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 31, 2015, 9:52 PM EDT
The leaked images of United’s kit were the real McCoy, and the Red Devils white-cuffed kits are pretty sharp.
Jul 31, 2015, 9:09 PM EDT
What’s 5,000 or so miles amongst fans?
Jul 31, 2015, 8:14 PM EDT
Guardiola can erase a minor Bayern demon with his first Super Cup win on Saturday versus Wolfsburg.
Jul 31, 2015, 7:08 PM EDT
In the PDL, Seattle Sounders U-23, New York Red Bulls U-23, K-W United and Ocala Stampede are left, while the NPSL has New York Cosmos B, Chattanooga FC, Indiana Fire and CD Aguiluchos USA remaining.
Jul 31, 2015, 6:45 PM EDT
Arsenal looks to win its second-straight Community Shield, something that only Manchester United has been able to do since 2000.
Jul 31, 2015, 6:03 PM EDT
Dick Advocaat is hoping familiarity will combine with a couple buys to help Sunderland avoid a relegation fight for the 1st time in a while.
Jul 31, 2015, 5:30 PM EDT
In a BBC feature, Bill Peterson makes it clear he thinks the desire for pro/rel is real.
Jul 31, 2015, 4:41 PM EDT
Johannsson had already said he wants to play Stateside in “his prime”, but a Yahoo Sports report said his desires have obstacles.
Jul 31, 2015, 3:54 PM EDT
The Lions will continue to play at the Citrus Bowl until the new venue is completed.
Jul 31, 2015, 3:16 PM EDT
Is this the case of a 33-year-old who’s over the hill, or can he return to the form which saw him score double-digit goals and assists?
Jul 31, 2015, 2:00 PM EDT
Will the Saints keep marching up the PL standings? Maybe a European campaign will derail their progress?
Jul 31, 2015, 1:18 PM EDT
After signing nine new players this summer, is Sherwood taking a gamble?
Jul 31, 2015, 12:40 PM EDT
Here’s the latest gossip from around the PL.
Jul 31, 2015, 11:55 AM EDT
Can the Potters build on their best-ever PL finish last season? The top eight is a possibility for Hughes’ side.
Jul 31, 2015, 10:59 AM EDT
Blues boss compliments Gunners, gives update on injured duo ahead of Community Shield match.
Jul 31, 2015, 9:47 AM EDT
Soaking in the atmosphere on a special night at St Mary’s, as Saints’ Europa League campaign began.
Jul 31, 2015, 8:50 AM EDT
Terry: “Regardless of what people say, you can’t take away what I have won and done in the game.”
Jul 31, 2015, 7:55 AM EDT
Gunners keep experienced duo around, as Walcott decides to stay at the Emirates.
Jul 30, 2015, 9:27 PM EDT
Louis van Gaal seems to have misplaced his club’s $90 million investment, purchased just 12 months ago.
Jul 30, 2015, 8:10 PM EDT
With three attacking signings already made this summer, Balotelli and Borini look destined to leave Liverpool before the transfer deadline.
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