( CNN ) -- Chelsea 's big spending on Europe 's transfer deadline day has been criticized by one of the club 's English rivals , who questioned how the Premier League champions can meet UEFA 's new financial fair-play rules . The London team announced a loss of $ 113 million on Monday for the year ended June 30 , 2010 -- but then smashed the British transfer record with a reported $ 80 million acquisition of Spain striker Fernando Torres , and also laid out $ 34 million for Brazil defender David Luiz . The Torres deal allowed his former club Liverpool to spend $ 55 million on Newcastle 's relatively unproven England striker Andy Carroll , who is injured , and $ 36 million on Uruguay forward Luis Suarez . However , European football 's governing body UEFA will take sanctions against clubs who can not balance their books by the end of the 2012 reporting period . The best and worst deals of a dramatic deadline day . Chelsea 's London rivals Arsenal were again quiet in the January transfer window , and manager Arsene Wenger questioned the tactics of the Blues ' billionaire Russian owner Roman Abramovich . `` Chelsea supported UEFA 's financial fair-play proposals but in the morning they announced a £70 million loss and in the afternoon they buy £75 million worth of players . Where 's the logic in that ? '' he told reporters after Tuesday 's 2-1 Premier League win over Everton . `` It 's hard to guess . Officially they vote for financial fair play , but they can explain why they have done this much better than I can . Abramovich can tell you why , but that 's how you can read it from the outside . `` If you do n't invest for a while , it looks as if you 're not as involved in it anymore , that he does n't like it as much . But £75 million means more will come . `` Abramovich was a bit in no-man 's land where nobody could guess if he wanted to still invest or not . He has been like that for a long time , but that has changed . He has decided to put big money in again and that tells you in the summer more will come . He is back to full investment . '' Adriano Galliani , vice-president of Italian club AC Milan , also criticized the level of spending in England -- which reached a record $ 363 million . `` Everyone 's talking about balancing the books but then they spend like crazy people , '' he told reporters . `` Chelsea strengthened in an amazing way , spending 80 million euros . I just do n't know where financial sense will end up . '' Chelsea sign Torres and Luiz in frantic end to deadline day . Chelsea dressed up the club 's financial results by saying they were `` cash positive '' with a net inflow of £3.8 million compared to an outflow of £16.9 million in 2008-09 . `` The club is in a strong position to meet the challenges of UEFA 'financial fair play ' initiatives which will be relevant to the financial statements to be released in early 2013 , '' chief executive Ron Gourlay told the Chelsea website . UEFA released a statement saying that clubs `` are increasingly aware of the nature of the financial fair-play rules , which aim to encourage clubs to balance their incomes and expenses over a period of time covering four to six transfer windows . '' It refused to comment on individual clubs , but said the rules did not stop them from spending money on transfers as such -- the emphasis is on balancing books at the end of the season . `` There is no doubt that transfers made now will impact on the break-even results of the financial years ending 2012 and 2013 -- the first financial years to be assessed under the break-even rule , '' UEFA said . `` The clubs know the rules and also know that UEFA is fully committed to implementing them with rigor . As from this summer , all payments due on transfers and to employees will be assessed by the Club Financial Control Panel as part of the 'enhanced overdue payables ' rule . ''
Arsenal manager unhappy with Chelsea 's $ 114 million outlay on two clubs . Arsene Maxim says spending shows no logic after announcing a massive loss . A Milan official also criticizes England 's record level of January 2012 . European clubs must close their doors by end of 2012 or face sanctions .