Post by QPR Report on Dec 2, 2008 7:58:21 GMT
Don't believe it! 
Guardian/ Dominic Fifield
Chelsea will be self-sufficient by next year, says Kenyon
Chelsea's chief executive, Peter Kenyon, has pledged that the club will be cash self-sufficient from July 1 next year, a commitment that would ensure they are no longer reliant upon Roman Abramovich's interest-free loans to cover costs, from players' wages to forays into the transfer market.
Kenyon had made no secret of his desire to transform Chelsea into a profitable business having leaned so heavily on Abramovich's investments over the past five years, totalling about £600m, and hopes the club will break even in terms of operating profit by 2011. Yet, as the effects of the credit crunch ripple through the domestic game, Chelsea are confident they will prove themselves financially stronger by the end of the current season.
"The long-term plan here was always that we needed to be profitable, non-loss-making and self-funding," said Kenyon. "In terms of breaking even, I think it will be 2010-11 but, this year, we're very clear about achieving no-funding targets from the owner. It's a process we believe can be achieved by the end of this season. I think we'll be growing revenue.
"All that these difficult financial times have made us do is look at ways to accelerate things. Roman remains absolutely committed and absolutely passionate about the club, but he's also a very good businessman, which is why he had enough money to put £600m into the club in the first place. What we're doing here is the right and prudent thing to do to make sure Chelsea is in the right position."
Chelsea's annual wage bill had risen by 16.7% to £132.8m according to Deloitte's report into football finances during the 2006-07 season, with Kenyon confident the club will be able to cover those costs with revenues generated from next summer. Transfer activity is likely to rely upon money being generated through sales and, while Chelsea's turnover was recorded as £190.5m with pre-tax losses of £74.8m in the latest figures, cutbacks are being made in line with the rest of the industry.
Chelsea do not anticipate imminent progress on the redevelopment of Stamford Bridge or any potential move to a new purpose-built stadium. "We continue to evaluate our current site because this is where we'd like to do something," added Kenyon. "But ... the likelihood is that we're here for at least the next two years."
www.guardian.co.uk/football/2008/dec/02/chelsea-premierleague
The Times
The Times
December 2, 2008
Chelsea tell Luiz Felipe Scolari: there's no money to spend on players
Scolari has got off to an impressive start has Chelsea manager
(AFP/Liu Jin)
Luiz Felipe Scolari will have to make do with his existing playing resouces at Stamford Bridge this season
Matt Hughes
Luiz Felipe Scolari has been told not to expect to have any spending money for next month’s transfer window as Chelsea also confirmed yesterday that plans to redevelop their ground have been shelved, but, despite Peter Kenyon’s repeated use of the phrase, it is not all doom and gloom at Stamford Bridge. The chief executive revealed that Chelsea are on course to be self-funding by next July, which would represent a significant breakthrough towards their long-term target of breaking even after years of heavy losses.
Roman Abramovich has invested almost £600 million since buying the club five years ago, but, according to forecasts, will not be asked to spend anything on the day-to-day running of the business from the start of their next accounting year. The Russian will still be prepared to underwrite one-off projects, such as the financing of a new stadium if the club find a suitable site, but Chelsea’s reliance on their owner’s largesse appears to be diminishing. While the club are aiming to cut costs by up to 15 per cent across their entire operation in the light of the economic downturn, their move towards self-sufficiency is largely the result of increased revenue, with sponsorship, match-day and television income increasing dramatically since they recorded turnover of £190.5 million for the year ending July 2007.
“We set ourselves a target of 2010 for break-even and I think it will be 2010-11,” Kenyon said at the launch of a £7 million, four-year partnership agreement with Thomas Cook, the travel company.
“This year we’re very clear about achieving no-funding targets from the owner and that’s a huge step forward. If the need arises, I’m sure he would put money in, but as it stands we’re not going to ask for it. I think we’ll grow revenue, and it doesn’t mean we have to cut players’ wages.”
