Sanctions levied by the UK government against former owner Roman Abramovich are blamed for large losses on Chelsea's books.
Chelsea attributes losses of £121 million in their most recent financial reports on the UK government's sanctions against previous owner Roman Abramovich.
The Blues released their annual accounts for the 2021–22 season, which revealed significant losses during a time when they had to operate under a special license.
During Russia's invasion of Ukraine in February 2022, Abramovich was sanctioned by the UK government, which believed he had close contacts to president Vladimir Putin and as a result, frozen the assets of various people.
Due to this, Chelsea had to operate under a special license that prevented the club from finalizing player contracts or accepting event reservations until Todd Boehly's acquisition was finalized on May 30, 2022.
Chelsea stated in a statement on Monday that these consequences would be felt once more "in the coming years."
The announcement added, "The sanctions imposed on the club's previous owner on 10 March 2022 have had an influence on the results for the year.
"The club was forced to operate within the restrictions of a unique license provided by the UK government as a result of the sanctions. These limitations were in effect up until May 30, 2022, when the Club's sale was finalized.
"The Club's ability to negotiate contracts with players and commercial sponsorship partners, sell merchandise, accept event reservations, and sell matchday and season tickets were all prohibited during this time, which collectively led to astronomical costs and a loss of revenue.
Furthermore, some of these restrictions are anticipated to have a long-term effect on the financials because they make it difficult to join into new contractual agreements.
"After the conclusion of the sanctioned period, the club was given permission to sell a limited number of matchday tickets with a pledge from the Premier League to donate all proceeds to charity. Following the change in ownership, the restrictions were removed, and all operations have since been resumed.
The Blues reported an overall net deficit of £121.3 million but assured everyone they are in in compliance with UEFA and Premier League financial rules.
blogpay
Total Comments: 0