Sacking coaches cost Cheslea

February 13th, 2009 - 8:36 pm ICT by IANS  

ChelseaLondon, Feb 13 (IANS) Sacking coaches has proved a costly proposition for Chelsea. Severance money paid to Jose Mourinho and Avam Grant saw the London club register losses of 65.7 million pounds in the last financial year.
Chelsea in a statement released Friday said that it had achieved “record group turnover and reduced losses for a third successive season” but revealed 23.1 million pounds had been paid in compensation to two first-team managers and five coaching staff. In the past 17 months, Chelsea has seen four managers, the latest was the sacking of Luis Felipe Scolari Monday but the latest figure does not account for compensation paid to the Brazilian.

Chelsea, owned by the Russian billionaire Roman Abramovich, increased group turnover by 11.9 percent to 213.1 million pounds from 190.5 million pounds in 2006-07.

The loss, however, is lower than last year’s figure of 74.8 million pounds, which was in turn an improvement on the 80.2 million pounds deficit announced the previous year. The club declared record losses of 140 million pounds in 2004-05.

“There is no doubt that the positive upward trends of turnover and the continued reduction in losses show that Chelsea is building a strong business base to build on in what will be challenging times. This is even more evident given that the results were adversely affected by the exceptional items,” Chelsea’s chief executive Peter Kenyon said in the statement.

The BBC reported that Abramovich’s investment in the club has touched 710 million pounds since 2003, but Kenyon hoped that the club will be “self-sufficient” within the next 18 months.

“We have set ourselves ambitious targets to be Ebitda-neutral (Earnings Before Interest, Taxes, Depreciation and Amortisation neutral) by June 30, 2010 and to require zero cash funding from the owner at the beginning of the financial year 2009-2010,” said Kenyon.

“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 time-frames 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,” he said.

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