Chelsea announce net loss of £70.6m for financial year ending
Chelsea have announced a net loss of £70.6m for the financial year ending 30 June 2016, with the deficit born of the Premier League leaders’ decision to buy out their existing kit deal with Adidas and the compensation paid to José Mourinho following his sacking last December.
The club registered a record turnover of £329.1m, up 5% on the previous year’s £314.3m, and yet their overall profit of £4.7m was eclipsed when exceptional costs were taken into account. Mourinho and his coaching staff were dismissed just a few months after signing new terms, with the team struggling near the fringes of the relegation zone, and considerable compensation was due to Adidas for the early termination of that contract.
Despite the lack of Champions League football this season following a 10th-place finish in 2015-16, next year’s figures will be boosted by the record £60m-a-season deal since signed with Nike, together with increased revenues from Premier League broadcast deals.
“The fact Chelsea Football Club recorded our highest revenues in a season when on-pitch performance was disappointing is a credit to our hard-working, dedicated staff and the robust business they have helped build,” the chairman, Bruce Buck, said. “It has long been our aim for the business to be stable independent of the team’s results and we continue to reinforce that.”
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