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Chelsea business model depends on player sales

The authoritative Swiss Ramble has taken a close look at Chelsea's latest accounts and concludes that their 'business model is far more reliant on player sales than any other major English club. In the last five years, they made a hefty £337m from this activity with only Tottenham Hotspur anywhere near them (£192m in four years).'

'Their £113m profit on player sales is actually the highest ever made by an English club, ahead of Spurs 2013/14 £104m and Everton 2017/18 £88m. In fact, three of the six highest ever profits from this activity have been reported by Chelsea.'

One person commented, 'I guess it explains why Chelsea have so many players on the books but out on loan. If they’re making so much money from player sales then they need some stock to put in the window and sell.'

Chelsea's figures have frequently suffered from so-called exceptional items, which have increased costs by an amazing £208m since 2005, largely early termination of shirt sponsor deals £93m and compensation for sacked managers £69m. 2017/18 does not include Conte’s severance pay.

Chelsea's £443m revenue is now the third highest in the Premier League, only behind Manchester United £590m and Manchester City £500m, though the gaps are still substantial. It is possible they will be overtaken by Liverpool, when the Reds publish 2017/18 accounts, due to Champions League money.

Commercial revenue rose 24% (£32m) from £133m to £165m, mainly due to the new Nike kit deal (£60m a year, compared to previous Adidas £30m). This is the third highest in England, but still a long way behind the top two: Manchester United £276m and Manchester City £232m. However, since 2016 Chelsea's commercial income has increased by 42%, which is the highest to date in the Premier League.

Chelsea have good sponsorship deals: Nike £60m (though this is £900m over 15 years, which might look low later in that period); Yokohama shirt £40m; Carabao training wear £10m; and Hyundai sleeve £6m (though some report £10m).

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