Club announces record turnover

[Billy. 2,742]

Chelsea FC plc today announced record group turnover of £222.3m for the year ended June 30, 2011.

The increase in revenues from the previous year's level (£205.8m) 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.

The loss for the financial year was reduced from £70.9m to £67.7m.

Match day receipts and commercial revenues have held up well in the face of the continued economic turbulence faced by the wider economy.

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 main figures were:

·Group turnover was up from £205.8m to £222.3m

·Loss for the financial year was reduced from £70.9m to £67.7m

Chief executive Ron Gourlay said: 'Achieving a record level of turnover is satisfying given the economic background against which we are operating.'

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.'

http://www.chelseafc...2595109,00.html

[Fernando 6,585]

Hide the fact we are in a loss again with a little sprinkle of good words, yay......

[LDN Blue 7,903]

Doesn't look good..

[Blue-in-me-Veins 4,067]

So what if we didn't buy Torres???? Oh my that deficit would have been at least 1/4 as less !!!

[capriccioso 2,545]

Torres and sacking Ancelotti/hiring AVB should account for just about all of the deficit. That's good news, we're only a sensible transfer/manager hiring policy away from going in the black.

[Kez 2,727]

So what if we didn't buy Torres???? Oh my that deficit would have been at least 1/4 as less !!!

We recouped his fee in shirt sales alone.

[Fulham Broadway 17,333]

Net profitability and margin is what really matters here.

I can buy something for £1000, then sell it for £990. If i do that loads of times my turnover looks great .

But how will my Net Profit look? Oh, fuck me it's a net LOSS. Bbbbbbbbut hey! , the turnover looks fantastic.

Turnover is vanity, profit is sanity.....

[Badboy 1,526]

You have it spot on FB......... Turnover/Revenue means nothing at all. The clubs loss over the last 10 years has probably been been well over 1 billion pounds. I think it was a very silly investment for Roman, i don't care how much money he holds any business that loses that much money is a laughing stock. To be making a loss 8 years in a row is just shocking and the guy will probably give up one day.

[Kostas 1,468]

You gotta give them credit for the title, they'll never run out of imagination.

I'll be looking at the figures later but the increase in turnover could probably be due to the Adidas and Samsung deals. Nevermind, first two paragraphs.

[Blue-in-me-Veins 4,067]

We recouped his fee in shirt sales alone.

I'm pretty sure that people have returned those shirts by now!!!!

[Kostas 1,468]

Torres and sacking Ancelotti/hiring AVB should account for just about all of the deficit. That's good news, we're only a sensible transfer/manager hiring policy away from going in the black.

Apparently exceptional payments went up to 30m (Ancelotti's pay-off + compensation to Porto for AVB). As long as we keep qualifying for the CL your post hits the nail on the head.

And no, Torres didn't hit us nearly as bad.

[termninja 5,290]

It's alright. Like it was said compensations to Porto and AVB + high wages to some players who will leave soon like Drogba, Torres and Lampard. Anelka was on 90k if I remember also.

Do well this year and finish top 4 in the league and we should be fine. I won't worry about our turnover as that is the deparement our board certainly knows of well since they are businessmen...

[Fulham Broadway 17,333]

You have it spot on FB......... Turnover/Revenue means nothing at all. The clubs loss over the last 10 years has probably been been well over 1 billion pounds. I think it was a very silly investment for Roman, i don't care how much money he holds any business that loses that much money is a laughing stock. To be making a loss 8 years in a row is just shocking and the guy will probably give up one day.

To be fair the man loves his football. He has an obscene amount of money and is quite prepared to spunk it away on big toys -football clubs, £200m yachts, £50m paintings for his new bit of minge, houses all over the world -he proabaly doesnt give a fuck about balance sheets unless they mention 'billion'

[Blue Armour 4,448]

So what if we didn't buy Torres???? Oh my that deficit would have been at least 1/4 as less !!!

In fact I don't think it includes his transfer fee, at least not all of it. I think entire sum is paid in installments to Liverpool

[Kostas 1,468]

In fact I don't think it includes his transfer fee, at least not all of it. I think entire sum is paid in installments to Liverpool

I doubt we pay in installments for Torres, afaik that's not as usual at the top English teams as it is in Barcelona and Liverpool couldn't have bought Carroll with money they did not yet get.

[zolayes 14,489]

You have it spot on FB......... Turnover/Revenue means nothing at all. The clubs loss over the last 10 years has probably been been well over 1 billion pounds. I think it was a very silly investment for Roman, i don't care how much money he holds any business that loses that much money is a laughing stock. To be making a loss 8 years in a row is just shocking and the guy will probably give up one day.

I think youre wrong about this . IMO it is only thr threat of FFP that is holding back his spending ,,without that I think he would be spending much more. look at what he spends on his various residences around the world. We can't comprehend his wealth.

[eldo 868]

https://docs.google....U4NGY1&hl=en_US

http://twitter.com/andersred

[TrueBlue1905 5]

So what if we didn't buy Torres???? Oh my that deficit would have been at least 1/4 as less !!!

The latest reported loss won't include the full transfer fee paid for Fernando Torres because player transfers are capitalised onto the balance sheet and amortised over the remainder of the contract. So, in Torres' case, his annual amortisation, which is shown as a cost in the profit & loss account will be £50m spread over the 5.5 years of his deal = £9m per year

The true cost of Torres per year will also include his wages which at what is estimated to be £150k per week, works out at a cost of £8m per year.

Therefore the total annual cost of having Torres on the book is £17m per year until midway through 2015 (assuming we don't offer him a contract extension) or unless he is sold.

[francozola 2,040]

The latest reported loss won't include the full transfer fee paid for Fernando Torres because player transfers are capitalised onto the balance sheet and amortised over the remainder of the contract. So, in Torres' case, his annual amortisation, which is shown as a cost in the profit & loss account will be £50m spread over the 5.5 years of his deal = £9m per year The true cost of Torres per year will also include his wages which at what is estimated to be £150k per week, works out at a cost of £8m per year. Therefore the total annual cost of having Torres on the book is £17m per year until midway through 2015 (assuming we don't offer him a contract extension) or unless he is sold.

Dear lord.

Another reason why we need to get rid of him ASAP. We aren't spending 17m a year on him to get a couple of assists every month.

[TrueBlue1905 5]

Dear lord.

Another reason why we need to get rid of him ASAP. We aren't spending 17m a year on him to get a couple of assists every month.

One problem with getting rid of him ASAP would be that we would have to recognise upfront, a very big loss on the sale as his current market value is way below the £50m we paid for him.

Right now, his book value should be at around £41m (£50m fee less one year's amortisation). Let's say we can recoup £20m by selling him now, which I realise is unlikely but Liverpool paid £35 for Andy Carroll so is not beyond the realms of possibility. We would have to recognise a loss of £21m immediately! On the other hand, we would save ourselves £8m per year in wages for the next 4.5 years.