Chelsea have announced a loss of £ 153.4 million after tax for the financial year ending 30 June 2021.
The result is in sharp contrast to the financial year 2019/20 where the club generated a net profit of 32.5 million pounds.
The Blues’ accounts were released on Thursday with Chelsea’s executives explaining the results in a strategic report.
“The loss for the year before tax was £ 155.9 million compared to a profit of £ 35.7 million for the previous year”, the report began (via BBC Sport).
“A loss of revenue caused by the fact that the majority of matches in 2020/21 were held behind closed doors due to the covid-19 pandemic, as well as reduced profits on player sales and increased player depreciation were the main reasons for this movement.
“This year saw a total increase in turnover from £ 407.4 million to £ 434.9 million thanks to an increase in shipping revenue.”
A significant gap in Chelsea’s revenue was created by the fact that the vast majority of matches in 2020/21 were played behind closed doors. This led to a reduction of £ 46.8 million in match day revenue compared to the previous season. Commercial revenues received a similar hit and fell by £ 16.8 million.
This reduced turnover coincided with increased personnel costs. Overall, the exceptional operating costs rose £ 69.3 million from last season, with the gaming and staff budget increasing by £ 49.4 million.
This news does not come as a surprise as Chelsea spent big money during the summer transfer window in 2020 and brought in the likes of Kai Havertz, Timo Werner and Ben Chilwell. They also changed manager and fired Frank Lampard in favor of Thomas Tuchel, which would have incurred significant costs.
Chelsea continued to be backed by longtime owner Roman Abramovich and despite rumors suggesting he may be open to selling the club, it does not appear likely that this will change in the near future.
“The company is dependent on its ultimate parent company, Fordstam Limited, for its continued financial support. Fordstam Limited has indicated its continued support for the foreseeable future,” the report continued.
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