In the previous year, Chelsea announced that they had made more than 120 million pounds in profits before taxes, and they also sold their women’s team to themselves.
In a statement released on Monday, the Blues revealed that they had achieved a profit of 126.4 million pounds before taxes for the fiscal year that ended on June 30, 2024.
Nevertheless, they have not yet made public their comprehensive financial report for the period in question.
The profits are in contrast to the loss of £90.1 million that was incurred in the year prior to the previous season.
It has been stated by the club that the turnaround can be attributed to “increased profit on disposal of player registrations and repositioning of Chelsea Football Club Women Ltd.”
Due to the fact that Chelsea Holdings sold their women’s team to BlueCo, the club’s owners, this development has taken place.
In addition, Chelsea sold two hotels and Kingsmeadow, the venue where their women’s and under-21 teams compete, to purchase the property for themselves.
There is a widespread belief that this enabled them to avoid any breaches in their Profit and Sustainability (PSR) policies.
In spite of the fact that the Blues have not violated any Premier League regulations, Ally McCoist is concerned about the move.
In an interview with Breakfast, the co-host of talkSPORT stated, “It just makes a mockery of it.”
“Let’s be completely forthright about it: they have established a rule, and clubs, especially Chelsea, are not breaking it; rather, they are bending it to suit their own needs.
That being said, you can’t really hold it against them in any way, because as long as they are following the rules, they have the right to do what they want to do.
“You can guarantee they’ll be exploring the avenues right now as we speak, but how do you stop it?”
During this time, the situation was discussed on White & Jordan by Stefan Borson, a financial expert.
What he said in response to the question of whether Chelsea had “outsmarted” everyone was, “It depends what you call outsmarting.”
Borson later made the following clarification: “What they have definitely done is they’ve found gaps in the Premier League rules that allow them to avoid failing PSR.”
But he insisted that there is no threat to the Chelsea Football Club’s ability to continue with its operations.
“I am not in the least bit suggesting that there is any problem with the viability of the Chelsea football club,” he stated. In spite of the fact that their owners are investing equity in the club at the same time, there is absolutely no issue whatsoever.
“As long as the owners continue to put money into it, it is adorable and perfectly sustainable. It was sustainable when Abramovich invested money in it, and it is sustainable when the owners of City invest money in it on a consistent basis. The fact that Jim Ratcliffe invests hundreds of millions of dollars in Manchester United makes it sustainable.
According to the Profit and Sustainability Rules (PSR) of the Premier League, clubs are only allowed to incur losses of up to £105 million over the course of three years.
Due to violations of the regulations, Everton and Nottingham Forest both had their points deducted from their totals during the previous season.
Despite the fact that the rules are going to be altered, the shareholders of the Premier League decided in February to postpone the elimination of PSR.
On the contrary, the regulations that are currently in place will continue to be enforced for at least one more season.
This comes as a result of a postponement in the implementation of a squad cost ratio approach similar to that of UEFA, which restricts a club’s spending on wages and transfer fees to a predetermined percentage of its total income.
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