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Chelsea move into loss

Football finance guru Kieran Maguire reports on the latest accounts of Chelsea.  Income was up 7% to £435m. Wages were up 17% to £333m.  Amount owed to Roman Abramovich £1.4 billion (loans to parent company Fordstam).

As a result of costs rising faster than income Chelsea went from an operating profit of £32m to a loss of £155m. These figures have been very erratic in recent years due to the volatile one off costs and income streams.

Chelsea have second highest squad cost in the PL, just behind that of Manchester City. This may have helped those clubs reach the Champions League final earlier this year.

Income increased despite season behind closed doors due to more matches taking place as end of 2019/20 season was partially in year to 30 June 2020 following Project Restart.

Broadcast income up 69% due to more matches being played and success in winning the Champions League.  Commercial income fell by 19% to £154m due to loss of pre-season tours, non-match day income (such as John Terry showing fans around the training facilities) and fewer players out on loan.

Wages up £50m due to recruitment, new contracts and bonuses for winning the Champions League. Average wage over £155k a week, wages £77 for every £100 of income [just over the recommended Uefa limit].

Player sale profits fell from £143m to £28m as only main sales were Victor Moses and fan favourite Nathan De Souza.  Chelsea spend £221m on new players in 2020/21 taking total spend to over £1.5 billion in last decade.

Chelsea's squad cost £959m by 30 June 2021, signing of Lukaku will have taken that beyond £1 billion. 

Club statement here: https://www.chelseafc.com/en/news/2021/12/30/chelsea-fc-financial-results

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