Town's financial woes take dramatic turn
IPSWICH Town's financial woes took a dramatic turn today when it applied to the High Court for protection against creditors.The club is seeking a temporary administration order allowing it to restructure its debts.
IPSWICH Town's financial woes took a dramatic turn today when it applied to the High Court for protection against creditors.
The club is seeking a temporary administration order allowing it to restructure its debts.
An emergency press conference was being called at the ground – over a "very serious" matter.
No one at the club was prepared to discuss the nature of the press conference, but The Star understands the High Court action has been launched.
This is different to a full administration order which has been granted to other first division clubs including Bradford and Leicester.
It would mean the existing management at the club would stay in place while it tries to rebuild its finances.
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But it remains a gamble – if the club is successful in gaining promotion, then the Sky money would flow back and it should be able to re-establish its financial foundations.
If it remains in the First Division, however, the pressure to go into full administration at the end of the season could be inescapable.
The crisis was brought into focus at Portman Road today because the club has been unable to pay its bills and is believed to be losing £250,000 a week.
The club's financial troubles stem from its relegation from the Premiership at the end of last season.
Players signed for huge fees with massive wages after the club's first season in the Premiership were too expensive for a club in the First Division without Sky Television money.
It failed to sell many of its most expensive stars :Hermann Hreidarrson and Matt Holland turned down big-money moves and there have been no takers for free duo Finidi George and Martyn Reuser.
With the closure of the transfer window at the end of January, there is no prospect of a rapid easing of the financial situation.