Blues announce further losses

Chelsea have announced losses of £65.7million for the last financial year, due largely to severance payments to former managers Jose Mourinho and Avram Grant. In a statement released on Friday, the club confirmed it had achieved "record group turnover and reduced losses for a third successive season".But the Blues revealed £23.1m had been paid in compensation to Mourinho, Grant and five coaching staff for the financial year ending 30th June, 2008.That figure does not account for compensation paid to Luiz Felipe Scolari, who is thought to have agreed a £7.5m pay-off after being sacked earlier this week, just seven months after replacing Grant.However, the loss is lower than last year's figure of £74.8m, which was an improvement on the £80.2m loss announced the previous year and the record losses of £140m in 2004/2005.Chelsea also managed to increase group turnover by 11.9 per cent to £213.1m from £190.5m in 2006/07 and chief executive Peter Kenyon believes that is cause for optimism despite the managerial upheaval at Stamford Bridge.Positive trends"There is no doubt that the positive upward trends of turnover and the continued reduction in losses shows that Chelsea is building a strong business base to build on in what will be challenging times," he said."This is even more evident given that the results were adversely affected by the exceptional items."Chelsea owner Roman Abramovich has invested huge funds in the club since taking over in 2003, although Kenyon insists the club still hopes to become 'self-sufficient' within 18 months."We have set ourselves ambitious targets to be EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) neutral on June 30, 2010 and to require zero cash funding from the owner at the beginning of the financial year 2009/2010," he added.Self-sufficiency"We have consistently advocated the aim of self-sufficiency which has always been supported by the owner. We are hopeful of being close to these targets in the timeframes we have set given the underlying strengths of the business."This is the fifth set of financial accounts since the takeover and Chelsea has made huge progress during that period as a football club and a business."The latest figures also revealed that wages were up to £148.5m from 132.8m in 2006/7, and that shareholder loans have been reduced to £339.8m while shareholder capital/equity has increased to £369.9m.Abramovich is reported to have seen his wealth hit by the global financial crisis but has insisted he is not looking to sell the club.Chelsea chairman Bruce Buck added: "Following the conversion of half of the interest-free loans into equity there should now be no doubt as to the owner's commitment to the club and the stability of the company's funding structure."

Source: SKY_Sports