Friday, February 22, 2008

Chelsea Net a Profit

Chelsea FC plc announced on Thursday, February 21 a record group turnover and reduced losses for a second successive season. Chelsea FC also revealed a gross turnover of £223.3 million and independent research that indicated 90 million "core fans" globally. Group results for the year end June 30, 2007, followed another year of success on the field with football, media and sponsorship revenues all showing large rises on the previous financial year. The main figures were: group turnover up 25% to £190.5m from £152.8m (2005/6) sponsorship revenues up 89% to £32m from £16.9m (2005/6) due mainly to first year of adidas contract football activities up 27% to £165.3m from £130.4m (2005/6) due to success on the field, FA Cup and Carling Cup winners, second in FAPL and semi-finalists UCL cash spend reduced by 46% to £70.5m from £129.6m (2005/6) matchday revenue up 29% to £74.5m from £57.7m (2005/6 due to increased box office/corporate sales and cup runs media revenues up 13% to £59.6m from £52.6m (2005/6) losses reduced by 7% to £74.8m from £80.2m (2005/6) wages and salaries as percentage of turnover reduced by 5% to 71% from 76% (2005/6) EBITDA down to £2.3 million negative from £8 million negative (2005/6) gross turnover of £223.3 million (includes adidas and other merchandise and Chelsea Digital Media not consolidated in group results) The research into fan base was conducted by TNS and was taken in 14 major global markets. Also, following the end of the financial year Chelsea cleared its last remaining external debt by paying off the Eurobond under the terms of the bond arrangement.Chelsea FC Chief Executive Peter Kenyon said: "These figures once again demonstrate that Chelsea is growing in strength as a business and as a club. "I am delighted there has been such large increases in the major income streams. This has all been underpinned by our fundamental aim, success on the field, and this season we are looking to build on that again. "Our long-term target of operating profit break even by 2009/10 remains ambitious but we are determined to meet it or get as close as we can. "In the meantime we have made good on our pledges of last year, hitting all of our aims. We have expanded globally as a club, we have reduced our salaries as percentage of turnover, we have continued to be successful on the field, we have increased sponsorship revenue and we continue to invest in our academy and reduce our reliance on transfers. "With the company also being external debt free and our ownership clearly demonstrating continuing commitment to the long term, I am very confident about the future on a football and business level."

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