European Champions trying to ensure they are not banned from European competition in future for their hefty spending.
South Korean electronics giants Samsung have extended their shirt sponsorship of Chelsea for a further three years, according to Inside World Football.
The deal now means that the European champions will make £15 million a year from the sponsorship. This intake is only eclipsed by Aon who are sponsors of Manchester United and Standard Chartered who sponsor Liverpool.
This deal will come as a relief to Chelsea owner Roman Abramovich whose club recorded a loss of £68 million this year. In order for the Blues to comply with UEFA’s Financial Fair Play Rules, the club must show a loss of under £45 million in its next two accounts.
The extension with Samsung caps off a good year on and off the pitch for Chelsea. On the pitch, although finishing in their lowest Premier League position since Abramovich took ownership of the club, Chelsea have lifted silverware in both the FA Cup and the Champions League.
Off the pitch Chelsea have also agreed deals with Delta, Sauber and Audi, as well as Russian energy giants Gazprom. These partnerships as well as income from Champions League prize money means that the West London club should significantly reduce their debts when the next accounts are released.
SOURCE: INSIDE WORLD FOOTBALL
There have been rumblings for some time now about the potential consequences of the Financial Fair Play (FFP) regulations brought in by UEFA in June 2011.
The FFP signal a three-year process which began with the 2011/12 season, at the end of which European clubs are allowed no more than £39.5m net loss in total across the three years.
In England, Chelsea and Manchester City particularly have been spending vast sums of money over recent years and been making heavy losses – though this hasn’t particularly concerned their billionaire owners – but the regulations brought in are there to prevent exactly this from happening in a move that UEFA boss Michel Platini hopes will level-up the playing field across European clubs.
While many have predicted that Chelsea and Man City will, by 2014, be banned from European competition due to their financial situations, opening places up for other Premier League teams with less money to challenge for the top four qualifying spots for Europe’s elite competition, Chelsea have signalled that they fully intend to comply with the FFP, only in a way that suits them.
By increasing their in-comings from this bigger sponsorship deal with Samsung, increased shirt sales and success in cup competitions, such as their recent Champions League triumph, they will be able to cancel-out much of their debt from hefty financial outlays such as the £50m deal for Fernando Torres and in this way hope to comply with the regulations and continue competing for more Champions League success in years to come.
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