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Town Announce £12.6m Loss
Monday, 3rd Apr 2023 15:07

Town's accounts for the year to June 2022 show total loss of £12.6 million in the year to June 30th 2022, the first season following the Gamechanger 20 Ltd.

The loss, which had been wholly expected as the new owners invested in the club both on and off the field, was up on £6.4 million in the previous year, which covered the Covid-hit 2021/22 campaign.

The club made an operating loss of £14.4 million compared with £7.7 in the previous year.

Turnover was up from £8.1 million in 2020/21 to £14.4 million, other operating income was £0.1 million compared with £4.1 million a year previously and operating expenses £28.9 million, up from £19.8 million in the previous year.

A third of that £9.1 million increase relates to wages and the rest is operating expenses, the cost of the ongoing rejuvenation of the club.

The accounts show a relatively low net transfer spend during the year. Proceeds from disposal of intangibles, transfer sales, Flynn Downes to Swansea, Andre Dozzell to QPR, Scott Fraser to Charlton and compensation from Norwich for Liam Gibbs, was £2.6 million against purchases of £3.4 million for the players brought in, Cameron Burgess, Conor Chaplin, George Edmundson, Vaclav Hladky, Rekeem Harper and Christian Walton.

Those figures refer to the cash received or paid out rather than the whole fees with transfer payments made in tranches over a number of years.

The overall wage bill was up from £13.9 million in the year to 2021 to £16.4 million

Season ticket sales were 12,870 with no real comparison to the previous season due to the Covid situation. During 2022/23, season ticket sales are just under 18,000 with other revenue similarly set to increase on the year to June 2022.

During the year the club issued £14.25 million in additional shares. In League One, injections of cash have to be made through equity, so the club issues more shares whenever additional cash needs to come in from the owners.

Town have also simplified the group structure which was set-up at the time of the building of the stands in the early 2000s when a Stadium company, a Finance company and a Property company were instituted to manage the paying the bond which was securitised on the developments.

"Effectively, all the trade and assets of those three companies have been moved into Ipswich Town Football Club with those companies dormant going forward.

As a result of the new shares, the PLC, the shareholding in the club prior to Marcus Evans’s takeover, now owns less than five per cent of Town, its stake having been 12.5 per cent.

The accounts show that since June 2022, £17.9 million has gone into the club sand there have been £5.97 million worth of acquisitions, although that figure includes contingencies such as appearances milestones.

The club has no external debt aside from £397,000 in loan notes taken out following the Blues’ spell in administration 20 years ago.

Internal debt is limited to legacy preference shares from the Marcus Evans era which have been taken on by Gamechanger.

Photo: Blair Ferguson

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Bluefish11 added 15:18 - Apr 3
All related to the previous year, am sure it will be better this year with the increased attendances and merchandise sales.

Anyone noticed that Good Friday, could be a VERY Good Friday with Ipswich being at Home and the other 8 from the top 9 are all away. Bound to be some upsets!

chopra777 added 15:28 - Apr 3
We might have lost money again in the last financial year. But compared to the Evans era where we were on a downward spiral both with ground and team, the future is looking rosy all round. Basically any new organisation will make losses whilst making improvements. Game changer keep on building. If in a few years we have to sell one of stars so be it, to help balance the books.

itsonlyme added 15:37 - Apr 3
Chopra- agreed but we will be in the premiership before we have to look at selling! COYB!

Vancouver_Blue added 15:46 - Apr 3
With Mark Ashton at the helm, I feel we have a steady ship

MoscowBlueMule added 15:49 - Apr 3
We might have lost on the cash flow, but the ITFC brand and asset has certainly gained in value at a much greater rate.

BangaloreBlues added 15:59 - Apr 3
I don't understand any of that!
Never been good with financial figures, it's an alien language!
We've made a loss, that's all I can understand, so I guess it's even more imperative we go up this season.

RegencyBlue added 16:12 - Apr 3
Hardly surprising. Years of neglect and underinvestment by Evans has to be put right to get the club back on track.


Kropotkin123 added 16:23 - Apr 3
Interesting that it supports what a lot of us thought, the ins and out of the initial window weren't too dissimilar, dispute to notable upgrades in quality.

hoppy added 16:46 - Apr 3
"£17.9 million has gone into the club sand"

That's an awful lot that's been spent on sand...

Westy added 17:55 - Apr 3
There will always be maintenance costs and on-going improvement but the main upgrade of the inferstructure is essentially a one off. It really does show the commitment of the new owners. If things carry on as they are a major stadium increase in capacity can't be too many years away.

ArnieM added 18:22 - Apr 3
I'd suggest that loss represents the underfunding by the previous owner, Evans.

Gamechanger has dragged ITFC back from the brink of a virtual footballing non entity, to be a club that will more than hold its own in the Championship. That's how much Evans had allowed this Club to decline. He invested zilch in the infrastructure, and Gamechanger have only just started to make changes in this area, so it is clear that Gamechanger are in this for the long haul.

BleuBlue added 18:24 - Apr 3

Nomore4 added 18:40 - Apr 3
These losses will carry on at this rate until Premier league football comes along. A double promotion is needed ASAP. £3.5m for pitch work this summer alone.

Bert added 18:44 - Apr 3
......we can build lots of sand castles with £17.9m (typo of course). Perhaps the writer was thinking of the Evans era built on sand rather than the rock solid foundations laid by our new owners and investor.

Nomore4 added 18:45 - Apr 3
Arnie M The long term being 25/26 season. That's when Gamechanger expect the club to be playing Premier league football. At the latest.

gosblue added 18:50 - Apr 3
On thé plus side not shown in the accounts is the massive positive impact on the ITFC family and the wider community. No longer showing on the negative side are poor transfers and severance payments to dodgy managers. COYB and Gamecbanger

Bazza8564 added 19:06 - Apr 3
New owners put in 15m on shares to cover this, get ourselves into the next league our revenue from sky alone goes through the roof

blueboy1981 added 19:14 - Apr 3
That in itself is not Good News, and unless it can be offset in some Financial way - will need to change.
Crowds like we've had this past season, and since the take over, should not be seeing such a significant loss !!

WeWereZombies added 19:47 - Apr 3
There might be a grain of truth in that amount spent on sand...

IpswichT62OldBoy added 19:48 - Apr 3
Clearly it takes money to clear up the disaster of Evans.
Investment shows as a loss until it becomes a dividend

Ipswichbusiness added 20:12 - Apr 3
Sooner or later, probably sooner, the owners will want something to show for their money, which means at least one promotion and in short order.

ArnieM added 20:27 - Apr 3
NoMore4: seen that somewhere in writing have you?

Newtonboy74 added 20:38 - Apr 3
Blueboy yet another clueless pathetic comment.

You really really ain't got a clue have you 🤣🤣🤣

Europablue added 22:03 - Apr 3
Bluefish11, I'd love it if we get out of the blocks early, score an early goal and even if it is only for a few minutes to go top. It will underline our progress and maybe even unsettle our rivals.

Europablue added 22:05 - Apr 3
hoppy, that actually sounds about right considering sand prices these days.

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