TSN TV Schedule TSN2 TV Schedule
Soccer

Chelsea reports $80m loss, confident of Fair Play compliance

{eot}
The Canadian Press
12/31/2013 8:07:51 PM
Decrease Text SizeIncrease Text Size
Text Size

LONDON -- Chelsea has posted annual losses of more than $80 million but the Premier League club remains confident of complying with UEFA's Financial Fair Play rules.

The club slipped back into the red a year after making a profit for the first time since Russian billionaire owner Roman Abramovich's takeover in 2003.

Chelsea lost 49.4 million pounds ($81.7 million) in the year to June 30, after making a profit of 1.4 million pounds ($2.3 million) in 2011-12. But UEFA, the governing body for European football, allows unlimited investment on infrastructure and youth development, which Chelsea believes accounted for around 15 million pounds ($25 million) in spending in 2012-13.

UEFA is allowing losses of up to 45 million euros ($62 million) in the first FFP monitoring period -- 2011-2013 -- without the risk of being barred from European competitions.

UEFA wants clubs to move toward breaking even on their football-related activities, and will be preparing in March and April to punish the first clubs for FFP breaches.

"We will meet the stipulations set down by UEFA in their first assessment period," Chelsea chairman Bruce Buck said Tuesday in a statement giving a partial breakdown of financial results. "And by our own analysis we are progressing from a commercial viewpoint as well as continuing to add trophies to our collection, which we never lose sight of as our most important goal."

The 2011-12 profit of 1.4 million pounds ($2.3 million) came on the back of generating around 90 million pounds ($149 million) from the transfer market and a successful Champions League campaign.

But Chelsea's UEFA income was hit despite winning the Europa League in May because the team was knocked out of the more lucrative Champions League at the group stage.

So, although Chelsea posted a record turnover of 255.8 million pounds ($423 million) in 2012-13, it only rose by 100,000 pounds ($165,500).

But commercial income grew 20 per cent year-on-year to 79.6 million pounds ($132 million), and there should be a more significant uplift in 2013-14 when the first year of a 300 million-pound ($497-million), 10-year contract extension with kit maker Adidas kicks in.

Chelsea has also advanced beyond the Champions League group stage this season and is third in the Premier League, two points behind leader Arsenal.

"For Chelsea FC to achieve a record level of turnover despite our first group-stage elimination from the Champions League shows we have structured our business and are growing in the correct way for long-term stability," chief executive Ron Gourlay said.

"Our philosophy is we build upon success on the pitch and although in these financial results we haven't repeated the sizeable profits made the previous year from player transfers, we believe the age profile of the existing squad means we will benefit from that investment for many years to come."

Roman Abramovich (Photo: HRVOJE POLAN/AFP/Getty Images)

zoom

(Photo: HRVOJE POLAN/AFP/Getty Images)
Share This

Share This

Add to FacebookAdd to DiggAdd to FarkAdd to TwitterAdd to Stumble UponAdd to Reddit
Print this Story


Premier League Shows on TSN.ca

TSN.ca is Canada's exclusive home to highlight and feature programs from the Barclay's Premier League. Check out the latest programs on VOD below.


Net Busters

BPL Match Pack

Podcasts

TSN 690 oranges @ halftime July 29: Pat Leduc

Impact season of woes as the club get set for a major announcement from Joey Saputo tomorrow morning

TSN 690 oranges @ halftime July 29:Tom Dart

We discuss the Summer of Soccer, All Star Game and MLS Growth

TSN 690 oranges @ halftime with Noel Butler: July 29

Host Noel Butler is joined on Oranges at Halftime by Pat Leduc ahead of the Impact's July 30th Press Conference, and by Tom Dart to talk MLS.


More Podcasts

TSN TweetBox
© 2014
All rights reserved.
Bell Media Television