Chelsea report £42m profit but turnover falls by £40m in 2019-20
Despite the effects of the pandemic, Chelsea have gone on to post a profit for 2019-20 but it was significantly lower than previous seasons (h/t Football.london). The Blues posted a profit of £42.5million but it was £40million less compared to the season before.
They could well have posted an even greater profit if not for the pandemic that affected revenue on all fronts. Nonetheless, they fared much better compared to other clubs due to Roman Abramovich’s backing.
The key takeaways
Turnover was expected to be around £446.7million but somewhere around £407.4million was posted. Several revenue streams yielded lower outputs, such as broadcast and matchday earnings.
Their chairman went on to say that several businesses recorded losses but it showed how stable Chelsea are financially, that they still managed to gain profits last season. He said that the club could have posted record turnovers had football not halted back last March.
Effect on transfer business
At the start of 2019-20, Chelsea sanctioned the sales of two big assets in the form of Eden Hazard and Alvaro Morata. That coupled with the fact that we were facing a transfer ban meant that the impact of COVID was not that bad on the club.
With no expenditure on transfers and an influx of cash from sales, it meant that the side were able to post profits for that season.
Wages and miscellaneous
Costs regarding staff showed a slight reduction, which reflected in a slightly lower wage bill. However, that can be attributed to the fact that matches were not played for three months, resulting in no bonus payments. Most of those figures are expected to rise next season.
It was also left ambiguous as to how much the club shelled out to bring Frank Lampard from Derby County. Lastly, there are loan amounts from Roman Abramovich’s parent company. However, there were no new changes to the owed amount which still stands at £1.38billion.
More Chelsea News
- Alan Smith heaps praise on ever-improving Mason Mount
- Tuchel eyes reunion with PSG starlet Kays Ruiz-Atil at Chelsea
- Chelsea handed Erling Haaland boost with Dortmund willing to sell
Conclusion
Chelsea fared much better last season when compared to most of their Premier League rivals. They were one of the few clubs to have posted a profit in their report.