Chelsea have announced a loss for the financial year ending in June 2021
According to ESPN, Chelsea have reported a loss of £145.6 million, and the Covid-19 pandemic has had a significant impact on that.
The pandemic hugely affected the Premier League. The English top-flight matches were played in closed-door stadiums for several months after the restart of the fixtures. The English team, who enjoys a hefty sum from the matchday profits, have taken a hit this year due to the situation.
Chelsea’s earnings have dropped massively. The Blues reported a post-tax loss of £145.6 million ($196.4m) for the year until June 30, 2021. This is a massive decrease in revenue from last year, which was reported as a profit of £36.4m ($49m).
In the club’s strategic report, The West London board majorly pointed out the effect the pandemic has had on the financial loss. The decrease in revenue from players’ sales and an increase in players’ wages were also termed as subsidiary reasons.
“loss of revenue [was] caused by the majority of 2020-21 matches taking place behind closed doors as well as decreased profit on player sales and increased player amortisation.”
Chelsea reported a total profit of £27.9m ($37.6m) in player sales which is a significantly poorer figure than the £142.6m ($192.3m) profit that the board announced last year.
On the other hand, some big signings over the summer have also impacted the overall revenue. The Blues paid a hefty sum of £109.7m ($147.9m) on the arrival of Romelu Lukaku, Marcus Bettinelli and Saul Niguez. However, only generated £103.7m ($140m) from the departure of 13 players.
The report also states the help and support Chelsea have provided to local areas during the surge in Covid-19 cases in the nearby locality. It is believed that the West London club has provided more than 7,000 Pfizer COVID-19 shots to local people during the vaccination campaign at Stamford Bridge.
Chelsea is backed by Fordstam Limited company which Roman Abramovich owns. The account stated that the club depends on the company’s support, and the partnership would continue for the “foreseeable future.“
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Chelsea are struggling with injuries and covid related setbacks in the squad, and many players remain sidelines. The situation has reached a point where Thomas Tuchel has to trust academy youth players to get the job done. But the consequences haven’t been fair to the North London team’s title race.
Therefore, reinforcements have become a necessity for the club in recent times. But, Chelsea’s revenue loss could considerably impact the team’s approach in the January transfer window.
