Chelsea deny 730 mn pound debt could be a problem

October 9th, 2008 - 4:09 pm ICT by ANI  

London, Oct 9 (ANI): Chelsea has strongly defended their financial structure and rejected any suggestion that the clubs estimated debt figure of 730 million pound could ultimately jeopardise their participation in European competitions.

Owner Roman Abramovich believe that the clubs unique ownership model should be taken into account before the introduction of penalties for clubs carrying excessive debts, The Telegraph reported.

UEFA president Michel Platini specifically pinpointed Manchester United and Chelsea earlier this year when he highlighted the issue, while Uefa general-secretary David Taylor threatened to bring in new rules to regulate clubs relationship with debt.

However, Chelsea believes that the clubs unique ownership model should be taken into account.

Our debt is not external, we dont owe it to a bank or an insurance company, we owe it to the owner of the club who is a committed investor in the club, said Chelsea chairman Bruce Buck.

And the fact that it is characterised as debt or equity is irrelevant. I think its even softer than soft debt. Its equivalent to equity for all practical purposes. Our objective as it has been for several years and will continue to be is to break, or as close to, break-even as we possibly can in order that we don”t have to look to Abramovich to fund us continually, he said.

Was Platini misinformed? As best I can remember the quotes and the context, then I would say yes, he probably didn”t understand the actual financial condition of Chelsea, he added. (ANI)

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