Chelsea announces a £121 million loss and warns that the departure of Roman Abramovich will have long-term consequences for the club.
Chelsea FC claim that government fines placed on previous owner Roman Abramovich contributed to the club’s £121 million deficit in 2021/22.
In the most recent fiscal year, the club saw an increase in matchday and commercial revenue as well as £123.2 million from player sales, but its overall loss is evidence of the impact of the government’s special license.
The UK Government sanctioned Russian billionaire Abramovich in March 2022 as it tried to freeze the assets of persons with ties to Russia’s president, Vladimir Putin, following the invasion of Ukraine.
With the exception of signing player contracts, Chelsea only got permission to sell tickets, take event reservations, and use a special license.
The restrictions persisted up until May 30 of last year, when a new group founded by American millionaire Todd Boehly acquired ownership of the club.
The Blues noted in their annual report that the sanctions’ effects It will have an impact”in the future years.”
Notwithstanding the penalty, Chelsea’s revenue grew to £481.3 million from £434.9 million the previous year. Commercial revenue rose to £177.1 million.
Chelsea announces financial loss from 2021/22 season
The losses are related to the high operating costs, including matchday and non-matchday expenses.
Chelsea’s summer 2022 and January 2023 acquisitions cost around £600 million, according to the financial results.
The 2021/22 statistics show that although investing £118 million in the playing group, a profit of £123 million was made by selling players like Tammy Abraham, Marc Guehi, Fikayo Tomori, and Kurt Zouma.
Notwithstanding the losses and the impact of the Government fines, the club stated that they continued to comply with UEFA and Premier League financial laws.
“Despite the year’s deficit and operating issues as a result of the fines, the club continues to comply with UEFA and Premier League financial requirements,” the club wrote in a release on their website.