Chelsea in financial crisis: losses exceed one billion pounds
Luis Torres
Dailysports's expert
The owners of Chelsea are facing a serious financial crisis: according to the latest reports, the club's parent company — 22 Holdco Ltd — has recorded losses amounting to over one billion pounds sterling over the past two years, despite declared profits.
Financial reports show that for the 2022/23 season, the company lost 653 million pounds, and in the previous year — another 445.5 million. The main reason for such losses is attributed to investments in team rosters, reports The Times. Besides the main club, 22 Holdco owns the French club Strasbourg and Chelsea's women's team.
Although the Chelsea football club itself reported a profit of 129.6 million pounds, part of these funds was obtained through the sale of assets — two hotels (amounting to 76.5 million pounds) and the women's team, transferred to a subsidiary for 200 million. However, according to the rules, these transactions cannot be counted as income for the parent company for tax purposes.
Additionally, 22 Holdco services more than 1.16 billion pounds in debt obligations and only in the 2023/24 season did it pay about 94 million pounds in interest on loans.
While the club continues to fight for a spot in the Champions League, the men's team is preparing for a match against Ipswich on Sunday, and the women's team will face Liverpool in the FA Cup semi-final on Saturday.
