Chelsea record PROFIT despite Covid chaos after not laying off ANY staff during pandemic – but summer spending spree NOT included
Chelsea have revealed they made a £32.5 million ($44.4 million) profit for the financial year ending June 30, 2020, despite the coronavirus pandemic. However, the figures do not cover the club’s summer spending splurge.
The Stamford Bridge club released their results for the 2019-20 financial year on New Year’s Eve, recording a profit but also seeing overall turnover drop from £446.7 million to £407.4 million due to the effects of the Covid-19 pandemic on revenues.
The profit reflected the club’s qualification for the Champions League and windfalls from the sale of a number of players, read a statement from the club owned by Russian billionaire Roman Abramovich.
It added that Chelsea “continue to comply with UEFA's break-even criteria under the Financial Fair Play (FFP) regulations.”
The previous financial year had seen the Blues post a loss of a whopping £96.8 million, meaning a significant reversal in fortunes.
The Covid-19 pandemic caused a suspension in the 2019-20 Premier League season and continues to keep fans away from games in large numbers.
Chelsea said broadcasting and matchday revenues had decreased by £17.6 million and £12.2 million respectively, primarily because of the suspension of the season from March.
However, those losses were partially offset by reduced matchday costs because of games being postponed.
Chelsea announce 2019-20 financial results.Pandemic sees turnover fall to £407.4m from £446.7m but there’s still a profit of £32.5m after recording losses of £96.6m the previous year.— Rob Harris (@RobHarris) December 31, 2020
Commercial revenue fell by £9.5 million, while the club invested £93.7 million in the squad during the financial year.
Unlike some of their Premier League rivals, Chelsea won widespread praise for not making use of the UK government’s furlough scheme when the pandemic struck, and have not laid off any staff.Also on rt.com 'Exemplary': Roman Abramovich and Chelsea win praise after announcing players will not be taking pay cuts during COVID-19 crisis
Blues chairman Bruce Buck said the club’s profit in the face of the ravages of Covid was “a sign of the strength and stability of our financial operation.”
“This was done while continuing to invest in our playing staff and indeed had normal football not halted in March, projections show a record profit and record turnover would have been achieved. That would have represented an increase in revenue for a fifth year in succession,” the American added.
“Despite the impact of Covid, the revenue streams remained strong, our team is developing on the pitch and the club is in a good position to continue to grow when football is able to operate as it did previously, a time we are all looking forward to.”Also on rt.com Roman’s revolution: As Werner admits to ‘struggling’ since Chelsea move, how are the rest of Lampard’s major signings performing?
However, the period for the figures does not cover Chelsea’s mammoth summer spending spree in which they splashed more than £230 million on talent including young German duo Timo Werner and Kai Havertz, as well as goalkeeper Edouard Mendy and defender Ben Chilwell – all of whom arrived after June 30.
Frank Lampard’s team are set to be in action next against coronavirus-hit Manchester City on Sunday and will look to improve after winning just one of their past five league games, which has put them sixth in the table.