The Chelsea ownership group has posted losses of more than £ 1 billion over the past two years, which spoke a new investigation about the controversial transfer expenditure of the club.
According to the figures that have been revealed by the Times, 22 Holdco LTD, the parent company of Chelsea FC, has been deposited deep into red, with losses of £ 445.5 million last season after a shortage of £ 653 million the year before.
The losses are largely attributed to 'Investments in the Playing Squads', the accounts say.
Because the consortium led by Todd Boehly in 2022, Chelsea has spent more than £ 1 billion to players and signed as Enzo Fernandez (£ 106.7m), Moises Caicedo (£ 115m), Mykhailo Moneyk (£ 88m) and Wesleyko (£ 88m).
Although the club itself recently reported a win of £ 129.6 million during the 2023-24 season, the finances of the group tell a much gloomy story.
The inequality between the profit of Chelsea FC and the losses of 22 Holdco is explained by transactions that the Premier League recognizes for compliance with profit and sustainability rules (PSR), but that cannot be recorded as income in the books of the mother company.
Among this is the £ 200 million sale of Chelsea women to a sister company and the £ 76.5 million sale of two Stamford Bridge hotels, both of which count as a profit for PSR purposes, but not under standard accounting practice.
According to football financing expert Kieran Maguire, the ownership structure effectively protects Chelsea FC Holdings from the expensive debt of the group.
Instead of loans, Chelsea Holdings has spent £ 315 million in shares, which bypasses the interest obligations.
“These loans were not passed on to Chelsea FC Holdings Ltd, who, instead, spent £ 315 million in shares that do not wear interest,” Maguire told The Times.
“Combined with the exclusion of the profit about the sale of the women's team in the group accounts and the losses made in Strasbourg, this is explained the enormous difference between the profit at Chelsea and the losses at Holdco.”
One of the most damn figures in the 22 Holdco accounts relates to their £ 1.16 billion in loans, which attracts interest rates up to 11.96 percent.
The group paid more than £ 94 million in interest in the year that ended in June 2024.
This debt level was collected during the purchase of the French Ligue 1 Club Strasbourg, which were taken over for £ 43.8 million and are now appreciated by the group at £ 68 million.
Based on those figures, Chelsea appreciates their ladies team, sold internally for £ 200 million, because it is worth the equivalent of three TopFlight French clubs.
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