Chelsea are to announce a record profit of £20m in the year to 30 June. They have only once before made a profit in the Abramovich era, a modest £1.5m two years ago. This means that they will have no difficulty in complying with financial fair play (FFP) rules.
Chelsea are to announce a record profit of £20m in the year to 30 June. They have only once before made a profit in the Abramovich era, a modest £1.5m two years ago. This means that they will have no difficulty in complying with financial fair play (FFP) rules.
Every month Chelsea’s chief financial officer sends a FFP update to directors, indicating whether the projected outlay is above or below the line. When Oscar signed a new deal this week, his increased wages will have immediately have been factored into the projections.
Turnover was up to £325m. Chelsea earned £94.1m from the Premier League broadcasting pot last season after finishing third. They have also benefited from the start of a new adidas kit deal worth £300m over ten years.
However, matchday sales account around just 30 per cent of revenue and the challenge of redeveloping Stamford Bridge remains, given that the club are not prepared to contemplate a permanent move to Twickenham. Matchday income at Chelsea in 2012-13 was £71m, compared with £93m at Arsenal and £109m at Manchester United.
Any redevelopment will not be completed for at least five years. An extra 14,000 seats, increasing the capacity to around 55,000, would require at least £280m or an estimated £20,000 per seat. With an additional bill for a temporary move to Twickenham for at least season, the club estimate that it would take 25 years to make a profit out of the new seats.
The club has also been seeking to boost commercial revenue, an area in which Manchester United have established a big lead.
This year’s figures are notable for profit made in the transfer market. Income was greatly boosted by the sale of Juan Mata for £37.1m in January and David Luiz for £50m in June. The signings of Diego Costa and Cesc Fabregas were completed after 30th June and are not reflected in these figures. It will be difficult to record such strong figures next year without a big player sale.