The main outline figures for the accounting year of
2010-11 were posted on Chelsea's website on Tuesday afternoon,
with the club announcing only a marginally reduced annual loss of
£67.7 million compared with £70.9 million the previous
year.
The Daily Telegraph can disclose, however, that almost
half of that loss was as a direct result of the compensation that
was paid to Porto, Ancelotti and other departing staff as a result
of the Villas-Boas appointment.
Although the exact breakdown will not be revealed in the club’s
accounts, a total figure of almost £30 million will be listed as
costs associated with the change in manager. Around £15 million was
paid simply to release Villas-Boas from his Porto contract.
Although Chelsea’s figures showed a reduction in losses of £3.2
million, the extraordinary costs associated with sacking Ancelotti
and recruiting Villas-Boas do at least explain the unexpected
overall increase in expenditure.
With Chelsea owner Roman Abramovich determined to give
Villas-Boas time, Chelsea are confident that they will be able to
show their commitment to the new Uefa financial fair play
regulations when they release their accounts for 2011-12.
The 2011-12 accounting year is the first that will be monitored
as part of the new Uefa Financial Fair Play regulations that are
designed, ultimately, to force clubs not to spend more than they
earn.
In the short-term, the FFP rules require clubs to have losses of
no more than €45 million (£37.7 million) in the two accounting
years from 2011-12. Chelsea clearly remain a considerable distance
from that target, but the full accounts for 2010-11 will also show
that the overall wage bill reduced even with the expensive
additions in that period of Fernando Torres and David Luiz.
The club took satisfaction last night from a record turnover of
£222.3 million. “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,” said
chairman Bruce Buck. “We would expect this to be reflected in our
results for the current financial year.”
The increase in revenue was achieved largely through higher
receipts from the Champions League as well as the Premier League’s
improved overseas broadcast deal.