The Blues might be sitting pretty in position 6 in the football money league rich list but the truth of the matter is that their financial situation is not too good. With a massive debt in excess of over £1 billion, Chelsea could soon find itself in a very messy situation.
It is also now emerging that Chelsea paid £28 million to sign Andre Villas-Boas from Porto last summer. A brief look at the club’s expenditure in the 2010-2011 season reveals that things are not as bad as they are being made to look.
Revenues in the last fiscal year improved from £205.8m to £222.3m a good indicator that the club is starting to receive positive cashflow for all the money they are spending.
Meanwhile, in other Chelsea news, captain John Terry has been dropped from all Umbro campaigns after he was stripped off the England captaincy last Friday. This latest action from Umbro will see Terry dropped from all current advertising campaigns until he is cleared of his racist abuse charges.
Things Get Worse for Terry as the sports wear giant are considering not extend his £4 million deal which expires this summer. Here is what a spokesman for the sports giant had to say:
“John is not involved in current Umbro campaigns and I can’t comment on future campaigns and discuss which players are involved. John remains an Umbro-sponsored player while the case is pending. It is true that we are seeking new players to promote our brand but we are constantly looking for footballing talent.”
Another major Chelsea sponsor Samsung is also said to have distanced itself from Terry or any other player saying that it only values its commercial relationship with the club.
“Samsung Electronics and Chelsea Football Club renewed their global partnership in 2009, extending the relationship until the end of the 2012/13 season. Samsung Electronics enjoys this commercial partnership with the club only. It does not extend to any members of the playing staff at Chelsea FC.”
This is very interesting as i thought the electronics giants had made Drogba the face of its brand. Drogba’shas been the poster boy for the brand throughout the entire AFCON tournament and it is strange that Samsung can make such a statement.
That said, this is probably the darkest period in Chelsea’s post Ambramovich era and it will be interesting to see how the club overcomes this challenge which they will.
Photo Credit © alexknip