Related Links
* Drogba speaks out over his 'unhappiness'
* Scolari escapes FA punishment
* Chelsea reach agreement over Mikel
Chelsea’s ultimate goal remains distant after they recorded losses of £74.8 million last year, but they are moving in the right direction. The club are also expected to record losses when their accounts for 2007-08 are published next February, not least because of severance payments made to José Mourinho, Avram Grant and Henk ten Cate that could total more than £20 million.
“The long-term plan always was that we needed to be profitable, non-loss making and self-funding,” Kenyon said. “It’s not been dictated by Roman. He’s absolutely committed to the club, absolutely passionate about the club, but he’s also a very good businessman. Which is why he had enough money to put £600 million into the club in the first place. What we’re doing here is the right and prudent thing to do to make sure Chelsea is in the right position.”
The shelving of stadium plans is because of logistical as much as financial factors, with Chelsea having failed to find an alternative site after a two-year search and unable to redevelop Stamford Bridge because of planning restrictions imposed by the local council, while the falling price of property and land in London has tied their hands further.
“We continue to evaluate this site because this is where we’d like to do something, but there are complex issues,” Kenyon said. “We’re not erecting a tent in the back garden. We’re here for the next five years, even if we decided to move today.”
Kenyon also confirmed that Scolari, the manager, cannot expect any money next month and made it clear Didier Drogba, the striker, will not be allowed to leave, despite interest from Inter Milan.
“We will see little or no activity, as the right kind of players are unlikely to be available,” he said. “Players will only leave Chelsea when we let them. Didier has 18 months left on his contract and we want to get him back to top form as soon as possible.”
Chelsea have reached an agreement with Lyn Oslo, the Norwegian club, in their dispute over the transfer of John Obi Mikel. The West London club issued a High Court claim against Lyn and Morgan Andersen, their former chief executive, in October in an effort to recoup the £16 million fee they paid for the Nigeria midfield player. The matter has been resolved out of court, but figures were not revealed. The FA will not be taking any action against Luiz Felipe Scolari over the Chelsea manager’s comments about Mike Dean, the referee, on Sunday after the 2-1 defeat by Arsenal
www.timesonline.co.uk/tol/sport/football/premier_league/chelsea/article5269918.ece
Guardian/ Dominic Fifield
Chelsea will be self-sufficient by next year, says Kenyon
Chelsea's chief executive, Peter Kenyon, has pledged that the club will be cash self-sufficient from July 1 next year, a commitment that would ensure they are no longer reliant upon Roman Abramovich's interest-free loans to cover costs, from players' wages to forays into the transfer market.
Kenyon had made no secret of his desire to transform Chelsea into a profitable business having leaned so heavily on Abramovich's investments over the past five years, totalling about £600m, and hopes the club will break even in terms of operating profit by 2011. Yet, as the effects of the credit crunch ripple through the domestic game, Chelsea are confident they will prove themselves financially stronger by the end of the current season.
"The long-term plan here was always that we needed to be profitable, non-loss-making and self-funding," said Kenyon. "In terms of breaking even, I think it will be 2010-11 but, this year, we're very clear about achieving no-funding targets from the owner. It's a process we believe can be achieved by the end of this season. I think we'll be growing revenue.
"All that these difficult financial times have made us do is look at ways to accelerate things. Roman remains absolutely committed and absolutely passionate about the club, but he's also a very good businessman, which is why he had enough money to put £600m into the club in the first place. What we're doing here is the right and prudent thing to do to make sure Chelsea is in the right position."
Chelsea's annual wage bill had risen by 16.7% to £132.8m according to Deloitte's report into football finances during the 2006-07 season, with Kenyon confident the club will be able to cover those costs with revenues generated from next summer. Transfer activity is likely to rely upon money being generated through sales and, while Chelsea's turnover was recorded as £190.5m with pre-tax losses of £74.8m in the latest figures, cutbacks are being made in line with the rest of the industry.
