It’s a well-known fact that the sports industry is huge and that soccer is one of the most popular sports in the world. However, even clubs as big as Chelsea seem to have struggled over the past financial year.
The club has recently announced its results for the year ending on June 30, 2021, registering a post-tax loss worth $196.4 million. Chelsea FC concluded the prior year more successfully, with a profit of some $49 million.
Matchday income also plummeted, going from $62 million to $9.7 million.
The COVID-19 pandemic has had a major impact on the sports industry, primarily in the sense that events can be canceled or played without an audience because of anti-COVID measures, leading to significant economic consequences.
Chelsea FC Chairman Bruce Buck claims that they would have seen record-breaking turnover if COVID-19 had not affected the matchday income. In addition, he believes the club’s finances will continue to reflect pandemic-induced issues.
Therefore, we’re not surprised that many European soccer clubs also recorded losses in the said period.
If we look at Manchester United, the club saw losses of $126.8 million before June 2021. Additionally, Juventus posted a loss of $246.6 million, and its revenue went down by 16% y-o-y.
On the upside, Chelsea’s broadcasting revenue increased from $246.3 million to $369.3 million. This is attributed to the club’s good performance in the Champions League and the delayed 2019–20 season.
Nobody can tell what exactly the future holds for Chelsea FC, but we know it has some of the best soccer players in the world. Thus, we feel hopeful that recovery is coming soon.