Premier League and general features > Premier League club finances

31st Jan-Chelsea lose 70.9 million, then spend 50 million on Torres

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trophy4toon:
So the new Uefa financial fair play rules state clubs must not go into debt on football related business. Hmmmm, will be interested to see how that works with Chelsea now having reported a 70.9 million loss and signing Torres for 50 million and Luiz for 21 million.

Maybe Uefa will ban them from the Champions League then ??

Fat chance of that you feel !!   


--- Quote ---Champions Chelsea report 70.9m loss Chelsea has its eye on being debt free Continue reading the main story
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Chelsea has reported a 70.9m loss in the year to June 2010 - despite winning the Premier League and FA Cup.

The west London club said turnover was up 1.2% to 205.8m and that a reduced squad value was behind the loss.

From 2012/13, clubs will be banned from European competitions if they go into debt on football-related business.

Chelsea chief executive Ron Gourlay said the club was in "a strong position" to meet the rules, known as Uefa's financial fair play initiatives.

The move to allow clubs only to spend what they earn is designed to make it harder for clubs like Chelsea and Manchester City who rely on their owners to pay players' wages and bring in new talent.

Russian billionaire Roman Abramovich has bankrolled Chelsea since he bought it in 2003.

'Right direction'
 
The club's overall loss was greater than the 44.4m seen the previous season but some way short of the record 140m loss announced by Chelsea in 2004/2005.

The club's operating loss - the amount by which costs such as player transfers and wages exceeded revenues - reduced from 72.3m to 68.6m.

"The reduction in operating losses and increased sales in 2009-10 shows that we are moving in the right direction, especially when viewed against the difficult macroeconomic environment," Mr Gourlay said.

The club looked set to stretch its finances further on Monday, as it prepared to break the British transfer record to buy Liverpool striker Fernando Torres for up to 50m.

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http://www.bbc.co.uk/news/business-12330303?utm_source=twitterfeed&utm_medium=twitter

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