Premier League champions Chelsea today announced they had recorded a pre-tax loss of £80.2 million sterling ($156.3 million) in the 2005/06 financial year.
The loss is a cut of £60 million on the previous year and lower than the £87.8 million Chelsea lost in 2003/04, the first of owner Roman Abramovich's ownership.
Chelsea also announced "significant increases" in turnover (up 2.3 per cent), merchandising (up 44 per cent from £7.7 million to £11.1 million) and football activities (up 6.3 per cent).
"These figures demonstrate that the business is moving in the right direction with increases and growth in all the major income streams," said Chelsea chief executive Peter Kenyon.
Chelsea FC chief executive Peter Kenyon
"Last year we took some painful decisions in order to help us achieve our long term business aims. This year's figures proves that was the correct decision."
The loss is still the third largest in the history of English football, reported the Daily Telegraph.
Up to June 2005, Abramovich had invested £440 million buying the west London club, paying off its debts and financing the purchase of new players, according to the Telegraph.
The Guardianadded: "The £80 million loss . . . takes the aggregate losses during the Russian's ownership to £308 million and his total spending on the club over £500 million.
"The loss . . . is largely attributable to the Russian's bank-rolling of player transfers, which ran to more than £100 million pounds in the 2005-06 accounting period."
Players bought by the club during that period included Andriy Shevchenko, Jon Obi-Mikel, Solomon Kalou, Lassana Diarra, Michael Essien and Shaun Wright-Phillips.
The Guardiancalculated that total spending on transfers since Abramovich took over is more than £375 million, with £175 million spent in 2003-04 and £101 million in 2004-05.