Chelsea Finances Discussion

[the wes 7,212]

Chelsea chief executive Peter Kenyon is expected to announce bumper financial results today. The Guardian says Chelsea's financial results are expected to show a boost in revenue that will challenge Arsenal's position as the second most lucrative club in England but it remains to be seen what, if any, reduction the club has made in the size of its debt.

[the wes 7,212]

Peter Kenyon breaks down the club's finances on Chelsea TV for tonight's Blues News at 6.30pm.

Chelsea's chief executive then gives a full 15-minute interview after the news, at 6.45pm, where he explains the club's economic status for our last financial year.

Then, with the onset of yet another London derby for the Carling Cup Final this Sunday, Chelsea TV take a look back at previous Carling Cup campaigns in Rewind at 10.15pm, including last year's triumphant final against our other London rivals, Arsenal.

After that, former League Cup and FA Cup winner Frank Leboeuf gives the club's official TV channel an insight into his illustrious career with Chelsea, where he scored 24 goals in 204 appearances for the club, in Legends at 7.30pm.

Then tomorrow evening, Kenyon will join Kerry Dixon in the Chelsea TV studios for Big Match Countdown, the show that Roman Abramovich watches, as we prepare for the Carling Cup Final.

Chelsea's second-highest goal-scorer ever will join Kenyon, who will make his second appearance on Chelsea TV in the space of two days, to offer his expert opinion in the preview to Sunday's match, which could see the Blues secure our first trophy of the season.

[the wes 7,212]

Chelsea will today reveal the extent to which they still rely on Roman Abramovich's riches.

The club are poised to announce financial results for the year ending 30 June 2007 with a major hike in their income tempered by what one source described as a "sizeable loss".

Chelsea lost £80million last year and £140m in 2005 and both times Abramovich funded the shortfall.

The club's huge wage costs mean he faces another large bill today even though the Blues are set to reveal turnover of close to £200m, up from £130m in 2006.

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[Badboy 1,526]

Great news !

[EskWeston 696]

Chelsea FC plc today (Thursday) announced record group turnover and reduced losses for a second successive season.

Chelsea FC also revealed a gross turnover of £223.3 million and independent research that indicated 90 million 'core fans' globally.

Group results for the year end June 30, 2007, followed another year of success on the field with football, media, and sponsorship revenues all showing large rises on the previous financial year.

The main figures were:

- group turnover up 25% to £190.5m from £152.8m (2005/6)

- sponsorship revenues up 89% to £32m from £16.9m (2005/6) due mainly to first year of adidas contract

- football activities up 27% to £165.3m from £130.4m (2005/6) due to success on the field, FA Cup and Carling Cup winners, second in FAPL and semi-finalists UCL

- cash spend reduced by 46% to £70.5m from £129.6m (2005/6)

- matchday revenue up 29% to £74.5m from £57.7m (2005/6) due to increased box office/corporate sales and cup runs

- media revenues up 13% to £59.6m from £52.6m (2005/6)

- losses reduced by 7% to £74.8m from £80.2m (2005/6)

- wages and salaries as percentage of turnover reduced by 5% to 71% from 76% (2005/6)

- EBITDA down to £2.3 million negative from £8 million negative (2005/6)

- gross turnover of £223.3 million (includes adidas and other merchandise and Chelsea Digital Media not consolidated in group results)

The research into fan base was conducted by TNS and was taken in 14 major global markets.

Also, following the end of the financial year Chelsea cleared our last remaining external debt by paying off the Eurobond under the terms of the bond arrangement.

Chelsea FC chief executive Peter Kenyon said: 'These figures once again demonstrate that Chelsea is growing in strength as a business and as a club.

'I am delighted there has been such large increases in the major income streams. This has all been underpinned by our fundamental aim, success on the field, and this season we are looking to build on that again.

'Our long term target of operating profit break even by 2009/10 remains ambitious but we are determined to meet it or get as close as we can.

