Chelsea Records £121.3m Net Loss for 2021-22 Due to Extraordinary Expenses and Loss of Revenue
Despite having an increased turnover figure to £481.3m from £434.9m the previous year primarily due to increased matchday and commercial revenue as the fans returned to the stadium after the COVID-19 pandemic, Chelsea still recorded an overall net loss of £121.3 million ($148.65m) for 2021-22. The Premier League club blames sanctions from the UK government that were imposed on the previous owner Roman Abramovich for this development.
Russian owner Roman Abramovich put the club up for sale in early March last year following Russia’s invasion of Ukraine, which spurred the UK government to introduce sanctions on Abramovich. Chelsea was not allowed to sell tickets during that period, resulting in a loss of revenue, while their operational spend was also curtailed due to government restrictions until the sale was completed at the end of May. Chelsea said in a statement that “some of these limitations are also expected to have an impact on the financials in the following years due to the long-term impact from restrictions on entering into new contractual arrangements.”
The club’s commercial revenue also increased to £177.1m, thanks to a net increase in sponsorship revenue from new contracts and existing partner renewals. “The higher revenue was offset by increased operating expenses, including matchday and non-matchday costs that resulted from resumed operations and increased staff costs,” the club added.
Chelsea were bought by an investment group led by American businessman Todd Boehly and Clearlake Capital, who have invested more than £600m in player transfers across two windows. Although they are currently 10th in the Premier League, they are also through to the Champions League quarterfinals where they face reigning champions Real Madrid next month. Meanwhile, the club continues to comply with UEFA and Premier League financial regulations despite the loss in the year and the operating challenges due to the sanctions.
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