April 13 – Chelsea’s wage bill in the last financial year was £142.6 million ($219.3 million) while the value of the club’s squad, including John Terry, Frank Lampard and Michael Ballack (pictured), dropped by nearly £40 million ($61 million).
The staggering figure is revealed in Chelsea’s accounts for the financial year ending June 30 last year, which were submitted to Companies House last week.
The accounts reveal that the value of Chelsea’s squad of superstars has dropped from £287.1 million ($441.6 million) to £247.5 million ($380.7 million) - a reduction of £39.6 million ($60.9 million).
Chelsea did not reveal these figures when announcing their financial results in December, when a pre-tax loss of £44.4 million ($68.3 million) was presented as a sign that the club were becoming more self-sufficient.
The previous year’s debts had been £65.7 million ($101 million), which in itself was a reduction from the two previous years.
Chelsea’s overall wage bill for the last financial year was £155.2 million ($238.7 million), but that included “exceptional items” of £12.6 million ($19.3 million) relating to termination payments made to Luiz Felipe Scolari, the former head coach, and his backroom staff when they were dismissed in February 2009.
The previous year’s figure was £160.6 million ($247 million), but that was inflated by termination payments of £23.1 million ($35.5 million) to José Mourinho, Avram Grant and other members of the coaching staff.
It means that the club have paid a total of £35.7 million ($54.9 million) in compensation to coaches whose contracts have been terminated over the past two financial years.
Roman Abramovich, the club’s owner, is said to be growing increasingly concerned about the large size of the club’s wage bill and has ordered that things be brought back under control.
That could lead to players out of contract in the summer, including Ballack and England star Joe Cole, being allowed to leave on free transfers if they refuse to accept drastically reduced terms.
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