'In the meantime we have made good on our pledges of last year, hitting all of our aims. We have expanded globally as a club, we have reduced our salaries as percentage of turnover, we have continued to be successful on the field, we have increased sponsorship revenue and we continue to invest in our academy and reduce our reliance on transfers.

'With the company also being external debt free and our ownership clearly demonstrating continuing commitment to the long term, I am very confident about the future on a football and business level.'

Source: Chelsea FC

[bombayblue™ 55]

Please correct me if i am wrong,

> We owe the remaining debt purely to Roman Abramovich..

> He gave us the money at interest free rates, 0% interest..

> this total debt is now 74.8 Million Pounds..

[EskWeston 696]

Please correct me if i am wrong,

> We owe the remaining debt purely to Roman Abramovich..

> He gave us the money at interest free rates, 0% interest..

> this total debt is now 74.8 Million Pounds..

We made a loss of £74.8m for the year, which basically doesn't exist because Roman pays out of his pocket. All the "actual" loans we had have now been paid off and we are debt free.

Obviously in the long term Roman would like to make some money from the club, and i think the "value" of the club has now reached a very very high level compared to when he bought us.

Also very good to hear that they are commited to continued building of the academy to save on transfer spending, hopefully in the next 2/3 years that should really start to kick in..

[Elliott 7]

independent research that indicated 90 million 'core fans' globally.

90 million core fans? Huh? I suppose that means how many people have bought a Chelsea replica shirt or something

Still, looking healthy I guess and good that are looking to continue youth development over large transfer fees.

[EskWeston 696]

90 million core fans? Huh? I suppose that means how many people have bought a Chelsea replica shirt or something

Still, looking healthy I guess and good that are looking to continue youth development over large transfer fees.

Actually the definition of a "core" fan is someone when asked who they supported without any prompting said - Chelsea..... bit flimsy but there you go

[Elliott 7]

Actually the definition of a "core" fan is someone when asked who they supported without any prompting said - Chelsea..... bit flimsy but there you go

Sounds very flimsy. Are they trying to tell me they asked all 1 billion people in China who they supported? Must have used modelling, and I wonder if that can have any sort of accuracy. Doesn't really matter, just seemed odd!

[EskWeston 696]

Sounds very flimsy. Are they trying to tell me they asked all 1 billion people in China who they supported? Must have used modelling, and I wonder if that can have any sort of accuracy. Doesn't really matter, just seemed odd!

I am sure it isn't accurate at all, i know for a fact no-one asked me!!!!

Still the figures are moving in the right direction, i am sure no-one expected us to make a profit this season anyway! Not sure what it all means in the general scheme of things though, taken on an individual basis it looks better. But what about transfer income? We made a nice profit there this summer....

[bombayblue™ 55]

I can speak of the indian sub-continent and the fan base here is Man utd > pool > arse/Chelsea

[warnie_666 1,081]

90 million is an approximate figure which im assuming they come up with based on the merchandise sale globally.

[BlueLion. 21,491]

I think Warnie is correct on that point, but does that therefore mean I can be classed as a Borussia Dortmund fan for having their home kit?

[warnie_666 1,081]

I think Warnie is correct on that point, but does that therefore mean I can be classed as a Borussia Dortmund fan for having their home kit?

YES. I dont think there is anyother way of gauging your fanbase. Hence I said its an APPROXIMATE figure.

[Fulham Broadway 16,385]

The most important thing in all this is that Arsenal and Man utd are in massive debt. We are debt free.

[EskWeston 696]

The most important thing in all this is that Arsenal and Man utd are in massive debt. We are debt free.

That IS the most important thing, and the thing that mostly gets missed out by the media. We are a disrace beacuse we are funded by one man and have no debts whatsoever. Wheras Man you and Arsenal are wonderfully run clubs yet have massive debts which they can only just manage to deal with - go figure!!!!

[the wes 7,212]

http://www.bbc.co.uk/blogs/thereporters/mi...he_black_1.html