Chelsea to again announce a loss

[Eddie26]

Calling all trolls, calling all trolls....

I do admit that this has me a bit worried, a businessman is not going to keep pumping millions into an unprofitable business. At some point he has to cut his losses, not that that will really affect us too much since we will still be debt free but it is worrying to post another significant loss.

http://soccernet.espn.go.com/news/story?id=356472&cc=5901

Chelsea chairman Bruce Buck has revealed the club are to announce further huge financial losses on Friday.

The club bankrolled by Russian billionaire Roman Abramovich announced a record pre-tax loss of £88million 12 months ago and the figures for the past year will again show a 'significant' deficit.

Abramovich's vast personal fortune means the debt is far from a problem for the Barclays Premiership champions but the club still intend to become a profitable operation.

[Big_Bad_Mcnabb]

Depend how he leaves you, if he gives you a few years warning you shouldnt be too bad but if he leaves as fast as he came in your in trouble. The wages that you have paid to players recently has been alot and those contracts still have to be honoured.

[BridgeMonkee]

a businessman is not going to keep pumping millions into an unprofitable business. At some point he has to cut his losses,

Not really no, as making it a profitable business wasn’t his primary motivation in the first place.

As a businessman – a billionaire – he didn’t get into this game to make mega-money he already has mega-money and if he wants more mega-money he’ll have a better chance making it in oil, steel and aeroplanes, etc, and he knows that – he knows how to make huge amounts of money. He bought a football club because he loves football and wanted to own a footballl club and he could afford one, we’re not talking about a Glazer here.


Not worried at all. Oh he has a five-year plan, but Russians always have those and they don't always work out.

[sarabella]

The key point is that he didn't get to be so rich by throwing his money away. I agree that eventually this thing is going to have to at least break even for him to continue.

[Clan]

Is this really a surprise?

Lets see what the club does in the Summer, if we're really going to adhere to this '5 year' plan, then I would expect that we'll see no big transfers and a promotion of some of the youth to reserve level, not to mention the aquisition of more up and coming youth prospects.

They say if you get a couple of dozen in and if one makes the grade, you've done well.

The big question here, is at what level do the current Chelsea set the bar for making the grade.
A player that would be considered making the grade for a Fulham, would, it seems to me anyway, not be receiving passing marks at Chelsea - if the now established run of form is to be continued.

Good players are no longer what is needed, great players are what is required.

On the outside - and who really has any idea of what actually goes on in the inner working of the club - it would seem that we have set ourselves up for the searching and procurement of such talent when found.

If, this Summer, we again hit the transfer market for big money, it would lead me to think we are far more behind the plan, than we are 2 years into it.
Given the need for another striker if and when Crespo leaves, not to mention that Drogba is entering the final year of his contract, I see no other option than to spend big money to acquire a first class replacement to maintain current standards.

Sure, it could be said that it's a one off, and would probably be true, but if there is no significant improvement in the reserves next season - as this is where the youth will have to be at to have a sniff of playing season after next, I wouldn't take this talk of a 5 year plan bearing any fruit any time soon.

What does it all mean - well, as long as Roman is around it really doesn't amount to anything at all, as, lets face it lads, he's supporting the club as is.

Given that he's stated that he wants 100 years of dominance from Chelsea, it would seem that he'll be around for quite some time, which is what will be needed to find the next generation of talent, as thats the only way we'll ever see profit from the club.

So, in short, this 5 year plan business just seems like a whole lot of pie in the sky to me.

[BridgeMonkee]

The key point is that he didn't get to be so rich by throwing his money away.

No the key point is that even if he started throwing his money away he would still have plenty left. The point being is that he is rich now. Really really rich and he'll stay rich and how frugal he was becoming rich is no longer the point.

[sarabella]

No the key point is that even if he started throwing his money away he would still have plenty left. The point being is that he is rich now. Really really rich and he'll stay rich and how frugal he was becoming rich is no longer the point.
I'm not saying he needs the club to get rich. It's obvious he's got way, way more money than he'll ever need. I am saying that billionaires are typically of a certain mindset - one that doesn't like to lose money. And even if he's not doing it to get rich, it's my opinion that he won't want to continue to lose tens of millions every year indefinitely. I think that the club will need to reach a break even (not even make a profit) for Roman to continue his involvement.

Of course, it's just my opinion. He is a businessman first and a football fan second, though.

[BridgeMonkee]

eventually this thing is going to have to at least break even for him to continue.

Why?

If in 5 years he hasn’t broken even you think he’ll leave?

[sarabella]

Why?

If in 5 years he hasn’t broken even you think he’ll leave?
I dunno. I'm not a fortune teller. It could be 5 years, it could be 25.

[lobomojo]

I dunno. I'm not a fortune teller. It could be 5 years, it could be 25.

Curious what you all think CFC would sell for today as opposed to the debt laden, on the verge of real financial melt down, lease a training ground, neglected youth system end of Bates version?

[BridgeMonkee]

I think that the club will need to reach a break even (not even make a profit) for Roman to continue his involvement.

