Chelsea Football Club has been going through some turbulent times in this season, both on and off the pitch. The club has seen significant changes, with new ownership, managerial changes and an ongoing battle with Financial Fair Play (FFP) regulations. In this article, we take a look at the club’s latest accounts and what they mean for the future.
Since the end of the Roman Abramovich’s incredible 19-year old reign in which he managed to win many trophies. The Blues thrived under Abramovich’s reign, but on May 6, 2022 Chelsea was bought by Todd Boehly for £4.25 billion. The next 12 months changed everything around Stamford Bridge. As the club’s newly published accounts for that 2021-22 campaign underline, the turbulence and change came at a price. Chelsea FC Holdings Ltd recorded a net loss of £121.3million last season, despite annual revenue climbing to £481million.
The numbers depict a club facing financial challenges. As, they spent more than £500million in the transfer market under Boehly. Also, the “extraordinary expenses and loss of revenue” that came with Abramovich’s downfall added to the Chelsea’s financial problems.
What lies ahead for Chelsea?
Chelsea’s near-£600million splurge on players since last summer could see them fall foul of UEFA’s new Financial Fair Play (FFP) rules as soon as next season. And the likelihood of them getting themselves into regulatory strife will increase even more if they miss out of qualification for next season’s Champions League. It is more and more probable because Chelsea currently sit on 11 position on the table.
If they missed out on the Champions League for next season, it is feasible their total revenues would tumble somewhere towards the £400m-£450m bracket. If that happens, it is almost impossible to see them not falling foul of the rules unless they offload this summer to shrink the spiralling wage bill and raise £150m to £200m in transfer income.
Overall, the latest accounts show that Chelsea is facing a number of financial challenges. However, the club is still one of the wealthiest in the world and has the resources to overcome these challenges. The upcoming sponsorship deal and the next transfer window will be crucial for the club’s financial stability, and it remains to be seen how they will navigate these challenges in the coming years.
