Due to “exceptional expenses and loss of revenue” brought on by Roman Abramovich-related sanctions, Chelsea reported an overall net loss of £121.3 million for the 2021–22 season.
Early in March of last year, after Russia invaded Ukraine—which Moscow refers to as a “special military operation”—Russian owner Abramovich put the club up for sale. Sanctions imposed by the UK government on Abramovich had made the sale process more difficult.
Due to government constraints, Chelsea was unable to sell tickets, which resulted in a loss of revenue. They were also forced to reduce their operating spending until the sale was finalized at the end of May.
Chelsea claimed that during this time the club was “restricted in many 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.”
Additionally, some of these constraints are anticipated to affect the financials in years to come as a result of prohibitions on entering into new contractual arrangements.
Chelsea claimed that the primary reason for their turnover figure rising from 434.9 million to 481.3 million pounds from the previous year was an increase in matchday and commercial revenue as spectators began to fill stadiums again following the Covid-19 pandemic.
A net gain in sponsorship revenue from new contracts and partner renewals saw the club’s commercial revenue rise to 177.1 million pounds.
The club continued, “The higher revenue was offset by higher operational expenses, including matchday and non-matchday costs that arose from resuming operations and higher employee costs.
The aforementioned factors helped the firm record a loss of 26.6 million pounds for the fiscal year that ended on June 30, 2022, as well as a net loss of 121.3 million pounds overall.
The club “continues to comply with Uefa and Premier League financial requirements despite the loss throughout the year and the operating obstacles caused by the fines.”
An investor group founded by American entrepreneur Todd Boehly and Clearlake Capital, who spent more than 600 million euros ($645.78 million) on player transfers over two transfer windows, acquired Chelsea.
The team is now in 10th place in the Premier League but has advanced to the quarterfinals of the Champions League, where they will play the defending champion Real Madrid next month.