Cover image designed by me with Canva
Last year, when Russia invaded Ukraine, Chelsea Football Club were not left out of the repercussions. It was believed that their owner at the time Roman Ibramovich who was or is a friend to the Russian President is a Russian oligarch and funded the war.
As a result, he was sanctioned by the UK government which included holding all his assets in the UK. Unfortunately, Chelsea was one of his assets at the time.
The club was then placed under a strict licensing operation for a period till after the club was sold to current owners Todd Boely led consortium. The club at the time couldn’t sell tickets, couldn’t sell merchandise among other things.
At the time, jobs were lost and the futures of lots of players were in doubt. Maybe Rudiger leaving and the stall of Mount’s contract is one of the effects.
Fast forward to 2023, the club has invested heavily in its playing squad and a change in management. Thomas Tuchel is no longer head coach and the club has seen a long list of new names join the club.
Today, 27th of March 2023, the club has released a statement of its finances which details how much it has made and lost within the time.
Chelsea Football Club have made a net loss of £121.3 M which the club claims is due to the sanctions last year.
Of corse this is right as lots of financial stuff could not be done during the time where notably “3” put their sponsorship on hold. This act from 3 triggered so many of the Chelsea fans who resulted into giving the company negative reviews.
Player sales for me is another reason the club has lost so much. The club has spent a lot of money since the sale into improving their squad. Most of the players haven’t come cheap at all. Notable few are Cucurella, Fofana and Mudryk.
Despite bringing in almost a full squad, the club hasn’t sold players. This has impacted their finances.
It is no doubt Chelsea will be looking to offload a lot of the players this summer. Pulisic, Ziyech, Mount, Mendy, Kovacic, Gallagher among others are those with questionable futures at Chelsea. Aubameyang is one that’s definitely going to leave come this summer. He was always a stop gap but it’s a shame how his career has gone.
It’s a no brainer, the club has to move players on and try to use the finances from player sales to balance their books. A lot could still be made from them.
Chelsea also states in their report the club despite the loss has complied with uefa and premier league FFP rules.
Chelsea also states in their report the club despite the loss has complied with uefa and premier league FFP rules.
The club did end up making some profit as compared to last year. £481.3 M was made this year but £434.9M was made last year. There was a net increase in the sponsorship revenue as well although 3 infuriated the club with their move.
We could see more effects of the sanctions in the future. 🤷🏾♂️
Thank you
Check Chesea FC 2021-22 financial results for more details on the financial results.