Chelsea Football Club was on track for record sales and a record profit for the financial year ending 30 June 2020, but due to the impact of the COVID-19 pandemic, we had to settle for revenues of just over 400 GBP million a decrease of almost 40 million pounds (10%) compared to the previous year’s record figures.
The club registered another profit of 32.5 million pounds, confirmed by the statement published today on the official website of Chelsea, which attributes this number to the qualification of the Champions League and the sales of the players. The latter was the biggest factor that determined Chelsea’s income and profit in recent seasons, although the Champions League itself was worth about 50 million euros more than the Europa League.
Although Chelsea didn’t have to worry about their finances in 2003, it’s great to see the club make a profit after losing £ 100 million last fiscal year – and without putting anyone in the pandemic! It is only the fifth time in the Abramovici Era when we recorded a profit after 2012, 2014, 2017 and 2018, but as this trend shows, we are definitely moving in the right direction, which is self-sustaining.
Unfortunately, the immediate future looks a little less rosy, as COVID-19 continues to erupt and its impact continues to change the financial and societal landscapes of sport, football and life in general.
The pandemic has affected only 4 of the 12 months of the 2020 financial year. It has already affected half of the 2021 financial year and seems likely to last at least a few more months – depending on how quickly we can distribute and administer vaccines and how effective they are. they will prove this in the reopening of the economy and what this new normal might actually look like.
With the associated declines in match-day revenue, merchandising and, most importantly, broadcast revenue – the club’s statement states that the postponed cuts are also due to broadcasters on previously agreed contracts due to the pandemic – the 2021 financial year could be a difficult one. navigate. Add Chelsea’s £ 200 million spending for the summer transfer window and we could look at another major increase in profitability in twelve months. (Our new shirt sponsorship won’t have much of an impact there, and the Nike contract remains the same as before.)
Chelsea notice that we remain in line with the FFP and, as we know, UEFA has suspended FFP accounting at least this season. So we probably don’t have to worry too much about that, and as we learned from Manchester City, we can only sponsor Abramovich with one of his companies, anyway, if necessary.