Town chairman David Sheepshanks revealed that the club is close to renegotiating the terms of its debts with its three biggest lenders at Thursday night's club AGM. Sheepshanks also reiterated that Town are continuing to search for outside investment.

Around 400 shareholders attended the meeting which, given the club's less than comfortable state on and off the field, was surprisingly low key. The scenes of protest on the terraces at recent games were not echoed by the questions from the floor of the Suffolk College hall where the meeting was held.

David Sheepshanks's speech (available via the official site) covered much of the ground included in the annual report and accounts, however the news of the ongoing talks is a significant development: "We are at an advanced stage of discussions with our three main lenders over the terms of our debt service. Our objective for such an arrangement is to be able to tell you that, all things being equal, we will have no financial pressure to sell players, now, next summer or hopefully beyond that.

"This is a very important development and would mean that we can build a three-year strategy on maximising the fantastic talent emerging from the Academy. Nothing is concluded, but we are far enough advanced for me to tell you about it and I hope that it will be concluded by the beginning of January."

The club is seeking to reduce the three annual payments totalling £2 million to levels more manageable on a Championship income. Now that Town are without either a parachute payment or a sugar daddy, the debts have proved a considerable strain on the club's ability to compete with clubs still receiving the annual £7 million parachute payments or with a wealthy backer along the lines of Wigan's Dave Whelan or Reading's John Madejski.

Sheepshanks says finding an investor is vital if the Blues are to compete with these clubs: "It is a fact that in each of the last three years, every club promoted has paid a wage bill in excess of £7 million, usually much more, and all nine clubs have either had a parachute or a benefactor.

"This is why we are openly looking for outside investment. The game has changed, the rules have changed. I want us to be successful and compete at the top level."

After the speech Sheepshanks took questions from the floor. Early queries which asked about potential budgets if season ticket sales dropped were considered commercially sensitive, although the chairman stated that the club's ability to afford players would be inevitably reduced should numbers fall away.

A question asked about the funding of the Academy which costs £1.1 million a year but which has brought in £15 million in fees over the past decade. The situation with last season's FA Youth Cup captain Liam Craig was questioned, the young Scot not as yet having been offered a pro contract.

Craig, it was revealed, is on an "enhanced scholarship" and Sheepshanks confirmed that a payment is due to his former club when he signs. Craig, 19 at the end of December, was with Hearts as a schoolboy before opting to join the Blues. TWTD understands that a fee of £5,000 becomes due when he signs a senior deal.

Cruise Control's ill-fated sponsorship of the Academy was described by Sheepshanks as "incredibly regrettable", however, Simon Milton's subsequent drive for new sponsors has brought in £50,000, £20,000 more than the previous Cruise Control deal. In addition, the U18 derby staged at Portman Road last month brought in another £20,000.

The chairman praised the new board appraisal procedure which assesses directors (including himself) and the board as a whole on innumerable criteria.

Sheepshanks ruled out a share issue at present but said that it was a possibility in the future and that the club would probably incorporate a share-save scheme when one does take place. The club ruled such a scheme out during the previous share issue and Ipswich Town Ist successfully ran one instead.

Town had no chance of getting Darren Bent to sign a longer deal prior to his departure over the summer, according to the chairman. The club had been told by his agent, Jonathan Barnett, that he would definitely leave if the Blues failed to win promotion.

Safe standing areas returning to English football grounds is an issue with which the chairman said has personal sympathy but felt had little chance of success. There was too much fear, from Government down, of the potential of a return to the crowd problems of the seventies and eighties.

In a new move, manager Joe Royle answered football questions from the floor, the first on Dean Bowditch's lack of progress. Royle said that the striker has ability but hasn't yet come on in the way which was expected. However, Royle has not given up on him, praising his pace and stamina, however, he feels he needs to find an end product; a telling pass or a goal, neither of which he has provided this season.

Royle added that players develop at different speeds, citing former Dutch international Marco Van Basten as an example of a player who made his mark once he had already reached his twenties.

Similarly, Royle feels there is much more to come from Sam Parkin. The Town manager admitted that the £450,000 summer signing from Swindon felt the pressure during some home games after his move.

Royle revealed that the club are close to announcing that Spanish full-back Sito signing an extension to his contract. TWTD reported back in September that the Blues had started talks with the former Racing Club de Ferrol man regarding a new deal.

Chairman David Sheepshanks interjected that the club are hopeful that the deal will be tied up by the end of December. Royle added that they are working at his defending crosses at the far post.

The Town boss said he sent young striker Dean McDonald on a month's loan at Hartlepool with the words "go up there and score some goals" ringing in his ears. As with Dean Bowditch, Royle wants to see more end product from the former Arsenal trainee.

Jimmy Juan's improvement as the season has gone on was cited as one of the season's highlights by the Town manager who says he is looking for greater consistency from his side as the season progresses, the year so far having been badly affected by injuries; Town will once again field a changed defence on Saturday due to the injury and return to Blackburn of Jay McEveley and Fabian Wilnis's suspension.

Royle said he felt the full benefit of last season's FA Youth Cup-winning U18 side won't be fully felt in the first team for two, perhaps even three years. The latest of 15 Academy players to make their debut under Joe Royle's management was Billy Clarke at Cardiff on Monday. One shareholder asked for an explanation for Clarke's substitution after Jimmy Juan's freekick equaliser.

Royle said that 10-man Town had scored somewhat against the run of play while playing a 4-3-2 and had looked a more solid prospect with a four-man midfield and that it was difficult to see how Clarke's presence on the field would have prevented Cardiff scoring their late winner which came from Town's failure to defend a cross to the far post. He said that given the same circumstances he would make the same decision again.

The Blues boss admitted that last season's prolific frontmen are proving difficult to replace but said that Sam Parkin's absence gives the now-fit Adam Proudlock the perfect opportunity to win himself a permanent contract with the club. Royle described players in Proudlock's position as "our current market".

The controversial 4-5-1 formation used against Reading was explained as an attempt to contain the Championship leaders. Royle admitted that he feels his side are not yet ready to take on Steve Coppell's team in an open game and he adjusted the formation accordingly. Sam Parkin's loss to injury, he felt, had a big effect on the outcome.

Royle feels Town's defence is not too far away from where he wants it to be but continuity has been a problem this season.

The Town manager stated he would continue to "keep trying to play the Ipswich way" and was pleased that Cardiff manager Dave Jones noted that even with 10 men the Blues out-passed Cardiff for spells during Monday's game.

Finally, all nine resolutions were passed with comfortable majorities, including the re-election of board members Derek Bowden, Kevin Beeston and Holly Bellingham as well as the election to the board of sales and marketing director Andrew Goulborn and financial director Anna Hughes.

Photo: Action Images

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