Mixed financial picture for Blues

CHELSEA are operating effectively free from debt after Roman Abramovich wiped off £340million (€381m) owed to him – but the prospect of the club breaking even by 2010 appears unlikely after they recorded a yearly loss of £44.4million (€49.75m).

Owner Abramovich halved the club’s debt a year ago by turning 50% of his interest-free loans into shares, with Chelsea revealing in their 2009 financial figures he has done the same with the remainder of the money owed.

It means the 43-year-old has ploughed more than £700million (€785m) into the club and, importantly, means Chelsea will be confident of complying with any potential regulations on debt levels from FIFA or UEFA.

The news will also remove any fears of a meltdown if Abramovich ever decided to walk away from football, although a statement from Chelsea insisted it “demonstrates the continuing commitment from the shareholder to the group”.

The Russian has bankrolled Chelsea since 2003 and former chief executive Peter Kenyon previously spoke of the club breaking even by 2010.

The losses announced by the club are down from £65.7million (€73.6m) last year but show the club still to be reliant on their owner.

The figures included a compensation payment of £12.6million (€14.1m) to Luiz Felipe Scolari and three of his staff following the Brazilian’s dismissal as manager last season.

Chelsea chief executive Ron Gourlay said: “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. We are reducing our costs by controlling expenses, including salaries and wages.”

According to sources at Stamford Bridge, Abramovich would happily finance a transfer if the right player became available but manager Carlo Ancelotti has suggested he will not be bringing players in when the January window opens on Friday.

Ancelotti insists he will not bolster his squad to compensate for the loss of Didier Drogba, Salomon Kalou, Michael Essien and John Mikel Obi to the African Nations Cup.

He is also boosted by the return of striker Nicolas Anelka from a calf problem. The striker is ready to return to full training ahead of Sunday’s FA Cup clash against Watford.

Ancelotti will be looking for a better overall performance after the Barclays Premier League leaders were jeered off at half-time against Fulham before coming back to win 2-1.

That victory was watched by former Chelsea boss Jose Mourinho, who recently gave an interview where he said he would be open to a return to English football.

But Ancelotti said: “He (Mourinho) wants a return to Chelsea? Well, he will have to wait because I’m here. He knows it is a great environment. Everybody wants to work in the Premier League.”