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Town Announce £5.2m Pre-Tax Loss
Tuesday, 4th Dec 2018 19:00

Town have announced a loss before tax of £5.2 million in the year to the end of June 2018.

Ahead of this evening’s PLC AGM in the Sir Bobby Robson Suite shareholders were given a sheet outlining the financial highlights of the overall club for the year to June 2018.

The PLC owns 12.5 per cent of Ipswich Town Football Club Co Limited and consists of the club's shareholding prior to the takeover 11 years ago with Marcus Evans owning the other 87.5 per cent.

The club made an operating loss of £8.39 million in the financial year 2017/18, while making £3.84 million from player sales, the initial fees received from Bristol City for Adam Webster - £3.5 million minus Portsmouth’s sell-on share - and £750,000 from Barnsley for Kieffer Moore with the sales of Martyn Waghorn and Joe Garner made after the end of June 2018.

In the previous financial year Town made a loss before tax of £4.3 million and an operating loss of £7.8 million, having received £4.1 million from player trading.

The club’s overall debt has grown from £89.26 million to £95.50 million, owed almost entirely to owner Evans’s other companies - the increase an additional £6.383 million in non-interest-bearing intra-group loans - with MD Ian Milne having previously outlined the position.

“This is no third party debt," he told TWTD in November 2014. “The money that an owner has put into a club, he’s never going to see that back, unless maybe it goes up [to the Premier League]. But even then I doubt he’ll see that return.”

Town’s turnover in 2017/18 was down slightly from £17.24 million in the year to June 2017 to £17.13 million.

The wage bill, by far the club’s biggest outlay, was £18.53 million, 108.17 per cent of turnover, up from £17.78 million during the 2016/17 season.

Gate receipts were down from £5.13 million in 2016/17 to £4.7 million last season having been £6.5 million in 2015/16, while commercial income was down very slightly on the year to June 2017 at £4.350 million from £4.352 million.

The average attendance was down from 16,980 in 2016/17 to 16,272 last season (the 2015/16 season’s was 18,959), while season ticket sales were also lower in 2017/18 at 10,144 having been 12,022 the previous season.

“Gate receipts were down on last season due to lower attendances,” the highlights document explains. “Cup receipts were also lower than last year as 2016/17 included a share of the gate from the replay at Lincoln City [rather than just a single third round tie as in 2017/18].

“Commercial revenue remained at a similar level to last year despite no major stadium concerts in the summer (2016/17 included Elton John). EFL income was higher than last year due to an increase in the basic award distribution.”

Regarding costs, it adds: “Direct costs increased from £21.4 million in 2016/17 to £22 million due mainly to player wages and associated agent fees as further funds were invested in the first team squad and also our academy.

“Administrative expenses decreased from £2.3 million to £1.6 million in the season 2017/18 as a result of a refund of historic policing costs following a legal settlement which was partly offset by an increase in the club’s share of the EFL’s pension scheme deficit.”

The financial highlights can be found in full on the club site here.

Photo: Action Images

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Nath added 19:05 - Dec 4
We are a dead loss full stop.

Gilesy added 19:08 - Dec 4
I await the comments that Evans is failing to invest.

Keaneish added 19:12 - Dec 4
More to the point, how are our losses up?

RegencyBlue added 19:13 - Dec 4
Whatever Evans is doing it’s failing, that much is clear!

PortmanTerrorist added 19:19 - Dec 4
Losing money, losing supporters, losing games.

How brilliant a Club is ITFC that so many of us still have not lost the faith......despite ME and his 'investments'.

peteswindon added 19:20 - Dec 4
How h the wage bill gone up ????

Superfrans added 19:26 - Dec 4
Peteswindon - these figures are for last season, the 12 months to last June. So they include the salaries of Waghorn and Garner, who presumably were on decent money given that we got them for such small transfer fees.

