Chelsea Financial Results 2023/24

The 2023/24 season was Chelsea’s 35th consecutive campaign in the top flight of English football.

Following a deeply disappointing 12th-place finish in 2022/23, the new season began in similarly underwhelming fashion. However, a strong run of form—just one defeat in their final 15 matches, including five straight wins to close the season—lifted them to 6th place and secured qualification for the Europa Conference League. While still below the expectations of a club that has spent over £1 billion on player transfers across the past two seasons, it offered a measure of progress. They also had good domestic cup runs reaching the semi-final of the FA Cup and losing to Liverpool in the final of the Carabao cup. Meanwhile, the managerial carousel continued, with Mauricio Pochettino departing after just one season in charge.

Off the pitch, Chelsea’s financial results have been dominated by controversial asset sales within the Blueco 22 ownership group. In 2022/23, the club 'sold' two hotels, generating £76 million (later revised down by £6 million). In 2023/24, they 'sold' the club’s Women’s team for £200 million. Both deals were transacted between Chelsea Football Club and an entity within the Blueco 22 Limited group. Both have been approved by the Premier League for Profit and Sustainability Rules (PSR) purposes, although the valuation of the Women’s team remains under review, with the club's accounts noting the potential for a "material change" pending the Premier League’s final assessment.

Regardless of the intent behind these transactions, there's little doubt they have been instrumental in helping Chelsea avoid PSR breaches. Without these asset sales, the club’s three-year losses—covering the PSR assessment period—would have reached £358 million. Even after standard adjustments (including youth development, Women’s team operations, and depreciation), this would far exceed the permitted three-year loss threshold of £105 million.

Assuming the £200 million valuation for the Women’s team holds, Chelsea now has considerable financial headroom over the next two seasons. With adequate financing, the club could sustain annual losses exceeding £120 million and still remain within PSR limits.

Overview of Chelsea's Financial Results Season 2023/24

Chelsea’s financial performance was also impacted by their absence from European competition-the first time in 25 years. After reaching the Champions League quarter-finals the previous season, total revenue declined as expected—from £512 million to £468 million. However, the club reported a league-high profit of £128 million, driven by the one-off gain from the sale of the women’s team. However, Chelsea also recorded the biggest operating loss in the league—£213 million—which is measured before exceptional items and interest.

Financial Highlights for the 2023/24 Season:

Turnover:

• Turnover fell by £44 million to £468 million, ranking as the sixth highest in the Premier League.

• Matchday revenue increased by £4 million to £106 million, partly due to two good domestic cup runs.

• Premier League broadcast distributions increased by £21 million to £159 million, driven by a higher league finish, but UEFA distribution dropped by £81 million.

• Commercial revenue rose 7% to £225 million, boosted by player loan income.

Staff Costs:

• Staff costs saw a 12% fall to £529 million, still the third highest in the league.

• Before accounting for player sales, staff costs represented 113% of total revenue—one of the highest ratios in the league, and significantly higher than other big 6 clubs.

• Profits from player sales totaled £152 million, the highest in the league.

  
  

Profitability:

• The club recorded a pre-tax profit of £128 million, the highest in the league, but driven by £199 million profit from the sale of the Women's team.

• Operating losses (profit before exception items and interest) were £213 million by far the biggest operating loss in the league (Aston Villa record the second biggest operating loss of 145 million).

Player Trading:

• Chelsea invested £553 million in new signings—the highest spend in the league, and double second highest Tottenham. This brings the total invested over the last two seasons to £1.3 billion.

• Net transfer spend stood at £336 million, also the highest in the league, after £189 million was generated through player sales.

• Player Net Book Value (acquisition cost less amortisation) again is the highest in the league and almost double Man City, the second highest.

Football Debt:

• Chelsea has both outstanding loans due to and from their parent company Blueco 22 Midco of around £300 million. These in affect net each other off.

• Chelsea do not publish amounts due to and from other clubs for outstanding transfer fees, however we estimate this to be a net £225 million, the third highest in the league.

Cash Flow:

• Operating cash flow was negative at -£10 million as a result of operating costs exceeding revenue.

• An additional £315 million was raised through a share issue and £54 million in loans.

  
  

This season has brought further improvement on the pitch, with Chelsea well-positioned to secure one of the five Champions League spots, although the race remains highly competitive. The club has also reached the final of the Europa Conference League, UEFA’s third-tier competition.

The financial results for the 2024/25 season will show an increase in turnover, driven by their European cup run and a few additional fixtures. However, expenses are also set to rise, partly due to eight overseas matches. Meanwhile, profit from player sales is expected to fall to around £30 million, excluding any potential late-season deals. As a result, the club is likely to report significant losses—potentially as high as £150 million—unless further asset sales are in the pipeline.

