Blues were banned from selling tickets and signing players while under a special licence due to Roman Abramovich’s connections with Russia president Vladimir Putin following the country’s invasion of Ukraine; however, turnover and commercial revenue increased in the period.
Chelsea say Government sanctions imposed on former owner Roman Abramovich were a factor in the club posting losses of £121m in 2021/22.
Russian billionaire Abramovich was sanctioned by the UK Government in March 2022 as it sought to freeze the assets of individuals it believed had connections to the country’s president, Vladimir Putin, following the invasion of Ukraine.
Chelsea were placed under a special licence, which restricted their ability to sell tickets, accept event bookings and even sign contracts with players.
Chelsea said turnover had increased to £481.3m from £434.9m the previous year despite the sanctions. Commercial revenue increased to £177.1m.
The financial results do not capture Chelsea’s summer 2022 or January 2023 acquisitions, when they spent around £600m on new players.
The 2021/22 results show £118m was invested in the playing squad but a profit of £123m was made on player sales including Tammy Abraham, Marc Guehi, Fikayo Tomori and Kurt Zouma.
The club said they continued to comply with UEFA and Premier League financial regulations despite the losses and the impact of the Government sanctions.
The losses were attributed to increased operating expenses including matchday and non-matchday costs.
The restrictions remained in place until May 30 last year when a new consortium led by American businessman Todd Boehly completed its takeover of the club.
The Blues released their annual accounts on Monday and said the impact of the sanctions would be felt “in the following years”.
“Despite the loss in the year and the operating challenges due to the sanctions, the club continues to comply with UEFA and Premier League financial regulations,” said the club in the announcement of the results on their website.