Chelsea’s full annual results have been released by Companies House and they show that the club made a pre-tax profit of £1.4m last season in marked contrast to a £67.4m loss in 2010-11.
There was an operating loss of £46m but it was offset by a big profit in player trading and a one-off cancellation of preference shares held in a subsidiary by BSkyB. They held shares in a subsidiary, Chelsea Fooptball Club Ltd., but agreed to cancel the shares as part of a deal that saw Chelsea take full control of Chelsea Digital Media, a joint venture with the broadcaster.
Chelsea’s full annual results have been released by Companies House and they show that the club made a pre-tax profit of £1.4m last season in marked contrast to a £67.4m loss in 2010-11.
There was an operating loss of £46m but it was offset by a big profit in player trading and a one-off cancellation of preference shares held in a subsidiary by BSkyB. They held shares in a subsidiary, Chelsea Fooptball Club Ltd., but agreed to cancel the shares as part of a deal that saw Chelsea take full control of Chelsea Digital Media, a joint venture with the broadcaster.
Chelsea made £18.4m from the cancellation of the shares and BSkyB waived the accrued dividend. However, the bulk of the cash balance of Chelsea Digital Media was paid to BSkyB, enabling it to report a £7m profit on the disposal of its stake.
Champions League success helped an increase in turnover by £31.9m to £257.5m. Operating expenses were up £38m to £304.6m with payroll costs rising £7.6m and player amortisation and depreciation up by £11.2m. At £171m Chelsea’s wage bill is still ahead of that of Manchester United at £160m.
This year there will be weaker Champions League revenues after the failure to reach the knockout stage. The club has spent £43m on transfers this season and also faces costs for sacked manager Roberto di Matteo and his coaching staff who will stay on the payroll until they find new jobs.