Will Chelsea become the next Leeds United?
I know that this is a THFC site but I do get rather annoyed with all the
glory hunting Chavs
who spout complete and utter nonsense and expect everybody to take it
all in just because they are Chelsea.
They all seem to think that the world started the day the Russian came
to town, although there are some sensible ones that know they were very,
very close to going into liquidation (as we were in the Scholar days)
and thus becoming another Leeds United.
They wax lyrical about their achievements but what is there to gloat
about? I am not THAT old but in my time I have seen my Club do the first
Double in modern football, have seen them win the FA Cup 6 times
(including 1967), have seen them get to a European Cup semi final when
the tournament was for Champions only, have seen them become the first
British Club to win ANY European trophy (i.e. European Cup Winners Cup),
have seen them win the UEFA Cup twice, the League Cup (Carling Cup) 3
times and the Charity Shield 5 times - is there ANY Chelsea fan that can
match that lot - alive or dead????
OK, back to the matter in hand and to ponder just how secure Chelsea
are. There was a recent poll on the Chelsea site asking who they should
be more thankful for - the owner or the manager? I would have thought
that would have been a no brainer for even the biggest glory hunting
Chav. Without the Russian there is NO Chelsea period. You don`t agree?
What are the facts?
First of all let us be clear of the construction of the Club. There are
3 distinct Companies involved with Chelsea and are as follows:
Chelsea Football Limited - Company Registration Number: 1965149.
Chelsea FC plc - Company Registration Number: 2536231.
Chelsea Limited - Company Registration Number: 04784127.
Chelsea Football Limited is the Company dealing with the football Club
side of the business. It is a subsidiary of Chelsea FC plc which also
encompasses the Hotel/Catering/Nightclub/Merchandising/Leisure
Services/Car parking sides of the business.
The parent company of Chelsea FC plc is Chelsea Limited. Funds for the
Group are provided by Chelsea Limited who are supported by the ultimate
owner, Mr Roman Abravomich.
There has been a great deal of speculation concerning how much Chelsea
are in debt etc. and some of the Chavs will have you believe that they
have huge assets and also a Trust Fund in place should anything happen
to the Russian. Of course, it is all nonsense and be assured that if
anything happens to the Russian then Chelsea are on their way to being
the next Leeds United.
I have the latest Audited Accounts for all the Companies mentioned
(financial year ending 30th June 2006). For clarity I will quote
everything from the holding Company (Chelsea Limited). Just one point I
would make about the footballing side of the business is that the ratio
of wages versus T/O is 79.4%. As I am going to refer to the holding
Company then I must state that the wages versus T/O ratio for the whole
Group is 74.5% (which is still unsustainable as was confirmed by their
very own Mr Kenyon).
I do not wish to teach people how to suck eggs but I have to do things
in the simplest terms for some of the Chavs to understand. Every Company
will have assets but if you have debts greater than your assets then you
have liabilities. You will hear some Chavs telling you that they have no
debts but according to the official Audited Accounts Chelsea Limited
have loans and liabilities amounting to £550,419,000.
Their assets consist of Intangible Fixed Assets (players) of
£198,834,000 and Tangible Fixed Assets (Stadium, Hotel, Cobham etc.) of
£188,194,000.
Therefore, their liabilities exceed their assets by £255,293,000. Which
means that if you liquidate the Company and sell off all the players,
stadium, hotel etc. you will still be short of over £255 million.
You will also hear garbage from the Chavs saying that they are not in
cash negative spending. Let me quote you from their own Director`s
Report from the Audited Accounts: "The Group is currently cash negative
spending £129.8 million in the last financial year."
Let me also remind you that the Company lost £81.2 million in the last
financial year (£141 million the previous year).
There has also been speculation about a "Trust Fund" having been set up
to cater for Chelsea should anything happen to the Russian - total
nonsense as usual and all the Russian has stated VERBALLY is that he
will "provide sufficient funds to finance the business for the
foreseeable future."
So, there we have it - Chelsea are trading at a loss and are nowhere
near breaking even; their wages versus T/O ratio is unsustainable (as
confirmed by Kenyon); they are deeply in debt and are only still trading
because of the Russian; there is no capital hidden away in any Trust Fund.
Given all the facts I wonder who they would rather have now - Roman or Jose?
Take some good advice and worship the Russian and keep him as sweet as
you can because without him you WILL be the next Leeds United.
GilzeanIsKing
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