £79.62 million, virtually all of it to companies owned by Marcus Evans.

“Without the debt the club wouldn’t be where it is,” Symonds told TWTD. “It is what it is, but on the one hand we want to bring investment into the team, but there are no other avenues of revenue.

“The debt is owned entirely by the group and it’s a stable debt. I think there are lots of clubs out there who would give their eye teeth for that.”

Milne continued: “I think that’s the important thing. If the debt was owned by a third party I could understand the issue and I’d be part of that and we’d looking over our shoulders at the bank or whoever.

“But the comfort is that it is owned by just one group, by the owner and like any good accounting exercise it’s got to be logged as a loan otherwise it’s a gift and then if it’s a gift it gives you lots of tax issues, you get taxed on the gift. It is what it is and there’s no ulterior motive.

“There is group relief and what have you,” he added. “But at the end of the day there’s still money coming out of [Marcus’s] pocket, the taxman isn’t funding the football club or any other part of the group.

“Ipswich Town is the only loss part of the group, but that’s not an issue to the Marcus Evans Group. Marcus and the group enjoy investing in Ipswich Town.”

The debt is unlikely to rise too significantly in the seasons to come even if the Blues remain in the Championship with annual losses - £15.96 million was the 2011/12 figure - set to be lower with owners less able to inject cash under Financial Fair Play.

“We’re in the same position as every other club,” Symonds explains. “Marcus and every other owner can only put so much into the club.

“Therefore the opportunity for the debt to grow is less, which is clearly a good thing. But also it [has its restrictions].

“But as long as you have a level playing field, in terms of all clubs having the same constraints and restrictions in terms of funding, however, the issue comes with the parachute payments from the Premier League. Put that into the mix and it is going to be more difficult, without a doubt.”

Milne says all clubs ought to be in the process of carrying out the same sort of efficiency drive which has been in progress at Town in order not to fall foul of Financial Fair Play and face sanctions such as a transfer embargo.

“We wonder how other clubs are going to manage unless they’re doing what we’re doing,” he said. “We know other clubs are doing what we’re doing, but we also know that there are clubs that are not. How are they going to cope?”

Meanwhile, Town academy’s move towards Category One status is making progress, according to Symonds: “The work to make sure that by the time we get re-audited we’re there has already started.”

Milne added: “And in the discussions with the FA and Football League and the other administrators, they’re all happy that we’ve got the right credentials to do this and we’re set up to do it.

“So we’re looking forward to that inspection. It’s all going in the right direction and all being planned for.”

Photo: ITFC

Photo: Action Images

Jimmy86 added 20:50 - Oct 17 Looks like evans and his yes men have really got us over a barrell!!! Since evans bought the club the debt, which seemingly is owed to him has more than doubled, maybe thats the reason they are making it seem all hunky dory!!! He never did pay the debt off, just put it in his name. Thats why most fans are hacked off bout a lack of backing in the summer!!!
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maggot1011 added 21:12 - Oct 17 The amount of debt sitting with the club shouldn't be a source of worry for fans. In fact, it demonstrates the importance of the club to the wider Marcus Evans group. It's likely that ME sees ITFC as a real asset to the group because it generates valuable losses. These losses can then be offset against the profits of the other group companies, providing those other companies with relief against corporation tax to the extent that the club is making a loss. It sounds absurd, but a loss-making entity like ITFC within a corporate group is actuay a real asset. ME would be mad to part with ITFC or call in the debt because the tax relief is too valuable to the rest of his group!

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ArnieM added 21:55 - Oct 17 Well there u have it . The Club's debt is largely a book keeping exercise in the Corporation accountd to minmize the tax bill to Evans UK holdings.
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MaybeNextYear added 22:40 - Oct 17 Did you really expect them to say the club is up the creek without a paddle ? they are just sprouting what they think the fans want to hear . Would trust them as far as i could throw the fat one .
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Rentaghost added 22:53 - Oct 17 At the end of the day the club is in business and in a good position in the league. Massive improvement this season.
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Guthrum added 23:20 - Oct 17 Jimmy86 - He has paid off the debt we owed to Aviva, so now we owe it to him instead. Writing the debt off was never part of the deal (and never would have been, whoever bought the club). As for a perceived lack of backing, is the club not making large enough losses already at £15m a season for the last few years? All of that extra money to keep ITFC running provided by Marcus Evans. And, anyway, wages still have to be paid to all the "free" signings made in the summer - that's a fair investment in the squad by anybody's standards (outside the Premiership).

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BluePG added 07:37 - Oct 18 It's isn't always apparent but without Evans buying the debt a few years ago, where would we be now? Arguably non-existent.
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DurhamTownFan added 08:16 - Oct 18 How on EARTH have we spent that much, and on what, exactly?! I agree that ME is helping us out here, but the situation is a good example of the mess football is getting in. We are essentially at the whim.of ME. If he decided to pull the plug, what then? Look at how many clubs in the league are now owned liked this. Blackburn and Cardiff may extreme examples, but I worry when one man has too much power. One day ME might snap!

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