Ipswich Report £5.5m Pre-Tax Loss

[ncfcstar 289]

http://news.bbc.co.uk/sport1/hi/football/teams/i/ipswich_town/7813521.stm

So, having a "rich" owner is not all it''s cracked up to be. Great to see that Ipswich are losing more money yet again :S, I can''t believe that a club that was in administration around 6 years ago is still allowed to trade in such a way.

[missing in action? 0]

HAHAHAHAHAHAHA

[Time to go Delia 0]

The losses might just have something to do with all the decent players they have signed on permanent contracts , we are still losing millions and having to make do with write offs like Carl Cort and an unlimited number of complete waste of time loanees.

[BigFish 1,986]

[quote user="ncfcstar"]http://news.bbc.co.uk/sport1/hi/football/teams/i/ipswich_town/7813521.stm So, having a "rich" owner is not all it''s cracked up to be. Great to see that Ipswich are losing more money yet again :S, I can''t believe that a club that was in administration around 6 years ago is still allowed to trade in such a way.[/quote]

This is all likely to be in plan. The invisible tycoon reputably pumped in capital to the tune of £12m. The idea probably was that this would be enough to push them into the Prem where it could be recouped. Not looking too good on the playing front now though is it? At this rate they probably have a season and a half to get up before they hit the buffers again.

The irony is that this is the plan that many posters on here would have us follow.

[Joanna Grey 0]

The loans are not unlimited and they are not a waste of time.

[Time to go Delia 0]

MULTI-millionaire

Ipswich Town owner Marcus Evans is likely to pump more money into the

club if the team misses out on promotion at the end of this season.Funds

from the £12million cash injection which formed part of the deal

under which the corporate hospitality entrepreneur took control of the

club a year ago remain available for manager Jim Magilton to strengthen

the squad during the current transfer window.But a statement on

the club''s financial performance last season, being circulated to

shareholders from today, reveals that its cash balances are likely to

be exhausted by the end of the current campaign - unless it secures the

multi-million pound windfall that would come from joining the Premier

League elite.And with Mr Evans remaining committed to securing

promotion - from which he stands to make a substantial profit on his

investment in the club -his Bermuda-based holding company, Marcus Evans

Investments, which now owns the club''s £32million debt as well as

being its majority shareholder, is set to stump up further funding.Club

chief executive Derek Bowden - sensitive to the risk of other clubs

demanding inflated prices for Town''s transfer targets - declined to be

drawn on the question of additional investment.But the

“financial highlights” statement being issued to

shareholders says: “The economics of competing in the

Championship means that the club''s existing cash balances are likely to

be exhausted by the end of the 2008-09 season and should ITFC not be

promoted at the end of the season further funding will need to be

provided by MEI as principal shareholder/debtor.”Promotion

to the Premier League holds the prospect of a substantial return for Mr

Evans, as the club would be able to start repaying the debt he acquired

from Norwich Union and Barclays under the deal which gave him control

of the club.The loans were originally taken out by the club

during its previous spell in the Premier League in order to fund the

redevelopment of the North and Greene King stands together with

improvements at its training ground.It was the club''s inability

to service the interest on the debt, following its subsequent

relegation from the top flight, which eventually tipped it into

administration.

Marcus Evans is doing what you would expect an investor to do he is investing in their team and will continue to do so untill they achieve promotion , Delia will continue to put in a few pennies untill we are in League 1 . A Marcus Evans is just what we need at this club ,

[Mr.Carrow 376]

[quote user="BigFish"]

[quote user="ncfcstar"]http://news.bbc.co.uk/sport1/hi/football/teams/i/ipswich_town/7813521.stm So, having a "rich" owner is not all it''s cracked up to be. Great to see that Ipswich are losing more money yet again :S, I can''t believe that a club that was in administration around 6 years ago is still allowed to trade in such a way.[/quote]

This is all likely to be in plan. The invisible tycoon reputably pumped in capital to the tune of £12m. The idea probably was that this would be enough to push them into the Prem where it could be recouped. Not looking too good on the playing front now though is it? At this rate they probably have a season and a half to get up before they hit the buffers again.

The irony is that this is the plan that many posters on here would have us follow.

[/quote]

Read the article.  What were the debts which sent them into administration used for again?

