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Bad news for Chelsea

Discussion in 'Off Topic [BG]' started by Woodchuck, Jan 27, 2006.

  1. Woodchuck


    Apr 21, 2000
    Atlanta (Grant Park!)
    Gallien Krueger for the last 12 years!
    LONDON, Jan 27 (Reuters) - Premier League champions Chelsea's losses ballooned 60 percent in 2004-05 to 140 million pounds ($250 million), the club said on Friday, underlining its dependence on billionaire Russian owner Roman Abramovich. The record loss, up from 87.8 million pounds for the previous year, was exacerbated by a series of one-off items.

    They included 25.5 million pounds from the termination of a contract with kit supplier Umbro and 24 million pounds from a write-down on the value of players Adrian Mutu and Juan Sebastian Veron.

    "In simple terms we have taken some pain now for long-term gain," said chief executive Peter Kenyon.

    "The overall loss increase is, in the main, down to some exceptional items that were necessary in order to help us achieve our strategic business aim of break-even by 2009/10," he added.

    Mutu was sacked by Chelsea in October 2004 after testing positive for cocaine. Veron made his loan move to Italian side Inter Milan permanent last June.

    Chelsea chairman Bruce Buck said Abramovich was pleased with the club's financial progress. "He appreciates that this is a long-term strategy and he supports where we are and where we are going."

    Abramovich, the main shareholder in Russian oil firm Sibneft, has invested about 440 million pounds since buying the west London club for 60 million pounds in July 2003 and wiping out 80 million pounds of debt. He has since pumped in around 275 million pounds for players alone.

    Chelsea assistant manager Steve Clarke told reporters at the club's training ground: "You look at the prices of some of the players and think they are inflated but there is a bit more pressure on us to pay more money because people know we have it.

    "But it is not a bad thing for football if we keep putting money into the game."


    Abramovich's investment has paid off, with Chelsea on course to secure their second successive Premier League title and safely through to the lucrative Champions League knockout stages under the guidance of Portuguese coach Jose Mourinho.

    Buck said the management planned to outsource as many non-footballing interests as possible and concentrate on big money advertising and sponsorship deals.

    Kenyon said that the club would also look to reduce the percentage of revenue swallowed by player wages.

    "We spent 151 million pounds, of which 141 has been spent on capital expenditure, primarily in the playing squad," said Kenyon.

    The results did not take into account the club's recent deals with Adidas and Samsung <005930.KS>.

    Last year the club agreed an eight-year kit deal worth around 100 million pounds with German sportswear manufacturer Adidas after terminating a contract with Umbro five years early.

    They also signed a sponsorship deal with South Korean electronics firm Samsung, with media reports putting the deal at around 50 million pounds.
  2. Bryan R. Tyler

    Bryan R. Tyler TalkBass: Usurping My Practice Time Since 2002 Staff Member Administrator Gold Supporting Member

    May 3, 2002
    I thought you meant Clinton.

    Either one would have been equally irrelevant to my life :D
  3. kserg


    Feb 20, 2004
    London, UK
    hehe... just wait... Abramovich will get put to jail in Russia for no reason just because he doesnt agree with KGB that is in charge of the govrement and it will get even worse...
  4. Bruce Lindfield

    Bruce Lindfield Unprofessional TalkBass Contributor Gold Supporting Member

    It's not "bad news" - they couldn't care less - money is irrelevant as Abramovich can always bail them out.

    They have the manager they want and the players that the manager wants - they are playing well and look set to win trophies - who cares about money!!!??
  5. Yorkiebassist


    Dec 20, 2005
    BAH! This is exactly why football sucks, too much money.
  6. MJ5150

    MJ5150 Terrific Twister

    Apr 12, 2001
    Olympia, WA
    Perhaps Glazier can buy this team too? :D

  7. Woodchuck


    Apr 21, 2000
    Atlanta (Grant Park!)
    Gallien Krueger for the last 12 years!
    Oh God, no!
  8. Bruce Lindfield

    Bruce Lindfield Unprofessional TalkBass Contributor Gold Supporting Member

    He's a "small-timer" compared with Roman!! ;)