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.
Jul 30, 2014, 9:11 AM EDT
United to splash the cash? Lukaku on his way out of Chelsea? All the latest gossip, right here.
Jul 30, 2014, 8:27 AM EDT
Toure: “My decision is that I will stay at Manchester City for as long as possible.”
Jul 30, 2014, 7:48 AM EDT
After losing the PL title late in the season, then England being knocked out of the World Cup, can Gerrard bounce back?
Jul 29, 2014, 11:20 PM EDT
“I can only say that I’m very happy at City and at the moment we are talking about a contract,” Dzeko said.
Jul 29, 2014, 10:36 PM EDT
The 3,600 meters of elevation will provide a stiff challenge, with many opposing clubs having fallen victim to the altitude.
Jul 29, 2014, 9:43 PM EDT
Manchester United continued their success in the US with a third consecutive victory.
Jul 29, 2014, 9:01 PM EDT
Sturridge and Ibe step to the mic and hold their own.
Jul 29, 2014, 8:24 PM EDT
In team news, van Gaal has decided to go with his fabled 3-5-2.
Jul 29, 2014, 8:03 PM EDT
In a startling revelation, AS has revealed that Radamel Falcao has begun following three Real Madrid players on Instagram.
Jul 29, 2014, 7:08 PM EDT
Big day for headlines coming out of Southampton but this one looks to be quite promising for Saints fans.
Jul 29, 2014, 6:30 PM EDT
Twenty-seven years after his first stint with Gremio, Luis Felipe Scolari is returning to the Brazilian side as its new manager.
Jul 29, 2014, 6:00 PM EDT
Krkic, who made the $6.7 million move from Barcelona last week, scored a cracker of a first goal for Stoke City.
Jul 29, 2014, 5:25 PM EDT
Tevez’s family was then phoned and told to deliver a ransom of $5,000 (40,000 pesos).
Jul 29, 2014, 4:53 PM EDT
“Every penny of that will be up for reinvestment as transfer fees and wages,” Krueger said.
Jul 29, 2014, 4:03 PM EDT
Where, exactly, Ronaldinho’s future ends up is anyone’s guess.
Jul 29, 2014, 3:22 PM EDT
ICC and MLS action is in full swing in the USA this week. Watch it all online, here.
Jul 29, 2014, 2:57 PM EDT
Jacobson arrives in the Big Apple from Dallas. Will Aquilani join him?
Jul 29, 2014, 2:20 PM EDT
Now Schneiderlin wants out as Saints’ incredible exodus continues to take a turn for the worst.
Jul 29, 2014, 1:58 PM EDT
Despite not winning any silverware last season, Barcelona were big winners off the pitch.
Jul 29, 2014, 1:21 PM EDT
Tevez’s father, Juan Carlos Cabral, is said to have been kidnapped in Buenos Aires and held for ransom.
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