Dec 31, 2013, 5:59 PM EST
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.
Mar 4, 2015, 7:15 PM EST
Last season a one-hit wonder? Not a chance. D.C. United is here to stay.
Mar 4, 2015, 7:14 PM EST
The USWNT is looking to rebound from the 2014 Algarve Cup, where it finished in 7th after drawing Japan and losing to Sweden and Denmark.
Mar 4, 2015, 6:30 PM EST
Columbus needs to build on last season’s success or see it flutter away in the winds of time. Can they seize the season?
Mar 4, 2015, 6:26 PM EST
Recaps, reaction, analysis, videos and more from all seven games in the PL on Wednesday.
Mar 4, 2015, 6:19 PM EST
And all parties are sounding quite confident, almost in the cavalier “of course we won” tone we heard so much last season.
Mar 4, 2015, 5:52 PM EST
Blues battle to hard-fought win at West Ham, as Mourinho hails his sides display.
Mar 4, 2015, 5:38 PM EST
Manchester United needed a gift from opposing goalkeeper Tim Krul, but Louis van Gaal loved his club’s performance on Wednesday.
Mar 4, 2015, 5:37 PM EST
After their 12th defeat of the season, the Toffees after sinking towards the bottom three.
Mar 4, 2015, 5:10 PM EST
Burnley’s loss leaves them 19th, in the drop zone with 22 points.
Mar 4, 2015, 5:00 PM EST
Swansea sit ninth with 40 points, while Spurs sit 7th place. Tottenham is four points behind No. 5 Liverpool.
Mar 4, 2015, 5:00 PM EST
Potters continue to climb up the table, as Toffees head in the opposite direction.
Mar 4, 2015, 4:53 PM EST
Chelsea stay top after hard-fought win at Upton Park.
Mar 4, 2015, 4:50 PM EST
It’s now five goals from his last five games for the Frenchman.
Mar 4, 2015, 4:43 PM EST
Citizens grind out home win to stay in touch with Chelsea.
Mar 4, 2015, 4:42 PM EST
Jonas was given the all-clear from cancer in November.
Mar 4, 2015, 4:40 PM EST
Manchester United remains fourth, one point behind third place Arsenal, while Newcastle is still comfortably in 11th place with 35 points.
Mar 4, 2015, 3:49 PM EST
Seven games are going on in the PL on Wednesday, watch the second half of every match right here.
Mar 4, 2015, 3:48 PM EST
The guy seemed to bend a bullet, real “Matrix” stuff.
Mar 4, 2015, 3:09 PM EST
Swansea’s French striker carried off the pitch after appearing to collapse at White Hart Lane.
Mar 4, 2015, 3:07 PM EST
Dani Alves is all but out at Barcelona, but where will the Brazilian back end up?
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