Town Yours For £6million

By Aston
November 1 2005

Ipswich Town chairman David Sheepshanks says a new investor in the club could buy a controlling stake in the club for £6million.

Speaking last night said: “If everybody were to convert their loan notes to shares, it would cost between £5m and £6m for someone to buy the majority of the club. That would also be providing that all the shareholders agreed to dis-supply the argument that they have to be bought out.

 

“The £5m-£6m would buy new shares and give someone on paper 51%. That money would go into the club, which would be fantastic for the short term.

 

“However, the Board would probably also be looking for greater security than that and would be looking for the right long term future for Ipswich Town.

 

“It is not just about buying the shares but also about managing the club going forward, so they would need the business acumen to manage this multi-faceted business.

 

“It is also about having the ability to command the respect of bankers, major stakeholders and creditors, such as Norwich Union, the Bank of Scotland and Barclays.

 

“This current Board has those people's confidence and any destabilisation of that would be viewed with great concern.”

 

Possibly reacting to claims on a BBC Radio Suffolk phone in Sheepshanks has defended the current board saying they are not blocking any new investment, adding: “We have been looking for larger investors but we have not found anyone.

 

“The Board are in no way an obstacle to new investment. On the contrary, we are the catalyst to new investment.

 

“And, despite rumours, getting the full value of the loan notes turned into shares is not necessarily a condition of any sale.

 

“If we could wave a magic wand and could find the right type of investors, who had the club and the community ethos of the club at heart and the financial resources long term, then the Board would move over very quickly.

 

“We will open every door and carefully scrutinise any proposal.”

 

“We have seen every single person who has shown any interest in investing in past three years.

 

“We have actively pursued people who we thought might be the right people.”

 

Again possibly reacting to calls on that same phone in he dismissed claims that the club were in financial trouble, saying: “We are not a club in crisis. We are constrained but we are in a reasonably sound position.

 

“We have a stable club, with lots of pluses, although the one area of weakness is we don't have a fairy Godmother or father. We do not have anyone with the type of wealth that can help us fulfil our potential.

 

“We have a number of irons in the fire, some warm, some cool, but in the meantime we continue to run the club as professionally as we can.

 

“We will not go for another share issue because we see that as a sticking plaster solution. It would not create enough money. It is the long term future of the club that we want to ensure.”

 

Source: EADT

 

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