Skip to main content

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
Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day ...
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more