Chelsea announced a pre-tax loss of 90.1 million pounds ($114.8 million) in the Premier League club’s first year under American owners Todd Boehly and Clearlake Capital.
Financial results for the year ended 30 June 2023 saw losses of £121.4m lower than the previous year.
Chelsea said on Thursday that despite the losses it remained in compliance with UEFA and Premier League financial regulations.
There is growing concern over the league’s profit and sustainability rules, which allow losses of up to £105m over three years.
Everton have been deducted 10 points this season for financial breaches. The points were reduced to six points following an appeal, but Everton could face further penalties for more infringements. Nottingham Forest’s losses also “exceeded the permissible threshold”, the league said.
Chelsea’s parent company Blueco 22 Ltd, which also owns French club Sporting Strasbourg, announced a net loss of £653 million ($833 million) this year.
Chelsea was bought by a consortium led by Boly and Clearlake after former owner Roman Abramovich was sanctioned by the British government over Russia’s invasion of Ukraine.
Since then, Chelsea has spent more than $1 billion on transfers.
It has had little success on the pitch and the two-time Champions League winner looks likely to miss out on promotion for the second year running. Ranked 11th in the Premier League.
“The club continues to balance its on-field success with the financial requirements of complying with UEFA and Premier League financial regulations,” Blueco said in its financial report. “The club has complied with these financial regulations since its inception in 2012 and expects to This will be the case for the foreseeable future.”
Chelsea’s turnover rose from £481.3 million to £512.5 million.
Chelsea said the drop in broadcast revenue was “a result of the men’s team finishing 12th in the Premier League and exiting the FA Cup and League Cup in the third round”.
While Mauricio Pochettino’s side have performed well in both domestic cup competitions this season, next year’s figures will reflect the financial impact of Chelsea’s failure to qualify for the Champions League.
The club could also miss next season, which could complicate the situation further.