In order to highlight the impact government sanctions imposed on former owner Roman Abramovich had on the team last spring, Chelsea has disclosed a net loss of £121.3 million.
And because it prevented them from “entering into new contractual arrangements,” the new owners think that the impact could have an ongoing financial effect.
After Abramovich was punished in early March, the Stamford Bridge club, which was acquired by a group led by new chairman Todd Boehly in late May 2022, was unable to sell tickets or goods.
Nonetheless, Chelsea’s overall revenue grew to £481.3m from £434.9m the previous year as a result of higher matchday revenue brought on by the post-pandemic return of fans.
The club reported that it “benefited from a net rise in sponsorship revenue from new contracts and existing partner renewals,” which brought commercial revenue up to £177.1 million.
They made a profit on player trading during the 2021–2022 season by selling Tammy Abraham to AS Roma, Marc Guehi to Crystal Palace, Fikayo Tomori to AC Milan, and Kurt Zouma to West Ham for a combined total of £123.2 million.
In a statement accompanying the release of the accounts, Chelsea explained the sanctions and loss, saying:
“The club was required to operate within the parameters of a special licence issued by the UK government. These limitations were in effect up until May 30, 2022, when the club’s sale was finalized.”
“The club was constrained during this time in a number of ways, including, but not limited to, its ability to sell matchday and season tickets, merchandise, accept event reservations, and sign contracts with players and commercial sponsorship partners, which resulted in extraordinary costs and loss of revenue as a result of the club’s restrictions in these areas.
“Additionally, some of these constraints are anticipated to have an effect on the financials in years to come as a result of prohibitions on entering into new contractual arrangements.”
Even though Chelsea has gone on to spend a record £566 million in two transfer windows under the new owners, the club “continues to comply with UEFA and Premier League financial criteria,” according to this morning’s release.
Offering young players long contracts—up to eight years in some cases—will spread out the repayment of transfer fees and allow them to stay within the financial fair play guidelines.
However, as a result of that action, UEFA has decided to review the regulations governing the duration of contracts that can be offered to players. New rules are expected to be implemented in time for this summer’s transfer window.
