Could Chelsea go bust under Abramovich?

Chelsea's losses under Abramovich

• 2003-4  £88 million
• 2004-5  £140 million
• 2005-6  £80 million

Total loss on 2005/6 transfers - £100 million

Top salary - Peter Keynon, £5.2 million

Future promises: 

• Player salaries will account for under 55% of turnover
• Club will break even by 2009-10

On this basis - assuming these last two points are true, then the first profit will be made in 2010-11, by which time the club will have accumulated further losses.  It might look a bit like this

• 3 years up to 2006 £308 million
• 2006-7  £60 million
• 2007-8  £40 million 
• 2008-9    £20 million
• 2009-10  Zero

Thus entering their profitable phase the club will have accumulated losses of £428 million.  That assumes that no only does the plan work, but also that Chelsea do not speculate by taking on a new stadium.  If so, that could double their losses.  A slippage in their plan, or a decision to out-Arsenal Arsenal by building something even bigger could take them up to accumulated debts of £1 billion.

Quite a lot really.  And for the first time the question could be asked - does the owner really have that much money?

Last modified: February 23, 2008