Abramovich Writes Off Chelsea Debt
Roman Abramovich has wiped out £340million of interest-free loans he has made to Chelsea ince taking over in 2003.
New chief executive Ron Gourlay insists the club are now on track to become self-sufficient and survive without the help of Abramovich after announcing much-reduced losses.
Last year he wrote off a similar level of debt, but has now turned the rest of what Chelsea owe into shares. As the sole shareholder, it effectively means he has absorbed the debt.
Chelsea’s year-end financial figures show an annual loss of £44.4m – down from £65.7m last year – but it was confirmed that compensation payments to Luiz Felipe Scolari and three of his coaches cost an eye-watering £12.6m.
Turnover was reduced from £213.1m last year to £206.4m, though the club said this was down to big sponsorship payments being paid up front last year rather than being staggered.
Net capital expenditure reduced from £85.1m to just £4.2m following the completion of major projects such as the Cobham training ground.
And cash outflow was dramatically reduced from £107.4m to £16.9m.
Posted on December 30, 2009 | Filed Under Football
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