Ownership Structure

This report is based on the financial accounts of Chelsea FC Holdings and its subsidiaries. To better understand the context, it is helpful to outline the key entities in the ownership structure:

22 Holdco Limited

This is the ultimate parent company and is owned by two main investment groups:

• 61.54% by Blues Investment Midco L.P., a company controlled by Clearlake Capital Group, whose principals are Behdad Eghbali and Jose E. Feliciano

• 38.46% by Blueco 22 Holdings L.P., a group led by Todd Boehly, also including Hansjörg Wyss and Mark Walter

Their only direct investment is in Blueco 22 Limited.

Blueco 22 Limited

Fully owned by 22 Holdco Limited, this entity owns:

• 100% of Blueco Midco Limited

• Several property companies

Blueco 22 Midco Limited

A wholly owned subsidiary of Blueco 22 Limited, this company controls:

• 100% of Chelsea FC Holding Company, the central entity covered in this report

• 100% of Chelsea Football Club Women Ltd.

• 99.97% of Blueco Alsace, the owner of Racing Club de Strasbourg

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Chelsea FC Holding Company

Wholly owned by Blueco 22 Midco Limited, this is the primary football operations company and the focus of this report. It includes Chelsea Football Club Ltd.

Intra-Group Asset Sales

The two intra-group asset sales that Chelsea completed over the last two years were sales from subsidiaries of the Chelsea FC Holding Company and are:

1. Millennium and Copthorne Hotels sold for £76.5 million (later revised down by £6 million) to a subsidiary of Blueco 22 Limited

2. Chelsea FC Women was transferred from Chelsea Football Club to a subsidiary of Blueco 22 Midco Limited

   
   

Group Financial Highlights

While the group contains numerous entities, Chelsea FC Holding Company accounts for 89% of the total revenue of the group. The remaining 11% comes from Racing Club de Strasbourg.

The accounts of the parent entities give further insights into the financial performance of the group. Although Chelsea FC Holding Company reported a £128 million profit, the parent company Blueco 22 Limited recorded a £402 million loss. Part of the difference is that the profit from the Women's team sale is excluded. The accounts also include a £14 million loss from Racing Club de Strasbourg, £125 million write-off related to brand and goodwill impairments plus £50 million in interest payments, stemming from the groups £1 billion in debt.

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Chelsea Turnover 2023/24

With no participation in UEFA competitions, turnover fell by £44 million to £468 million, ranking as the sixth highest in the Premier League.

Broadcast revenue dropped to the lowest in five years, however commercial and matchday revenue are a record levels.

Matchday Revenue

Matchday revenue is driven by several factors, including the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception is domestic cup matches, where revenue is shared between the clubs and the FA.

For a member of the Premier League’s “big six,” Chelsea is limited by the capacity of Stamford Bridge, which holds just 40,000—over 20,000 fewer seats than Arsenal, Tottenham, Manchester United, and Liverpool. However, as a West London club, Chelsea benefits from high pricing. Their average matchday revenue per fan stands at £86, matching their London rivals and surpassing both Liverpool and the Manchester clubs.

Despite the smaller stadium, Chelsea’s total matchday revenue of £80 million still ranks fifth in the Premier League.

This season, Chelsea implemented their first ticket price increase in several years, raising prices by approximately 5%. With a similar number of home fixtures to last season, this is expected to result in a modest increase in matchday revenue.

Discussions are ongoing about the future of the club’s stadium—whether to redevelop Stamford Bridge or relocate to a new site, with Earls Court emerging as a potential option. Either path would be highly complex and costly. The issue has also reportedly caused some tension within the ownership group, with majority owners Clearlake and minority shareholder Todd Boehly holding differing views on the best way forward.

Broadcast Revenue

Broadcast revenue is primarily generated through central Premier League distributions, UEFA payments for European competition, and the club’s own media operations. With no European involvement in the 2023/24 season, Chelsea’s broadcast income came almost entirely from Premier League sources.

In the previous season, Chelsea earned £81 million from Champions League participation. While that revenue was lost in 2023/24, it was partially offset by a stronger domestic league finish, which increased their Premier League payout by £21 million to £159 million. As a result, total broadcast revenue reached £163 million—ranking 10th in the league and trailing all clubs that competed in Europe.

This season’s Europa Conference League campaign—and potential victory—will generate an estimated £15–20 million in revenue. While this is significantly lower than the earnings from Champions League participation, it still represents a meaningful boost. Additionally, a higher Premier League finish could bring in a further £3–6 million, offering some financial upside for the current season.

