Chelsea's ownership group has posted losses exceeding £1BILLION over the past two years, casting fresh scrutiny over the club's controversial transfer spending spree and wider financial model.
According to figures revealed by The Times, 22 Holdco Ltd, the parent company of Chelsea FC, has plunged deep into the red, with losses of £445.5million last season following a £653m shortfall the year prior.
The losses are largely attributed to 'investments in the playing squads', the accounts say.
Since the Todd Boehly-led consortium took over in 2022, Chelsea have spent over £1billion on players, signing the likes of Enzo Fernandez (£106.7m), Moises Caicedo (£115m), Mykhailo Mudryk (£88m) and Wesley Fofana (£75m).
Yet despite the club itself recently reporting a profit of £129.6million over the 2023-24 season, the group's finances tell a much bleaker story.
The disparity between Chelsea FC's profits and 22 Holdco's losses is explained by transactions that the Premier League recognises for Profit and Sustainability Rules (PSR) compliance, but which cannot be logged as income in the parent company's books.
Among these is the £200m sale of Chelsea Women to a sister company and the £76.5m sale of two Stamford Bridge hotels, both of which count as profit for PSR purposes but not under standard accounting practice.
According to football finance expert Kieran Maguire, the ownership structure effectively shields Chelsea FC Holdings from the group's expensive debt.
Instead of loans, Chelsea Holdings issued £315million of shares, thus sidestepping interest obligations.
'These loans were not passed through to Chelsea FC Holdings Ltd, which instead issued £315million of shares, which do not bear interest,' Maguire told The Times.
'Combined with the exclusion of the profit on the sale of the women's team in the group accounts and the losses incurred at Strasbourg, this helps explain the huge difference between the profit at Chelsea and the losses at Holdco.'
One of the most damning figures in the 22 Holdco accounts relates to their £1.16billion in borrowings, attracting interest rates of up to 11.96 per cent.
The group paid over £94million in interest alone in the year ending June 2024.
This level of debt has been amassed while also purchasing French Ligue 1 club Strasbourg, who were acquired for £43.8million and are now valued by the group at £68million.
Based on those figures, Chelsea value their women's team, sold internally for £200m, as being worth the equivalent of three top-flight French clubs.
zaodeikmpu
1
Chelsea will remain dormant under Todd until our Russians brought back,I mean Ibrahimovic
elkay23
1
They're running a circus
Fimanorsty
0
them never see anything
Joeamoah2
0
VAR must check it's more than 1 billion
Jumachelsea
0
the loophole Masters are not worried about that 1 billion can make it for billion still it's going to find away around it
lukblstz
0
Since the Todd Boehly-led consortium took over in 2022, Chelsea have spent over £1billion on players, signing the likes of Enzo Fernandez (£106.7m), Moises Caicedo (£115m), Mykhailo Mudryk (£88m) and Wesley Fofana (£75m). . . Paying £40 million for all those players combined is still a loss. Todd Boehly was just wasting money, and that's the first step to going bankrupt.
Point of correction, fofana was sign by Abramovich.
badbimrz
1
no 1 mistake he makes why do you sake pochetino no2 why did you sell Galaher the player that you are not the one that buy him why are you selling him and again our Vice captain chilwel what does he done to you people
misabcdenp
2
It was Chelsea under the Russian billionaire not these American puppets
malablata
3
Since the Todd Boehly-led consortium took over in 2022, Chelsea have spent over £1billion on players, signing the likes of Enzo Fernandez (£106.7m), Moises Caicedo (£115m), Mykhailo Mudryk (£88m) and Wesley Fofana (£75m). . . Paying £40 million for all those players combined is still a loss. Todd Boehly was just wasting money, and that's the first step to going bankrupt.
bukmoprsyz
0
because of your bad policies, the success in the team is the coach, you don't like to hire the experienced coach you ll pay a lot of money. you need the cheapest without good results,no silverware,the team is no more attractive bcz your policies to limit the salary,and the good strikes they run away. you are killing the team and the business after many years Chelsea now are playing all season without the front shirt sponsorship. shame on you this board try to make change of policies.
Charlesugwu
2
FFP rules don't apply to Boehly. He is above the law. Chelsea can't be banned from buying more players next season.