Ken Bates told shareholders they were worth "over £300m". His claim has baffled some City analysts who were pointing to the latest report and accounts in which net assets are valued at £194m. Mr Bates told a meeting of about 20 investors at Stamford Bridge that property assets, including the hotel complex next to Chelsea's ground, would help save the company from the financial woes of rival clubs. "Leeds don't even own their ground. They have no assets other than their squad," Mr Bates said. "We have assets of over £300m." He added that Chelsea's debt was depreciating at 3% a year while assets were rising by 5% a year. "That's how property companies make their money." Chelsea Village's report and accounts show that last summer the company had tangible fixed assets of £180m, almost all of which were made up of property interests. Intangible assets, valued at £60m, were almost entirely player-related. There were liabilities of £47m. One of these figures would have to have changed dramatically for Mr Bates' estimate of asset values to be correct. A spokeswoman for Chelsea Village declined to comment on how the chairman had reached the figure of £300m. Last summer the company had net debt of more than £80m at the end of a year in which losses had risen from £11m to £16.4m. Mr Bates' remarks came at the end of a meeting convened to approve an issue of shares to an unidentified new investor or group of investors. The unusual deal will offer a stake of up to 15% to interests beyond the shareholder base and dilute the value of existing investments. It is expected to provide a cash injection of up to £10m and be offered at a "significant premium" to the share price. Asked about rumours that an individual had been linked to the share issue and was seeking a place on the Chelsea board, Mr Bates said: "I do not know anything about it... We would have to tell the stock exchange first." Among names mentioned has been Paul Taylor, chief executive of Rotch Property and a lifelong Chelsea fan.
Yes I read this in the finance section of the Guardian this morning, they do not seem to believe him The extra £10M will be handy though, it did not say whether it had been approved or not. In anycase I do not think CR will see any of it, it will be heading to the banks.
Yep, In The Grundian Yes, I can't believe, that they don't believe our Kenneth T'is rather baffling. I'm just soo glad that we are not Leeds (on so many levels).
This shows the difference between Ken Bates and Peter Ridsdale, and why CFC will be in Europe next season and Leeds will be battling relegation.