Chelsea post loss of £70.9m
Tue 1st Feb 2011 | Money & Finance
Under the storm surrounding Chelsea’s spectacular transfer spending which raged yesterday, the club announced a £70.9m loss in the year to June 2010.
In the accounts released yesterday, the west London club said turnover was up 1.2% to £205.8m from £203.3m the previous year.
Chief Executive Ron Gourlay commented on the figures; "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."
Chelsea made a statement of intent in the transfer window when they clinched the signing of Fernando Torres from Liverpool and David Luiz from Benfica for a combined outlay of over £70m.
However, they may well fall foul of UEFA’s Financial Fair Play rules which come into force 2012 which will ban clubs competing in UEFA competitions to post losses exceeding £38m for the accounting period 2012-2015.
Ron Gourlay said the club was in "a strong position" to meet the rules. 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.
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 club also reported that they were cash positive for the first time under Roman Abramovich with £3.8m cash inflow from the sale of players.
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