Chelsea Football Club has announced losses of over £70m for the year ending June 30th 2010 on the same day the club broke the British transfer record with the signing of Fernando Torres from Liverpool for a fee in the region of £50m.
Chelsea recorded a marginal increase in turnover from 2008/09, up from £203.3m to £205.8m with the operating loss reduced from £72.3m to £68.6m.
Commenting on the results, chief executive Ron Gourlay said: "The reduction in operating losses and increased sales in 2009/10 shows that we are moving in the right direction especially when viewed against the difficult macroeconomic environment.
"The club is in a strong position to meet the challenges of UEFA 'financial fair play' initiatives which will be relevant to the financial statements to be released in early 2013."
Chairman Bruce Buck added: "That the club was cash generative in the year when we recorded a historic FAPL and FA Cup double is a great encouragement and demonstrates significant progress as regards our financial results."
The club also purchased David Luiz from Benfica for a fee of around £21m.