Chelsea announces $270m post-tax losses
Chelsea has announced £145.6 million ($269.7 million) post-tax losses for the financial year ending 30 June, 2021.
The Blues reported a £36.4 million ($67.4 million) profit in the preceding year, but the COVID-19 pandemic has had a significant impact on the club's finances.
Chelsea's turnover rose from £387.8 million ($718.4 million) to £416.8 million ($772.2 million) because of increased broadcasting revenue, but matchday income dropped from $53.2 million ($98.6 million) to £7.2 million ($13.3 million) as a result of games being played behind closed doors.
The European champion also failed to generate as much profit from the transfer market, making £27.9 million ($52.1 million) compared to the previous year's £142.6 million ($264.2 million).
The acquisition of Romelu Lukaku for a club-record £97.5 million ($180.7 million) came on 12 August and is therefore not included in the results.
"Loss of revenue [was] caused by the majority of 2020-2021 matches taking place behind closed doors as well as decreased profit on player sales and increased player amortisation," Chelsea's strategic report stated.
The report went on to reveal a reliance on Fordstam Limited, owned by Roman Abramovich, for financial support that will be required for the "foreseeable future".
Chelsea's report also stated: "The COVID-19 pandemic has been an incredibly difficult time for everyone. Communities across the world have faced extraordinary challenges and many families have lost loved ones.
"Both the club and the Chelsea Foundation including the staff, fans and wider community have played an important role in trying to alleviate some of the difficulties faced by particularly vulnerable groups and families who were affected by the pandemic."
The London club dropped two points in a 1-1 draw with Brighton and Hove Albion in its most recent Premier League match and is eight points behind leader Manchester City after 20 games.
