Phil SumblerIf you thought the £38m that Bristol City lost was an eye watering figure then today’s release of the Chelsea accounts show a loss of more than £145m in the 12 months and a staggering more than £1bn owed to a host of companies.
Their turnover went up from £387.8m to £416.8m thanks to an increase in broadcasting revenue.
But the club say playing games with no crowds because of Covid-19 and a reduction in profit on player sales were the main reasons for the loss.
Chelsea FC PLC continues to be supported financially by Fordstam Limited, a company owned by Roman Abramovich – with confirmation in the accounts that the club owes more than £1bn to “related companies”.
The accounts say that “the company is reliant on Fordstam Limited for its continued financial support”. It says Fordstam has indicated support will continue “for the foreseeable future”.
These figures are staggering and one that creates the problems that we saw last season when Chelsea were one of a handful of English clubs who were committed to a breakaway European super league. That was halted with clubs backtracking very rapidly but unfortunately, over a 20 year period, these are facts and figures that the FA have allowed to happen and it is the “big” clubs that have long since controlled the game, not the governing body.
Look back earlier this season when Newcastle’s takeover was announced. Cue Geordies in their thousands celebrating the “return” of their club from Mike Ashley. Not sure where they thought it was returning to as the ownership was as far from the Gallowgate end as is feasibly possible. Newcastle United became another pawn that day in the same game that sees so many Premier League clubs becoming exactly the same – a rich person’s play thing for as long as they want it to be.
Chelsea can be as grateful as they want to Fordstam for their financial support but if the price of success is a £1bn debt around your necks then right now you can keep that success. At some point it will implode and, for all the money Fordstam and Abramovich have you do not get to have that amount by accepting that you just lose the occasional billion pound here and there.
Chelsea have been lucky over the years under Abramovich although they have lost some of their hardcore fan base to be replaced by soulless corporates or plastics who would not worry if they were to end the success tomorrow. They won’t worry about a club for future generations they will simply bark their “Champions of Europe, you’ll never be that” song ignorantly not worrying that their club owes more money than your average small country.
Chelsea are not alone of course – we mentioned Newcastle and we can never forget Manchester City amongst others. Spending money like it is going out of fashion. Buying players for staggering amounts of money and paying weekly wages that would feed a family of their longer term supporters for a lifetime. Financial fair play? Let the FA explain how that possibly is a thing in a Premier League. You owe £1bn and you cannot be living anywhere near within your means but the weak and powerless FA continue to turn a blind eye.
The Premier League is not a closed shop (although their 20 members at any one time would want it to be) but it is nowhere near a level playing field. Bristol City lost £38m and they only harbour ambitions to be there, other clubs live with the pain for years of actually being there and trying to compete. It’s a poisoned chalice to get promoted and one that can financially destroy even the most sustainable looking of clubs.
I am sure there are those within the FA that would love to see things change but they have allowed things to drift for so long that they are now powerless in the face of it. The deal to take over Newcastle was wrong for so many reasons but they sanctioned it and it happened. Driven by the desperation of a fanbase which wanted rid of their owner and by the desire to sell out to a multi billionaire who may finance the occasional trophy at St James Park but at what price on the club’s accounts? And still at a club who is facing every possibility of playing second flight football next season. Let’s see how financial fair play works then!
Unfortunately nothing will ever change until the FA gain back control of the game – the control they gave away when money came so heavily into the game. Unfortunately that will never happen because in every industry money talks and the FA are happy to give up that power. You can draw your own reasons why.
For all of the success Chelsea have had under Abramovich I would never swap the heritage of our football club for a £1bn debt, they won’t be first and they won’t be last and this is why so many people remain so distanced from football in the 21st century.
