Chelsea owe parent company over £1 billion
Published 14/05/2015 | 11:42
Chelsea owner Roman Abramovich's loan to the club's parent company Fordstam has surpassed £1 billion, accounts show.
The loan to Fordstam from the Russian oligarch, who purchased the Blues in July 2003, has reached £1.041billion, up from £984million the previous year.
Accounts for Fordstam, the company through which Abramovich owns Chelsea, for the year ending June 30, 2014 show the interest-free loan is repayable on 18 months' notice, but also suggest the Russian billionaire is fully committed to the club.
In the accounts strategic report, secretary Paul Heagren said: "The company has received confirmation from the ultimate controlling party that sufficient funds will be provided to finance the business for the foreseeable future."
Chelsea are determined to abide by UEFA's financial fair play regulations and be less reliant on Abramovich's vast personal fortune.
Heagren added: "The football club needs to balance success on the field together with the financial imperatives of this new regime."
Fordstam returned a profit of £14.2m in figures reported, compared to a loss of £55.9m for the previous year.
The improvement was attributed to Chelsea reaching the Champions League semi-finals, new sponsorship agreements and an increase in distribution of broadcasting rights from the Premier League.
Significant income was retrieved through player sales.
"The football club made a profit on player trading of £65.1m in the year, principally due to the sale of Juan Mata to Manchester United, Kevin de Bruyne to Wolfsburg and David Luiz to Paris St Germain," the accounts said.
Other player sales have not been accounted for, but Chelsea's playing squad was valued at £352.95m, up from £272.20m the previous year.
"The valuations assume willing buyers for the relevant players' registrations on normal contractual terms," Heagren added.
Chelsea won the Premier League title for the first time in five years this season and also won the Capital One Cup.