Chelsea’s future participation in the Champions League looks increasingly at risk after the club announced increasing losses of £70.9m for the financial year ending June 2010. Moreover, after a period of restrained transfer expenditure, the club has splashed out on Fernando Torres. Of course, it could be argued that, given Champions League qualification is worth between £25m and £40m a year, Torres might well eventually pay for himself.
Chelsea’s future participation in the Champions League looks increasingly at risk after the club announced increasing losses of £70.9m for the financial year ending June 2010. Moreover, after a period of restrained transfer expenditure, the club has splashed out on Fernando Torres. Of course, it could be argued that, given Champions League qualification is worth between £25m and £40m a year, Torres might well eventually pay for himself.
Losses were up by £26.5m on the preceding year with the break even target that was supposed to be achieved by 2011 receding into the distance. Admittedly, there was a £3.8m cash inflow after the sale of players such as Wayne Bridge and Steve Sidwell. Group turnover rose from £203.3m to £205.8m. However, wages rose while match day revenue declined because of an early Champions League exit.
Uefa’s Financial Fair Play regulations require clubs to make losses of no more than £38m in the period from 2012 to 2015. Chelsea point to increased future revenues from television rights, ticket prices (difficult to raise when incomes are being squeezed even for the more affluent) and sponsorship deals. In practice, a lot rides on getting a £100m plus naming rights deal for Stamford Bridge.
We have debated on this site whether a legal challenge to the Uefa rules might be possible. Not surprisingly, legal opinion is divided. However, if a challenge was to be mounted, Chelsea or Manchester City would be the two clubs most likely to take the question to court.