Chelsea Finances Hit By Compensation Payouts

It has been reported that Chelsea Football Club will feel a £65.7m loss for the financial year to the end of June 2008, which includes £23m paid in compensation to Jose Mourinho, Avram Grant and five coaches who left the club during the year.

Though millions have gone into severance payments, the loss is reportedly lower than last year.

The loss, however, does not include compensation that will have to be paid to Luis Felipe Scolari, who was fired as manager from Chelsea last week. The cost of cutting Scolari loose could see the club’s debt drastically increase.

Owned by Russian billionaire Roman Abramovich, Chelsea came fifth on the list of the world’s richest clubs in 2007/8, behind Real Madrid, Manchester United, Barcelona and Bayern Munich.

However, Deloitte’s Football Money League is based on revenue and does not take debt into account.