Chelsea, the English Premier League football club, announced on Monday that its net losses amounted to 121.3 million pounds ($ 148.65 million) in the 2021-2022 season due to “expense exceptions and loss of revenue” after imposing sanctions on former owner Roman Abramovich.
Russian owner Abramovich decided to sell Chelsea in early March of last year after the Russia-Ukraine war, which Moscow describes as a “special military operation”. Sanctions from the British government against Abramovich complicated the sale.
Chelsea were not allowed to sell match tickets, which led to a loss of revenue, and spending on operations decreased due to government restrictions until the sale was completed at the end of May.
Chelsea said: During this period, the club was restricted in several areas, including but not limited to its ability to sell match tickets, season tickets, and the sale of club products. As well as signing contracts with players and commercial sponsorship partners, this results in exclusions in expenses and lost revenue.
Chelsea added that its total revenue amounted to 481.3 million pounds from 434.9 million pounds last year, due to an increase in matchday revenue and commercial revenue as fans return to stadiums after the Covid-19 pandemic.
The club’s commercial revenue increased to £177.1m, thanks to a net increase in sponsorship revenue from new contracts and extensions of existing sponsorships.
Chelsea said that despite recording losses: the club continues to abide by the financial rules of the European Union and the English Premier League.
Ownership of Chelsea moved to an investment group, led by American businessman Todd Boley and Clearlake Capital, and the group invested more than 600 million euros ($645.78 million) in signing players during two transfer periods.
Chelsea ranks tenth in the Premier League, and despite suffering locally, has qualified for the quarter-finals in the Champions League, and will face Real Madrid, the defending champions, next month.