Chelsea to announce record pre-tax loss

The Premier League club is expected to announce a record pre-tax loss of £88m for the year 2003/04 dwarfing the previous record loss set by fellow club Leeds in 2003. Revenue reported is around £152m, while the club’s payroll doubled in the period to £115m following spending of more than £175m on players. Chief executive Peter Kenyon, (himself paid £3.5m a year) is not talking of moving towards an operating profit until 2009/10 at the earliest, but believes the club is moving in the right direction with plans to reduce the wage-to-turnover from a current 76% to 55% in the next few years. The club has also received a £115m interest-free loan from owner Roman Abramovich. Chelsea Village plc, the parent company of Chelsea Football Club has changed its name to Chelsea FC plc as part of a commercial move to re-position the football club as the core function of the business.

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