Commercial Revenue

Commercial revenue—which includes sponsorships, retail, merchandising, tours, events, and player loan revenue—reached £225 million in the 2023/24 season, representing a 7% increase year-over-year. This is a good result, especially given the absence of European competition and is still just higher than Arsenal, although it is likely most of this increase is due to income from players out on loan, which included Lukaku, Ziyech and Moreira,

Their commercial revenue is also significantly below Liverpool and the Manchester Clubs and has only grown £40 million (22%) over the last six seasons.

One of the key commercial challenges has been securing a front-of-shirt sponsor—a deal that can generate £50–60 million annually for top clubs. In recent years, they’ve gone through periods without a sponsor, though they did partner with Infinite Athlete for the 2023/24 season on a one-year deal reportedly worth £40 million. For most of the current season, the shirt remained sponsorless until a recent agreement with Damac, a Dubai-based property development company, was signed to cover the remainder of the campaign.

Season 2023/24 Staff Costs

Chelsea’s total staff costs—which include wages and player amortisation (spreading transfer fees over the length of a player’s contract)—fell by £75 million in the 2023/24 season. This drop was primarily driven by a high number of player departures and the club’s absence from the Champions League.

Chelsea’s amortisation costs stood at c191 million—still the highest in the Premier League—reflecting the impact of over £1 billion spent on player acquisitions. This figure would have been even higher if not for the long-term contracts offered to several players, some lasting up to eight years, which allow the costs to be spread over a longer timeframe.

However, under the Premier League’s Profit and Sustainability Rules (PSR), amortisation is capped at five years for financial reporting purposes. This means Chelsea’s amortisation would be recalculated using a five-year limit, potentially increasing the reported cost substantially.

When combined with salaries and wages of £338 million, Chelsea’s total staff costs reached £530 million—making them the third highest in the league, behind only Manchester City and Manchester United.

In the 2023/24 season, Chelsea’s staff costs before accounting for player sales exceeded their total revenue, with a wage-to-revenue ratio of 113%. This is significantly higher than other ‘Big Six’ clubs—Manchester United had the second-highest ratio at 84%, while Tottenham Hotspur's stood much lower at just 68%.

This ratio highlights the sustainability—or lack thereof—of a club's current staff costs. A high wage-to-revenue ratio typically signals the need to offload players. The approach is: spend heavily on wages to build a competitive squad, but if performance falls short of driving revenue growth, sell players to reduce costs. It’s a high-risk strategy, as it depends on having enough valuable players to sell without weakening the squad.

Clubs competing in Europe also face UEFA’s squad cost control rules, which now cap eligible staff spending at 70% of revenue. While Chelsea currently appears far from this target, UEFA’s calculation only includes player and head coach wages, and it also factors in profit from player sales.

Assuming that player and head coach wages account for roughly 75% of total salaries, Chelsea’s adjusted ratio would be around 95%—still well above the UEFA limit. However, the £152 million earned from player sales in 2023/24—a substantial figure—would bring their ratio close to the 70% threshold and within UEFA’s limits.

Profit on Player Sales

In the 2023/24 season, Chelsea sold academy graduates Mason Mount, Ian Maatsen, Lewis Hall, and Omari Hutchinson. Since all were developed in-house, the full value of each transfer counted as pure profit in the accounts, contributing to a record-breaking £152.5 million in profit from player sales—the highest ever reported by a Premier League club. This figure, however, sits against the backdrop of over £500 million spent on new signings.

Season 2023/24 Profit and Loss

Chelsea’s financial structure heavily depends on exceptional items to stay within regulatory limits. When looking at EBITDA (earnings before interest, taxes, depreciation, and amortisation, excluding exceptional items), the club has recorded a combined loss of £28 million over the past six years—including a £8 million loss in the 2023/24 season alone.

In contrast, most other Big Six clubs typically generate annual EBITDA figures exceeding £100 million, highlighting the significant gap between Chelsea and their rivals in terms of underlying profitability.

Chelsea’s 2023/24 EBITDA of -£8 million was the fourth lowest in the Premier League.

After accounting for non-cash items of depreciation and amortisation costs, Chelsea recorded an operating loss of over £210 million in the 2023/24 season—the largest in the Premier League by a wide margin. In fact, the club has posted operating losses exceeding £200 million in each of the last four seasons.

As a result, Chelsea has become heavily reliant on profits from player sales—and, more recently, from asset sales—to bring their financial results in line with the Premier League’s Profit and Sustainability Rules (PSR). Without these asset sales, the club would have accumulated losses of £358 million over the past three seasons. However, when the asset sales are included, the total loss over that period is reduced to just £83 million.