[ron obvious 1,502]

[quote user="Mr.Carrow"][quote user="BigFish"]

[quote user="ncfcstar"]http://news.bbc.co.uk/sport1/hi/football/teams/i/ipswich_town/7813521.stm So, having a "rich" owner is not all it''s cracked up to be. Great to see that Ipswich are losing more money yet again :S, I can''t believe that a club that was in administration around 6 years ago is still allowed to trade in such a way.[/quote]

This is all likely to be in plan. The invisible tycoon reputably pumped in capital to the tune of £12m. The idea probably was that this would be enough to push them into the Prem where it could be recouped. Not looking too good on the playing front now though is it? At this rate they probably have a season and a half to get up before they hit the buffers again.

The irony is that this is the plan that many posters on here would have us follow.

[/quote]

Read the article.  What were the debts which sent them into administration used for again?

[/quote]I don''t follow you. Are you saying that NCFC should borrow a huge sum of mney to buy a Premiership squad, then go into administration?

[......and Smith must score. 1,341]

So we must be rolling in it then.....

According to Neil Doncaster we''re only losing £10,000 a day.

I feel better already

[ron obvious 1,502]

Mr. Carrow?Could you enlighten me please?

[ncfcstar 289]

By the way Loan City, it doesn''t actually confirm anything about Evans, it says he is likely to, but doesn''t give solid facts. Just created to fill up the columns and pacify the fans after the other news story in my opinion.

[ron obvious 1,502]

[quote user="ron obvious"][quote user="Mr.Carrow"][quote user="BigFish"]

[quote user="ncfcstar"]http://news.bbc.co.uk/sport1/hi/football/teams/i/ipswich_town/7813521.stm So, having a "rich" owner is not all it''s cracked up to be. Great to see that Ipswich are losing more money yet again :S, I can''t believe that a club that was in administration around 6 years ago is still allowed to trade in such a way.[/quote]

This is all likely to be in plan. The invisible tycoon reputably pumped in capital to the tune of £12m. The idea probably was that this would be enough to push them into the Prem where it could be recouped. Not looking too good on the playing front now though is it? At this rate they probably have a season and a half to get up before they hit the buffers again.

The irony is that this is the plan that many posters on here would have us follow.

[/quote]

Read the article.  What were the debts which sent them into administration used for again?

[/quote]I don''t follow you. Are you saying that NCFC should borrow a huge sum of mney to buy a Premiership squad, then go into administration?[/quote]Mr. Carrow. I''m sure I must have misunderstood you, but I''d be extremely grateful if you could advise me on how to interpret your comments.

[ncfcstar 289]

In the EADT today, there is a bigger article, and I guess Mr. C is referring to the fact that the debts that sent them into admin were the funds for the North Stand and Churchmans End at Ipswich. Much like our investment in the ex-LSE land etc etc.

[0Amarillo<P><FONT color=#cccc00 size=4><EM> º¤ø,¸¸,ø¤º°`°º¤ø,¸ Amarillo ¸,ø¤º°`°º¤ø,¸¸,ø¤º°`°<EM><FONT><P>ddMMyyyy0Falseen-US<P><FONT color=#cccc00 size=4><EM> º¤ø,¸¸,ø¤º°`°º¤ø,¸ Amarillo ¸,ø¤º°`°º¤ø,¸¸,ø¤º°`°<EM><FONT><P>True 0]

[quote user="Loan City Fc "]
Marcus Evans is doing what you would expect an investor to do he is investing in their team and will continue to do so untill they achieve promotion , Delia will continue to put in a few pennies untill we are in League 1 . A Marcus Evans is just what we need at this club

[/quote]

Talk about the grass being greener... I believe Marcus Evans has ''loaned'' money to the club, by taking on their debts. Which is what some people criticise Delia for.

Plus I don''t understand how people can criticise Delia when she has put something like two-thirds of all her ''wealth'' into the club. When you or I have done that we can demand she do more, but in the meantime I think we should be grateful for what we''ve been given! The fact that she isn''t a billionaire is no reason to criticise her.

Hands up who would like an anonymous, ''only-in-it-for-the-profit'' investor?

I would suggest the a ME is exactly what we don''t need. A Cullum would at least be a) visible and b) have some personal connection with the club.

