Ipswich Town paid £16.3m in promotion bonuses amid £39.3m loss
Exclusive: Club spent nearly £6m on Premier League-related infrastructure upgrades.
Premier League bonuses made up nearly half of Ipswich Town’s financial losses, latest company accounts show.
The club registered a £39.3 million loss for the financial year ended June 2024, which included an ‘exceptional cost’ or one-time bonus of £16.3m for achieving promotion to the top-flight.
“The exceptional items relate to costs incurred, such as bonuses, due to the promotion of the football club to the English Premier League at the end of the 23/24 season,” the club said.
Investments in club operations and increasing wages significantly contributed to the overall loss.
Wages more than doubled at the club, increasing from £19.8m to £44.5m in 2023/24.
Player acquisitions and contract extension costs rose by 279% to £29.2m.
How much did Ipswich spend on infrastructure upgrades?
A significant amount was spent on infrastructure, the financial documents suggest.
“The club invested heavily in infrastructure, with Fixed Asset expenditure reflecting the initial costs incurred in ensuring Portman Road is Premier League ready,” the club added.
In May 2024, Chief Executive Mark Ashton revealed that Ipswich spent “several million pounds” on upgrades to prepare Portman Road stadium for the Premier League.
The Asterisk analysed the ‘tangible fixed assets’ to estimate infrastructure expenditure.
These assets are physical items that are owned by the business, Ipswich Town Football Club Company Limited, including buildings, machinery, equipment and land.
The Tractor Boys spent nearly £6m on upgrades, of which £1.8m relates to work started but was not completed before June 2024. This expenditure is likely linked to the Premier League-mandated upgrades.
Last year in June, Rich Carpenter, Head of Operations, said that the stadium capacity was being increased, floodlights were being changed, and further expansion was being made to the media facilities and a corridor. Additionally, the executive-box was slated to be completed by mid-August.
The financial statements do not show the entire expenditure since some work was carried out after June 2024 and will be accounted for in next year’s annual report.
Ashton told BBC Radio Suffolk that there were going to be some “big infrastructure changes” at Portman Road over the summer.
The expenditure for the upgrades largely came from investments into the club and income generated from promotion to the Premier League.
Losses fall within ownership plan
A majority of the cost increase was offset by growing revenue, led by ticket and retail incomes, according to the club.
Kieran McKenna’s men achieved back-to-back promotions under new owners Gamechanger 20 Limited. The US investment firm set a business plan predicting such losses in the absence of player sales.
Crucially, the loss incurred is within Financial Fair Play (FFP) regulations that ensure clubs spend within their financial means, protecting them from financial instability.
“It is noted the average 3-year loss is £11.6m and totals £34.9m over the period,” the club added. “The English Football League (EFL) compliance threshold was a £13m per annum average loss and £39m over the three-year period. The club therefore had headroom of £4.1m (11%).”
The promotion bonus will not impact Ipswich Town’s financial sustainability as it is excluded from FFP calculations.
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