Chelsea Declares £128.4million Profit for 2024 Season
Chelsea Football Club has announced a pre-tax profit of £128.4m in their financial results for the year ending of June 2024.
This figure represents a significant improvement on the first full year under the ownership of Todd Boehly’s Clearlake Capital consortium, in which the Premier League club reported pre-tax losses of £90.1m.
The club’s overall revenue fell from £512.5m in 2023 to £468.5m, which Chelsea attributed to the absence of Champions League football for their men’s side. However, the club was able to report a profit due to the “disposal of player registrations” worth £152.5m and the “repositioning” of their highly successful women’s team.
In May 2024, Chelsea announced a restructuring and long-term strategic plan for the women’s team, which saw them sold to become a standalone business from the men’s side while remaining a part of the club owners’ wider portfolio.
This move is believed to have contributed significantly to the club’s profit, with the transaction worth either part or all of the £198.7m “profit on disposal of subsidiaries” mentioned in the club accounts.
Chelsea’s statement on Monday pointed to how the club improved their financial health, avoiding breaking Premier League’s profit and sustainability rules (PSR).
The club’s matchday revenue increased to £80.1m for its financial year, from £76.5m in the previous results. Commercial revenue also increased from £210.1m in 2023 to £225.3m due to “an increase in player loan income and strong sales of non-matchday activities”.
The club’s financial position was strengthened in the previous financial results by the sale of two hotels by Chelsea FC Holdings Ltd to BlueCo 22 Properties Ltd, a deal between companies under the control of the Todd Boehly and Clearlake Capital ownership. That £76.5m sale meant Chelsea made a loss of £89.9m instead of £166.4m in their 2022-23 accounts.
The sale of the women’s team to BlueCo is believed to have made a significant contribution to the club’s profit, with the transaction worth either part or all of the £198.7m “profit on disposal of subsidiaries” mentioned in the club accounts. Without this transaction, Chelsea may have made a significant loss.
Chelsea’s strategy is entirely within Premier League rules, and the club believes that the move benefits the women’s team, which is gaining investment while a separate entity. However, Uefa has more stringent rules, and it remains to be seen whether European football’s governing body considers any action.
Football finance expert, Kieran Maguire, said: “Chelsea’s financial results are a significant improvement on last year, and the club’s strategy of selling the women’s team and disposing of player registrations has clearly paid off. However, it will be interesting to see how Uefa views this transaction and whether they consider it to be within their rules.”
As the news of Chelsea’s financial success continues to spread, the club will be looking to build on this momentum and achieve even greater success in the future. With a strong team, a solid financial foundation, and a commitment to investing in the club, Chelsea is well-placed to achieve great things in the years to come.
