Chelsea chief executive Peter Kenyon has warned that any
signings in the summer will have to be financed by selling players
after the club announced losses of £65.7m for the last financial
year.
Despite the losses, Chelsea insist they are committed to
breaking even by 2010 - but that means very limited funds available
for new signings.
Kenyon said: "We have set ourselves ambitious targets... to
require zero cash funding from the owner at the beginning of the
financial year 2009/2010.
"We have consistently advocated the aim of self-sufficiency
which has always been supported by the owner. We are hopeful of
being close to these targets in the time-frames we have set given
the underlying strengths of the business.
"Success on the field is a key part of this. But in line with
our long-stated business aims, any squad structuring in the summer
will be funded prominently by sales as we have consistently reduced
our net transfer spend over the last five years and will attempt to
continue this trend."
The latest figures include £23.1m paid in compensation to Jose
Mourinho, Avram Grant and five coaching staff. It does not include
any pay-off for Luiz Felipe Scolari, sacked on Monday, however.
The figures do represent another improvement after last year's
losses of £74.8m, £80.2m the previous year, and record losses of
£140m in 2004/2005.
Chelsea's wage bill remains comfortably the biggest in the
Premier League at £148.5m 70.6 per cent of their turnover.
Manchester United' by contrast was £106m in 2006/7, 43.6 per cent
of turnover.
Chelsea owner Roman Abramovich has also reduced the debt the
club owe to him personally by half, turning the £369.9m of his
loans into shares in the club. It still means however that Chelsea
owe him £339.8m as an interest-free loan.
Chelsea chairman Bruce Buck said he hoped the move by Abramovich
would silence the doubters over the Russian's commitment to the
club.
