No ultimatum from Gudjohnsen
Eidur Gudjohnsen today denied he has given Chelsea an ultimatum over his new pay deal.
Following reports that talks have broken down for a second time, his agent Peter Harrison said: "Talks with Trevor Birch, Chelsea's new managing director, have taken place and are ongoing. There is no deadline that has been set and no one is saying 'pay me more or I'm off'.
"There is no problem. Everyone is very relaxed about the situation and that means Eidur, Chelsea and myself. Eidur has always been committed to Chelsea. He is very happy there and likes living in London."
The club is becoming increasingly frustrated by the Icelandic player's excessive demands, believed to be close to £50,000 a week.
Gudjohnsen still has three years left on his original contract. But Chelsea will not sell the 23-year-old, who is regarded as an integral part of the team's future.
A number of clubs would be interested in the £15million-rated forward, including Manchester United, who want a fourth striker for the Champions League.
Like many clubs, Chelsea are feeling financial pressure. The parent company, Chelsea Village, has debts of £97m and the club is desperate to slash its huge wage bill. The squad includes seven players on nearly £2m a year, five of whom are not first-team regulars. Among them are Winston Bogarde, Mario Stanic and former United keeper Mark Bosnich.
Meanwhile, it was reported today that Arsenal are also tightening their finances and have scrapped match-tomatch win bonuses for their players.
It is claimed they have restructured their bonus system and will only pay out for winning the FA Cup, Worthington Cup or the Premiership. Most clubs pay their players win bonuses per match but, if others follow suit, performance-related pay across the season could become the norm.
