Chelsea transfer spending hits £747m

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Chelsea spent £747m on transfers last season, according to accounts published by Companies House.

Their wage bill soared by 18% to £404 million, making it the second-highest in the Premier League. This figure is believed to encompass compensation payouts to former managers Thomas Tuchel and Graham Potter, both of whom were dismissed during the season.

By June 30, 2023, following the first complete year under Todd Boehly’s Clearlake Capital consortium ownership, the squad’s cost had exceeded £1 billion.

Despite selling players worth £592 million for £203 million, which technically resulted in a profit of £63 million due to accounting practices, Chelsea has shelled out an additional £450 million on transfers since June 30, which will be reflected in the 2023-24 financial reports.

Recent data disclosed that Chelsea forked out over £75 million on agents and intermediaries in the 12 months leading up to February 2024, surpassing all other Premier League clubs.

In March, the club reported a pre-tax loss of £90 million, compared to £121 million the previous year. However, the figures from Companies House indicate that without the sale of hotel properties to Blueco 22 Properties Ltd, a subsidiary of parent company Blueco 22 Ltd, the losses would have been even greater, resulting in a £76.5 million profit for the club.

Under Premier League profit and sustainability (PSR) regulations, clubs can incur a maximum loss of £105 million over three seasons before facing penalties. Chelsea may need to offload more players by June 30 to comply with these rules, although certain expenses, such as investments in youth and women’s teams, can be deducted.

Noteworthy signings from the 2022-23 accounts include Enzo Fernandez from Benfica for a then British record £105 million, Mykhailo Mudryk from Shakhtar Donetsk for £89 million, and Benoit Badiashile from Monaco for £35 million. Sales during that period include Kai Havertz to Arsenal for £65 million, Mateo Kovacic to Manchester City for £25 million, and Timo Werner to RB Leipzig for an estimated £25 million.

The £55 million sale of Mason Mount to Manchester United will be reflected in the 2023-24 accounts, as will the signing of Moises Caicedo from Brighton in a deal potentially reaching a British record £115 million.

Chelsea’s turnover rose from £481 million in 2021-22 to £513 million last season, but broadcasting revenue declined by £9 million to £256 million due to their failure to qualify for European competitions.

The Premier League is currently investigating potential breaches of financial regulations that occurred during Roman Abramovich’s ownership tenure, which were reported by the new ownership group following their takeover in May 2022. This season, Everton has been docked eight points for two PSR rule violations, while Nottingham Forest has been penalized four points.