Unravelling Chelsea's accounts

This is not a straightforward matter as Chelsea has a particularly complex structure with a large number of subsidiaries (see complete list below). Here we focus on the ultimate parent company, Fordstam Limited.

The loss for the year to 30 June 2017 was £13.8m compared to a loss of £84.5m for the prior year. Increased revenues and player sales were the principal reasons for the improvement.

Turnover increased from £334.6m to a record £367.8m. 'This was due to an increase in the broadcasting revenues because of increased centralised distributions from the Premier League (a £19.5m increase) together with an increase in sponsorship income due to additional agreements being signed in the year (a £17.8m increase), principally the start of our new training wear partnership with Carabao. Match income was slightly down reflecting our non-participation in European competition (a £4.1m reduction).'

Broadcasting income accounts for 44 per cent of revenue. Commercial revenue accounts for 38 per cent.

'The football club made a profit on player trading of £69.2m in the year (2016: £49m) principally due to the sales of Oscar to Shanghai SIPG, Christian Atsu to Newcastle, Patrick Bamford to Middlesbrough, Papy Diilobodji to Sunderland and Juan Cuadrado to Juventus.'

Staff costs were 60 per cent of turnover, an acceptable figure. Wage costs actually fell because of the absence of European bonuses.

Creditors falling due after one year amount to over £1 billion at £1,117.2m. This includes £1,086.4m on a loan repayable on eighteen months' notice to a 'related party', i.e., Roman Abramovich. He paid £1,028,000 for his corporate box. Let's hope the catering was up to scratch.

Kieran Maguire of the Price of Football has commented,'Seems odd that Chelsea FC loan of over £1.2 billion from Abramovich has been transferred from his BVI company Lindeza Worldwide to one called Camberley Investments Ltd, set up in December 2017 in Hayes. Middlesex and with only one £1 share prior to acquiring the loan.' In March Mr Abramovich filed a declaration that he was now a resident of Russia.

The subsidiary companies are as follows:

Chelsea FC plc, holding company
Stamford Bridge Projects Limited, restaurant operation
Chelsea Car Parks Limited, car park management
The Hotel at Chelsea Limited, hotel management
Chelsea FC Merchandising Limited, merchandising, mail order and publications
Chelsea FC Pte Limited, registered at 21 Merchant Road, Singapore, sales office
Chelsea Football Club Limited, professional football club
Chelsea TV Limited, dormant
Chelsea Limited, dormant
Chelsea Ladies' Football Club Limited, professional football club
Under the Bridge Limited, music venue
Chelsea Leisure Services Limited, health and fitness club/visitor attraction
Stamford Bridge Securities Limited, property holding

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Hull City's 'strange' loan

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The Political Economy of Football V2

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