Todd Boehly and Clearlake Capital, the club’s American owners, have owned it for the first year. Chelsea guarantees adherence to Premier League and UEFA financial standards in spite of the losses, even in the face of heightened scrutiny over league profit and sustainability regulations.
The financial numbers show a decrease from the £121.4 million in losses from the previous year. Chelsea stated that even with the losses, it was still in compliance with Premier League and UEFA financial requirements.
The financial numbers show a decrease from the £121.4 million in losses from the previous year. Chelsea stated that even with the losses, it was still in compliance with Premier League and UEFA financial requirements.
The league profit and sustainability regulations, which allow losses of up to £105 million over three years, have drawn further attention.
This season, Everton received a 10-point deduction for breaking certain financial rules. On appeal, it was lowered to six points, but Everton may still be penalized for additional infractions.
Nottingham Forest also suffered losses “above the permitted thresholds,” according to the Premier League. Racing Club Strasbourg, a French team owned by Chelsea’s parent company Blueco 22 Limited, reported a £653 million net loss for the year under review.
Following the U.K. government’s sanctions against former owner Roman Abramovich following Russia’s invasion of Ukraine, Chelsea was purchased by a consortium headed by Boehly and Clearlake.
Since then, Chelsea has gone on an incredible $1 billion+ player acquisition spending binge.
According to Blueco’s financial report, “the club continues to balance success on the field together with the financial imperatives of complying with Premier League and UEFA financial regulations.
Since its founding in 2012, the club has complied with these financial regulations and plans to continue doing so, the statement continued.
Even though Chelsea maintains that they will comply with UEFA and Premier League financial requirements, the loss raises further concerns about the club’s capacity to do so.
Chelsea’s total revenue for the year reached a club record of £512.5 million, driven by matchday revenue of £76.5 million and commercial revenue of £210.1 million. The club is once again permitted to operate without restrictions following the UK government’s sanctions, which forced Roman Abramovich to sell in 2022.
Despite Chelsea’s run to the Champions League quarterfinals last season, broadcast revenue dropped to £225.9 million from £235 million in 2021–22. This was mostly because Chelsea received a much less payment for finishing in 12th place in the Premier League.
The parent company of the ownership group led by Todd Boehly and Clearlake Capital, BlueCo 22 Limited, announced a staggering pre-tax loss of £678.2 million for the year ending June 30, 2023, which was “driven by investment in Chelsea men’s and women’s playing squads.” The ownership group took over Chelsea in May 2022.
The figure that affects Chelsea more directly is £90.1 million, which is the pre-tax loss on the team’s 2022–2023 financial statements that was made public via the club’s official channels.
Chelsea’s pre-tax losses over the last three years have been enormous: £156 million in 2020–21, £121 million in 2022–23, and £90.1 million in 2022–23.
The club’s structural problems, which included an aging, relatively small stadium that severely restricted matchday revenue and commercial revenue that was still far lower than that of Manchester City, Manchester United, Liverpool, and Tottenham, are not going away, despite the figures suggesting that things are heading in the right direction.
By selling player registrations and fixed assets, the club made £142.2 million in profit during the fiscal year that ended on June 30, 2023.
“I was told today the club announced (the financial results) but didn’t see, it was only one minute before (the press conference) that I was told about this,” Chelsea manager Mauricio Pochettino responded when asked about the club’s financial situation.
I still haven’t discussed this with the sporting directors or the owners as of yet. I am unable to express my views because we spent the entire morning in training and I am ignorant.
“Today or tomorrow, for sure, I’ll have more information, and I can then share my thoughts and perspective at the next press conference.
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