Chelsea announce £23.1m loss, record revenues expected

Date published: Monday 23rd November 2015 5:30

Roman Abramovich: Chelsea's Russian owner

Roman Abramovich: Chelsea's Russian owner

Chelsea made a loss of £23.1 million in their Premier League-winning season, it has been announced.

The Blues, who also won the Capital One Cup in 2014-15, revealed their annual financial results until June 30, 2015, and reported the deficit kept them within Financial Fair Play limits.

The Blues, owned by Russian oligarch Roman Abramovich, announced revenues of £314.3m, marginally down on the 2013-14 high of £319.8m.

The figures may lead to some concern, with Chelsea 15th in the Barclays Premier League and with an unprecedented run required to secure the riches which accompany Champions League football next term.

Chelsea in November 2014 announced a profit of £18.4m, the largest surplus during Abramovich’s ownership.

The first profit of Abramovich’s ownership, which began in 2003, came in the Champions League-winning year of 2012, when a £1.4m surplus was announced.

The dip in revenues was attributed to Chelsea’s exit in the first knockout stage of the Champions League to Paris St-Germain, following their semi-final place the previous season.

Chelsea anticipate their revenues to improve again after a reported £40m-a-season shirt sponsorship deal with Yokohama.

“Following our Premier League championship-winning season, we expect the current year to produce record revenues once again,” Chelsea said in a statement.

“These will be powered by new commercial deals, including our record-breaking partnership with Yokohama, and revenues related to this season’s Champions League which improve due to entering as Premier League champions and an increase in TV revenue for English clubs.”

Chelsea chairman Bruce Buck said: “Chelsea Football Club has been consistent in our intention to comply with FFP and it was a primary aim in the past financial year to be one of the clubs with a continuous record of meeting the regulations, which we have achieved.

“To record the second highest turnover figure in the club’s history despite the Champions League campaign ending at the earliest knockout round demonstrates our business is robust, and is testament to good work regarding our commercial activities, our growing fanbase around the world and the tremendous support the team received at home and away matches in 2014/15.”

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Home Forums Chelsea announce loss of £23.1m, record revenues expected

This topic contains 18 replies, has 10 voices, and was last updated by  nine nine nine 1 year ago.

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  • #715698

    Ian Watson
    Moderator

    Chelsea made a loss of £23.1 million in their Premier League-winning season, it has been announced.

    [See the full post at: Chelsea announce loss of £23.1m, record revenues expected]

    #715736

    nine nine nine
    Moderator

    Not a problem currently re FFP but it becomes a bit more of a problem if there is no CL football next season although hopefully the increased TV revenues and the increased Sponsorship/ Sponsorships will help a bit there.

    #715790
    Wise-fan
    Wise-fan
    Participant

    I expected this to be the case after the season of controversies and downfall. Thank God its not 100m or above. Because of the fines.

    #715983
    notnice
    notnice
    Participant

    I actually think while its not huge amount in todays money terms it is a big worry as there is a good chance we may not finish in the top 4, I understand we have a lot of money coming from sponsorship deals and also the EPL TV deals but still it is a worry and especially if we dont advance too much further in the current CL, not sure if the Chelsea supporter (cannot remember his name) who is very good with financial issues is available to advise on any possible future financial scenarios or anyone else?

    #716016

    CFC1905
    Participant

    Obviously a shame after doing so well last year but the Club are putting a positive spin on it (as you would fully expect). My understanding is that they never assume revenue from cup competitions at all so we still have the FAC (peanuts) and the opportunity to progress further in the CL which if our continued improvement in form continues we actually could do (depending on the draws). If you add the new sponsorship plus increased revenue and the Club alluded to extra revenue for being champions then FFP is not an immediate issue. Still think we would need to finish in the top 4 this season to ensure no further repercussions though…? KTBFFH

    #716022

    bluepylon
    Participant

    slippery slope springs to mind
    Well at least we know now why Mourinho never got sacked

    #716036
    Romansdirtypants
    Romansdirtypants
    Participant

    You know, I wonder how blue piles and wise fan bother to support chelsea. I guess it was a miserable summer moaning about our cup and league double and was a torrid time winning all that silverware these past ten or so years. I assume you do because you post on here, but how is winning a league title and posting a loss Jose’s fault. You say the fans who back him are some sort of cartel or mafia, but anything bad at the club must be down to the manager only according to you two sad sacks… Never mind there are accountants and players and the dreadful beggars and hangers on called agents who milk the system for everything its worth, and leave their players for dead and bankrupt when they retire. never mind some of that might have something to do with architects drawing up plans so you visit the a new stadium. You guys open your mouths and seriously, just fart.