[BigFish 1,986]

[quote user="Mr.Carrow"][quote user="BigFish"]

[quote user="ncfcstar"]http://news.bbc.co.uk/sport1/hi/football/teams/i/ipswich_town/7813521.stm So, having a "rich" owner is not all it''s cracked up to be. Great to see that Ipswich are losing more money yet again :S, I can''t believe that a club that was in administration around 6 years ago is still allowed to trade in such a way.[/quote]

This is all likely to be in plan. The invisible tycoon reputably pumped in capital to the tune of £12m. The idea probably was that this would be enough to push them into the Prem where it could be recouped. Not looking too good on the playing front now though is it? At this rate they probably have a season and a half to get up before they hit the buffers again.

The irony is that this is the plan that many posters on here would have us follow.

[/quote]

Read the article.  What were the debts which sent them into administration used for again?

[/quote]

LOL[:D] - good point Mr C

[ron obvious 1,502]

[quote user="ncfcstar"]In the EADT today, there is a bigger article, and I guess Mr. C is referring to the fact that the debts that sent them into admin were the funds for the North Stand and Churchmans End at Ipswich. Much like our investment in the ex-LSE land etc etc.[/quote]Many thanks for that article. I just wish Mr. C had been a bit more forthcoming.

[The Fish Seller 0]

[quote user="ron obvious"][quote user="ron obvious"][quote user="Mr.Carrow"][quote user="BigFish"]

[quote user="ncfcstar"]http://news.bbc.co.uk/sport1/hi/football/teams/i/ipswich_town/7813521.stm So, having a "rich" owner is not all it''s cracked up to be. Great to see that Ipswich are losing more money yet again :S, I can''t believe that a club that was in administration around 6 years ago is still allowed to trade in such a way.[/quote]

This is all likely to be in plan. The invisible tycoon reputably pumped in capital to the tune of £12m. The idea probably was that this would be enough to push them into the Prem where it could be recouped. Not looking too good on the playing front now though is it? At this rate they probably have a season and a half to get up before they hit the buffers again.

The irony is that this is the plan that many posters on here would have us follow.

[/quote]

Read the article.  What were the debts which sent them into administration used for again?

[/quote]I don''t follow you. Are you saying that NCFC should borrow a huge sum of mney to buy a Premiership squad, then go into administration?[/quote]Mr. Carrow. I''m sure I must have misunderstood you, but I''d be extremely grateful if you could advise me on how to interpret your comments.[/quote]Seems Mr. Carrow is not online Ron but isn''t it rather erm.... obvious that he refers to this part of the original article?''The loans were originally taken out by the club

during its previous spell in the Premier League in order to fund the

redevelopment of the North and Greene King stands together with

improvements at its training ground.It was the club''s inability

to service the interest on the debt, following its subsequent

relegation from the top flight, which eventually tipped it into

administration''. BTW pretty sure you aren''t actually allowed to borrow money to directly buy players.

[whoareyou? 0]

''Promotion to the Premier League holds the prospect of a substantial return for Mr Evans, as the club would be able to start repaying the debt he acquired from Norwich Union and Barclays under the deal which gave him control of the club.''

[:D][:D][:D] So if they get promoted, they then have to start repaying £32 million to MEI Ltd?  The only loser i can see here is ITFC! [:)]

[Sing Up The South Stand 0]

whoareyou.... what are you talking about? I''m sure they won''t have to pay it all at once, and will have the Premier League riches... They wouldn''t have set it up like that if it would affect them badly.

[ron obvious 1,502]

[quote user="The Prisoner"]Seems Mr. Carrow is not online Ron but isn''t it rather erm.... obvious that he refers to this part of the original article?''The loans were originally taken out by the club

during its previous spell in the Premier League in order to fund the

redevelopment of the North and Greene King stands together with

improvements at its training ground.It was the club''s inability

to service the interest on the debt, following its subsequent

relegation from the top flight, which eventually tipped it into

administration''. BTW pretty sure you aren''t actually allowed to borrow money to directly buy players.[/quote]Just to point out that Mr.C was posting on otther threads & that I had alresdy thanked another poster for pointing me at the EADT article - which was not the one referred to originally.

[ricardo 7,384]

[quote user="Mark Rivers..."]whoareyou.... what are you talking about? I''m sure they won''t have to pay it all at once, and will have the Premier League riches... They wouldn''t have set it up like that if it would affect them badly.[/quote]

They had no choice Mark, it was the only offer in town and not a very good one in hindsight.

Marcus is drawing his 500k a year interest on his investment and is very happy to be getting 7% in these days of low interest rates. If they ever get promotion he can cane them again for the £32 million.

