- The Chelsea ownership group has loss of more than 1 billion pounds sterling over two years
- But the club itself brought in a profit of 129.6 million pounds sterling during the 2023-24 season
- Listen now: everything is launched! Chris Sutton and Ian Ladyman debate the prices of the manager of the season … who is the best and the worst?
The Chelsea ownership group would have recorded losses over 1 billion pounds Sterling in the past two years, projecting a new control over the club’s controversial transfer spending and a larger financial model.
According to the figures revealed by Times, 22 Holdco LTD, the mother company of Chelsea FC, plunged deeply into red, with losses of 445.5 million pounds Sterling last season after a deficit of 653 million pounds Sterling the previous year.
The losses are widely allocated to “investments in game squads”, according to the accounts.
Since the consortium led by Todd Boehly took over in 2022, Chelsea spent more than 1 billion sterling pounds for players, signing Enzo Fernandez (106.7 million pounds sterling), Moises Caicedo (115 million pounds Sterling), Mykhailo Mudryk (88 million pounds Sterling) and Wesley Fofana) and Wesley Fofana) (75 million pounds sterling).
However, despite the club itself having recently published a profit of 129.6 million pounds sterling during the 2023-24 season, the group’s finances tell a much darker story.
The disparity between the benefits of the Chelsea FC and 22 losses of Holdco is explained by the transactions that the Premier League recognizes compliance with the rules of goal and sustainability (PSR), but which cannot be recorded as income in the books of the parent company.
The Chelsea ownership group posted amazing losses of more than 1 billion pounds sterling over two years
Since Todd Boehly took over in 2022, Chelsea spent more than 1 billion pounds sterling on the transfer market
A group of Fans of Chelsea organized a protest against the Blueco consortium of Boehly earlier this year
Among these, the sale of 200 million sterling pounds from Chelsea Women to a sister company and the sale of 76.5 million pounds sterling from two Stamford Bridge hotels, which both have as PSR profit but not in standard accounting practice.
According to the expert in football finance Kieran Maguire, the property structure effectively exercises the Chelsea FC Holdings of the group’s costly debt.
Instead of loans, Chelsea Holdings issued 315 million pounds sterling of shares, thus avoiding interest obligations.
“These loans have not been sent to Chelsea FC Holdings Ltd, which rather issued 315 million pounds sterling of shares, which are not in interest,” Maguire in Times told.
“Combined with the exclusion of profit on the sale of the women’s team in group accounts and the losses suffered in Strasbourg, this helps to explain the enormous difference between profit in Chelsea and losses in Holdco.”
One of the most overwhelming figures in the 22 Holdco accounts concerns their 1.16 billion pounds sterling to loans, attracting interest rates up to 11.96%.
The group paid more than 94 million pounds sterling of interest only during the year ending in June 2024.
This level of debt was amassed while also buying the French Ligue 1 club Strasbourg, which was acquired for 43.8 million pounds sterling and is now evaluated by the group at 68 million pounds sterling.
Based on these figures, Chelsea appreciates their women’s team, sold internally for 200 million pounds sterling, as worth the equivalent of three high -level French clubs.
