With hopes of a money-spinning run in Europe to help with reported £97.7million debts now gone, Birch revealed a summer of virtual inactivity in the transfer market will be followed by a similar approach when the month-long winter window opens on New Years Day.

Making clear reference to Stamford Bridge’s huge wage bill and growing uncertainty over future TV income, Birch told Chelsea fans not to expect any “major” arrivals in January.

He said on Chelsea TV: “If you look at football clubs, everybody’s saying the same thing – about bringing wages back in line with the revenue forecast for the next two or three years.

“The increase in television revenue year-on-year is over for the time being, so you have to cut costs accordingly.

“I don’t foresee there being any major activity in January – and that includes Chelsea.

“We’re one of the top clubs and are focusing on putting our house in order.”

Eidur Gudjohnsen’s contract has been the latest Chelsea issue banded about in the media this week, hot-on-the-heels of the UEFA Cup bonuses row and unseemly public spat between chairman Ken Bates and the Blues’ 1970s team.

As revealed by PA Sport in July, Icelandic international Gudjohnsen and his agent Peter Harrison wanted an improved pay deal following a successful season and a big-money offer from Sunderland.

The striker was quoted this week as saying he was “close” to a two-year contract extension, although Harrison then said yesterday “I don’t envisage anything happening this season.”

Birch had his say on Chelsea TV tonight, praising Gudjohnsen for his positive comments about the club.

“Sunderland did make an offer for Eidur, but he’s a player for the future and someone we didn’t want to lose,” he said.

“Where this new story is from, I don’t know. We were speaking to Eidur and his agent in the summer, when there was all the speculation about demands he was supposed to be making.

“But I have to say, in terms of Eidur’s performance, he has said he only wants to play for Chelsea – and he has made those statements.”

Birch also took the opportunity to clear up a batch of summer transfer stories, concerning Jimmy Floyd Hasselbaink, William Gallas, Geremi – now at Middlesbrough – and Dino Baggio.

He said: “There were discussions with Barcelona about Jimmy – but it quickly became apparent their valuation and ours wouldn’t meet. So we quickly closed those discussions.

“And we did have discussions with Real Madrid about Geremi, but that was very confusing as he was represented by a number of agents.

“But there was no bid from Leeds for Gallas – and no discussions abut Dino Baggio.

“The decision was made that we would stay with the squad we had.

“As at every club, we were looking at whether to buy and sell – but Claudio decided we had a squad to compete, so he wanted to keep it together.

“It’s understandable there were comments on our lack of activity in the transfer market, as in the previous season, we’d been quite active and spent in excess of £30million.

“So there was bound to be speculation, even if we’d spent anything, that we weren’t in as good a financial shape.

“But having spent a large amount last year, we felt we had the squad to forward and compete at the highest level.”

Birch also took a swipe at Chelsea’s knockers, adding: “People take great delight in knocking Chelsea when we have the slightest blip.

“We have to be big enough to rise above it. We know we can achieve a top-four place so we must concentrate on that.”