Chelsea have revealed that selling their women’s team to the club’s parent company has helped them avoid any potential profit and sustainability breaches as they posted a £128.4 million profit.
Just two days before the deadline for the 2023-24 finances to be registered, Chelsea transferred the ownership of the women’s team to BlueCo 22 Midco. The move prompted a review by the Premier League, but Chelsea have credited the decision with helping the club post a profit in their accounts for the year ended June 30, 2024.
Telegraph Sport reported last July how the sale of the women’s team faced fair market value scrutiny as the deal effectively helped the men’s team fall within the Premier League’s Profit and Sustainability rule (PSR) limits. Sources close to Chelsea dismissed suggestions the club was exploiting any loophole, maintaining the arrangement was already driving up revenues for the women’s team.
Checks are carried out as a matter of course under tightened associated-party clauses drawn up since the Saudi-backed takeover of Newcastle United in 2021.
In a statement, Chelsea said: “The profit for the year before taxation was £128.4 million compared with a loss of £90.1 million for the prior year as the club benefitted from increased profit on disposal of player registrations and repositioning of Chelsea Football Club Women Ltd.
“This new approach will ensure CFCW has dedicated resources, management and commercial leadership solely focused on the growth and success of the women’s team.”
Chelsea added: “Overall revenue in the year fell to £468.5 million due to the men’s team not competing in the Champions League. A profit on disposal of subsidiaries of £198.7 million led to the group recording an overall net profit of £129.6 million after tax.”
Chelsea’s PSR record has previously benefited from the sale of two hotels to a sister company for £76.5 million. Fair market value tests were also applied to that agreement.
