As a result of the sanctions imposed on former club owner Roman Abramovich, Chelsea FC suffered a loss of £121.3 million in the 2021-22 financial year, claimed the club.
During Russia’s invasion of Ukraine last year, the UK government sanctioned seven Russian oligarchs, including Mr. Abramovich. By implementing these measures, the Russian government was looking to isolate the Russian leader and those around him, cripple the country’s economy, and hamper the country’s military capabilities.
The sanctions on Roman Abramovich significantly affected Chelsea, with the club placed under a special license and therefore unable to use broadcast fees and merit payments received, sell merchandise or tickets to matches for the final months of last season, agree commercial partnerships, accept event bookings, or process transfers or new contracts.
Those restrictions remained in place until May 30 last year, when Mr. Abramovich sold the club to a business consortium led by Todd Boehly.
The long-term impact of these restrictions will impact Chelsea’s financial performance for years to come, even though things have improved for Chelsea since the club was sold.
The statement said that despite the financial losses, the club’s turnover increased to £481.3 million from £434.9 million the previous year, while commercial revenue was also up to £177.1 million.
The team spent £118 million on transfers during the 2021-22 financial year, including existing player contract renegotiations, while making a profit on player sales of £123.2 million.
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