Chelsea Post Loss of £67.7m
Wed 1st Feb 2012 | Money & Finance
Chelsea faces an uphill struggle to rein in its losses after posting a loss of £67.7m in its latest accounts.
The figures released yesterday showed Chelsea had reduced losses for the financial year ending 30 June 2011 to £67.7m from £70.9m the previous year (2010).
The reduction came in part, due to a record group turnover of £222.3m, an increase in revenues from the previous year's level (£205.8m). This was in the main due to higher receipts from the UEFA Champions League together with a rise in income from the central FAPL television contract relating to overseas broadcasting.
Chief executive Ron Gourlay said: 'Achieving a record level of turnover is satisfying given the economic background against which we are operating.'
Chelsea must now prove it can reduce its losses to fall in line with UEFA’s Financial Fair Play regulations. The accounting period will take into account the financial performance over a three year period beginning 2011/12 with clubs expected to reduce there debt levels to no more that £35m by 2013/14.
Chairman Bruce Buck added: 'The club is focused on complying with the requirements of UEFA's Financial Fair Play regulations while maintaining its ability to challenge for major trophies. We would expect this to be reflected in our results for the current financial year.'
Chelsea, who spent £50m on Fernando Torres in the 2011 January transfer window, expect to reduce their losses in time, stating: ‘We are well aware of our obligations under the UEFA Financial Fair Play rules and expect the current year's profit and loss account to show a significant improvement.’
The club noted that match day receipts and commercial revenues had held up well in the face of the continued economic turbulence faced by the wider economy.
Posted by: Aaron Gourley
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