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Chelsea to report £40million loss

The Daily Mail is saying that when Chelsea report their financial numbers in January that they will show that Chelsea lost £40million last season despite winning the League and FA Cup Double.

In 2009/10, Chelsea lost £44.4m, so basically they are unchanged even with more success on the field.

The big question is how will these numbers impact what Chelsea does in the January transfer window? Since Abramovich bought Chelsea seven years ago, Chelsea have recorded losses now of around £500m.

Is Abramovich willing to spend another £20-£40million in January to strengthen the squad, or is he finished spending and wants Chelsea to become cash flow positive?

If the answer if the latter that causes some long-term problems for Chelsea. Stamford Bridge is small (compared to Arsenal and Man United) so Chelsea does not have the revenue streams that these teams do. But Chelsea’s wage bill is about the same as their rivals and as a result they cannot become cash-flow positive.

So either Chelsea needs to find a way to generate more revenue, which is proving to be really difficult to do. Or they need to reduce their wage bill, which will will it much more difficult with the two Manchester teams and Arsenal. Neither option is a good one for Chelsea fans.

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