The Premier League outfit, Chelsea FC have announced a £145.6m loss after tax for the previous financial year that ended on June 30, 2021. The club suffered a loss despite their Champions League triumph last season, but the main reason for this loss is credited to the Covid-19 pandemic.
As per Chelsea, if the club had not been severely affected by the Covid-19, then the Blues would have recorded a £500m turnover. The club mainly suffered heavily in the matchday and commercial earnings, which most of the clubs did due to the closed-door matches.
However, Chelsea mentioned that the only thing that had not seen any losses was the broadcasting revenue, as it still shows a year-on-year increase. With the year ending on June 30, 2021, the Blues collected £273.6m from broadcasting, which was £182.5m in the last year.
The reason for such a huge spike is because Chelsea lifted the Champions League trophy in May by defeating Manchester City in the final. While, it was also because of the late finish of the 2019/20 season last year, following which the amounts were carried forward.
From matchday revenue, Chelsea collected only £7.7m in the 2020/21 season, which saw a significant dip from £54.5m in the 2019/20 season. The same goes for commercial revenue, which was recorded at £153.6m in the 2020/21 season, with the figure being £170.4m in the 2019/20 season.
The club also continues to comply with UEFA’s break-even criteria under the Financial Fair Play (FFP) regulations. Chelsea invested £220.8m in the playing squad during the 2020/21 financial year, which includes existing players contract renegotiations.
Speaking on the occasion, Bruce Buck, Chelsea chairman, said: “The pandemic has had a severe impact on the Club’s income for a second year in a row. Significant revenue was lost due to the majority of matches being played behind closed doors, however, with our success in the Champions League, we have been able to offset the huge impact of the Pandemic on our revenues. Had it not been for the matchday impact of the Pandemic, we are confident we would have achieved record turnover this year.“
He added, “Throughout this period we have continued to receive the full commitment and support of the owner across the entire business allowing us to continue to invest in our playing squad during this period. This is, of course, while working within the regulatory framework and constraints with which we must operate. The strength, stability and long-term approach of our financial operation means our revenue streams remain strong, however, COVID-19 will continue to have an impact going into the next financial year as our commercial operations resume normal activities.“
On the field, Chelsea will be facing Liverpool in their next Premier League fixture on January 2. The Blues are currently sitting second in the league, collecting 42 points from their last 20 games.