Chelsea announce annual losses after tax of £145.6m despite turnover rising to £416.8m

Roman Abramovich has been Chelsea owner since 2003

European champions Chelsea have announced losses of £145.6m after tax for the year to 30 June 2021.

Their turnover went up from £387.8m to £416.8m thanks to an increase in broadcasting revenue.

But the club say playing games with no crowds because of Covid-19 and a reduction in profit on player sales were the main reasons for the loss.

Chelsea FC PLC continues to be supported financially by Fordstam Limited, a company owned by Roman Abramovich - with confirmation in the accounts that the club owes more than £1bn to "related companies".

The accounts also say that "the company is reliant on Fordstam Limited for its continued financial support". It says Fordstam has indicated support will continue "for the foreseeable future".

The club adds that under a "severe but plausible downside scenario of football being played behind closed doors in December 2021 and January 2022" it would be reliant on additional funding from Chelsea FC PLC, with further funds needed if the financial impact of Covid-19 were even more severe.

Premier League and EFL clubs recently chose to fulfil festive fixtures despite ongoing Covid-19 disruption, including a series of postponements and a record 103 Premier League players and staff testing positive for Covid in the seven days up to and including 26 December.

Chelsea's accounts also say there is £24.1m owed due to unspecified "ongoing legal matters" - while the club also decided an "impairment loss" of £17.9m was necessary against the value of its squad.

The club say since 30 June they have signed three players for a total of £109.7m - striker Romelu Lukaku, goalkeeper Marcus Bettinelli and midfielder Saul Niguez, on loan from Atletico Madrid.

In the same period they say they have sold 13 players for a combined £103.7m. They could also receive up to £16.4m if outstanding clauses in previous transfers are all met.

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