LONDON, Feb 19: English Premiership champions lost 60million pounds (89million euros) pounds in the year ending June 30, 2006, but this figure was much improved from the previous year.

The London side had lost 140 million pounds (208million euros) in the previous season during which they also won the Premiership title under Portuguese coach Jose Mourinho.

Turnover increased last year by 2.3 per cent from 146.6million pounds (217million euros) in 2004-05 to 150million pounds (223million euros) in 2005-06.

Merchandising increased by 44 percent to 11.1million pounds (16.4million euros), and football activities increased by 6.3 percent to 130.4million pounds (193.5million euros).

“These figures demonstrate that the business is moving in the right direction with increases and growth in all the major income streams,” Chief Executive Peter Kenyon said.

“That positive trend will only continue as, for example, this year end does not take into account the benefits of our Adidas deal.

“Last year we took some painful decisions in order to help us achieve our long-term business aims.

“This year's figures prove that was the correct decision.”—AFP