Chelsea do not anticipate imminent progress on the redevelopment of Stamford Bridge or any potential move to a new purpose-built stadium. "We continue to evaluate our current site because this is where we'd like to do something," added Kenyon. "But ... the likelihood is that we're here for at least the next two years."
www.guardian.co.uk/football/2008/dec/02/chelsea-premierleague
The Times
The Times
December 2, 2008
Chelsea tell Luiz Felipe Scolari: there's no money to spend on players
Scolari has got off to an impressive start has Chelsea manager
(AFP/Liu Jin)
Luiz Felipe Scolari will have to make do with his existing playing resouces at Stamford Bridge this season
Matt Hughes
Luiz Felipe Scolari has been told not to expect to have any spending money for next month’s transfer window as Chelsea also confirmed yesterday that plans to redevelop their ground have been shelved, but, despite Peter Kenyon’s repeated use of the phrase, it is not all doom and gloom at Stamford Bridge. The chief executive revealed that Chelsea are on course to be self-funding by next July, which would represent a significant breakthrough towards their long-term target of breaking even after years of heavy losses.
Roman Abramovich has invested almost £600 million since buying the club five years ago, but, according to forecasts, will not be asked to spend anything on the day-to-day running of the business from the start of their next accounting year. The Russian will still be prepared to underwrite one-off projects, such as the financing of a new stadium if the club find a suitable site, but Chelsea’s reliance on their owner’s largesse appears to be diminishing. While the club are aiming to cut costs by up to 15 per cent across their entire operation in the light of the economic downturn, their move towards self-sufficiency is largely the result of increased revenue, with sponsorship, match-day and television income increasing dramatically since they recorded turnover of £190.5 million for the year ending July 2007.
“We set ourselves a target of 2010 for break-even and I think it will be 2010-11,” Kenyon said at the launch of a £7 million, four-year partnership agreement with Thomas Cook, the travel company.
“This year we’re very clear about achieving no-funding targets from the owner and that’s a huge step forward. If the need arises, I’m sure he would put money in, but as it stands we’re not going to ask for it. I think we’ll grow revenue, and it doesn’t mean we have to cut players’ wages.”
Related Links
* Drogba speaks out over his 'unhappiness'
* Scolari escapes FA punishment
* Chelsea reach agreement over Mikel
Chelsea’s ultimate goal remains distant after they recorded losses of £74.8 million last year, but they are moving in the right direction. The club are also expected to record losses when their accounts for 2007-08 are published next February, not least because of severance payments made to José Mourinho, Avram Grant and Henk ten Cate that could total more than £20 million.
“The long-term plan always was that we needed to be profitable, non-loss making and self-funding,” Kenyon said. “It’s not been dictated by Roman. He’s absolutely committed to the club, absolutely passionate about the club, but he’s also a very good businessman. Which is why he had enough money to put £600 million into the club in the first place. What we’re doing here is the right and prudent thing to do to make sure Chelsea is in the right position.”
The shelving of stadium plans is because of logistical as much as financial factors, with Chelsea having failed to find an alternative site after a two-year search and unable to redevelop Stamford Bridge because of planning restrictions imposed by the local council, while the falling price of property and land in London has tied their hands further.
“We continue to evaluate this site because this is where we’d like to do something, but there are complex issues,” Kenyon said. “We’re not erecting a tent in the back garden. We’re here for the next five years, even if we decided to move today.”
Kenyon also confirmed that Scolari, the manager, cannot expect any money next month and made it clear Didier Drogba, the striker, will not be allowed to leave, despite interest from Inter Milan.
“We will see little or no activity, as the right kind of players are unlikely to be available,” he said. “Players will only leave Chelsea when we let them. Didier has 18 months left on his contract and we want to get him back to top form as soon as possible.”
Chelsea have reached an agreement with Lyn Oslo, the Norwegian club, in their dispute over the transfer of John Obi Mikel. The West London club issued a High Court claim against Lyn and Morgan Andersen, their former chief executive, in October in an effort to recoup the £16 million fee they paid for the Nigeria midfield player. The matter has been resolved out of court, but figures were not revealed. The FA will not be taking any action against Luiz Felipe Scolari over the Chelsea manager’s comments about Mike Dean, the referee, on Sunday after the 2-1 defeat by Arsenal
www.timesonline.co.uk/tol/sport/football/premier_league/chelsea/article5269918.ece
