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LONDON - Premier League champions Chelsea posted an annual pre-tax loss of £80 million ($225 million) today with billionaire Russian owner Roman Abramovich continuing to bankroll the club's heavy spending.
Despite narrowing the deficit by £60 million pounds, or 42 per cent, and being the best financial performance
by the west London club since Abramovich took over, it was still the third biggest loss in the history of English football.
It was exceeded only by the club's record £140 million loss last year and its £87.8 million loss in 2003/04, the first year of the Russian billionaire's ownership.
A 44 per cent rise in shirt and merchandising sales to £11.1 million from £7.7 million a year ago partly helped pay for players such as Andriy Shevchenko, Jon Obi-Mikel, Solomon Kalou, Lassana Diarra, Michael Essien and Shaun Wright-Phillips.
"These figures demonstrate that the business is moving in the right direction," said chief executive Peter Kenyon, who added that the club was still on track to break even at operating profit level by 2010.
"Last year we took some painful decisions in order to help us achieve our long term business aims. This year's figures proves that was the correct decision." the former Manchester United chief executive said.
Although Chelsea secured a second successive Premier League title and a shirt sponsorship deal, turnover increased just 2.3 per cent to £150 million.
Finance director Chris Alexander told Reuters the club was happy with the rise but expected to see a 20 per cent jump next year as a new £100 million eight-year shirt deal with Adidas kicks in.
Since buying the club in 2003, Chelsea say Abramovich has pumped in more than £500 million, spending more than £300 million of that on big-name players.
Despite Abramovich's recent sporadic attendance at matches, chairman Bruce Buck said the Russian was not looking to walk away from the club.
"We have had several conversations with Roman and I think I can assure you his interest in the club has not waned one iota.
"In signing the accounts, both the board and the accountants have to make an investigation.
"They have taken a view (that) funding for Chelsea in the reasonable future is secure," Buck added, referring to Abramovich's assurance that he would continue to bankroll the club.
Buck acknowledged that Abramovich would eventually stop pouring his money into the club.
"No matter how much money he has at some point he is (Abramovich) not going to want to invest any more money in the club."
Kenyon said Chelsea were looking to rein in spending on players and hoped to limit the amount spent on wages to 55 per cent of turnover in the future.
The club spent £70.8 million on paying players last year compared with £82.6 million in the year before although that could be set to rise with Ballack and Shevchenko joining the club and key men John Terry and Frank Lampard in contract talks.
- REUTERS