Only one winner here and it aint ITFC.

[whoareyou? 0]

I suspect they won''t have to pay it in one go...but Evans isn''t stupid where money is concerned.

With the best will in the world, they are unlikely to stay in the Prem for long so he will want his money back fairly sharpish i would guess.

[Mr.Carrow 376]

[quote user="ron obvious"][quote user="The Prisoner"]
Seems Mr. Carrow is not online Ron but isn''t it rather erm.... obvious that he refers to this part of the original article?

''The loans were originally taken out by the club during its previous spell in the Premier League in order to fund the redevelopment of the North and Greene King stands together with improvements at its training ground.

It was the club''s inability to service the interest on the debt, following its subsequent relegation from the top flight, which eventually tipped it into administration''.

BTW pretty sure you aren''t actually allowed to borrow money to directly buy players.
[/quote]

Just to point out that Mr.C was posting on otther threads & that I had alresdy thanked another poster for pointing me at the EADT article - which was not the one referred to originally.
[/quote]

I posted on a few other threads after the initial post then went out for a run.  I`ll make sure i clear it with you next time!  [:P][;)]

As pointed out by another poster i was refering to the fact that the initial debt which crippled ipswich was for infrastructure.  At the moment us, Charlton and Southampton appear to be in freefall due largely to huge debts built up to pay for infrastructure, and as others have pointed out at least if you spend money on the team you have something to sell on if necessary as West Brom did last season and Portsmouth are this.

[Tangible Fixed Assets anyone? 0]

How much of the losses are due to transfers such as the £2m Dorris and when was £900k Lisbie signed?

It was reported on TV that their wage bill is £8m.

[Tangible Fixed Assets anyone? 0]

One other thing, how much is Ipswich''s Depreciation?  In NCFC''s case it was nearly £1.7m last season and while this is a cost that counts towards a loss it doesn''t result in any outward  cashflow (except at the time when the asset is bought).

 

 

[Blue 0]

ITFC do not owe ME £32m.  The deal with the banks was a write down on immediate payment - something that needed outside investment to do.  They accepted something like £7.5m to settle the debt once and for all.  It is the £7.5m that we are paying ME 7% pa to finance - hence around £500,000 pa interest payment (7% interest on £32m is £2.25m pa).  The £7.5m is repayable to ME in full once ITFC has been in the premiership for 5 consecutive seasons.

Still not convinced it was a brilliant deal but then better than nothing and takes the pressure off certainly for the short term, and at least it was done prior to the credit crunch.  At we need now is a decent manager!  Maybe John Gormans appointment will give the necessary support.  We shall see.   I still maintain my comment to you all at the start of the season that your manager will get you a higher finish than your squad should allow (e.g. the loans he is able to do), whereas ours will see a lower than expected finish.

 

[lappinitup 629]

[quote user="Mr.Carrow"]As pointed out by another poster i was refering to the fact that the initial debt which crippled ipswich was for infrastructure.[/quote]Forgetting Finidi George or Serini Mr Carrow? Even Mr Marshall became a liability too as I remember.

[The Fish Seller 0]

[quote user="Blue"]

ITFC do not owe ME £32m.  The deal with the banks was a write down on immediate payment - something that needed outside investment to do.  They accepted something like £7.5m to settle the debt once and for all.  It is the £7.5m that we are paying ME 7% pa to finance - hence around £500,000 pa interest payment (7% interest on £32m is £2.25m pa).  The £7.5m is repayable to ME in full once ITFC has been in the premiership for 5 consecutive seasons.

Still not convinced it was a brilliant deal but then better than nothing and takes the pressure off certainly for the short term, and at least it was done prior to the credit crunch.  At we need now is a decent manager!  Maybe John Gormans appointment will give the necessary support.  We shall see.   I still maintain my comment to you all at the start of the season that your manager will get you a higher finish than your squad should allow (e.g. the loans he is able to do), whereas ours will see a lower than expected finish.

