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.
Sep 19, 2014, 7:17 PM EDT
UEFA president Michel Platini doesn’t wish to give into FIFA’s pressure to return a watch gifted to him at the World Cup.
Sep 19, 2014, 6:31 PM EDT
Seattle Sounders FC have signed Nigerian defender Onyekachi Apam.
Sep 19, 2014, 5:58 PM EDT
Financial figures for Arsenal released by club today.
Sep 19, 2014, 4:40 PM EDT
Coritiba striker Joel brought out a one-of-a-kind goal celebration vs. Sao Paolo.
Sep 19, 2014, 3:35 PM EDT
Javier “Chicharito” Hernandez has sung the praises of former Manchester United boss Sir Alex Ferguson, who the forward believed was instrumental in getting himself exposure in Europe.
Sep 19, 2014, 3:06 PM EDT
Gareth Bale could one day return to Tottenham, but his waxing poetic on White Hart Lane is likely nothing more than political fare.
Sep 19, 2014, 2:24 PM EDT
Of course it’s possible that Louis van Gaal could bring Ronaldo to Manchester United, but he doesn’t believe his current team is interested.
Sep 19, 2014, 1:46 PM EDT
How many times in his life has Ronaldinho performed this task with flair (or at least adequately)?
Sep 19, 2014, 12:55 PM EDT
Tim Howard’s stint as No. 1 USMNT backstop may be on hiatus, but the battle of who’s the top American goalkeeper in the Premier League is on
Sep 19, 2014, 12:05 PM EDT
An even rivalry heads to Loftus Road to start its season series on Saturday, kicking off the Premier League weekend.
Sep 19, 2014, 12:00 PM EDT
Where and how to watch every PL game during Week 5, right here.
Sep 19, 2014, 11:20 AM EDT
A Washington Post report asks why Hope Solo is being celebrated for her on-field efforts while awaiting the results of her not guilty plea to domestic abuse charges.
Sep 19, 2014, 10:32 AM EDT
It’s not about the Impact, the CONCACAF Champions League or the club’s record. For Di Vaio, it’s about home.
Sep 19, 2014, 9:25 AM EDT
Perhaps the investigation took a bit too long, but it seems many athletes did not understand the depths of their joke usage.
Sep 19, 2014, 8:40 AM EDT
You can watch the video of the ‘premeditated’ act inside. Six months is fairly understandable, no?
Sep 19, 2014, 7:48 AM EDT
The required capacity for the final was a minimum of 70,000 seats, which certainly helped England near the front of the pack.
Sep 19, 2014, 12:06 AM EDT
Win U.S. Open Cup on Tuesday. Drop a few bars in New York on Thursday. You know: #JustClintDempseyThings.
Sep 18, 2014, 11:32 PM EDT
Sporting took a big step toward getting out of Group 2 thanks to its Spanish winger.
Sep 18, 2014, 10:50 PM EDT
Awkward bounces made a disorganized El Tri look awful and the high-powered USWNT look pedestrian in a 4-0 decision on Thursday night.
Sep 18, 2014, 9:22 PM EDT
Users decided to make the new art’s white space into a plus, ditching the high brow concept in favor of more appealing products.
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