    #716050

    bluepylon
    Participant

    Haha, well that never took long, chil RDP, you can tell Jose when you see him next I was only joking as you are obviously very close.

    And BTW, it was a written post, never actually spoke to anyone or farted, well I did actually when I got up this morning.

    #716056
    Moos
    Moos
    Participant

    Well if he stops spending so much money on players who clearly have no chance of making it as we all mentioned re Falcao as one example and also Cuadrado as another example and invest on one or two youth players who would easily do a far better job than most of the current players it would have saved more than a few bob. But Mourino is addicted to the cheque book and will never change even though he actually made promises to the contrary. Clearly his promises mean nothing.

    #716059

    Stuilse
    Participant

    Doesn’t this amount include the purchases of Costa, Fabregas, Luis, Hazards new 200k a week deal and Jose’s new contract, account for our 2nd round exit in the CL and exclude the massive new PL broadcasting deal as well as our new sponsorships? Reckon we will be ok for this season unless Jose and his backroom staff get the boot or we splurge on new players massively in January. However finishing outside the top four as well as not qualifying out of our CL group could seriously hurt us for the 2016-2017 financial period.

    #716072

    nine nine nine
    Moderator

    Great to see you back on here Stuilse!

    #716076

    nine nine nine
    Moderator

    Realistically no CL football will impact on both the players you can attract and what you can afford to spend on them too.

    #716099

    palmeab
    Participant

    Whereas it is tempting to just focus on the “bottom line” the fact is that, as with most financial reports, the devil is in the detail. As I understand it, the income side of our accounts recorded record revenue and whereas, as some have pointed out, immediate hopes of maintaining that may depend on results, the potential growth in income from sponsors and TV should militate against any potential losses in this respect. Another factor that critics may do well to consider is the period over which these accounts are based and the timing and nature of the major out-goings. We did some fairly extravagant buying (some so odd that one hopes they won’t be repeated): which of these are in he accounts, which not? Also, what, if anything, was spent (and included) concerning the new stadium. These do not miraculously leapt out of the ground and the planning thereof is highly technical and highly skilled…..thus very expensive. This might be construed as “money well spent” if, down the line we get a 60K seater stadium adding 50pc to our gate money. Sleep easy, lads, and leave this to the experts.

    #716136

    bluepylon
    Participant

    So is the 60k seater stadium being donated then!!!!!!!!!!!!

    #716150

    nine nine nine
    Moderator

    Building a new Stadium falls outside of FFP and is considered infrastructure we haven’t heard how it will be funded but funded it will be with Abramovich playing his part if not a full part!

    #716181

    palmeab
    Participant

    Yes, 999: I was aware of that. But does this include the surveying, architectural designs and related planning….including planning permission and squaring away local complaints? This is a genuine question: I really don’ know. But I can imagine some UEFA organisation differentiating between admin and fabric. The planning element can cost an arm and a leg and it would not surprise me if this has not already been the case with the club and it’s accounts. Hence my question. While you’re at it you might let me know what you think BluePylon is on about.

    #716188

    bluepylon
    Participant

    Palms
    Bit of sarcasm really, ok not clever, but you seem to have a good grasp of the financials, but then went on the stadium size increasing gate money, but surely that will be swallowed up in the costs of building, hence what the gooners had to endure for years on end.

    #716212

    nine nine nine
    Moderator

    palms, my understanding is that it all comes under infrastructure and is not subject to the FFP rules.

    I suspect the cost of buildinv a new Stadium will be funded partly or more probably fully by Roman once it all gets the necessary go aheads. Cheers 999

    #716216

    nine nine nine
    Moderator

    …tbh palms as you indicated inc the development of the new Stadium I think that those that need to have their finger on the pulse at the club have their fingers on the pulse in respect of both FFP and funding the new Stadium and unlike Arsenal we have the benefit of a very benovelent owner. Cheers 999.

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