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.
Nov 25, 2014, 11:15 PM EST
There were a lot of fouls in the first leg of Los Angeles and Seattle’s Western Conference final, and some were quite serious.
Nov 25, 2014, 10:45 PM EST
Like many fun to watch goals, the magic of the shooter is magnified by the mistakes of the defenders.
Nov 25, 2014, 10:00 PM EST
“I think they have to accept we were too strong for them,” added Mourinho.
Nov 25, 2014, 9:16 PM EST
We’ll be following who else comes calling for the Princeton man.
Manchester United assistant Ryan Giggs thinks Chelsea’s the top dog, compares Louis van Gaal to Alex Ferguson
Nov 25, 2014, 8:05 PM EST
Giggs calls the Stamford Bridge club “head and shoulders above the Premier League” on the strength of their back four.
Nov 25, 2014, 7:13 PM EST
These will be hot in the summer. But are they hot now? What do you think?
Nov 25, 2014, 6:51 PM EST
Eleven players had their options declined on Tuesday, but Colorado says they could be back with the club in January.
Nov 25, 2014, 6:03 PM EST
Recapping all the action from around Europe after a pivotal matchday in UCL play.
Nov 25, 2014, 5:55 PM EST
Berahino scored in the next match after his arrest, but has since gone cold.
Nov 25, 2014, 5:32 PM EST
Rogers talked about how working with gay and lesbian youth organizations made him realize the impact he could make as an openly-gay player.
Nov 25, 2014, 5:22 PM EST
City’s late show sets up pulsating clash in the Italian capital next month.
Nov 25, 2014, 4:46 PM EST
Citizens grab last-gasp win to boost their chances of making the last 16.
Nov 25, 2014, 4:33 PM EST
Five different players netted as Chelsea picked up its largest road Champions League win since 1999.
Nov 25, 2014, 4:10 PM EST
Suarez is off and running for Barca with a goal of exceptional class. What else did you expect?
Nov 25, 2014, 3:46 PM EST
The only other active players in the Top Ten are Chelsea’s Didier Drogba (44) and Thierry Henry (50), who obviously isn’t active with a UEFA Champions League club.
Nov 25, 2014, 3:10 PM EST
With top-quality players hardly ever available in January, the Portguese international could be a hot commodity in England.
Nov 25, 2014, 2:33 PM EST
A urinary infection has Pele in the hospital just 10 days after being released following surgery.
Nov 25, 2014, 1:55 PM EST
Follow the latest batch of UEFA Champions League matches, right here.
Nov 25, 2014, 1:05 PM EST
To be completed in two phases,
Nov 25, 2014, 12:11 PM EST
“Air Marshall” not only earned his nickname, but helped to solidify an otherwise shaky back line.
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