Skip to main content

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

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

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

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more