For all the years the club was referred to as “Chel$ki,” for all the whinging about transfer expenditures, excessive losses, plastic fans, and a style of play that wasn’t nearly as glorious as the club’s trophy cabinet, is Chelsea Football Club finally transforming into the club Roman Abramovich always wanted?

Not only does his club have one of the most exciting forward attacking lines in European football at the moment, but it appears that, after years of excessive losses, Chelsea are profitable and ready to face the challenges offered by Financial Fair Play.

As The Telegraph reports:

The Premier League club announced a profit of £1.4 million in the year to June 30, 2012, compared to a £67.7m loss in the previous financial year.

As well as earning about £47.9m from its successful Champions League campaign, which ended in a memorable victory over Bayern Munich on penalties in Munich, Chelsea said it also made £28.8m from dealings in the transfer market.

Not that Chelsea should be a model financial example for fans of any European club—hope for a big-spending benefactor with excessively deep pockets to drive transfer and wage inflation, post normally-unsustainable losses, and pray that nothing goes wrong. But neither is Arsenal’s current approach—relying on young charges under the paternalistic leadership of Wenger to overcome a lack of major transfer spending in order to please financial stakeholders with profits and dividends—really great either.

But it must be trying for Arenal fans, who long clung to their balance sheets to demonstrate their moral authority in the face of Chelsea’s rise under Abramovich in the 2003-2005 period, see their West London rivals finally in the black on the back of a solid decade of increasing their commercial revenues on the back of domestic titles and now a European Cup.

Comments (10)

  1. I am still confused about how they managed to make money in the transfer market considering how much they spent, have they released any info on how that 28mil was made?

      • 80 million in spending, with no one leaving on anything other than a free. Sounds like some very interesting accounting to get that one to add up. Looks like FFP is going to be about as big of a joke as most expected.

        • If I tried that math I’d have been kicked out of Jr. high school.

          Had I stood up and refused to accept it as flawed, I could have become an accountant.

          Lesson learned.

          SB

    • The budget ends somewhere before the summer transfer window. that is all the accounting is done for 2012. so this years summer transfer budget shouldn’t be on the 2012 fiscal year, but next years. 28 million only translates to about 14 million pounds. with all the loan fees and buy out clauses and paper work im sure its possible, sometimes payments go in installments some agreements can be dived to 48 months so 20 million isnt that much in a years time.
      (football manager nerd)

      • So, you can wipe out the $80M spent over the summer, but if you go back that far you overlap with the January 2011 window where they spent £75 M on Torres and Luis. Zero leaving the other way.

        SB

        • No you don’t include January 2011. It’s July 1 2011 to June 30 2012.

          I don’t follow Chelsea enough to know who they bought and sold in that year period, but please read the article to find out the end date, and the length of the term. It’s pretty easy to figure out that the transfer windows mentioned in the comments aren’t part of the profitable year. (Shame on Whittall for perpetuating the confusion).

  2. Wait for next year’s result. This is for the fiscal year July 1 2011 to June 30, 2012. It does not include the massive money spent this summer.

    When I saw this earlier today on BBC, I chuckled at how upset Arsenal fans would be seeing that Chelsea has higher gross revenue than they do, more competitive, win things and still turn a profit.

    Oh btw, you guys might have missed it, but Roman turned some 166M pound loan into equity, which essentially saved Chel$ki (still applicable) interest on that. At even a very conservative 5%, that’s 8.3M/year. It’s a fake profit yes, but most dumb “fans” will point to it and say “look! we made a profit, we are a properly run club”. Sorry, you still aren’t, just a rich guy’s plaything. His yacht is a few billion dollar worth, this is a drop in the bucket.

    tl:dr
    - $ doesn’t reflect money spent this summer
    - Roman’s loan turned into equity
    - Chel$ki still correct term.

  3. I’m assuming this included the money from winning the CL.

    Since it’s very, very unlikely that they repeat, that would presumably send them crashing into a loss even before this past summer’s transfers (agree on the sentiment that the fiscal year ends when the CL does) kick in.

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