Even Chelsea Can't Afford New Players In January As Credit Crunch Bites
Chelsea, the Premier League football club controlled by Russian billionaire Roman Abramovich, has binned 15 scouts and will sign fewer new players because of the credit crunch, Chief Executive Officer Peter Kenyon said.
The club has told manager Luiz Felipe Scolari that he is unlikely to have funds available to make signings in the January transfer window, said Kenyon.
''We have reviewed the business, the vision and structure,'' Kenyon told an audience of sports business leaders at the International Football Arena conference in Zurich. ''We have taken a prudent view, we are reviewing our cost base. I think it is a good practice for every business.''
Other clubs have already been affected by the global credit crisis. Manchester United jerseys are sponsored by American International Group Inc., the giant insurance company now controlled by the U.S. government.
Newcastle players wear the logo of Northern Rock Plc, the mortgage-lender that was nationalized in February. West Ham United lost shirt sponsor XL Leisure Group Plc in September when the tour operator grounded all its flights because it ran out of money. West Bromwich Albion hasn't even landed a shirt sponsor after being promoted from the second-tier Championship.
Kenyon declined to say whether Abramovich's personal wealth had suffered amid the market turmoil of recent months. A Bloomberg survey published in October revealed Russia's 25 wealthiest people lost more than $230 billion between May 19 and Oct. 6.
Chelsea is likely to achieve a target of breaking even by 2010, Kenyon said. Abramovich has plowed around £560 million (€689 million) into Chelsea since acquiring it in 2003.
While Chelsea has obtained interest-fee funds from Abramovich, the United and Liverpool are paying interest on loans used to acquire the teams. They carry about £900 million of debt between them, plus Wes Brown.
The club has told manager Luiz Felipe Scolari that he is unlikely to have funds available to make signings in the January transfer window, said Kenyon.
''We have reviewed the business, the vision and structure,'' Kenyon told an audience of sports business leaders at the International Football Arena conference in Zurich. ''We have taken a prudent view, we are reviewing our cost base. I think it is a good practice for every business.''
Other clubs have already been affected by the global credit crisis. Manchester United jerseys are sponsored by American International Group Inc., the giant insurance company now controlled by the U.S. government.
Newcastle players wear the logo of Northern Rock Plc, the mortgage-lender that was nationalized in February. West Ham United lost shirt sponsor XL Leisure Group Plc in September when the tour operator grounded all its flights because it ran out of money. West Bromwich Albion hasn't even landed a shirt sponsor after being promoted from the second-tier Championship.
Kenyon declined to say whether Abramovich's personal wealth had suffered amid the market turmoil of recent months. A Bloomberg survey published in October revealed Russia's 25 wealthiest people lost more than $230 billion between May 19 and Oct. 6.
Chelsea is likely to achieve a target of breaking even by 2010, Kenyon said. Abramovich has plowed around £560 million (€689 million) into Chelsea since acquiring it in 2003.
While Chelsea has obtained interest-fee funds from Abramovich, the United and Liverpool are paying interest on loans used to acquire the teams. They carry about £900 million of debt between them, plus Wes Brown.