Chelsea debt wiped out
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After years of being in hock to the banks Chelsea can finally claim to be free of debt.
Billionaire proprietor Roman Abramovich this week finally paid off the remaining £36 million outstanding on a Eurobond, initially taken on by previous owner Ken Bates to help him purchase the club, the Daily Telegraph reports.
Although Chelsea is now technically free of external debt, Abramovich has granted substantial loans in order for the team to challenge for the premiership title on a regular basis by bringing some of the best footballers in the world to Stamford Bridge.
Reports suggest however that directors at the club are quietly confident he will never actually ask for the loans to be repaid, instead converting them into shares.
When the Eurobond was first taken out there was considerable disquiet about how it was going to be repaid.
The club’s new chairman, Bruce Buck speaking in 2005 said: "The financial community, as opposed to the football community, knew there were some real issues."
The clearing of the debt legacy will go some way to allay fears that Chelsea’s financial position was, as sports minister Gerry Sutcliffe, said, "unsustainable".
Chelsea are again this year in a strong position to challenge for the premiership.
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