Kieran Maguire: Making sense of Chelsea’s finances

Chelsea lost £111 million from day to day trading in Covid-19 impacted 2019/20. Sales of Hazard & Morata helped generate £142m profit on player sales to offset these losses.

Chelsea balance sheet strong due to Abramovich generosity. Debtors of £284m mainly sums owing from other clubs for transfers. Small increase (£7m) from new shares issued.

The cash flow statement, the dirty little secret of the accounts, shows just £80m received by Chelsea from player sale profits of £142m, further evidence of them being sold on credit.

All revenue types down in 2019/20. Matchday due to refunds, broadcast due to rebates & some matches after 30 June 2020 & commercial as fewer bonuses paid. Sadly the compensation paid to Frank Lampard’s Derby County to recruit him not shown

Amortisation (transfer fee costs spread over contract life) down £40m reflecting impact of transfer ban on Chelsea.

Wages down 1% reflecting lower bonuses as some games played after 30 June. Highest paid director £1.7m, lower than the likes of Palace & Brighton, but still enough to pay for a good night out.

Despite transfer ban Chelsea bought players for £93m in 2019/20. Player sales were £190m.

Unlike most other clubs Chelsea don’t separate out transfer creditors and debtors. Based on the formula of 85% of trade debtors/creditors due in less than 1 yr plus all amounts due in more than one year gives transfers owing to Chelsea of £222m & owed to other clubs £127m.

Player sales meant that Roman Ambramovich didn’t have to lend Chelsea further money via the parent company Fordstam, but he still has outstanding loans of £1,378,000,000.

Published by The Baron

I write about football finance, and listen to music that was last popular in the 1980's.

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