He is a businessman first and a football fan second, though.

I think he’ll be involved with Chelsea FC for life (like he said).
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There are reasons that millionaires/billionaires become involved with sports clubs, museums, libraries, galleries, collections, etc even at a loss and that reason is mainly to do with ego. It is a passion (a hobby if you prefer) it is what he wants to do and as a multi-billionaire he has to do something for fun.

A businessman first and a football fan second? Not even sure what that means in relation to the wealth that Roman has.

[Dave_M]

No the key point is that even if he started throwing his money away he would still have plenty left. The point being is that he is rich now. Really really rich and he'll stay rich and how frugal he was becoming rich is no longer the point.

Perhaps - but whats the one thing people with money and power want?

MORE Money and Power....

[BridgeMonkee]

I am saying that billionaires are typically of a certain mindset - one that doesn't like to lose money.
The “mind set” of a billionaire involved in a football club (museum, gallery, etc – look at those Robber Barons) is about success and becoming the best.


His football team won the league and that is not a loss of money in his eyes (that is the mindset of a billionaire).

[sarabella]

His football team won the league and that is not a loss of money in his eyes (that is the mindset of a billionaire)If that is the case, then he's not a typical billionaire.

[BridgeMonkee]

Perhaps - but whats the one thing people with money and power want?

MORE Money and Power....
How would you know? ;)

But seriously, that isn’t necessarily true it is a little more complicated than (a quick study of the lives of the robber barons will tell you that).

[BridgeMonkee]

If that is the case, then he's not a typical billionaire.

I don’t think there is such a thing as a typical millionaire/billionaire – the ones I’ve met have all been rather unique.

[SFC]

Sorry to but in, but...

Who cares if Roman is losing 88 million a year in Chelsea, when he's probably making 8358 zillion somewhere else?

[Big_Bad_Mcnabb]

Personally im waiting for his buddy to come out of jail to buy Everton, or Richard Branson whom ever comes first.

This may just be a passing notice but since he bought Chelsea hes been very passive when he watches the games apart from clapping and smiling alot, but did anyone see his reactions during the Charlton match, dear god i thought he was gonna have a fit he was wriggling all over his seat.

so in short my conclusion is he was either needing the toilet badly or hes about to pull out of Chelsea and buy the real "Blues" ;) :p :D


In all honesty i like the guy, he likes to spend the money to win and enjoys himself, oh and the best thing notice how even the likes of Kenyon are afraid to say anything to his son, seriously im sure the kid runs the show.

[BridgeMonkee]

Perhaps - but whats the one thing people with money and power want?

MORE Money and Power....


Well, I have been thinking some more on this and well, I was chatting to my mate who is a multi-millionaire (on the rich list – worth about 125 million sterling - owned some UK Television stations/companies and is now a venture capitalist) and it’s not really about more power, you get to a point where the power is there and that is that, its not entirely about money either (and perhaps it never was) – true money and power are the end result, but what keeps rich folks going is the THRILL of it all – and I think owning a top European football club for someone who has been a lifelong fan of the game of football is still a pretty big thrill. The only danger is that he would want to own another football club somewhere else – <st1:country-region w:st="on">Germany</st1:country-region>, France, <st1:country-region w:st="on">Spain</st1:country-region>, <st1:country-region w:st="on">Italy</st1:country-region>, <st1:country-region w:st="on"><st1 ="">Russia</st1></st1:country-region>? Etc – then again having money and living in <st1:city w:st="on">London</st1:city> isn’t such a bad life, I guess that why he didn’t want to buy a club in a northern sh1t hole like Leeds, Liverpool or <st1:city w:st="on"><st1 ="">Manchester</st1></st1:city> in the first place.

[King-James]

Perhaps - but whats the one thing people with money and power want?

MORE Money and Power....

I do have to wonder of if he may just suddenly get greedy and bothered with spending all that money on a club. Could be an odd personality subject to unexpected decisions. I mean, with those press rumors and all. Like the supposed inquires when Chelsea had that minor drop in form early this season, and supposedly the whole staff/squad was questioned. LOL. But that stuff might not have been true. And also the press rumors a little while back about Abramovich supposedly getting annoyed at the high wages he was paying players that were never anywhere near playing much. Again, could have been press lies, but it did reek of 'typical rich man', if such a thing could be explained.

Then again Abramovich may not exactly be so typical. As he said in an interview, something along the lines of 'we [rich Russians?] don't tend to live long so we like to spend the money while we can'.

Etc – then again having money and living in <st1:city w:st="on">London</st1:city> isn’t such a bad life, I guess that why he didn’t want to buy a club in a northern sh1t hole like Leeds, Liverpool or <st1:city w:st="on"><st1 ="">Manchester</st1></st1:city> in the first place.

I'd think it unlikely for him to want a club somewhere else. I could be wrong, but I see London/England suiting him best, particularily with the EPL going far and away the richest league in the world. Thought he made some comments before about him and family preferring it in London, in one of those very rare interviews. Said he plans to have his children go to school there because the education system is good.