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CHELSEA’s ownership has witnessed an eye-watering £1 billion loss over the last two seasons, even though the club has reported profits.
The club is currently led by Todd Boehly and Behdad Eghbali, who manage it through their parent company, 22 Holdco Ltd.
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This organization, which also manages the Chelsea women’s team and French club Strasbourg, has disclosed concerning figures in their latest financial report.
For this current season, they have reported an astonishing loss of £445.5 million, following a previous year’s shortfall of £653 million.
In total, the company’s losses over the two-year period hit £1.1 billion.
22 Holdco Ltd secured loans totaling £967 million, with £317 million repaid this year, incurring £94 million in interest on their debt.
The financial documents attribute these significant losses to “investments in the playing squads.”
Notably, these losses have surfaced even as Chelsea announced a profit of £129.6 million for the 2023-24 season.
It’s crucial to understand that the financial health of the holding company does not mirror that of the club, as the women’s team was sold to a sister company for £200 million, and two hotels at Stamford Bridge were sold for £76.5 million.
Premier League rules allow Chelsea to register these transactions, permitting them to present a profitable report.
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Nevertheless, the revenue generated from these sales is not classified as income for 22 Holdco Ltd according to HMRC regulations.
The divestment of the women’s team and hotels has buffered Chelsea against violating the Premier League’s Profit and Sustainability Rules.
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Clubs are restricted from losing more than £105 million over a three-year span, and the regulations do not acknowledge transactions involving associated parties following a failed vote to modify these rules last summer.
In contrast, Uefa mandates stricter provisions, allowing only a £75 million loss in the same period.
They similarly disregard associated party transactions in their assessments.
Uefa is reportedly reviewing Chelsea’s sale of the women’s team and has previously levied fines on clubs for breaching regulations.
