Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Chelsea Post Losses of £49.4m

Fri 3rd Jan 2014 | Money & Finance

Chelsea have posted a loss of £49.4m for the year ending 30 June 2013, despite increased turnover and winning the Europa League.

The club’s financial results posted earlier this week showed group turnover of £255.8m for the 12-month period, a record figure for the club, despite elimination from the Champions League at the group stage last season.

Despite the losses, which when combined with those from last year, the club still expects to satisfy UEFA's break-even criteria within the Financial Fair Play regulations.

Although the Europa League was won, a reduction in income from that success compared with winning the Champions League in 2012 contributed to the loss.

A 19% rise was reported in the club's commercial income from £67m to £79.6m, an indication of the club’s continued business growth, along with a turnover figure that increased for a fourth consecutive year despite diminished European competition revenue.

The latest financial result combined with the previous year's profit of £1.4m means for the first monitoring period for Financial Fair Play (FFP) regulations - which spans the 2011/12 and 2012/13 seasons - Chelsea will fall within the break-even criteria set by UEFA.

Commercial income benefitted from major new partnerships signed with Audi, Delta and Azimut Hotels. However, although the 10-year extension to their global partnership with adidas was announced in June 2013, the financial boost from the biggest deal to date the club has signed with a partner will be recorded from the 2013/14 accounts.

Chief Executive Ron Gourlay said: 'For Chelsea FC to achieve a record level of turnover despite our first group-stage elimination from the Champions League shows we have structured our business and are growing in the correct way for long-term stability.

'Our philosophy is we build upon success on the pitch and although in these financial results we haven't repeated the sizeable profits made the previous year from player transfers, we believe the age profile of the existing squad means we will benefit from that investment for many years to come.

'A successful team builds awareness around the world and our increased commercial revenues in 2012/13 and new or extended partnership deals demonstrate we are working hard to capitalise on that.'

Chairman Bruce Buck added: 'From the very beginning of the current ownership of Chelsea Football Club, a long-term objective was financial sustainability, and the subsequent implementation of Financial Fair Play by UEFA and by the Premier League has brought that to the top of the agenda for football clubs.

'We are pleased therefore that we will meet the stipulations set down by UEFA in their first assessment period, and by our own analysis we are progressing from a commercial viewpoint as well as continuing to add trophies to our collection, which we never lose sight of as our most important goal.'

Image: Chelsea's Fernando Torres (L) and Branislav Ivanovic celebrate with the Europa League trophy : Action Images / Jason Cairnduff

Posted by: Aaron Gourley

To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.

 

RETURN TO LATEST NEWS SECTION

SUBSCRIBE TO THE FCBUSINESS RSS FEED

If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Chinese debts emphasize need for local players’ association

Thu 27th Jul 2017 | Money & Finance

FIFPro is ready to offer assistance to professional footballers in China and other parts of the world where local player associations do not yet exist. Media reports this week revealed several Chinese...

SPFL: No fresh tax scheme sanctions against Rangers

Wed 26th Jul 2017 | Money & Finance

The SPFL Board today announced, following legal advice from eminent Senior Counsel, Gerry Moynihan Q.C., that there will be no further disciplinary proceedings taken by the SPFL connected with the use...

West Ham Champions Of Season Ticket Affordability

Wed 19th Jul 2017 | Money & Finance

With the new Premier League season approaching it promises to be another exhilarating season, full of twists as well as surprises for fans. Chelsea convincingly captured their fifth Premier League...

Everton Sign Landmark Stadium Financing Partnership

Thu 6th Jul 2017 | Money & Finance

Everton Football Club has signed an agreement with ICBC (London) plc and Industrial and Commercial Bank of China Limited, which will provide the Premier League club with a £60m 3-year credit...