Binners "In a good place"

[lappinitup 629]

"Ipswich Town Football Club made a profit of £5.3 million before tax for the financial year June 30, 2014 to June 30, 2015. 

This compared to a loss of £7.2 million over the previous 12 months. The transfers of Tyrone Mings to Bournemouth and Aaron Cresswell to West Ham were the major contributors to that turnaround. 

http://www.itfc.co.uk/news/article/2015-financial-highlights-2832017.aspx

The last time they made a profit was when they sold Connor Wickham for £8m......

"During the last financial year, owner Evans’s

shares in Ipswich Town Football Club Company Ltd were transferred from

Marcus Evans Investments Limited to Marcus Evans Worldwide Holdings

(IOM) Limited.So, they''ve gone truly international now. [:D]

"Milne said this was due to a reorganisation: “There

was an internal restructure within the Marcus Evans Group and basically

he’s moved the holding companies from Bermuda to the Isle of Man.

“But nothing has changed, no shareholding has changed other than it was just an totally internal reorganisation.

“It’s part of the plans on auditing and tax and all

the rest of it, for the benefit of the whole group including Ipswich.

No selling of any part of the group, including Ipswich.”

In November £1,616,000 of loans from Marcus Evans BV was waived as the club sought to stay within Financial Fair Play limits.

“He chose to waive it rather than convert to

equity,” Milne explained. “We wouldn’t do anything without talking to

KPMG to make sure it’s fine.”

Regarding the club’s debt, which is up to £87.008

million, the Blues MD says it’s all internal with nothing owed to anyone

else, while no interest has been charged on any of the loans since July

2013.

“There’s no banks, there’s no lending institution

behind it, it’s all Marcus’s money,” he continued. “He’s happy to spend

the money that he’s spending on the club at the moment"http://www.twtd.co.uk/ipswich-town-news/28578/Having sold two of their best players for around £12m and posted a profit, the debt has still increased by over £1m. How does that work?

[ricardo 8,104]

This is what Swiss Ramble thinks.

http://swissramble.blogspot.ch/2015/08/ipswich-town-forever-same.html?m=1

[ricardo 8,104]

http://swissramble.blogspot.ch/2015/08/ipswich-town-forever-same.html?m=1Try again.

[OldRobert 38]

[quote user="ricardo"]http://swissramble.blogspot.ch/2015/08/ipswich-town-forever-same.html?m=1Try again.[/quote]Link no workie Ricardo..................

[Lessingham Canary 108]

Reminds me of the "Emperor''s new clothes"

[Norfolk Mustard 106]

That''s a lot of detail - must say I had no idea Ipswich are £87m in debt. I guess Bolton & a few others are pretty similar. If FFP rules are in place, perhaps there should also be a ceiling on each club''s overall £ deficit too? £87m appears a massive millstone round ITFC''s neck...

[GPs Beard 0]

Small point - but not sure what sort of impact the Sale of Mings would have on the accounts ending June 30th 15th. The deal was only announced on 25th June and even then the player still hadn''t agreed personal terms.

Unless Bournemouth sent a BACS for several million quid within days of the deal - (the "£8m" involves some imaginative valuations of the two players that went the other way , one of whom was on loan,) - which they almost certainly did not, I think this might be a bit of a fishy interpretation.

[ricardo 8,104]

[quote user="OldRobert"][quote user="ricardo"]http://swissramble.blogspot.ch/2015/08/ipswich-town-forever-same.html?m=1Try again.[/quote]Link no workie Ricardo..................[/quote]Dunno why Rob. The linky thing doesn''t appear to be linking.If you highlight the address in my first post 4.37pm and open it in another window it seems to work ok.

[lappinitup 629]

From TWTD......"So much for the Mings fee arriving in instalments, it seems to have gone fully into the accounts for last year"Reply - "It goes onto the balance sheet in full immediately but is received in instalments"This can''t be true can it? Why would they show money they haven''t received in the accounts only to show a profit which is then subject to tax?http://www.twtd.co.uk/forum/361279/as-supporters-selling-players-is-pretty-rubbish-at-the-moment/#23

[GPs Beard 0]

I suppose you can accrue future guaranteed income but I''m still not quite sure why you would? Just to make this year look healthier ? It''s almost as if you are dressing the shop window . Curious .

[GPs Beard 0]

One other thing (from Lappins link) I see their wages went up by £2m? I thought it had all been done on a shoestring ? All that "we only spent £150k on players " cobblers that all the binners were spouting last year.

They really are full of sh1t.

[mre2 5]

[quote user="lappinitup"]From TWTD......"So much for the Mings fee arriving in instalments, it seems to have gone fully into the accounts for last year"Reply - "It goes onto the balance sheet in full immediately but is received in instalments"This can''t be true can it? Why would they show money they haven''t received in the accounts only to show a profit which is then subject to tax?http://www.twtd.co.uk/forum/361279/as-supporters-selling-players-is-pretty-rubbish-at-the-moment/#23[/quote]

Yes it is as Ipswich would of invoiced Bournemouth for Ming''s in that financial year. From an accountancy point of view its irreverent when the cash for that invoice is received.

