Chelsea FC Reports £121.3 Million Net Loss From Ownership Sanctions
Chelsea FC has released its latest 2021/22 financial results, reporting a net loss of GBP£121.3M (AUD $224M).
Chelsea states the financial results were severely affected by sanctions imposed by the UK government on the club’s previous owner, Roman Abramovich, who put the club up for sale last year following Russia’s invasion of Ukraine.
As a result of the sanctions, Chelsea had to operate under a special license that restricted ticket and merchandise sales and contracts with players, coaches, staff, and commercial sponsorship partners, until the club’s sale was finalised for a record £4.25 billion (AUD $7.56 billion) at the end of May 2022.
Despite major revenue losses and extraordinary expenses, the end of restrictions following the club’s change in ownership saw positive turnovers in operations.
Chelsea reported a turnover figure of GBP£481.3 million (AUD $889.2M) up from GBP£434.9 million (AUD $803.4M) the previous year, driven largely by a surge in commercial revenue and increased match-day attendance.
The club also reported a profit of GBP£123.2 million (AUD $227.6M) from player trading, after investing GBP£118 million (AUD $218M) into the playing squad during the fiscal year.
Additionally, sponsorship revenue from new and existing partner renewals aided overall commercial revenue, increasing to GBP£177.1 million.
Despite major losses and operating challenges due to sanctions, Chelsea continues to comply with both UEFA and Premier League financial regulations.
This announcement comes after Chelsea co-owner Todd Boehly was announced as the club’s chairman.