Chelsea reported profit of £128 million for the 2023/24 season is the highest in the Premier League. However, excluding the £199 million from the sale of the Women’s team, the club would have posted a £71 million loss, ranking among the worst in the league—better than only Aston Villa and Manchester United.

This season’s financials are expected to follow a similar trend. Revenue is likely to increase, boosted by Chelsea’s run in the UEFA Conference League and the potential for a higher league finish. However, with costs also projected to rise operating losses are once again expected to exceed £200 million.

Profit from player sales is likely to decline, unless the club makes significant sales early in the summer transfer window. Without such sales, Chelsea could be facing a total loss of over £150 million. However, with the buffer provided by the recent asset sales, even a loss of this scale will not result in a breach of Profit and Sustainability Rules (PSR).

Season 2023/24 Player Trading

Chelsea’s player trading activity over the past two seasons has been extraordinary. After spending a staggering £745 million on player acquisitions in the 2022/23 season, the club invested another £553 million in 2023/24. Notable signings included Cole Palmer, Moisés Caicedo, Robert Sánchez, Roméo Lavia, Christopher Nkunku, Axel Disasi, Kiernan Dewsbury-Hall, Lesley Ugochukwu, and Omari Kellyman.

At the same time, Chelsea generated £189 million in player sales, with academy graduates Mason Mount, Ian Maatsen, Lewis Hall, and Omari Hutchinson among those departing.

Once again, Chelsea led the Premier League in both player acquisitions and player sales—by a considerable margin.

This level of investment has resulted in Chelsea assembling the most expensive squad in Premier League history. The squad's book value—calculated as the original transfer fees minus accumulated amortisation—stands at £1 billion, nearly double that of the next highest, Manchester City.

Beyond the significant cash outlay, this also means Chelsea must amortise a substantial amount over future seasons, which directly impacts profitability and key financial metrics such as UEFA's (and the proposed Premier League’s) squad cost ratio.

Chelsea's rate of player acquisitions has eased slightly this season, though the club still spent approximately £170 million—an amount that remains substantial by Premier League standards. Given the size and cost of the current squad, the club has chosen to loan out a considerable number of players, with around 20 spending time away on loan this season.

This appears to be part of a broader strategy: retain players on the books, allow them to develop and increase in value, and then either integrate them into the first team or sell them for a profit. Of course, the success of this approach depends on both player development and market demand—factors that don’t always go as planned.

Football Debt

Chelsea's only debt is £300 million due to its parent company. It also due from the parent company, which mean the two in affect net each other off.

It is important to note, that whilst Chelsea FC Holding Company have no net debt, their parent entities, Blueco 22 Limited and 22 Holdco Limited have 1 billion in bank loans.

Cash Flow

So where does the money come from to fund Chelsea’s extravagant player acquisition spree? It certainly isn’t generated from day-to-day operations, as the club produces very little cash due to high operating costs relative to revenue. In the 2023/24 season, Chelsea reported an operating cash flow (cash flow before investments and financing) of negative £10 million.

The club spent £589 million on player purchases while generating £189 million from player sales. An additional £12 million was spent on facilities, leaving a funding shortfall of £421 million.

The ultimate source of funds lies in the £1 billion in loans held by the club’s holding companies. From the perspective of Chelsea FC Holdings Ltd, this funding is in the form of equity, with a further £315 million raised during the 2023/24 season. The club also increased its parent company loan by £55 million, with the remaining gap covered by cash reserves.

Financial Outlook

Chelsea’s current financial challenge lies in the lack of any margin between revenue and operating costs, as reflected by their near-zero EBITDA. While turnover is expected to increase this season—driven primarily by their European campaign—operating expenses are also set to rise.

As a result, the club is again likely to report significant operating losses before player sales, potentially exceeding £200 million. Chelsea therefore continues to reply on income from player sales to reduce this. So far, they have reported only £28 million in profit from such sales, though this figure could increase if further transfers are completed before the June 2025 financial year-end.

Without additional player sales or other assets to monetize, Chelsea could be facing a total loss of over £150 million. However, the recent asset sales provide a significant buffer, meaning that even a loss of this magnitude is unlikely to trigger a breach of the Premier League's Profit and Sustainability Rules (PSR).

Despite these financial pressures, Chelsea shows no sign of shifting its strategy. The club has already spent another £170 million on players this season and has secured future signings of young talents such as Estevão, Essugo, Quenda, and Denner over the next two years.

Should Chelsea qualify for the Champions League—as they are currently on track to do—they would receive a significant financial boost, potentially up to £100 million next season. However, this will likely be accompanied by rising costs. If they can consistently qualify for the Champions League, their reliance on player sales to balance the books could ease somewhat, though with their current operating model, it is unlikely to disappear entirely.