Chelsea pay-off
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They're also debt free now apparently.
How in the name of Satan's Portion did that happen?
How in the name of Satan's Portion did that happen?
Roman said "Meh, keep it"
Debt-free Chelsea disclose Scolari compensation
LONDON - Chelsea reported losses of 44.4 million pounds in the club's end of year results on Wednesday, including a 12.6 million-pound compensation payment to a former manager and his coaching staff.
Chelsea FC plc said in a statement the remainder of a 340 million-pound loan from its parent company, owned by Russian billionaire Roman Abramovich, had been turned into equity and had made the group "debt free."
"The club's debt load has been reduced almost to nil in order to provide more long-term stability," chairman Bruce Buck said in a statement.
"The reduction will also enable the club to comply with any regulations on debt levels which are being discussed by the football community."
UEFA president Michel Platini revealed financial fair play plans this year to make clubs live within their means by linking spending on players to revenues.
Chelsea's losses fell by 21.3 million pounds to 44.4 million, while turnover was down from 213.1 million to 206.4 million.
Brazilian coach Luiz Felipe Scolari was sacked by the west London Premier League club after seven months in charge last February following a poor run of results.
Dutchman Guus Hiddink replaced him until the end of the season and Italian Carlo Ancelotti was appointed his permanent successor in June.
LONDON - Chelsea reported losses of 44.4 million pounds in the club's end of year results on Wednesday, including a 12.6 million-pound compensation payment to a former manager and his coaching staff.
Chelsea FC plc said in a statement the remainder of a 340 million-pound loan from its parent company, owned by Russian billionaire Roman Abramovich, had been turned into equity and had made the group "debt free."
"The club's debt load has been reduced almost to nil in order to provide more long-term stability," chairman Bruce Buck said in a statement.
"The reduction will also enable the club to comply with any regulations on debt levels which are being discussed by the football community."
UEFA president Michel Platini revealed financial fair play plans this year to make clubs live within their means by linking spending on players to revenues.
Chelsea's losses fell by 21.3 million pounds to 44.4 million, while turnover was down from 213.1 million to 206.4 million.
Brazilian coach Luiz Felipe Scolari was sacked by the west London Premier League club after seven months in charge last February following a poor run of results.
Dutchman Guus Hiddink replaced him until the end of the season and Italian Carlo Ancelotti was appointed his permanent successor in June.
[quote author=Le Chacal link=topic=38191.msg1023768#msg1023768 date=1262186810]
They were losing circa £70M-80M average every season and their goal was to be auto-sufficient by 2010.
With a £44.4M loss they still have a long way to go to live within their means.
[/quote]
I agree with that. But.... its on the news today.... they are debt free.
They were losing circa £70M-80M average every season and their goal was to be auto-sufficient by 2010.
With a £44.4M loss they still have a long way to go to live within their means.
[/quote]
I agree with that. But.... its on the news today.... they are debt free.
[quote author=LarryHagman link=topic=38191.msg1023769#msg1023769 date=1262186907]
[quote author=Le Chacal link=topic=38191.msg1023768#msg1023768 date=1262186810]
They were losing circa £70M-80M average every season and their goal was to be auto-sufficient by 2010.
With a £44.4M loss they still have a long way to go to live within their means.
[/quote]
I agree with that. But.... its on the news today.... they are debt free.
[/quote]
I think their salary is almost 70% of their turnover. If they want to live within their means, they will also need to reduce their salary or somehow increase their turnover.
[quote author=Le Chacal link=topic=38191.msg1023768#msg1023768 date=1262186810]
They were losing circa £70M-80M average every season and their goal was to be auto-sufficient by 2010.
With a £44.4M loss they still have a long way to go to live within their means.
[/quote]
I agree with that. But.... its on the news today.... they are debt free.
[/quote]
I think their salary is almost 70% of their turnover. If they want to live within their means, they will also need to reduce their salary or somehow increase their turnover.
[quote author=LarryHagman link=topic=38191.msg1023769#msg1023769 date=1262186907]
[quote author=Le Chacal link=topic=38191.msg1023768#msg1023768 date=1262186810]
They were losing circa £70M-80M average every season and their goal was to be auto-sufficient by 2010.
With a £44.4M loss they still have a long way to go to live within their means.
[/quote]
I agree with that. But.... its on the news today.... they are debt free.
[/quote]
Technically they're not.
They have now a £44.4M + "almost nil" debt.
To pay this they will have to borrow. To whom? Abramovich? Banks?
Edit: or maybe these 44.4M were included but it doesnt hide the fact that they're losing money every season. And someone will have to compensate that loss.
[quote author=Le Chacal link=topic=38191.msg1023768#msg1023768 date=1262186810]
They were losing circa £70M-80M average every season and their goal was to be auto-sufficient by 2010.
With a £44.4M loss they still have a long way to go to live within their means.
[/quote]
I agree with that. But.... its on the news today.... they are debt free.
[/quote]
Technically they're not.
They have now a £44.4M + "almost nil" debt.
To pay this they will have to borrow. To whom? Abramovich? Banks?
Edit: or maybe these 44.4M were included but it doesnt hide the fact that they're losing money every season. And someone will have to compensate that loss.
Like I said in my original post, I don't know how it happened, but its on the News today that Chelsea are now debt free.
[quote author=LarryHagman link=topic=38191.msg1023786#msg1023786 date=1262189311]
Like I said in my original post, I don't know how it happened, but its on the News today that Chelsea are now debt free.
[/quote]
Chelsea FC plc said in a statement the remainder of a 340 million-pound loan from its parent company, owned by Russian billionaire Roman Abramovich, had been turned into equity and had made the group "debt free."
Like I said in my original post, I don't know how it happened, but its on the News today that Chelsea are now debt free.
[/quote]
Chelsea FC plc said in a statement the remainder of a 340 million-pound loan from its parent company, owned by Russian billionaire Roman Abramovich, had been turned into equity and had made the group "debt free."
[quote author=Dee link=topic=38191.msg1023793#msg1023793 date=1262189593]the remainder of a 340 million-pound loan from its parent company, owned by Russian billionaire Roman Abramovich, had been turned into equity [/quote]
Excuse my ignorance, but what does this mean?
Excuse my ignorance, but what does this mean?
[quote author=SaintGeorge67 link=topic=38191.msg1023794#msg1023794 date=1262189690]
[quote author=Dee link=topic=38191.msg1023793#msg1023793 date=1262189593]the remainder of a 340 million-pound loan from its parent company, owned by Russian billionaire Roman Abramovich, had been turned into equity [/quote]
Excuse my ignorance, but what does this mean?
[/quote]
Originally Abromovich bought Chelsea FC PLC and loaned it money interest-free. If he sold Chelsea they would always have that debt to his holding company on their books and be liable to repay cf. Gadymak and Portsmouth.
Now he has converted the loan into equity - so if he sells Chelsea he will not be able to recoup his money except via the sale price.
[quote author=Dee link=topic=38191.msg1023793#msg1023793 date=1262189593]the remainder of a 340 million-pound loan from its parent company, owned by Russian billionaire Roman Abramovich, had been turned into equity [/quote]
Excuse my ignorance, but what does this mean?
[/quote]
Originally Abromovich bought Chelsea FC PLC and loaned it money interest-free. If he sold Chelsea they would always have that debt to his holding company on their books and be liable to repay cf. Gadymak and Portsmouth.
Now he has converted the loan into equity - so if he sells Chelsea he will not be able to recoup his money except via the sale price.
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