 

[/quote]Read this and weep Binner!![:D][:D][:P]Talking of which, it was Town''s elevation to the big-time that

triggered a traumatic seven-year cycle of unbelievable highs, climaxed

by George Burley''s team finishing fifth in the top flight, to the

incredible lows of relegation, administration, a mass exodus of top

talent and a seemingly endless spell in the Championship.Lessons

have been learned – do not, for example, spend £15 million on players

and award them bumper contracts that do not recognise the possibility

of relegation; do not borrow more than you can realistically afford to

repay in the event of relegation – and supporters must also fully

understand certain aspects of the takeover deal.They should

not, for example, believe what they are reading in certain newspapers,

one of whom has even repeated the error today – despite the position

being explained repeatedly last night – that the £32 million debt has

been ''wiped out''. This is not the case. All that has happened

is that Marcus Evans has bought the debt for an unspecified sum,

although it is understood to be in the region of £6–£6.5 million, and

the £32 million is now an intra-group debt repayable with interest to

Marcus Evans Investments rather than the original lenders, primarily

Norwich Union.Marcus Evans is not a benefactor, nor should he

be confused with the likes of Roman Abramovich (Chelsea), Jack Walker

(Blackburn) and John Madejski (Reading) for whom the term Sugar Daddy

could have been invented. He is an investor looking for a substantial

return, which can be accelerated by Ipswich being promoted to the

cash-laden Premiership.As for the £12 million Evans is

investing, supporters should also realise that this is to cover the

cost of transfer fees PLUS signing-on fees and salaries. Say, for

example, Ipswich spent £1 million on a new player and he received a

four-year contract worth £10,000 a week, not an unrealistic figure for

an ambitious Championship club, the total cost will be just over £3

million. The budget, therefore, can cover the cost of four such

signings, so forget all the piffle about Jim Magilton signing players

in the £3 million bracket.Also, the £12 million is made up of

£3.9 million in ordinary shares, which has bought him 87.5 per cent of

the club, and an additional £8.1 million in preference shares, on which

he will be paid seven per cent interest and which he can take back if

Town have a five-year consecutive stay in the Premiership. It is not a

donation. There has been misguided talk of a £44 million windfall, but

only from those without a basic grasp of arithmetic, because the net

cost to Marcus Evans Investments is a much smaller sum, causing one

local businessmen to tell me last night: “It is one hell of a deal for

the Marcus Evans Group.”That same businessman told me that if

he had the wherewithal – and the same borrowing clout as Evans – he

would take precisely the same gamble, but he also conceded that it is a

good deal for Ipswich Town because as long as they remained in their

financial straitjacket, living a hand-to-mouth existence, they were

going absolutely nowhere. Do not forget, either, that Evans

can write off against tax within his business empire the money he has

used to buy the debt, thereby limiting his exposure to risk.

[BigFish 1,986]

[quote user="Blue"]

ITFC do not owe ME £32m.  The deal with the banks was a write down on immediate payment - something that needed outside investment to do.  They accepted something like £7.5m to settle the debt once and for all.  It is the £7.5m that we are paying ME 7% pa to finance - hence around £500,000 pa interest payment (7% interest on £32m is £2.25m pa).  The £7.5m is repayable to ME in full once ITFC has been in the premiership for 5 consecutive seasons.

Still not convinced it was a brilliant deal but then better than nothing and takes the pressure off certainly for the short term, and at least it was done prior to the credit crunch.  At we need now is a decent manager!  Maybe John Gormans appointment will give the necessary support.  We shall see.   I still maintain my comment to you all at the start of the season that your manager will get you a higher finish than your squad should allow (e.g. the loans he is able to do), whereas ours will see a lower than expected finish.

[/quote]

Not true my blue nosed friend. The 7% referred to applies to the preference shares which are included the £12m figure published as ME''s invested. Any debt servicing on the £32m is in addition to this. 

[lappinitup 629]

[quote user="Blue"]ITFC do not owe ME £32m.  The deal with the banks was a write down on immediate payment - something that needed outside investment to do.  They accepted something like £7.5m to settle the debt once and for all.  It is the £7.5m that we are paying ME 7% pa to finance - hence around £500,000 pa interest payment (7% interest on £32m is £2.25m pa).  The £7.5m is repayable to ME in full once ITFC has been in the premiership for 5 consecutive seasons.[/quote]Totally wrong Blue, as I put on another thread.....

"He bought 87.5% of the ordinary shares for £3.9m giving him ownership, preferential shares at £8.1m yielding £564,000 pa. and the £32m debt he bought from NU for aprox £6.5m accruing £2.4m pa."

Source.....Ipswich Town Independent Supporters trust......

http://www.ipswichtownfirst.co.uk/viewnews.asp?id=215