12/18/24
January 28, 2006
Chelsea make record £140m losses: The EPL defending champs and runaway leaders have "losses of £140m, the biggest in football history. ... 'The rise is down to some exceptional items that were necessary to help us in our aim to break-even by 2009-10.' The termination of a deal with Umbro, which cost £25.5m, plus a total loss of £22.8m over the transfers of Adrian Mutu and Juan Sebastien Veron and the £5m for Academy recruitment were picked out as the 'exceptional items'."
posted by worldcup2002 to soccer at 08:43 AM - 5 comments
Financial reports depend on the fiscal year adopted by the business organization. I'm guessing they were following the calendar year as their financial year.
posted by worldcup2002 at 06:01 PM on January 28, 2006
The UK financial year begins and ends in the first week of April. However publicly-owned corporations are required by law to issue profit/loss revisions when information becomes available, so that shareholders and the stock market know what's going on.
posted by owlhouse at 11:58 PM on January 28, 2006
It is a little of both, after winning the EPL last year by a wide margin they went and bought contracts of at least 2 major players (cole and essien). That along with the buyouts from previous owners mistakes makes it worse. Long term investment should start to kick in at some point because they have arguably one of the top two teams in the world.
posted by kjones00 at 03:22 AM on January 29, 2006
I hope Chelsea dies a miserable death...
posted by StarFucker at 09:15 AM on January 30, 2006
The timing of this seems, I don't know, curious. Wouldn't this stuff normally come out in the offseason? And 140m is a huge number. Did they just egregiously overspend this year? (At least they're getting what they paid for.)