Chelsea have announced losses of £70.6m for the year ending June 30, citing exceptional costs, but have also posted their highest-ever turnover.
The club’s turnover of £329.1m, announced on their official website, was significantly higher than the £314.3m announced for the previous year. That resulted in a profit for the Stamford Bridge club, before £75.3m in exceptional costs centring on a £40m penalty for cancelling a kit deal with Adidas.
Chelsea replaced Adidas as their official kit manufacturer with Nike, reaching an agreement that is reported to be worth £60m a season. Chelsea said next year’s results will reflect this deal.
Chelsea announces record-breaking revenue of £329m
BUT club takes record-breaking loss of £71m resulting from buying adidas out of kit deal
— Jake Cohen (@JakeFCohen) December 16, 2016
Chairman Bruce Buck said: “The fact Chelsea Football Club recorded our highest revenues in a season when on-pitch performance was disappointing is a credit to our hard-working, dedicated staff and the robust business they have helped build.
“It has long been our aim for the business to be stable independent of the team’s results and we continue to reinforce that.”
The £70m loss reflects Jose Mourinho’s turbulent final season in charge of the Blues, in which the club only managed a 10th-placed finish in the Premier League.
The Blues also spent over £100m in players in the summer of 2015 under the Portuguese coach, but managed to recoup a significant portion of that with the sales of Filipe Luis and Ramires.
Chelsea also paid Mourinho’s substantial compensation package following his dismissal last December. The club are expected to recoup £60m for Brazilian midfielder Oscar, who is expected to leave for Chinese club Shanghai SIPG.