Chelsea’s Financial Turnaround: A Closer Look at the £128.4 Million Profit
In a surprising financial twist, Chelsea has reported a pre-tax profit of £128.4 million ($165.83 million) for the year ending in June 2024. This comes despite a dip in revenue, largely attributed to the repositioning—or more accurately, the sale—of their women’s team. The Premier League club made this announcement on Monday, marking a significant turnaround from the previous year’s financial performance.
To put this into perspective, Chelsea had recorded a loss of £90.1 million ($116.3 million) in the year ending June 2023. This was the first financial year under the new ownership of the consortium led by Todd Boehly. The shift in ownership and strategic decisions seem to have paid off, at least financially, for the club.
The Role of the Women’s Team Sale
The women’s team was transferred from Chelsea FC Holdings Limited to BlueCo, Boehly’s consortium, last June. This move effectively removed any losses associated with Chelsea Women from the club’s accounts. Additionally, Chelsea Holdings benefited from the sum that BlueCo paid for the team. This strategic repositioning played a crucial role in the club’s financial turnaround.
In terms of numbers, the profit on the disposal of subsidiaries was a staggering £198.7 million ($256.6 million), while the profit on the disposal of player registrations came to £152.5 million ($197 million). These figures highlight the financial acumen behind the club’s recent decisions.
Revenue and Performance
Despite the impressive profit figures, Chelsea’s overall revenue fell from £512.5 million ($662 million) in 2023 to £468.5 million ($605.2 million). The club attributed this decline to the men’s team not competing in the Champions League. However, there were some silver linings. The club’s broadcasting receipts increased, thanks to their sixth-place finish in the Premier League and decent cup runs. Additionally, there was a fall in operational costs and growth in commercial and matchday revenue.
On the field, the women’s team is currently leading the WSL table this season, while the men’s side sits in fourth place in the Premier League with nine games remaining. These performances are likely to have a positive impact on the club’s future financials.
Everton’s Financial Struggles
While Chelsea is celebrating a financial turnaround, things are not as rosy for fellow Premier League side Everton. The club reported a loss of £53 million ($68.44 million) for the 2023-24 season, marking a seventh consecutive year in deficit. However, Everton will avoid breaches of the league’s profit & sustainability rules.
Despite the loss, Everton did show some improvement from the £89.1 million deficit recorded the previous year. However, the club’s losses over the last seven years total a staggering £570 million. Last season, Everton faced an eight-point deduction for two separate PSR breaches for the rolling three-year periods, including the 2021-22 and 2022-23 campaigns.
In January, the league confirmed that all clubs, including Everton, were financially compliant for the 2023-24 season, and no additional charges would be imposed. This offers a glimmer of hope for the club as they look to stabilize their financial situation.
Key Takeaways
- Chelsea’s strategic repositioning of their women’s team and player registrations has led to a significant financial turnaround.
- Despite a fall in overall revenue, Chelsea’s broadcasting receipts and operational cost management have contributed positively.
- Everton continues to struggle financially but remains compliant with league regulations.
As the season progresses, it will be interesting to see how these financial dynamics play out on the field and in the boardrooms of these Premier League clubs.
Originally Written by: ESPN.com