Bert added 19:38 - Dec 4
What this shows is that an owner of a club with increasing debt has very little flexibility to invest unless he is a real club fan.Anyone who thinks that Evans makes money out of this in terms of tax off set is wrong. That said, if Evans really wants the club to rise from where it is he has to accept a hit to his business finances. He is a wealthy man so it's really up to him now.

dirtydingusmagee added 19:41 - Dec 4
who is looking forward to January now ? forget it .

casanovacrow added 19:41 - Dec 4
I would guess that loss is misleading to the current situation. Much would've changed since the end of June.

cat added 19:44 - Dec 4
The club might be going down the pan but at least somethings on the up!

prebbs007 added 19:52 - Dec 4
Gilesy are you serious ???? This is EXACTLY what our tax dodging owner wants. He owns many companies and uses losses in some to offset profits in others. It’s not illegal but is immoral and is very very much at the detriment of ITFC who don’t , and never will under Evans, have real investment. He has no interest in us progress as he makes multi millions from corporate entertainment, Olympic ticketing and other businesses and needs somewhere to offset that. ITFC is that outlet. How on earth our wage bill went up is totally astonishing. Our performance as a business was horrendous. Season ticket sales down. Turnover down. Gate receipts down. Attendances down. Commercial revenue unchanged (so down really as EFL revenue higher). Basically everything was down so why did ANY employee if ITFC deserve a higher wage in a performance measured industry ???? Oh that would be so Evans could hide more profits.
Our beloved club is in such bad hands and on a downward spiral that suits the owners overall business.
Sad sad times.

Pumpee1980 added 20:02 - Dec 4
I'm sure he got most of that back with the summer sales......

braveblue added 20:06 - Dec 4
How can anyone support Evans. Total mismanagement.

GFH added 20:10 - Dec 4
Surely you can see that if it wasn't for Marcus Evans our club would have shut up shop years ago.

ArnieM added 20:14 - Dec 4
So Towns losses ( since Evans took over) have all but trebled. Yet the Club is being gradually dismantled it seems. At the same time, Evans’ personal wealth is increasing year on year, ( almost a billionaire now I believe ). This has to be a very strong, (positive), correlation surely?

If being relegated meant we’d get shot of this leech , I’d actually be all for it.

Karlosfandangal added 20:17 - Dec 4
And that’s why we sold Waghorn and McGoldrick and Webster and yet Hurst spent a good £5 million on players then ther is the compensation for sack Hurst and then Mr Lambert not here for peanuts.

And yet the fans still say they want £10 million spent in Jan and they still say Evans is not investing. Wake up the Prem money is killing the game not Evans.

£150 million for a Prem club and only 2.8 million for a Championship club.

Please Mr Evans drop the prices but put £10 million of your money in to buying new players.
It will be worst next season when we go down.

Evans mistake was hiring Hurst

BlueandTruesince82 added 20:42 - Dec 4
The wage bill is 108% of the club's turn over! Just consider that.

Gilesy added 20:43 - Dec 4
Prebbs077...right. If he's got other companies that make losses he doesn't need town to make losses, and until a tax rate is over 100% there's no I certainly give to make a loss to reduce a tax bill, but what do I know?

christiand added 20:44 - Dec 4
How not to run a football club....for prospective club owners get yourself down to PR and book yourself a meeting with ME or Milne. Whatever advice they offer do the exact opposite. So on and off the pitch we’re a shambles, have we hit rock bottom yet?

BlueArrow added 20:48 - Dec 4
Coincidence that gate receipts and attendance figures down since the concessions age was raised to 65 ??????

Lathers added 20:54 - Dec 4
Evans is living the dream....

wayway added 21:03 - Dec 4
Why should anyone be surprised wages have gone up, it drips down from the Premier league where wages go up by the day. If you, the ordinary fan want to do something about it the answer is simple. Just cancel your Sky/ BT sports subscription, but I bet no one does

Edmundo added 21:22 - Dec 4
"The wage bill, by far the club’s biggest outlay, was £18.53 million, 108.17 per cent of turnover". This is exactly the sort of thing that sent Cov and Pompey over the edge. We need to be very wary of this: at least in Lge 1 we will have lower wages! Seriously though, massive RED FLAG here.

grubbyoik added 21:52 - Dec 4
The proof of the pudding will be when Evans sells or we ever get promoted ... Then we’ll see what he does with the debt.. and we’ll finally see what kind of man he really is.

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