Chelsea chairman Bruce Buck claims UEFA boss Michel Platini is a bit misinformed when it comes to Chelsea’s debt. While the club currently carries a whopping £730m, he wants everyone to know that the figure is more along the lines of equity than it is actual debt.
Chelsea believe that the club’s unique ownership model should be taken into account.
“Our debt is not external, we don’t owe it to a bank or an insurance company, we owe it to the owner of the club who is a committed investor in the club,” said Chelsea chairman Bruce Buck. “And the fact that it is characterised as debt or equity is irrelevant. I think it’s even softer than soft debt. Its equivalent to equity for all practical purposes.
“Our objective – as it has been for several years and will continue to be – is to break, or as close to, break-even as we possibly can in order that we don’t have to look to Mr Abramovich to fund us continually.
“Was Platini misinformed? As best I can remember the quotes and the context, then I would say yes, he probably didn’t understand the actual financial condition of Chelsea.” (Telegraph.co.uk)
This would make sense. Unlike Liverpool and Manchester United where the owner wrote the debt down on the club’s books; Abramovich has done almost the opposite to Chelsea. In a sense he has actually just bankrolled the club as the owner without having to take money out from a lender with high interest rate. I would tend to agree that Platini, while he is trying his best to help the situation, maybe doesn’t understand the way Chelsea operates. It would definitely change the debt landscape if you exclude the Stamford Bridge club from the turmoil talks.
Would Chelsea supporters tend to agree with that assessment?