Exact impact of Covid-19 on Chelsea’s finances revealed as club releases yearly financial record

The exact impact of Covid-19 on Chelsea made clear after club releases financial report

A report by football.london mentions that Chelsea revealed the financial impact of Covid-19 on the club’s finances in the yearly financial report, which was released on the New Year’s eve.

The club released its records for the last financial year which stated that despite losing money due to the pandemic, the club actually made a profit.

Chelsea’s revenue took a hit in all areas. Broadcasting revenue was reduced by £17.6m, while the matchday revenue fell by £12.2m.

The commercial income was reduced by £9.5m and the turnover fell from £446.7m to £407.4m. The club made an overall profit of £32.5m in the report, which was majorly due to 2 bumper sales.

Chelsea manager Frank Lampard with summer signing Timo Werner. (Photo by Visionhaus)
Chelsea manager Frank Lampard with summer signing Timo Werner. (Photo by Visionhaus)

Alvaro Morata joined Atletico Madrid for £58m while Eden Hazard left for Real Madrid in an £89m deal which could rise up to £150m with performance-related bonuses. (h/t football.london)

Bruce Buck, the chairman of the club, credits Chelsea for posting a profit in such trying times.

“It is a sign of the strength and stability of our financial operation that the company was still able to post a profit in the past financial year.”

Buck also mentioned that despite the drop in revenue streams, the club is still developing on the pitch. His enthusiastic statement might be premature, however.

Kai Havertz (L) and Timo Werner (R) were signed by Chelsea in the summer of 2020. (GETTY Images)
Kai Havertz (L) and Timo Werner (R) were signed by Chelsea in the summer of 2020. (GETTY Images)

That is because the accounts are dated back to June 2020. This means that the true extent of the pandemic on the club may become even more visible in next year’s account.

More Chelsea News

Moreover, the reason Chelsea have made a profit in the past financial year is that the summer signings are not listed in the accounts. Chelsea spent close to £250m in the summer but it is not reflected in the report.