English Premier League football club Chelsea has reported losses of £44.4m for this year. The figures included a £12.6m compensation payment to former manager Luiz Felipe Scolari and his coaching staff.
Chelsea FC plc said in a statement the remainder of a £340m loan from its parent company, owned by Russian billionaire Roman Abramovich, had been turned into equity and had made the group 'debt free'.
'The club's debt load has been reduced almost to nil in order to provide more long-term stability,' chairman Bruce Buck said in a statement. He said the debt cut would also enable the club to comply with any regulations on debt levels which are being discussed by the football authorities.
UEFA president Michel Platini revealed financial fair play plans this year to make clubs live within their means by linking spending on players to revenues.
Chelsea's losses fell by £21.3m to £44.4m, while turnover was down from £213.1m to £206.4m.
Brazilian coach Scolari was sacked after seven months in charge last February following a poor run of results. Dutchman Guus Hiddink replaced him until the end of the season and Italian Carlo Ancelotti was appointed his permanent successor in June.
