Chelsea deliver £18m profit and sets sights on new sponsor cash

Chelsea FC

November 14 – Chelsea FC have announced a profit of £18.4 million on a record turnover of £319.8 million for the year ended 30 June 2014. This is the econd and largest profit the largest profit the club has made since Roman Abramovich became owner of the club in 2003. Two years ago the profit was £1.4 million.

These results ensure UEFA’s break-even criteria under the Financial Fair Play (FFP) regulations continue to be satisfied.

The £18.4 million profit follows the £1.4 million generated two years ago. Strong revenue increases as well as a significant surplus on player sales during the 12-month period contributed.

The club’s turnover figure rose from £255.8 million to £319.8 million and is the fifth consecutive increase. The figures were helped significantly by increased broadcast revenue and a number of new sponsorships.

The club has signed new partnerships with Rotary, Hackett, Coral, William Lawson’s, Indosat and Guangzhou R&F Football Club. Chelsea’s current kit deal is with Samsung, estimated to be worth about £18 million a year – small in comparison to its big club rivals but it is the end of a long term contract. Turkish Airlines are widely expected to replace Samsung in a vastly improved deal next year.

The figures were also boosted by the sales of midfielder Juan Mata to Manchester United and defender David Luiz to Paris Saint-Germain for a combined £87 million. The signings of striker Diego Costa and midfielder Cesc Fabregas, who cost £59 million in total, are not included in the 2013-14 accounts as they were announced after June 30.

The club reported a small rise in matchday income but in its statement said that “with Stamford Bridge filled to capacity year after year there was no scope for significant financial growth in this area. General admission ticket prices remain frozen at 2011/12 levels.”

The results mean that Chelsea fall easily within the FFP requirements.

Chairman Bruce Buck said: “The club is naturally pleased to record a significant profit for 2013/14. By reaching the Champions League semi-final and maintaining a challenge in the Premier League until the final week of the season we demonstrated that, while improving our financial figures, we remained competitive in football’s toughest club competitions.”

Last month Chelsea parted company with its CEO Ron Gourlay, the club has since hired Christian Purslow, formerly CEO at Liverpool, to head its commercial operations. “Going forward, we have ambitious plans to build a pioneering global commercial programme, partnering with innovative and market-leading organisations from around the world,” said Buck.

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