Chelsea Suffers Net Loss of £121 Million Due to Sanctions, Loss of Revenue
Date
3/28/2023 4:22:48 AM
(MENAFN) Chelsea football Club has reported an overall net loss of £121 million ($148 million) for the last season due to extraordinary expenses and loss of revenue. The club issued a statement explaining that the results for the year were impacted by the sanctions placed on the club's previous owner, Roman Abramovich, on March 10, 2022. As a result of these sanctions, the club was required to operate within the limitations of a special license issued by the UK government until the completion of the club's sale on May 30, 2022.
During this period, the club was restricted in a number of areas, including its ability to sell matchday and season tickets, sell merchandise, accept event bookings, and sign contracts with players and commercial sponsorship partners. These restrictions resulted in extraordinary expenses and loss of revenue, which contributed to the overall net loss for the season.
Roman Abramovich, who had purchased Chelsea for a reported £140 million ($187 million) in 2003 and signed many star players to build a powerful team, was disqualified as club director by the Premier League amid a slew of sanctions against Russia because of Moscow's war on Ukraine. These sanctions had a significant impact on the club's financial performance, and the restrictions imposed on the club as a result of the sanctions ultimately led to the net loss for the season.
A consortium led by US businessman Todd Boehly completed its Chelsea takeover in May 2022. Boehly is the partial owner of the Los Angeles Dodgers baseball team, the NBA franchise Los Angeles Lakers, and the Women's NBA franchise Los Angeles Sparks. The new ownership structure is expected to provide stability and continuity for the club, and the hope is that the club will be able to bounce back from its financial losses in the coming seasons.
Overall, the net loss suffered by Chelsea is a reminder of the impact that geopolitical events can have on the business of football. The sanctions against Abramovich and the restrictions imposed on the club had a significant impact on its financial performance, and it will take time for the club to recover from these losses. However, with new ownership in place and a talented squad of players, there is reason to be optimistic about the future of Chelsea Football Club.
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