CHELSEA YESTERDAY claimed that they were “well positioned” to meet Uefa’s forthcoming fair play rules requiring clubs to operate close to break even, despite increased annual losses of more than €81 million.
The former Chelsea chief executive Peter Kenyon had said as recently as 2008 that the club remained “determined” to break even by 2009-10.
But the summary of the club’s accounts, released on the day Chelsea spent €58 million on Fernando Torres, revealed that in the year to the end of June 2010 operating losses stood at €80 million. The total loss of €82.9 million was a substantial increase on the previous year’s total of €51.9 million.
The chief executive, Ron Gourlay, argued that increased turnover (up €2.9 million to €240 million) and a €4.2 million reduction in operating loss from the previous year proved the club was moving in the right direction.
“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.
“The club is in a strong position to meet the challenges of Uefa ‘financial fair play’ initiatives which will be relevant to the financial statements to be released in early 2013.”
Despite winning the domestic double last season, and reining in transfer spending in comparison with previous seasons, the club appear a long way from meeting Uefa’s financial fair play criteria, which will require clubs to break even on all football activities. But Chelsea believe that next year’s figures will show they are moving in the right direction.
Even once the impact of the Torres fee and wages are absorbed, there is confidence that improved revenues from ticket price increases, reduced bonus payments for players, a renegotiated deal with Adidas and more money from new Champions League and Premier League TV deals will more than mitigate the impact.
The club are also continuing to search for a buyer for the naming rights for Stamford Bridge.
Like all transfer expenditure, the Torres fee will be amortised over the course of his contract. Under the new Uefa rules, clubs must pledge to break even on all football activities, subject to a sliding scale of acceptable losses that can be covered by a club’s owner. Once a club, which will be investigated in detail if it exhibits one of a number of warning signs, fails the test the case will pass to a new panel set up to decide on sanctions.
Manchester City’s most recent accounts showed they made losses of €141.5 million in 2009-10.
At Manchester United, operating profits topped €117 million for the first time but the club was left in the red by €93 million due to interest payments on its €610 million debt and one-off losses on interest rate swaps.
Meanwhile, Dimitri Payet is set to join Paris St-Germain, despite interest from Chelsea. The Premier League champions have tracked the St-Etienne winger and it was reported in France yesterday that they were considering a €8 million bid.
Chelsea admire the 23-year-old’s qualities, which include being two-footed and able to play on either flank. He started the season with a flurry of goals and positive headlines but he sees his next move as being to PSG.
There is the suspicion that St-Etienne have used Chelsea’s interest in Payet to force PSG into a decisive move.
Payet is part of Laurent Blanc’s new generation of France internationals and he has featured as a substitute in their last three fixtures – the Euro 2012 qualifiers against Romania and Luxembourg and the friendly against England.
He advertised his talent with assists against both Romania and Luxembourg.
Blanc is rebuilding after the disastrous World Cup campaign in South Africa.
Guardian Service
