Chelsea have announced that for the financial year ending June 30, 2013, that the Europa League champions made a loss of £49.4 million, but despite that they managed to satisfy UEFA’s Financial Fair Play regulations.
Despite not progressing out of the Champions League group stages, Chelsea announced a record turnover of £255.8 million. Chelsea revenue growth was furled by a 19% rise in commercial income from £67 million to £79.6 million.
But despite these improving numbers, Chelsea still managed to lose £49.4m. However Chelsea will still satisfy FFP regulations as the two-year monitoring period includes the £1.4 million-pound made in the Champions League winning season of 2011-12 season. The Blues also see around £15 million knocked off their overall loss in add backs, which includes infrastructure costs, youth development costs and charitable donations amongst other outgoings.
So all told, Chelsea’s losses for the two-year period fall to approximately £34 million, falling under the FFP threshold of €45 million (£37.5 million).
“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,” Blues chairman Bruce Buck said.
“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.”
The big question for Chelsea fans is how does this impact Chelsea going forward? Buck was keen to point out that Chelsea’s new 10-year kit deal with Adidas that is thought to be worth £300 million will shown up for the first time in the 2013-14 accounts. As will be Premier League’s massive new TV contract that will add around an additional £40m to Chelsea’s income.
But those new revenue sources have already been spent to some degree as Chelsea had a net spend of €65.2m (£54.2m) in summer transfer window.
Which is why I look at the Falcao to Chelsea rumors very skeptical as I cannot see how Chelsea can afford a €60m player in January and stay compliant with FFP.