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Chelsea RELEASES LATEST FINANCIAL FIGURES

Posted on: Wed 30 Dec 2009 Chelsea FC plc today (Wednesday) announced that as of its year end 2009 virtually all outstanding debt has been converted into equity and the company is now effectively debt free.

The group also announced reduced losses for the fourth consecutive year.

The group results reveal that following previous conversions of half of the debt, the remainder of the interest-free loans from the parent company, whose ultimate controlling party is Roman Abramovich, have been converted into equity making the group effectively debt free.

This demonstrates the continuing commitment from the shareholder to the group.

The results also show losses decreased by £21.3 million.

And disciplined management of capital expenditure has reduced the cash spend from £107.4m down to £16.9m.

Revenues remain stable despite the economic climate and reflect the strength of the team, its continued success and the attractiveness of the FA Premier League allied with the continued allegiance of our fans and commercial partners.

The main figures:

- Group turnover was down from £213.1m to £206.4m

- Turnover was generally flat. The small year-on-year reduction reflects the front-loaded nature of certain sponsorship revenues

- Loss for the financial year reduced from £65.7m to £44.4m

- Remainder of shareholder debt of £340m was capitalised

- Net capital expenditure reduced from £85.1m to £4.2m following the completion of major capital projects such as the training centre at Cobham

- Cash outflow reduced from £107.4m to £16.9m

Chelsea chairman Bruce Buck said: 'The club's debt load has been reduced almost to nil in order to provide more long-term stability for the club.

'The reduction will also enable the club to comply with any regulations on debt levels which are being discussed by the football community.'

Chelsea chief executive Ron Gourlay said: 'It is still our aim to be self-sufficient and we will achieve this by increasing our revenues as we continue to leverage off our brand. We are reducing our costs by controlling expenses, including salaries and wages.'

The results include exceptional items of £12.6m related to compensation payments to a first team manager and three coaching staff.

CFC

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Roman has done and is continuing to do more than anybody could have ever expected of him.Chairman Bruce Buck comes up with something we'd all be pleased to hear...The debts have practically been wiped off completely,courtesy of the Russian.

http://www.guardian....ch-debt-scolari

So no outstanding debt.Wow.For the highest paying club in player salaries and agent fees,that sure is something , I'm sure Man City will take up that mantle sometime soon and no complaints there.

Thinking of Roman's timeline at the club from what best I remember:

-2003,takes over the the holding company of the club,had some massive debts suddenly didn't look so bad,nearly half of the debts are paid off by Roman's own money which the club owed him at the time,as an interest free loan too,none of the turmoil like Liverpool with RBS or United with the Glazers and the other banks involved...finished 2nd in the league,reaching the semis of the CL, last year of our good manager Ranieri at the helm.

-2004,Jose comes in,so does Drogba,Carvalho,Ferreira who remain to this day,Kezman (am I missing anyone out?),the league is won for the first time in 50 years.CL semis again,this time to that "goal" grrr from Garcia.

-2005,Essien comes in,consecutive league titles won.

Somewhere in this time,those interest free loans were converted into shares of the club,so not only does the guy have an shareholder's interest in the club now, he already owns the parent company,which doesn't quite add up,but I'll take it for now before finding out more on how the dealings happened.

-2006, United win the title,the emergence of Ronaldo among other things and Jose's troubles with the back-room and Roman begins if I have figured the timeline correctly and Shevchenko is signed just from Roman's influence,Jose never wanted him,Ballack came in during the summer as well,free transfer with him though,

-2007 United dominating yet again with Ronaldo firing...the FA cup was won however the previous season , the same year,Mourinho was out of the club in Sept,Grant took over and Roman almost saw us win that CL final at basically the home ground in Moscow.

-2008 Player wages are going higher up, Lampard signs a new contract,Scolari bought in and we all know how that went,Hiddink coming in later to save the day.

-2009 Roman finally gets a manager he wanted in Carlo and things are looking pretty good ,despite all the hic-cups lately.I'm beyond certain Roman has learnt his ways in not interfering with player signings after the Shevchenko debacle and having Ancelotti as the guy he trusts,lets him figure out the transfer market which the Italian is rather stubborn with.

I probably have some of the facts and figures wrong in there, but I just called my memory on short notice.

-2009, today...The Chairman comes out saying that all the debts have nearly been entirely wiped out,Roman has turned into the solitary shareholder of the club by practically absorbing all the debt,turning it into stake and now our books should show that we are stable. This will go a long way when UEFA comes up with the ruling which they inevitably will that club spending can only match the turnover , not more.

Summing up,its pretty obvious how influential Roman has been for the club.I say thanks and hats off to the guy,he's not some billionaire who just wants to have a football club as a hobby.After 7 years at the club,he comes up and completely turns the fortunes around ,just as he did in 03'. Hats off to the Russian, love him or hate him or doubt him , he sure loves the club.

This along with some of the best years the club has had,makes it one of the most significant events in the club's history.

Can anybody throw more light on just how Roman has gone about acquiring the club and what his current stake in the club is, if he doesn't own it entirely ?

Edited by ruggedknot
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lmao this is probably the biggest news of the year, but the thread has only received 2 posts lmao

Chelsea chief executive Ron Gourlay said: 'It is still our aim to be self-sufficient and we will achieve this by increasing our revenues as we continue to leverage off our brand. We are reducing our costs by controlling expenses, including salaries and wages.'

^ i doubt we'll be signing anyone anytime soon then, the fifa transfer ban was a god send for gourlay.

Edited by Terminator X
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