Record loss for Chelsea

Chelsea are preparing to announce the biggest financial loss in English football's history.

The west London club will file accounts to Companies House on Monday for 2003-04, their first season under Roman Abramovich. Sources say their losses could be between £50 million and £60m.

That would dwarf the previous record loss of £33.8m posted by Leeds in 2002, but Chelsea's spending over the last 18 months has been unprecedented.

Unlike Leeds, there's no danger of Chelsea sliding towards administration. Although former Chelsea chairman Ken Bates looks to have rescued Leeds with his £10m takeover, their massive debts and huge losses sent the club into a freefall from which it will take years to recover.

After taking control of Chelsea in a £140m deal in July 2003 Abramovich went on an incredible recruitment drive, spending £110m on 10 new players in six weeks, leading to a knock-on effect on the club's wage bill which has risen to unprecedented levels. Although most of these transfer fees were paid up front for accounting purposes they are spread over the duration of each contract, leaving Chelsea with a new player amorisation bill of £27.5mayear in addition to the £15m-a-year costs for players already at the club.

Chelsea's Russian Revolution brought huge benefits with the club collecting more than £40m for finishing second in the league and reaching the Champions League semi-final as well as boasting record merchandising profits, giving the club an increased turnover of around £140m.

Chief executive Peter Kenyon vowed to make the club self-sufficient by 2010 and has made significant progress towards that goal, agreeing a £100m 10-year kit deal with adidas. A club spokesman said: "These figures are speculation. Our accounts will be filed on Monday."