Chelsea announce £90.1m pre-tax loss to pose fresh doubts over complying with Premier League sustainability rules… as spending on transfers hits £1.2billion under Todd Boehly

Chelsea have announced a pre-tax loss of £90.1m in the first full year under Todd Boehly and Clearlake Capital’s ownership.

Accounts filed by Chelsea FC Holdings Limited revealed the loss for the 12-month period through to June 30, 2023. 

Chelsea had made a loss of £121.4m the previous year, which the club blamed on sanctions imposed on the club’s former owner Roman Abramovich.

The losses will raise further doubts over Chelsea’s ability to meet the Premier League’s profit and sustainability rules (PSR). The rules limit clubs to losses of £105m over a three-year period.

Chelsea stressed the club ‘continues to comply with UEFA and Premier League financial regulations’, despite the loss in the year and fallout from the sanctions.

The group attributed their losses as being driven by investment in Chelsea’s playing squads

Clubs are allowed to spend money on infrastructure, women’s teams and academy costs, which will contributed to the losses considered under PSR. 

Chelsa’s overall revenues grew to £512.5m, rising from £481.3m the previous year, with profits on player sales and fixed assets reported at £142.2m.

Kai Havertz was a noteable sale during the time period, with the German international moving to Arsenal for £65million last June. 

The growth in turnover was also driven by the women’s team winning the Women’s Super League and the Women’s FA Cup, as well as reaching the final of the Women’s League Cup. 

Chelsea’s broadcast revenues were reduced by £9.1m to £225.9m the previous year, despite the men’s team’s run to the Champions League quarter-finals and the Women’s Champions League semi-final last season.

The decrease followed the Blues finishing 12th in the Premier League last season, resulting in a lower domestic broadcasting share.

The accounts confirmed Chelsea have made player registrations worth a total of £744million for the period ending on June 30 in 2023.

Chelsea’s parent company said the group has since registered 22 players at an initial cost of £454.8m since the period ended.

This includes the British club record £115million deal to sign Moises Caicedo from Brighton, as well as £52m to bring Christopher Nkunku to the club from RB Leipzig.

Chelsea have spent £1.2billion on players under Boehly, including a British record £115m on Moises Caicedo

Christopher Nkunku among the players signed since the period included in the accounts

Romeo Lavia and Cole Palmer were among other notable additions last summer, costing £53m and £40m respectively.

The additions take their overall spending on transfers to £1.2billion since their takeover of the club.

BlueCo 22, the company set up by Clearlake Capital and Todd Boehly to buy the Blues, confirmed a loss of £653million in seperate accounts filed to Companies House.

The figure covers the period between March 2, 2022, through to June 30 in 2023.

BlueCo 22 officially completed a takeover of Chelsea in May 2022, with the consortium having been set up two months prior.

The group have since bought Ligue 1 side Strasbourg for an initial price of £64.9m.

‘The group reports a loss before tax for the period of £678.2m, driven by investment in Chelsea’s men’s and women’s player squads,’ the accounts stated.

‘For the period, the group reported revenue of £534.7m, driven by commercial, broadcasting and matchday income from Chelsea.

‘The group reports net assets as at the end of the period of £1.797m and net current liabilities of £0.1m.’

Chelsea are currently at risk of failing to qualify for Europe for a second consecutive season, with Mauricio Pochettino’s side currently 1th in the Premier League.

The Blues remain in the FA Cup and will host Leicester City in the quarter-finals later this month.