Dec 31, 2013, 5:59 PM EDT
Despite record turnover of near $425 million, Chelsea have reported a loss of $81.6 million for the year ending in June 2013, a number sure to raise eyebrows of those conscious of UEFA’s Financial Fair Play guidelines. Club officials, however, pointed out the profit the club made in 2012 helps the team stay within the European governing body’s financial guidelines, steering the Blues clear of possible long-term repercussions on their Champions League eligibility.
According to a statement from Chelsea, the team’s inability to advance past the group stage of the 2012-13 UEFA Champions League played a major part in the club’s financial downturn despite an increase in income.
“[A] 19 percent rise in commercial income from 67 million to 79.6 million pounds is a clear indication Chelsea is moving in the right direction in terms of business growth,” the club said in its Tuesday statement, “as is a turnover figure that increased for a fourth consecutive year despite diminished European competition revenue.”
Financial Fair Play regulations say teams can lose no more than €45 million ($61.9 million) each year, but as club communications head Steve Adkins told Reuters, “complicated accounting rules” mean Chelsea’s “actual loss” was $56.2 million, keeping them within UEFA’s guidelines.
“The latest financial result combined with the previous year’s profit of 1.4 million pounds means for the first monitoring period for FFP regulations – which spans the 2011/12 and 2012/13 seasons – we will fall comfortably within the break-even criteria set by UEFA,” Chelsea affirmed on their web site.
That Chelsea have been one of the world’s most aggressive spenders highlights how lenient Financial Fair Play’s restrictions are, the Blues able to comply with the guidelines despite missing out on significant Champions League revenues. Few teams, however, are experiencing the same commercial growth as Roman Abramovich’s club, with figures published by Deloitte showing Chelsea have the fifth highest annual revenues in world soccer.
Oct 25, 2014, 3:47 PM EDT
The L.A. Galaxy and Seattle Sounders are scoreless through 45 minutes at CenturyLink in Washington.
Oct 25, 2014, 3:30 PM EDT
Leeds United have fired manager Darko Milanic after only 32 days leading the squad.
Oct 25, 2014, 2:59 PM EDT
Several fun games whet the appetite for a massive top of table Sunday tilt between Bayern Munich and Borussia Monchengladbach.
Oct 25, 2014, 2:29 PM EDT
With six games on Saturday in the PL, here’s what happened.
Oct 25, 2014, 2:20 PM EDT
Wilfried Bony scored both goals for Swans, 2-0, who cruised to the win against the suddenly-struggling Foxes.
Oct 25, 2014, 2:07 PM EDT
Will the Sounders handle the Galaxy and expectations to clinch home-field throughout the playoffs?
Oct 25, 2014, 1:54 PM EDT
“Maybe they [Stoke] created two possibilities, not chances and that’s a great team effort,” Koeman said of his Saints.
Oct 25, 2014, 1:47 PM EDT
Despite going behind earlier, Real came roaring back to win the first El Clasico of 2014-15.
Oct 25, 2014, 1:28 PM EDT
Watch and enjoy, then follow the second half live on NBC and online via Live Extra.
Oct 25, 2014, 12:59 PM EDT
Neymar and Ronaldo stealing the show so far, as four on yellows for Barca. Live updates, here:
Oct 25, 2014, 12:48 PM EDT
Pellegrini magnanimous in defeat, but City could be eight points off top spot by the end of the weekend.
Oct 25, 2014, 12:05 PM EDT
Reds thwarted by stubborn Tigers, as Balotelli fires a blank once again.
Oct 25, 2014, 12:04 PM EDT
West Brom won the shots battle 17-8 and carried nearly 70 percent of the possession by the time all was said and done.
Oct 25, 2014, 11:59 AM EDT
It was 1-0 at half, and it was all the Saints would need.
Oct 25, 2014, 11:58 AM EDT
Arsenal make the most of awful errors from Sunderland.
Oct 25, 2014, 11:41 AM EDT
Eighth-place Swans will host the suddenly-struggling Foxes as both teams look to rebuild momentum after good starts to the season.
Oct 25, 2014, 11:24 AM EDT
Follow El Clasico here with live updates, as Suarez starts with his four month ban over.
Oct 25, 2014, 11:02 AM EDT
Watch the second half of every match live, right here.
Oct 25, 2014, 10:51 AM EDT
Watch this hilarious video, as Brand gives Big Sam a smooch.
Oct 25, 2014, 9:50 AM EDT
Will Mario Balotelli score his first Premier League goal and get Liverpool going? Watch live, here.
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