Chelsea Publish Financial Report ✍️ - Roman Ban Effects
Cover image designed by me with Canva
Last year, when Russia invaded Ukraine, Chelsea Football Club were not left out of the repercussions. It was believed that their owner at the time Roman Ibramovich who was or is a friend to the Russian President is a Russian oligarch and funded the war.
As a result, he was sanctioned by the UK government which included holding all his assets in the UK. Unfortunately, Chelsea was one of his assets at the time.
The club was then placed under a strict licensing operation for a period till after the club was sold to current owners Todd Boely led consortium. The club at the time couldn’t sell tickets, couldn’t sell merchandise among other things.
At the time, jobs were lost and the futures of lots of players were in doubt. Maybe Rudiger leaving and the stall of Mount’s contract is one of the effects.
Fast forward to 2023, the club has invested heavily in its playing squad and a change in management. Thomas Tuchel is no longer head coach and the club has seen a long list of new names join the club.
Today, 27th of March 2023, the club has released a statement of its finances which details how much it has made and lost within the time.
Chelsea Football Club have made a net loss of £121.3 M which the club claims is due to the sanctions last year.
Of corse this is right as lots of financial stuff could not be done during the time where notably “3” put their sponsorship on hold. This act from 3 triggered so many of the Chelsea fans who resulted into giving the company negative reviews.
Player sales for me is another reason the club has lost so much. The club has spent a lot of money since the sale into improving their squad. Most of the players haven’t come cheap at all. Notable few are Cucurella, Fofana and Mudryk.
Despite bringing in almost a full squad, the club hasn’t sold players. This has impacted their finances.
It is no doubt Chelsea will be looking to offload a lot of the players this summer. Pulisic, Ziyech, Mount, Mendy, Kovacic, Gallagher among others are those with questionable futures at Chelsea. Aubameyang is one that’s definitely going to leave come this summer. He was always a stop gap but it’s a shame how his career has gone.
It’s a no brainer, the club has to move players on and try to use the finances from player sales to balance their books. A lot could still be made from them.
Chelsea also states in their report the club despite the loss has complied with uefa and premier league FFP rules.
Chelsea also states in their report the club despite the loss has complied with uefa and premier league FFP rules.
The club did end up making some profit as compared to last year. £481.3 M was made this year but £434.9M was made last year. There was a net increase in the sponsorship revenue as well although 3 infuriated the club with their move.
We could see more effects of the sanctions in the future. 🤷🏾♂️
Thank you
Check Chesea FC 2021-22 financial results for more details on the financial results.
£481.3 M is not profit as that is revenue. Most clubs actually run at a loss and even Real Madrid who won the Champions league last year managed only a small profit. Clubs don't make 100's of millions and are happy to just make profit. I think it was only around 15 clubs across the whole of Europe who managed this last year out of over 100 clubs who are in there top tier leagues like the Premier League.
Oh okay, thanks for the clarification. But what’s the reason huge profits are not made after clubs make so much?
Just 15 out of the lot is bad. Maybe the others need to learn from these 15 how they do it.
Despite the restrictions placed on the Club, the turnover figure increased to £481.3 million from £434.9 million the previous year,
This explains why they can pay 130 million euros for a player like Enzo Fernandez.
Posted using SportsTalkSocial
Yeah that’s still very great. It’s part of the reasons they’ve been able to buy so many players without selling a lot.
Chelsea actually kinda did smart business in the transfer window by spreading the transfer fees across a number of years and that's how they were able to acquire all those players.
I must however state that the club made some hasty signings in the transfer window which really was uncalled for. Should they be able to clear these players as stated, there will be some financial room for future signings.
Very true. It remains to be seen if the players to live up to the hype or are going to be a waste of such huge contract lengths.
Maybe they did make some hasty signings and that’s why the clear out this summer is massively needed.
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share more than 100 % of the curation rewards with the delegators in the form of IUC tokens. HP delegators and IUC token holders also get upto 20% additional vote weight.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.