Chelsea has become the latest Premier League side to report heavy losses for the most recent financial year. Everton has already been charged twice for breaching the league’s profit and sustainability rules. The Toffees were docked six points and may soon face another penalty. Nottingham Forest was previously charged with similar violations as well. Aston Villa also reported over $150 million in losses earlier in the week.

The Blues have now publicly reported that they have endured a pre-tax loss of nearly $115 million for the 2022/23 financial year. This particular timeframe ended on June 30th, 2023. The massive hit comes after the west London club declared a loss of $154 million the previous season.

The figures put fresh doubt on Chelsea’s ability to remain within the Premier League spending laws. UEFA also has Financial Fair Play rules in place as well. Rules currently state that English top-flight teams cannot record losses exceeding $133 million for three years.

Nevertheless, Chelsea claims to be currently safe from breaching these financial issues. “Despite the loss in the year and the continued fallout from the sanctions placed on the club in the prior year, the club continues to comply with UEFA and Premier League financial regulations,” the Blues said in an official statement.

American investors in team have spent $1 billion on new players since 2022

Chelsea has been the target of scrutiny from fans and pundits for decades now. The club regularly spent freely during the previous ownership of Russian oligarch Roman Abramovich. However, American investor Todd Boehly and his group have continued splashing the cash since taking over in 2022.

Boehly and company have recorded a net spend of over $800 million in transfer fees since purchasing the team. These moves were highlighted by massive deals to sign Enzo Fernandez, Moises Caicedo, Wesley Fofana and Mykhaylo Mudryk. All four of these players cost the club over $85 million each.

Although Chelsea has spent an extraordinary amount of money in recent transfer windows, the deals have not exactly paid off. The Blues finished a disappointing 12th in the English top-flight table following the 2022/23 campaign. Boehly’s club is also now 11th in the standings, despite not having to worry about a European competition.

Club claims that turnover and revenue are both on the rise

Despite the massive reported losses, Chelsea opted to look at the bright side of things in their statement. The club claims that their turnover reached record highs during the previous financial year. The UK government aided this figure, which was as high as $655 million. That eased restrictions on the team following sanctions previously placed on Abramovich.

Along with turnover, commercial revenue was also up compared to the previous year. The club claims that the lifted government sanctions helped this figure grow. However, other factors such as stadium tours and other non-matchday activities boosted revenue as well.

Nevertheless, most expect Chelsea to sell several key stars during the summer transfer market to comply with financial laws. The club could raise fairly significant funds by choosing to part ways with players such as Conor Gallagher, Armando Broja and Trevoh Chalobah.