Post by QPR Report on Feb 13, 2009 7:37:36 GMT
Good. But not nearly good enough
BBC- Boss sackings add to Chelsea loss
Jose Mourinho was replaced by Avram Grant in September 2007
Chelsea Football Club is set to reveal a £66m loss for the year to the end of June 2008, the BBC has learned.
The amount includes a total of £23m in compensation paid to Jose Mourinho, Avram Grant and five coaches who left the club during the year.
However, it does not cover the sacking of Luis Felipe Scolari, who was axed from Stamford Bridge this week.
The latest in a string of hefty losses will ultimately be borne by Chelsea's Russian owner, Roman Abramovich.
The BBC has learned that Mr Abramovich's investment in the club has reached £710m.
He has now changed part of that investment from an interest-free loan into shares in the club, as a sign of continuing commitment to Chelsea.
The move will also help defuse European criticism that Chelsea is a heavily indebted business, says BBC business correspondent Nils Blythe.
In another attempt to scale back its debt, the club is aiming to pay for any purchases this summer by selling players.
Criticism
Of the £23m compensation paid to former managers and coaches, the bulk of the money was paid to Jose Mourinho.
His replacement, Avram Grant, lasted just eight months before leaving the club to be succeeded by Scolari - who reports suggest could walk away with £7.5m having been only seven months into a two-year contract.
The club's loss is slightly better than the £74m lost last year and £80.2m in 2006/7. It is also some way short of the record £140m announced by Chelsea in 2004/2005.
The club came fifth on the list of the world's richest clubs in 2007/8 - behind Real Madrid, Manchester United, Barcelona and Bayern Munich.
However, Deloitte's Football Money League is based on revenue and does not take debt into account.
Some European clubs have been critical about the level of debt that some leading English clubs, such as Chelsea and Manchester United, are carrying.
BBC- Boss sackings add to Chelsea loss
Jose Mourinho was replaced by Avram Grant in September 2007
Chelsea Football Club is set to reveal a £66m loss for the year to the end of June 2008, the BBC has learned.
The amount includes a total of £23m in compensation paid to Jose Mourinho, Avram Grant and five coaches who left the club during the year.
However, it does not cover the sacking of Luis Felipe Scolari, who was axed from Stamford Bridge this week.
The latest in a string of hefty losses will ultimately be borne by Chelsea's Russian owner, Roman Abramovich.
The BBC has learned that Mr Abramovich's investment in the club has reached £710m.
He has now changed part of that investment from an interest-free loan into shares in the club, as a sign of continuing commitment to Chelsea.
The move will also help defuse European criticism that Chelsea is a heavily indebted business, says BBC business correspondent Nils Blythe.
In another attempt to scale back its debt, the club is aiming to pay for any purchases this summer by selling players.
Criticism
Of the £23m compensation paid to former managers and coaches, the bulk of the money was paid to Jose Mourinho.
His replacement, Avram Grant, lasted just eight months before leaving the club to be succeeded by Scolari - who reports suggest could walk away with £7.5m having been only seven months into a two-year contract.
The club's loss is slightly better than the £74m lost last year and £80.2m in 2006/7. It is also some way short of the record £140m announced by Chelsea in 2004/2005.
The club came fifth on the list of the world's richest clubs in 2007/8 - behind Real Madrid, Manchester United, Barcelona and Bayern Munich.
However, Deloitte's Football Money League is based on revenue and does not take debt into account.
Some European clubs have been critical about the level of debt that some leading English clubs, such as Chelsea and Manchester United, are carrying.