Chelsea's Net Loss of £121.3m Linked to UK Government Sanctions
New owners of Chelsea Football Club have announced a net loss of £121.3m, which they attribute to the UK government's sanctions on former owner Roman Abramovich last year.
The club released a statement citing the negative financial impact the sanctions could have in the years to come, as they are currently unable to enter into new contractual arrangements.
The London-based club was sold to a consortium led by new chairman Todd Boehly in May 2022, but were unable to sell tickets or merchandise after Abramovich was sanctioned in March of the same year.
Despite the sanctions, Chelsea saw an overall turnover increase to £481.3m from £434.9m the previous year, thanks to increased matchday revenue following the return of supporters post-pandemic.
Commercial revenue also grew to £177.1m, with the club benefiting from a net increase in sponsorship revenue from new contracts and existing partner renewals.
During the 2021/22 season, the club invested £118m in the playing squad and made a profit on player trading. Sales of Tammy Abraham to AS Roma, Marc Guehi to Crystal Palace, Fikayo Tomori to AC Milan, and Kurt Zouma to West Ham added up to £123.2m.
A statement released by Chelsea alongside a publication of the accounts read;
“The club was required to operate within the limitations of a special licence issued by the UK government. These restrictions were in place until the completion of the club’s sale on 30 May 2022.
“During this period, the club was restricted in a number of areas including, but not limited to, its ability to sell matchday and season tickets, sell merchandise, accept event bookings, as well as sign contracts with players and commercial sponsorship partners, which collectively resulted in extraordinary expenses and loss of revenue.
“Furthermore, 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.”
