Chelsea Announces Annual Profit

[Peppen 934]

http://www.chelseafc...s-annual-profit

Impressive! Congratulations to the board, that's one HUGE achievement.

"The £1.4m profit contrasts with a loss of £67.7m in the previous financial year"

"The increase in revenues to £255.7m from the previous year's level of £222.3m"

"Intergroup debt of £166.6m was capitalised into equity during the course of the year strengthening the balance sheet and making Chelsea FC plc debt free."

"Significant profits (£28.8m) were made in the transfer market."

[Sheva. 5,373]

Nice work

[joshmercury 20]

i find it difficult to work this one out. Yes we won the champions league but 67M loss to profit in 1 fiscal year.

Not to mention the 28M profit in transfer market (even considering transfers based on parachute payment ) is unbelievable.We dint sell anybody only released 3 players and even if you say wages were slashed how can 28M profit result out of it.

I guess Im being paranoid for no reason hope no window dressing has been done to our account books to meet FFP. Atleast our accountants are working overtime

[gary gordon 1,777]

Nice to see us in the green for the first time in 20 or so years.

[Hutcho 8,443]

YEAH!!! GET IN THERE!

[Hutcho 8,443]

i find it difficult to work this one out. Yes we won the champions league but 67M loss to profit in 1 fiscal year.

Not to mention the 28M profit in transfer market (even considering transfers based on parachute payment ) is unbelievable.We dint sell anybody only released 3 players and even if you say wages were slashed how can 28M profit result out of it.

I guess Im being paranoid for no reason hope no window dressing has been done to our account books to meet FFP. Atleast our accountants are working overtime

yeah but we get payments for rights, as well as sponsership deals... I.e. Formula 1 sauber and gazprom etc, also merchandise sales etc.

[Leif 6,006]

I've always been crap at maths, and well, I've no idea what this means.

We've been in debt, and now we're one of the few top clubs no longer in debt?

Or is it something much smaller?

[Leif 6,006]

Oh wait hold on.

Maybe the debt has simply been shifted from Chelsea Football Club to Roman Abramovich himself?

So while Chelsea FC makes a profit, he's inherited the club's debt... despite already owning the club, if that makes sense.

I've no clue.

[Ortiv 42]

Thank heavens. Now let's win more trophies so that my Arsenal mate won't have anything on me again.

[Sheva. 5,373]

I've always been crap at maths, and well, I've no idea what this means.

We've been in debt, and now we're one of the few top clubs no longer in debt?

Or is it something much smaller?

No this is just on the past year. Last year we had a loss of 67m, when you count transfer fees paid and received, other spending and ticket sales etc.

While this year we made a profit, thanks in large part to the CL win.

[Madmax 9,219]

i find it difficult to work this one out. Yes we won the champions league but 67M loss to profit in 1 fiscal year.

Not to mention the 28M profit in transfer market (even considering transfers based on parachute payment ) is unbelievable.We dint sell anybody only released 3 players and even if you say wages were slashed how can 28M profit result out of it.

I guess Im being paranoid for no reason hope no window dressing has been done to our account books to meet FFP. Atleast our accountants are working overtime

2010-11's loss of 67m was largely down to what UFFP classifies as 'Exceptional items' - things like compensation to sacked staff (Carlo + buying out AVB from Porto), writing down player impairment costs etc. Also, not all costs reported in a club's financial statements have to be included in terms of FFP accounting, the biggest example being stadium acquisition costs, costs incurred on community and youth development, depreciation.

[Madmax 9,219]

Oh wait hold on.

Maybe the debt has simply been shifted from Chelsea Football Club to Roman Abramovich himself?

So while Chelsea FC makes a profit, he's inherited the club's debt... despite already owning the club, if that makes sense.

I've no clue.

Chelsea's holding company (Fordstam, iirc) owes this debt to Roman. They are not in the club's books but exist in the parent company's books and while interest-free, can be called in by Roman if and when he wants, on giving the requisite period of notice of course. There are no external debts owed to 3rd parties (bank loans, financial institutions, etc).

[5354 204]

THERE IS SOME SORT OF tweak to the way how the accounting to work.

when u buy younger players, the accumulated depreciation of the players are lesser. something got to do with it

and sacking etc does not count towards expenses.

[Superblue 6,372]

2010-11's loss of 67m was largely down to what UFFP classifies as 'Exceptional items' - things like compensation to sacked staff (Carlo + buying out AVB from Porto), writing down player impairment costs etc. Also, not all costs reported in a club's financial statements have to be included in terms of FFP accounting, the biggest example being stadium acquisition costs, costs incurred on community and youth development, depreciation.

Meaning in all likelihood from an FFP viewpoint our profit will be even greater which will put us in good stead.

With how players transfer fees are amortised over their contracts (and all our new signings i think signed 5 year deals) the summer spending won't have a huge affect on next year's profit like some people might think!

The wages are the biggest hit for the club andin signing a lot of younger talent we are becoming more stringent in our dealings. In all likelihood Lampard, Cole and Malouda will all leave by the end of the season which is the best part of another £20m per season in wages being saved.

[Strike 7,271]

the Champions League winnings was a jackpot

[Madmax 9,219]

Meaning in all likelihood from an FFP viewpoint our profit will be even greater which will put us in good stead.

With how players transfer fees are amortised over their contracts (and all our new signings i think signed 5 year deals) the summer spending won't have a huge affect on next year's profit like some people might think!

The wages are the biggest hit for the club andin signing a lot of younger talent we are becoming more stringent in our dealings. In all likelihood Lampard, Cole and Malouda will all leave by the end of the season which is the best part of another £20m per season in wages being saved.

It is indeed in the club's interest to sign players on long term deals because then the transfer fee is amortized over a longer period. Similar is the situation with contract renewals. We'll be okay wage-wise too; iirc our wages-to-revenue ratio (one key compliance criteria under FFP) was close to being within the required limit of 70% as of last year, and since then high earners like Drogba, Anelka have been pushed off the books.

[Ankit 3,176]

[BlueLyon 9,359]

Well thats great