Chelsea to meet Uefa’s 2013 ’solvency eligibility’ rules despite 70.9 million pounds loss
By ANITuesday, February 1, 2011
LONDON - After announcing huge losses of 70.9 million pounds despite winning the Double last season, Chelsea has announced that it is on course to meet the Uefa Financial Fair Play rules which come into effect in 2013.
The rules state that all clubs must be solvent before they are permitted to enter European competitions such as the Champions League.
Chelsea spokesman said: “The club believes it is now well positioned to meet Uefa’s financial fair play rules.”
Chelsea blames the huge loss on the amortisation of player transfer fees, which means how much a player’s worth decreases over the length of his contract.
They said the improved figures for 2009 contained the sales of Wayne Bridge, Steven Sidwell, Glen Johnson and Tal Ben Haim, plus the 12 million pounds pay-off to former manager Luiz Felipe Scolari and his assistants, The Independent reports.
Chelsea’s chairman Bruce Buck described the results as significant progress, and cited what the club termed a “net cash inflow of 3.8 million pounds” as evidence.
Buck said: “That the club was cash generative in the year when we recorded a historic Premier League and FA Cup Double is a great encouragement and demonstrates significant progress as regards our financial results.”
The massive loss comes after slightly better figures for 2009, when the deficit was 44.4 million pounds, and follows years in which the club had run up enormous debts.
In 2008, Chelsea showed a loss of 65.7 million pounds and in 2007 the figure was 74.8 million pounds, The Independent reports. (ANI)
