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 1, 2014, 11:30 PM EDT
“Today two powers were brought together, the hand of God and that of the Pope,” Maradona joked. No, really. That’s what he said.
Sep 1, 2014, 10:30 PM EDT
How do you think United will line up?
Sep 1, 2014, 10:29 PM EDT
From a 18-year-old Jamaican-English midfielder to a 34-year-old veteran goalkeeper, this team takes a ride through all types of players.
Sep 1, 2014, 9:38 PM EDT
In the end, the player had to come from the nine-goal thriller at Goodison Park.
Sep 1, 2014, 8:48 PM EDT
Rebecca Lowe, Robbie Earle and Robbie Mustoe bring you plenty of analysis on the summer transfer window’s Deadline Day.
Sep 1, 2014, 8:45 PM EDT
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Sep 1, 2014, 8:32 PM EDT
Falcao signs for United, arrives on loan from Monaco with view to a permanent transfer.
Sep 1, 2014, 8:09 PM EDT
Manchester United’s Danny Welbeck went away to London for international break, and won’t return to the club after sealing a move to Arsenal.
Sep 1, 2014, 7:26 PM EDT
Nantes, Nottingham Forest and Aston Villa are all surprising early-season teams, and Americans are playing big roles in each club’s success.
Sep 1, 2014, 7:13 PM EDT
The biggest confirmed transfers on Deadline Day including Premier League teams.
Sep 1, 2014, 6:40 PM EDT
If Andre Villas-Boas thought Emmanuel Adebayor was hard to handle, wait til he gets a load of this American character.
Sep 1, 2014, 6:33 PM EDT
Alderweireld arrives on loan, as Mane deal agreed.
Sep 1, 2014, 6:23 PM EDT
Negredo leaves City, heads back to Spain to play for Valencia.
Sep 1, 2014, 5:55 PM EDT
Watch live online, right here.
Sep 1, 2014, 5:42 PM EDT
Hull busy on Deadline Day as Ramirez joins on loan, plus Ben Arfa.
Sep 1, 2014, 5:37 PM EDT
In the words of NHL commentator Rick Jeanneret, roll the highlight reel for Ibra, Cavani and PSG, and the lowlight reel for one poor keeper.
Sep 1, 2014, 4:40 PM EDT
Not a huge risk for Arsenal, but certainly a good bit of business for United. Could Welbeck become the next Daniel Sturridge?
Sep 1, 2014, 4:18 PM EDT
Jermain Defoe, Danny Welbeck and Hatem Ben Arfa all make one last run through the rumor mill as the deadline draws near.
Sep 1, 2014, 4:11 PM EDT
McArthur and Fryers arrive at Selhurst Park.
Sep 1, 2014, 3:49 PM EDT
The Dutch international rejoins his World Cup boss for four seasons at “the biggest club in the world.”
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