[nutty nigel 7,963]

If only we could have tempted Evans instead of becoming a cook''s dollies house!

Just no ambition this end of the a140...

[Red Rufus 56]

Ambition down the road has not been a great success !

[Lessingham Canary 108]

Ambition without prudence maybe the byword at the southern end of the A140 ?

[Katie Borkins 1]

Hopefully this link works - it is informative reading, if a bit dry

http://swissramble.blogspot.ch/2015/08/ipswich-town-forever-same.html?m=1

My favourite bits:

Former chairman David Sheepshanks explained the decision to sell, “We believe Marcus Evans’ investment provides the best opportunity for the football club to move forward, return to the Premier League and stay there.”

Clearly, this has not quite worked out to date, as Ipswich have consistently finished in the middle of the Championship, at least until last season’s excellent efforts. Evans has conceded that he thought that promotion to the Premier League would be more straightforward when he bought the club: “Those people who sold the club did a very good selling job in persuading me that a little bit of extra money and one or two extra players was all that was needed.”

Of course, everything is relative, but over the last two completed seasons (2013/14 and 2014/15), Ipswich’s net sales of £3.6 million placed them a lowly 20th in the Championship net spend table out of 24 clubs. Although this comparison has to be treated with some caution, as the figures are distorted by clubs that were in the Premier League the previous season, either because of high spend when they were in the top flight or large sales following their relegation, it is evident that Ipswich have been comfortably outspent by their league rivals.

The last time that Ipswich reported a (small) profit was back in 2007, but they have consistently lost money since then with the £16 million loss in 2012 being the third worst in the Championship that year. This was explained by finance director Mark Andrews, “We brought in some experienced players in the 2011/12 season, Paul Jewell’s first season in charge, which kept the playing squad costs high.”

Ipswich’s best results in recent times have been boosted by large profits on player sales, most notably in 2011/12 when this contributed £10.8 million, largely due to the transfers of Connor Wickham to Sunderland for £8 million and Jon Walters to Stoke City for £2.75 million. Without these sales, Ipswich would have registered another hefty loss of £14 million. Similarly, the £0.1 million profit in 2007 was heavily influenced by the £3.5 million of player sales, mainly the sell-on fee for former Ipswich striker Darren Bent’s move from Charlton Athletic to Tottenham Hotspur.

In much the same way, the 2012 loss would have been even higher without the exceptional sale of the land at the training ground to Marcus Evans for £1.3 million, producing a £0.5 million profit after the costs were deducted. The other side of that particular coin is the club now has to pay the owner £40,000 annual rent.

If Ipswich had managed to battle their way through the play-offs last season, the financial prize for returning to the Premier League would have been immense. Even if a team finishes last in their first season and go straight back down, their TV revenue would increase by £61 million (£65 million less £4 million) and they would also receive a further £65-75 million in parachute payments, giving additional funds of around £130 million.

It could be even more, depending on where the club finishes in the league (with each place worth an additional £1.2 million) and how many times they are televised live (where each club is paid facility fees, with a contractual minimum of 10 games). All this is before the recent blockbuster Premier League deal that starts in 2016/17, which I estimate will be worth at least another £30 million a season.

This might feel a little bit like Jim Bowen on “Bullseye” saying to the losing contestants, “come and have a look at what you could have won”, but it is worth highlighting the size of the prize for promotion – especially as it undoubtedly drives the behaviour of many Championship clubs.

Clearly, the business model is still not ideal if revenue is not sufficient to cover the wage bill, let alone any other expenses, but almost every club in the Championship has a dreadful wages to turnover ratio with 10 of them being more than 100%. Even so, Ipswich’s 103% is the 9th highest in the division, though significantly better than clubs like QPR 195%, Bournemouth 172%, Nottingham Forest 165% and Millwall 132%.

Evans cannot simply buy success, as Ipswich now need to comply with the Financial Fair Play (FFP) regulations, which means reducing ongoing losses.

[im spartacus canary 0]

Good crowd tonight 😂last time ipswich players ran out to a full house was on escape to victory !

[Van wink 2,994]

Lots of fans in cunning disguise.

[King Klose 0]

You can always, and I mean always, rely on the one guy shouting "blue arrrrrrmy" on his own at Portaloo Road.

Just shockingly bad fans and support in general.

[Prince of Darkness 0]

Just having a little fun on twtd

[Lessingham Canary 108]

Vanwink wrote;

Lots of fans in cunning disguise.

Didn''t see it tonight, but let me guess they went disguised as blue seats ? look set to improve that record, the longest standing championship club, !

[Branston Pickle 4,168]

Just 17.6k there tonight - it''s just as well their club is in a ''good place'' as many of their supporters clearly continue to think there''s lots of other ''good places'' to be on a matchday

[curious yellow 184]

Binners are in Ipswich- not a good place