Peter Kenyon’s Chelsea dream dies

Kenyon had big plans for the Blues after being lured by Roman Abramovich from Manchester United in 2003.

In February last year he said: "Our long-term targets of operating profit and breaking even by 2009/2010 remains ambitious but we are determined to meet it."

However, a year later Chelsea's accounts revealed they had lost £65.7million in the 12 months to June 2008." In 2006 Kenyon said: "By 2014 we want to be internationally recognised as the No1 club". However, his early departure means he cannot achieve either aim.

Kenyon's position has been subject of much speculation in recent months, especially after Chelsea fired manager Luiz Felipe Scolari in February while he was away on holiday.

It is believed Kenyon had little say in the appointment of manager Carlo Ancelotti in the summer and has been working more on the commercial side of things rather than on transfers.

Frank Arnesen has increasingly grown in power and was promoted from being the director of youth development to sporting director in July. But Chelsea insist his departure is amicable and has nothing to do with any reported power struggles.

Kenyon will continue to be a non-executive director and represent Chelsea on various UEFA and European Clubs' Association committees.

He said: "When I joined Chelsea it was an incredible challenge and together with all the staff, the players, the board and Roman, I think we have built a club, in a relatively short space of time, that can be in the forefront of European football for many years to come. That is a major achievement."

Kenyon's departure also comes just two weeks after they were banned by Fifa from making any transfers until January 2011 for inducing Gael Kakuta to break his contract with Lens in 2007. But a Chelsea source confirmed he will continue to work on Chelsea's appeal and has not been blamed for it.