Chelsea have in effect drawn a line under an era of lavish benevolence from their owner, Roman Abramovich, after the Russian oligarch converted his outstanding £340m of interest-free loans into equity and technically rendered the company debt-free.
The club's financial figures to June 2009 revealed that Abramovich had followed up his initial £369.9m conversion of loans from the parent company into equity, announced back in February, by doing the same for the remainder of the debt. The Russian's generosity will now prompt renewed attempts to achieve self-sufficiency – albeit not within the time frame initially outlined by Peter Kenyon, who had targeted 2010 – and, as a result, confirms the end of the heady, free-spending days of the early Abramovich era.
The manager, Carlo Ancelotti, said significant transfer funds were available to him should he feel they were necessary. Abramovich remains willing to fund a marquee signing in exceptional circumstances, though Chelsea's recently appointed chief executive, Ron Gourlay, suggested the club would seek to "control expenses, including salaries and wages" as they attempt to reduce annual losses, registered at £44.4m in the latest accounts, further in future.
Those losses were reduced by £21.3m on the previous year but included a £12.6m payment to compensate Luiz Felipe Scolari – whose reign as Chelsea's manager was curtailed seven months into a two-year contract – and three members of his coaching staff. Further, the figures to be published by Companies House today will reveal that Chelsea's wage bill has risen from last year's £148.5m.
Regardless Gourlay, who saw turnover reduce from £213.1m to £206.4m, reflecting the front-loaded nature of some sponsorship revenues, is confident self-sufficiency can be achieved and will seek naming rights for the club's Stamford Bridge stadium, which might generate £50m over five years, as one means of additional income. "It is still our aim to be self-sufficient and we will achieve this by increasing our revenues as we continue to leverage off our brand," Gourlay said. "We are reducing our costs by controlling expenses, including salaries and wages."
"The club's debt has been reduced almost to nil to provide more long-term stability for the club," said the chairman, Bruce Buck. "The reduction will also enable the club to comply with any regulations on debt levels which are being discussed by the football community." That referred to the Uefa president Michel Platini's pursuit of "financial fair play", whereby clubs who spend beyond their means would potentially be excluded from European competition from 2012-13.
Ancelotti has consistently stated that he would not enter the market next month, despite the league leaders living under the threat of Fifa's 12-month ban on registering players over the Gaël Kakuta affair, and reiterated yesterday that he would only consider adding to his squad in January in exceptional circumstances.
"Together, I and the club took the decision to maintain this squad because we have an opportunity – a great opportunity – to play the younger players," said the Italian, who has lost a quartet of senior players to the African Cup of Nations. "It's not a question of money. Absolutely not. If it's necessary to buy players, then we can do it. But it might upset the balance of the squad when the players come back. But I don't need any new players. It's not necessary at this moment."
His concerns over Didier Drogba's absence in Angola have been eased somewhat with confirmation that Nicolas Anelka's recovery from a small hamstring tear is gathering pace. The France international will train with the first team at Cobham today and should be in contention for a return to action against Watford in Sunday's FA Cup third-round tie at Stamford Bridge. "He will be ready," Ancelotti said. "He's in good condition after training alone, and has recovered very well. He'll play the next game."
