Following the sale of its women team, English football club giant, Chelsea, has reported a pre-tax profit of £128.4 million in their financial results for the year ending June 2024.
The club added that its matchday revenue increased to £80.1 million for its financial year, from £76.5 million in the previous results.
Commercial revenue also increased from £210.1 million in 2023 to £225.3m due to “an increase in player loan income and strong sales of non-matchday activities”.
The figure was an improvement on the first full year under the ownership of Todd Boehly’s Clearlake Capital consortium, in which the Premier League club announced pre-tax losses of £90.1m.
Chelsea’s overall revenue fell from £512.5 million in 2023 to £468.5 million, which the club attributed to the absence of Champions League football for their men’s side.
The club credited the profit to the “disposal of player registrations” worth £152.5 million and the restructuring of its women’s team.
Chelsea announced a restructuring and a long-term strategic plan for the women’s team in May 2024 which saw them sold to become a stand-alone business from the men’s side while remaining a part of the club owners’ wider portfolio.
The club’s statement on Monday pointed to how the club improved their financial health, avoiding breaking Premier League’s profit and sustainability rules (PSR).
The position was strengthened in the previous financial results by the sale of two hotels by Chelsea FC Holdings Ltd to BlueCo 22 Properties Ltd, a deal between companies under the control of the Todd Boehly and Clearlake Capital ownership.
That £76.5 million sale meant Chelsea made a loss of £89.9 million instead of £166.4 million in their 2022-23 accounts.
Chelsea may have made an even greater gain with the sale of the women’s team to BlueCo, with that 2024 transaction worth either part or all of the £198.7m “profit on disposal of subsidiaries” mentioned in the club accounts.
Without that, Chelsea may have made a significant loss, considering that in a season without European football, the club again made substantial player purchases while not having a front-of-shirt sponsor.
Only when the full financial results are released on Companies House will it be absolutely clear what impact the women’s team transaction has made.
Chelsea’s strategy is entirely within Premier League rules. Uefa has more stringent rules and it remains to be seen whether European football’s governing body considers any action.
Chelsea believe their move benefits the women’s team, which is gaining investment while a separate entity.
