CHELSEA have revealed “extraordinary expenses and loss of revenue” as a result of the sanctions imposed on them last year.
The UK government placed former Blues owner Roman Abramovich under sanctions in response to Russia‘s invasion of Ukraine and his links to the country’s president Vladimir Putin.
GettyChelsea have announced ‘extraordinary’ losses following sanctions last year[/caption]
PARoman Abramovich has sanctions placed against him last year[/caption]
And the full impact of the sanctions has now been revealed.
The club have announced net losses of £121.3million for the financial year of 2021-22.
Chelsea were handed a “special license” to continue operating throughout the sanctions.
However, they were restricted in a number of aspects, including receiving revenue and negotiating contract renewals for players, staff and sponsors.
Despite this, the club say they are still set to comply with Premier League and Uefa financial regulations.
The massive losses come despite turnover increasing to £481.3m from £434.9m the year prior, which was heavily impacted by the Covid-19 pandemic.
An increase in operating costs including matchday and non-matchday expenses has been attributed to the losses.
A one-off payment of £26.6m to former boss Antonio Conte and his staff was also included in the figures.
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However, the sanctions are set to be felt in the coming years, with Chelsea saying: “Some of these limitations are also expected to have an impact on the financials in the following years due to the long-term impact from restrictions on entering into new contractual arrangements.”
The 21/22 results also indicate the club made £123m from incoming transfer fees – including Tammy Abraham, Marc Guehi, Fikayo Tomori and Kurt Zouma – turning a £5.2m profit.
However, the results following the £600m expenditure of the club on transfer deals under Todd Boehly have not been included.