Chelsea has reported losses of £121 million in their latest financial records, attributing the significant deficit to sanctions imposed by the UK government on former owner Roman Abramovich.
The club’s annual accounts for the 2021-22 season reflected a challenging period in which Chelsea had to operate under a special license due to the sanctions imposed on Abramovich after Russia’s invasion of Ukraine in February 2022.
The sanctions saw the club’s ability to sell tickets, accept event bookings, and sign contracts with players limited until Todd Boehly’s takeover was completed on May 30, 2022.
“The results for the year have been impacted by the sanctions placed on the club’s previous owner on 10 March 2022,” the statement read.
ALSO READ: Antonio Conte bids farewell to Tottenham with heartfelt message
“As a result of the sanctions, the club was required to operate within the limitations of a special licence issued by the UK government. These restrictions were in place until the completion of the Club’s sale on 30 May 2022.
ALSO READ: Nigerians unimpressed as Super Eagles record 1-0 win over Guinea Bissau
“During this period, the Club was restricted in a number of areas including, but not limited to, its ability to sell matchday and season tickets, sell merchandise, accept event bookings, as well as sign contracts with players and commercial sponsorship partners, which collectively resulted in extraordinary expenses and loss of revenue.
“Furthermore, some of these limitations are also expected to have an impact on the financials in the following years due to the long-term impact from restrictions on entering into new contractual arrangements.
“Towards the end of the sanctioned period, the club was permitted to sell certain matchday tickets, with the Premier League committing to donate all revenue from these sales to charity. The restrictions were lifted following the change in ownership, and all operations have now resumed.”
The Blues announced an overall net loss of £121.3m, though they confirmed they continue to meet the Premier League and UEFA’s financial regulations.
