Chelsea Announces Annual Profit

[Bosnian Blue 2,471]

This was a profit based more on luck than on good management. The only reason we made money, is winning the CL which made us 47M pounds. Had we not gotten to the finals, we'd have recorded a significant loss. The trick is building long-term sustainability based on smart planning and spending. I think we're heading in that direction, but this profit was based on a highly unlikely success beyond the board's control rather than good planning.

It's football, it's a game afterall. That's not something you can predict because anything can happen. Luck is therefore very important in the 'business'. Although I agree about the what could have happened part.

[robdog 2,084]

From soccernet.com today:

Their record turnover of 255.7 million pounds ($406.9 million) sees Chelsea leapfrog Arsenal and secure further bragging rights in the capital.

so let me get this straight, le arse is ran like a bank & CFC still has a better business model Now that is fuckin' comedy

[Hutcho 8,443]

From soccernet.com today:

Their record turnover of 255.7 million pounds ($406.9 million) sees Chelsea leapfrog Arsenal and secure further bragging rights in the capital.

so let me get this straight, le arse is ran like a bank & CFC still has a better business model Now that is fuckin' comedy

So le arse is ran like a bank & CFC still has a better business model

I am gonna wait til everything in full is released and confirmed but if so that is jokes, and theres gonna be some long old journeys for my arsenal mate, who keeps telling me that we will be bankrupt in a few years lol.

[Bir_CFC 3,455]

166M of debt converted to equity. That's all Roman right there lol.

[Henrique 9,133]

This was a profit based more on luck than on good management. The only reason we made money, is winning the CL which made us 47M pounds. Had we not gotten to the finals, we'd have recorded a significant loss. The trick is building long-term sustainability based on smart planning and spending. I think we're heading in that direction, but this profit was based on a highly unlikely success beyond the board's control rather than good planning.

I dont see how its not a good management, to take a club like Chelsea and then turn it into a UCL champion and one of the biggest clubs in the world, with fans in places like Canada and Brazil.

Luck?

[BlueLyon 9,359]

Arsenal, eat it. They sell their best player in order to keep profit, instead of trying to win something. Great logic!

[CHOULO19 24,332]

This was a profit based more on luck than on good management. The only reason we made money, is winning the CL which made us 47M pounds. Had we not gotten to the finals, we'd have recorded a significant loss. The trick is building long-term sustainability based on smart planning and spending. I think we're heading in that direction, but this profit was based on a highly unlikely success beyond the board's control rather than good planning.

Although winning the CL did make a huge difference, we're still at least 40m better than the 2011 regardless of the CL money. That's because of all the great sponsorship deals we made last year like gazprom, Delta, Subaru..etc A bit unfair to discredit the great business done by Gourlay and the Club.

[The Skipper 20,593]

This was a profit based more on luck than on good management. The only reason we made money, is winning the CL which made us 47M pounds. Had we not gotten to the finals, we'd have recorded a significant loss. The trick is building long-term sustainability based on smart planning and spending. I think we're heading in that direction, but this profit was based on a highly unlikely success beyond the board's control rather than good planning.

Sometimes in business, you need to be lucky.

[RamiCFC9 258]

It was obvious that we were heading in right direction, but that CL win was not only priceless on the football pitch but will also fasten clubs development enormously.We won CL and in the summer got 5 new players, that's boss!

[Madmax 9,219]

Although winning the CL did make a huge difference, we're still at least 40m better than the 2011 regardless of the CL money. That's because of all the great sponsorship deals we made last year like gazprom, Delta, Subaru..etc A bit unfair to discredit the great business done by Gourlay and the Club.

Those deals are not reflected in 2011-12 accounts.

[Ankit 3,176]

Well there will be a new shirt deal with Adidas at the end of this year. Or was it extended till 2014?? Considering Man Utd got a pretty big deal(don't remember the exact amount), our new deal on the lines of Man Utd one,will also come in pretty handy later.

[TorontoChelsea 4,064]

I dont see how its not a good management, to take a club like Chelsea and then turn it into a UCL champion and one of the biggest clubs in the world, with fans in places like Canada and Brazil.

Luck?

Absolutely luck. If you saw say, a shipping company that had posted mostly massive losses every single year for a decade and one year posted slim profits simply because the price of gas fell to an all-time low, would you invest in that company? Nobody would. The price of gas fluxuates, but if you need it to be at an all-time time low to post a profit, you are relying on luck rather than good business practices. Winning the CL is about talent, but it's also completely unpredictable. We have been an elite team over the past decade, one of the top-5 teams in the world, but we've only won the CL once. In the past decade only 1 team (Barcelona) has won it more than once. Take Real Madrid, also a top-5 team in the world in the past decade, and they haven't even made the finals in that period. Winning the CL every year is not a sustainable business model. Chelsea had supporters in Brazil and Canada the year before and lost tens of millions of pounds.

[TorontoChelsea 4,064]

Although winning the CL did make a huge difference, we're still at least 40m better than the 2011 regardless of the CL money. That's because of all the great sponsorship deals we made last year like gazprom, Delta, Subaru..etc A bit unfair to discredit the great business done by Gourlay and the Club.

They are definitely moving in the right direction especially thanks to the sponsorship deals you mention, but we're not there yet.

[Las7 951]

We have been limiting the wage bill which is a major part of getting into a good financial position. Right now I think only 5 players are above the 100k p/w wage level - Torres(£175,000 p/w); Lampard(£140,000 p/w); Terry(£150,000 p/w); Ashley Cole(£120,000 p/w); Essien(£126,000); Petr Cech(£96,000 p/w);

None of the new players we have signed are on that type of money and there is still plenty of time before we renegotiate a lot of their contracts.

I feel that Essien was send out on loan mainly because of his wages - had he been on smaller wage we probably would have kept him around for cover but I'm guessing Real are paying probably 50% of his wage at the moment.

We also have to keep in mind that if Terry and Lampard don't renegotiate their contracts on a lower wage it's a major possibility that both would be deemed too expensive to keep - when we are taking into consideration their age. The only blip is what Fernando is making - considering his overall contribution he should not be making more than Cech.

[Ankit 3,176]

What are Hazard's salary? I still haven't seen a reliable source or page stating his exact wages!! Also Oscar's and Marin's??

[Peppen 934]

What are Hazard's salary? I still haven't seen a reliable source or page stating his exact wages!! Also Oscar's and Marin's??

So many sources reporting different numbers. Somewhere between 70k and 150k I believe.

[Jype 6,398]

What are Hazard's salary? I still haven't seen a reliable source or page stating his exact wages!! Also Oscar's and Marin's??

The English media have estimated it to be around £170k a week but reports in Belgium and France have said all along that he earns 130k euros per week. Either way, it's definitely more than £100k and he should be included in @Las7's list. Still, that doesn't change the fact our wage bill is finally starting to look healthy and in a few years Terry, Lampard, Cole, Cech and hopefully Torres too will all be gone and that's a huge amount of money saved in wages when their replacements don't earn anywhere near the same as they are now. Obviously the likes of Mata, Oscar etc. are going to get improved wages when they continue playing well and are becoming senior players at the club but gone are the days when even the bench warmers made ridiculous amounts of money at Chelsea.

[Las7 951]

What are Hazard's salary? I still haven't seen a reliable source or page stating his exact wages!! Also Oscar's and Marin's??

All Three Maestros are making less than £90,000 p/w, Oscar having the smallest wage out of the three players and Hazard the highest.

Hazard is not making over £100,000 p/w

I don't know about Marin but I doubt it's more than £50,000 p/w