Chelsea Finacial LOSS: Chelsea have recently put forth their financial records which show a significant loss of £121.3 million. As an explanation for the loss of such a big amount, the club has put out a statement. In this statement, they have blamed the sanctions of their previous owner, Roman Abramovich by the UK government. The sanctions caused several restrictions on the club’s activities which resulted in the loss. Follow Premier League LIVE Updates on InsideSport.IN.
During the Russia vs Ukraine war, the UK government sanctioned Roman Abramovich on suspicion of having close ties with the Russian President, Vladimir Putin. They sanctioned several others on the same suspicion and as an action against them, they froze everyone’s assets. This saw restrictions in most financial activities done by Chelsea. They had to cease the sale of tickets and couldn’t also accept any bookings of events.
Additionally, they couldn’t sign any contract with players whether it was for selling or buying purposes. They had to commence operations under a special license and even though they were allowed to sell tickets near the end of the sanction period, all revenues went to charity. The situation only got better after the change in ownership when Todd Boehly came and took the wheel. The club recently put out a statement regarding the matter that read –
“The results for the year have been impacted by the sanctions placed on the club’s previous owner on 10 March 2022. As a result of the sanctions, the club was required to operate within the limitations of a special licence issued by the UK government. These restrictions were in place until the completion of the Club’s sale on 30 May 2022.
BREAKING: Chelsea say Government sanctions imposed on former owner Roman Abramovich were a factor in the club posting losses of £121m in 2021/22 💰 pic.twitter.com/JtjUb8UUNp
— Sky Sports News (@SkySportsNews) March 27, 2023
During this period, the Club was restricted in a number of areas including, but not limited to, its ability to sell matchday and season tickets, sell merchandise, accept event bookings, as well as sign contracts with players and commercial sponsorship partners, which collectively resulted in extraordinary expenses and loss of revenue.
Furthermore, some of these limitations are also expected to have an impact on the financials in the following years due to the long-term impact from restrictions on entering into new contractual arrangements.
Towards the end of the sanctioned period, the club was permitted to sell certain matchday tickets, with the Premier League committing to donate all revenue from these sales to charity. The restrictions were lifted following the change in ownership, and all operations have now resumed.”
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