Chelsea announces record revenue for FY ending 2016-17

Chelsea announces record revenue for FY ending 2016-17 - InsideSport

Premier League reigning champions Chelsea have reported record revenue of $489.7m (£361.3m / €405.9m) for the financial year ending June 30, 2017. This is a 9.8% increase from the previous year’s turnover of $446.22 m (£329.1m), despite not taking part in Champions League last season. Chelsea also posted a profit of $ 20.74 m (£15.3m) for the year ending June 30, 2017, following the title-winning season 2016-17 of the premier league.

The Premier League club’s commended partnerships with the likes of energy drink brand Carabao was a key factor in driving the revenue during 2016-17. Carabao became a principal partner and the official training wear partner of the club ahead of the 2016-17 season. The three-year deal concludes at the end of the 2018-19 campaign.

With ticket prices frozen since the 2011-12 season, Chelsea’s home matches at Stamford Bridge continued to sell out during the 2016-17 season.The match day revenues for 2016-17 though fell slightly due to the club not competing in either of UEFA’s club competitions following a 10th-placed Premier League finish in 2015-16.

Chelsea has reportedly recorded an operating loss for the year, but reported an overall profit after bringing in $93.83m (£69.2m) in player sales. Brazilian star Oscar was the most notable outgoing player, joining Chinese Super League club Shanghai SIPG for a reported fee of $81.35m (£60m) during the 2016-17 winter transfer window.

Chelsea said the results ensure that the club continues to comply with UEFA’s break-even criteria under Financial Fair Play regulations. Chelsea also projects that overall revenues will grow further for the 2017-18 financial year due to club’s participation in the Champions League and a new technical partnership with US sportswear company Nike. The deal has come into effect from July 1, 2017.

Chelsea chairman Bruce Buck said: “It is very pleasing we matched significant achievement on the pitch in 2016-17 with a successful year commercially. Our business has continued to grow long-term and to be able to post record turnover figures despite not playing Champions League football during that period highlights this strength.

“Our fans played a major part, by supporting the team towards lifting the Premier League trophy, coming to our matches in large numbers, and our ever-increasing global fan base has helped important commercial partnerships to be formed. We thank our supporters, partners, and staff for a successful 2016-17.”

Chelsea’s revenues are expected to rise again for the 2017-18 financial year due to the club’s return to the Champions League, plus a major new commercial partnership with Nike.

However, Chelsea’s ultimate parent company, Fordstam Limited, reported a consolidated loss of $19.93m (£14.2m) for the 2016-17 year. A club statement said this was “largely due to new stadium planning costs and losses at non-football ancillary businesses”.

Chelsea was given the green light to expand Stamford Bridge in January 2017. The project will increase the stadium’s capacity from 41,500 to about 60,000.