The fastest tractors in the east

The promotion of Ipswich Town with 98 points and over 100 goals was part of the transformation under the new owners, who purchased the club in April 2021 for a reported £40m. As a consequence, Ipswich Town are now majority owned by the wonderfully named Gamechanger 20 Limited, though the ultimate owner is a US investment firm, ORG, with a 90% stake.

The remaining shares are split: 5% for three businessmen (Brett Johnson, Berke Bakay and Mark Detmer), who previously invested in US football club Phoenix Rising: and 5% for Marcus Evans, Town’s former owner.

The new owners have certainly put their money where their mouths are to date, spending a lot on the squad and the club’s infrastructure. However, this has been part of a well though-out plan, as they have made some astute recruitment choices. As well as McKenna, they brought in former Bristol City chief executive, Mark Ashton, to lead operations off the pitch.

Ashton spoke of the solid nature of Ipswich’s new investors, “In a period where people are questioning where money is coming from into clubs, we are so fortunate to have a financial institution, a US pension fund, that backs the football club.”  A good example of this was the write-off of the vast majority of Town’s debt as part of the takeover.

For their part, the new owners believe that Ipswich Town represents an excellent investment opportunity, as ORG CEO Ed Schwartz explained, “Our view is that we've bought, at a lower value, an asset that has potential and history. Ipswich really was the perfect scenario for us.”

The Evans era

The current mood around Portman Road is significantly more positive than it has been for many years, as Ipswich Town had lost their way under the previous owner, Marcus Evans, who had bought the club back in December 2007.

Although Evans had run the club on a reasonably sustainable basis, it was effectively running to stand still, spending season after season in the Championship, before being relegated to England’s third tier in 2009.

This was some come down, as this is a club rich in history. Ipswich Town were champions of England in 1962 under Alf Ramsey, then enjoyed a dazzling period in the late 1970s and early 1980s under Bobby Robson, when they twice finished runners-up in the old Division One. They also memorably won the FA Cup by defeating Arsenal in 1978 and also triumphed in the UEFA Cup in 1981 by beating AZ ’67. Furthermore, they were playing in the top flight as recently as 2002.

Losses

Town’s pre-tax loss in 2021/22 basically doubled from £6.4m to £12.6m, even though revenue increased by £6.3m (79%) from £8.1m to £14.4m and profit from player sales slightly rose by £0.2m to £2.3m.  This was mainly due to operating expenses climbing by £9.1m (46%) from £19.8m to £28.9m, though also because other operating income dropped £4.0m to just £0.1m.

Town’s £12.6m loss was actually the highest in League One in 2021/2, far above Wigan Athletic £7.7m, Charlton Athletic £7.4m, Sheffield Wednesday £7.3m and Sunderland £6.0m. They have only managed to post a profit once in the last 10 years (with losses amounting to £56m in this period) and only twice since 2007. In fairness, Town’s losses have been relatively low compared to most other clubs.

Revenue

Town’s revenue obviously reduced after relegation from the Championship in 2019, falling by £3.6m (20%) from £18.0m to £14.4m. This was entirely driven by the lower central TV distribution in League One, as the club actually managed to grow both match day and commercial.

Town’s £14.4m revenue was the third highest in League One, only surpassed by Sunderland £26.1m and Sheffield Wednesday £16.4m. Based on these figures, it is little surprise that all three clubs have since managed to make their way out of this division.

Town’s average attendance had been falling as the fans were disillusioned with the lack of progress under Evans, but they have strongly rebounded since the arrival of the new owners, starting in the second half of 2021/22.  According to Soccerway, attendances surged to 26,184 during last season’s promotion run.

Town benefited from the highest squad cost in League One in 2021/22 with their £8.6m being a fair way ahead of Sunderland £5.5m, Charlton Athletic £2.8m and Sheffield Wednesday £1.8m.

Debt

Town’s gross debt was down to £10m in 2022, having been as high as £97m two years before. All the debt had been owed to various Marcus Evans’ companies, through a mixture of loans, convertible loan notes and preference shares, but the majority was written-off as part of the club sale.

Initially, Evans provided a fair amount of funding, averaging £6.3m a year between 2008 and 2014, but this fell away to an average of only £1.7m in the next six years. This has increased to £12.4m a year under the new owners (total £37.2m), including £14.3m in 2021/22 and £18.0m in 2022/23, all in the form of capital.   In fact, a recent filing to Companies House suggested that the owners had put in nearly £30m of shares since the last accounts, which would mean that the total funding they have provided to the club is up to £49m.

Heading for the top flight?

The new owners have quite literally been game changers. ORG chief executive Ed Schwartz said, “We feel very strongly that Ipswich belongs in the Premier League and we’re going to do everything we can to achieve that objective.”

Manager Kieran McKenna was equally positive, “When you have a club of this size and history, the only one in a big county, there’s massive potential. We have big aspirations, no upper limit, but we will continue to work hard and build this club in the right way.”