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Chelsea reduce loses
England - 20 February, 2007
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Chelsea is set to announce a GBP 80 million loss for the last financial year.
That actually is a GBP 60 million reduction from the 2004-2005 financial year for the English club.
The GBP 80 million loss is the lowest in the three full years since Roman Abramovich took control of the club. It makes the aggregate total losses during Abrmaovich's tenure to GBP 308 million and his total spending on the club to more than GBP 500 million.
The loss remains the third largest in the history of the Premier League. The blame can be put squarely on player transfers, which cost more than GBP 100 million in the 2005-2006 accounting period.
Among the transfer fees were GBP 30.8 million for Andriy Shevchenko, GBP 24.4 for Michael Essien, GBP 21 million for Shaun Wright-Phillips and GBP 16 million for Jon Obi Mikel. Those and a few other transfers were offset only by the departure of Eidur Gudjohnsen to Barcelona for GBP 8 million. The brought total transfer spending under Abrmaovich to more than GBP 375 million.
The club also shelled out GBP 175 million on transfers in 2003-2004 and GBP 101 million in 2004-2005.
It is believed Abramovich loaned at least GBP 100 million to the club to cover the losses. Having originally paid GBP 150 million to buy Chelsea, he loaned GBP 120 million in exchange for share capital and committed a further GBP 150 million in 2004-2005.
The bulk of the new income involves the shirt sponsorship deal with Samsung that began in 2005-2006 and is worth GBP 11 million a year. That's an estimated GBP 6.5 million more than the previous one with Emirates.
The club also received nearly GBP 9.7 million in prize money after consecutive Premier League titles.
Chief executive Peter Kenyon promised to reduce turnover paid to players and coaching staff to no more than 55 percent.
Next year will show the benefits of the GBP 13 million-a-year, kit deal signed with adidas for eight years.
Kenyon also hopes that forays into the Chinese and U.S. markets will boost income.
Transfer spending will be reduced, with only Khalid Boulharouz and Ashley Cole signed for a combined GBP 12 million in the current accounting period. Asier Del Horno, Damien Duff, Robert Huth, William Gallas and Carlton Cole all were sold for a combined total that is a minimum of GBP 17 million.
At the same stage of the 2005-2006 season GBP 57.5 million had already been spent.
That actually is a GBP 60 million reduction from the 2004-2005 financial year for the English club.
The GBP 80 million loss is the lowest in the three full years since Roman Abramovich took control of the club. It makes the aggregate total losses during Abrmaovich's tenure to GBP 308 million and his total spending on the club to more than GBP 500 million.
The loss remains the third largest in the history of the Premier League. The blame can be put squarely on player transfers, which cost more than GBP 100 million in the 2005-2006 accounting period.
Among the transfer fees were GBP 30.8 million for Andriy Shevchenko, GBP 24.4 for Michael Essien, GBP 21 million for Shaun Wright-Phillips and GBP 16 million for Jon Obi Mikel. Those and a few other transfers were offset only by the departure of Eidur Gudjohnsen to Barcelona for GBP 8 million. The brought total transfer spending under Abrmaovich to more than GBP 375 million.
The club also shelled out GBP 175 million on transfers in 2003-2004 and GBP 101 million in 2004-2005.
It is believed Abramovich loaned at least GBP 100 million to the club to cover the losses. Having originally paid GBP 150 million to buy Chelsea, he loaned GBP 120 million in exchange for share capital and committed a further GBP 150 million in 2004-2005.
The bulk of the new income involves the shirt sponsorship deal with Samsung that began in 2005-2006 and is worth GBP 11 million a year. That's an estimated GBP 6.5 million more than the previous one with Emirates.
The club also received nearly GBP 9.7 million in prize money after consecutive Premier League titles.
Chief executive Peter Kenyon promised to reduce turnover paid to players and coaching staff to no more than 55 percent.
Next year will show the benefits of the GBP 13 million-a-year, kit deal signed with adidas for eight years.
Kenyon also hopes that forays into the Chinese and U.S. markets will boost income.
Transfer spending will be reduced, with only Khalid Boulharouz and Ashley Cole signed for a combined GBP 12 million in the current accounting period. Asier Del Horno, Damien Duff, Robert Huth, William Gallas and Carlton Cole all were sold for a combined total that is a minimum of GBP 17 million.
At the same stage of the 2005-2006 season GBP 57.5 million had already been spent.
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