Chelsea Debt Has Been Reduced to Almost Nil
Chelsea FC plc today (Wednesday) announced that as of its year end 2009—virtually all outstanding debt has been converted into equity and the company is now effectively debt free.
The company made the announcement along with its full-year results. It said it had turned almost all its debt into equity.
The debt was an interest-free loan of £340m ($537m) from its parent company, which is controlled by wealthy Russian Roman Abramovich.
Chelsea also announced reduced losses for the fourth year in a row. Losses fell to £44.4m ($70m) from £65.7m.
Revenues remain stable despite the economic climate and reflect the strength of the team. Its continued success can be credited to the attractiveness of the FA Premier League, allied with the continued allegiance of the fans and commercial partners.
Chelsea chairman Bruce Buck said: "The club's debt load has been reduced almost to nil, in order to provide more long-term stability for the club."
"The reduction will also enable the club to comply with any regulations on debt levels which are being discussed by the football community."
Chelsea chief executive Ron Gourlay said: "It is still our aim to be self-sufficient and we will achieve this by increasing our revenues as we continue to leverage off our brand. We are reducing our costs by controlling expenses, including salaries and wages."
The results include exceptional items of £12.6m related to compensation payments to first team manager (Carlo Ancelotti) and three members of the coaching staff.
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