From today's Grauniad :
Ken Bates yesterday rejected accusations that Chelsea were facing an "off-field crisis" after the release of new figures showed the club's debts have ballooned to almost £100m following the redevelopment of Stamford Bridge.
Despite City analysts expressing fresh doubt over the wisdom of adding shops, restaurants and hotels to the ground, Bates insisted Chelsea were well-funded and dismissed media criticism of their finances as "lurid" and "nonsense". Bates, the club chairman, claimed: "No matter which test is applied, Chelsea comes second only to Manchester United on all counts."
His views were in sharp contrast, however, to those of Jeremy Batstone, head of research at NatWest Stockbrokers, who believes there has been "a massive cost overrun at the club" following the construction of two hotels, eight restaurants, a night club, a health club and other facilities at the west London site.
"Many investors will be thinking that if it wasn't a football club it would be bust by now," said Batstone. "They are trying to paint as positive a picture as possible but the fact is that the company has failed to get control of costs."
A Chelsea spokesman admitted last season's accounts were "never going to be great" as Bates added the final touches to his Chelsea Village development and the team came to terms with no Champions League football, an early Uefa Cup exit and the sacking of the manager Gianluca Vialli.
The spokesman said: "Investment at Chelsea Village is now in place and the club is in an excellent position going forward."
Accounts for the year to June 30 show that losses at Chelsea trebled to £11.2m while turnover fell £13m to £93m. Around £6m was spent on interest alone, servicing loans taken out in order to complete the redevelopment of the West Stand and other building projects.
A further £2m was paid out in compensation after Vialli and the coaches Ray Wilkins and Graham Rix lost their jobs. Long-term debts have reached £97.7m but Bates insists the club will easily repay them.
Chelsea shares, in common with other stock market-listed clubs, have fallen sharply over the past year. Soaring player wages and the forecasted stagnation of television revenues have put off many City investors from buying into clubs.
Chelsea are now valued at £52m by the stock market. Manchester United, worth £1bn less than two years ago, are now worth £340m.
