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 22, 2014, 11:34 PM EDT
Business up front. Defense in the rear.
Jul 22, 2014, 11:17 PM EDT
L.A. Galaxy Insider report also speculates that Javier “Chicharito” Hernandez could take a Designated Player spot in Major League Soccer if he leaves Old Trafford.
Jul 22, 2014, 10:45 PM EDT
“It’s obviously a shame he’s not here, but Liverpool is a club that’s bigger as any individual,” Rodgers said from Fenway Park.
Jul 22, 2014, 10:03 PM EDT
Inter Milan and Queens Park Rangers have swooped in for two of the Bluebirds’ best players, and Vincent Tan probably isn’t too happy.
Jul 22, 2014, 8:42 PM EDT
Shaw speaks to PST: “Manchester United are the biggest club in the world. I didn’t think twice when they wanted to sign me.”
Jul 22, 2014, 8:39 PM EDT
When a guy many consider a footballing genius gives the United States coach praise, that’s a pretty cool feather in Klinsmann’s cap.
Jul 22, 2014, 7:40 PM EDT
Premier Leaguers in the U.S. on Tuesday = A day of open training sessions, autographs, football helmets and golf clubs.
Jul 22, 2014, 6:43 PM EDT
The 19-year-old is a promising prospect, but is dealing with negative headlines after being subject to abuse on Tuesday in Croatia.
Jul 22, 2014, 6:24 PM EDT
Fraser Forster will be sticking at Celtic, for now, after Southampton reportedly lowballed the Scottish powers.
Jul 22, 2014, 5:30 PM EDT
Hand on shoulder, hair-coiffed, warm smile… next! Becks makes the rounds on the United’s U.S. tour.
Jul 22, 2014, 5:00 PM EDT
There have been reports of where the 32-year-old American left sider will not be going, but little as to where he will.
Jul 22, 2014, 3:56 PM EDT
For every “stars… they’re just like us” moment a player gives you, there are moments like this, which will not happen to 99.9999% of us at work in our lives
Jul 22, 2014, 2:22 PM EDT
Xavi set to remain at Barcelona until January, at least.
Jul 22, 2014, 2:04 PM EDT
Yeah. This is actually happened… as Stoke pull off a major coup.
Jul 22, 2014, 1:34 PM EDT
Guardiola: “He trains well, he’s a good guy and my first idea is that he’s going to stay for the rest of the season.”
Jul 22, 2014, 12:56 PM EDT
Will Lovren become the third Saints player to join Liverpool this summer? If the price is right, it sure looks that way.
Jul 22, 2014, 11:51 AM EDT
Where will Rodriguez line up next season for Real? Here’s an in-depth look at the options.
Jul 22, 2014, 10:56 AM EDT
Second time around, Dunga will lead Brazil’s new era.
Jul 22, 2014, 10:05 AM EDT
What do you get for $107 million in today’s world? A red-hot 23-year-old Colombian striker, that’s what.
Jul 22, 2014, 9:25 AM EDT
Klopp says Hummels is not for sale… not at the price reported anyway.
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