Huddersfield Town CEO Jake Edwards causes a stir with Ipswich fans as he explains the financial restrictions of being in League One.
This week, ahead of the 2024/25 season, he spoke with BBC Sport West Yorkshire as the Terriers prepare for life back in the third tier for the first time since 2012.
Interestingly, in an exclusive interview, he says that if Ipswich hadn’t got back-to-back promotions, then they’d have been in hot water with the league. ”
You can see what he had to say in the video below or read the transcript below, fair to say it got plenty of reaction…
“If Ipswich hadn’t have gone up again then they’d have been in hot water.”
Huddersfield Town CEO Jake Edwards explains the financial restrictions of being in League One.
Listen back to our full, exclusive interview with Edwards 👉 https://t.co/jLyj0TV2VC#HTAFC | #BBCFootball pic.twitter.com/hwZikfe1eC
— BBC Sport West Yorkshire (@BBCWYS) August 7, 2024
Jake said: “So you have in the Championship a sort of 13 million a year. Let’s call it 39 million over three years. That’s the max you can lose over three years. And some teams that have been in breach, they get severe penalties, points docked and any number transfer embargoes, any number of things. That’s the Championship.
“League One, slightly different. It’s a ratio. It’s more focused on your revenues. So in the current season you’ll be allowed to spend a certain amount of revenue. And they quantify the revenue in a few different ways. So there’s commercial revenue for your commercial activities. There’s football specific revenue from selling players and a couple of other. Without going too much detail, but football specific. And then you’ve got owner funding and owner top ups or owner equity. They can plough a bunch of money in there and that portion is unlimited.”
Interviewer: “That’s interesting.”
Jake: “So the challenge it is. So when you look at some of the clubs who seem to be spending a fortune, there is perhaps a thought that if they follow the Ipswich idea, when Ipswich was in League One. Spend a fortune. It is a nice sounding thing. We can just go and write blank cheques.
“But it also comes with if you go back up, you are now going to be more than likely in breach of the regulations of the Championship above you.
“So it is a balance of you can spend more when you’ve come down to League One, but you’ve got to caveat that with if you go back up, your losses in League one count against the three year losses back in the Championship.
“So if certain clubs are spending tens of millions on the team, their losses will be significant. And as they go up, you still record those on your next round of paperwork that you’ve got to file. Your accounts that you file with the Championship.
“Ipswich were able to go up and then up again. If they hadn’t have gone up, they’d have been in hot water, I think, with the league for sure.
“So for us, again, you know, we’re going to be ambitious in League One, but we always have to protect the long term future of the football club so we don’t have the risk and the potential financial challenges it’s had in the past.”
Huddersfield Town CEO Jake Edwards causes a stir with Ipswich fans and others as he explains the financial restrictions of being in League One…
@richardlee91091: @KieranMaguire @POF_POD is there any actual truth in this or is it just bitterness/swerve tactics to shift heat from their own fans for not investing enough/properly? BTW Huddersfield fans were brilliant at Portman RD and in the town afterwards so no slight on them.
@bencm305: Pretty embarrassing this tbf.
@wasiwittyonce: What a fucking idiot.
@jamesechase: Utter nonsense. Ipswich spent less than £5M in transfers, averaged 28.5k crowds, sold 63,000 replica shirts and were live on TV at least 15 times. Also one of the few clubs to specify the FFP numbers/situation in their annual accounts. There is just no way.
@Kieranbcfc2: Our losses would be significant, if we weren’t bringing through unheard of revenue for League One.
@_kieranbl: Speaking of Hot Water. How have the last cuppla years gone for the mighty Terriers? Focus on your own club, Jakey lad, and you might be alright next season.
@Stephen92165934: Small club syndrome, he has no idea how much revenue Ipswich generate, and I’m guessing that’s a chip at Birmingham for our spending this summer, we are spending what we can afford without putting the clubs future on the line, our club has never been healthier financially.
@lewismitchell87: Why would we have been in ‘hot water’ for having £18.4m of FFP headroom as of June 2023? Enjoy League 1, you salty feckwit.
@Benno1uk: Hang on. Isn’t this the same muppet who paid £1m for Tyreece Simpson? 🤣🤣🤣🤣
@deansmith1975: Get the sentiment but the guy has no idea about birminghams revenue. Since new owners have come in they have made no secret that all focus has been on increasing revenue and looking at what they have achieved and the initiatives looks like they have succeeded
@WilbrahamBlue: Staggering misconception of our finances in that league 1 year, from a man in a position who should know better. A guy fabricating a narrative to help suppress expectations at his club. #itfc #htfc
@TomHeath27: What did this interview seek to achieve, aside from exposing a staggering lack of appreciation of the nuances of the financial rules? Focus on growing commercial revenue at his own club, rather than soiling oneself over finances in IT1 and B9, also required.
@ITKCruncher: Man needs to spend more time worrying about his own league one shit show rather than our prem club #itfc
@BacktoDack: This is laughable. Ipswich are a well run club, not like the shambles that is Huddersfield.
@danieloverett_: Back to back relegation incoming
@_mevs__: Utterly, utterly clueless. We provided one of the most transparent set of accounts with over £18m worth of headspace. Sounds like he’s getting his excuses in early for the fans.
@jamesitfc: CEO of a pub team and judging premier league Ipswich
@TheCruncher76: Oh dear Jake, you really do need to check your facts before spouting such nonsense 🤡 BTW, enjoy League 1 😆 #itfc
@B_R_SEAMAN: All of our financial history is out there to be looked at so this guy hasn’t done his research and has got this horribly wrong 🤦🏻♂️
@tombaines88: Think they’re still bitter after we mugged Marcus Stewart off them. Absolutely nonsense comments. #itfc
@jeff197881: 🤡
@itfcdanny: Hasn’t got a clue what he’s spouting on about this fella 😂 he’d love a business model like #itfc and the ownership group we have. So many teams and fans labelling town and there over spending are a bunch of 🤡
@djm_blue: Absolute rubbish, this charlatan is just trying to justify his own lack of spending, he needs to understand how ITFC have financed themselves before spouting off
Absolute rubbish. pic.twitter.com/veYuwrqnAc
— IPSWICH TOWN FANS (@IpswichTownFans) August 7, 2024
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