The worrying evidence of Chelsea's reliance on Abramovich's money for success
FT Desk
- Updated: 7 Mar 2022 09:59 GMT
- 4 min read
The future of Chelsea as we know it remains in the balance, as owner Roman Abramovich continues to consider offers for the club.
Reports in England have suggested that as many as 10 individuals or consortiums have confirmed their interest in buying the club from the Russian billionaire.
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Regardless of who ends up winning the keys to Stamford Bridge, fans of the club will be desperate to know if the level of success under Abramovich since 2003 will be sustainable or a thing of the past.
So just how reliant were the club on their Russian owner’s money for their success in the Premier League and Champions League?
How reliant are Chelsea on their owner’s financial backing?
According to famed football blogger and accountant, the Swiss Ramble, Chelsea’s current owner has stuck no less than £1.5 billion into the club since 2003 and as a result has financed £701m more than any other owner in the English top club in the last decade.
Since Abramovich acquired #CFC, he has put £1.5 bln into the club. To highlight their reliance on his financial support, they have benefited from more owner financing £701m than anyone else in the Big Six in the last decade; in the last 5 years their £365m is by far the highest. pic.twitter.com/OORr5W8Po2
— Swiss Ramble (@SwissRamble) March 7, 2022
The accountant breaks the numbers down further, by pointing out that Chelsea’s losses have amounted to £900m under Abramovich, with £631m coming between 2004 and 2011, then a further £260m in the past 10 years.
While Chelsea have become less reliant on their Russian owner, the club did recently announce a loss of £156m in 2020/21 and, according to Swiss Ramble, the club have posted “no fewer than 10 of the top 25 losses ever in the Premier League.”
What should worry Chelsea fans is the fact that while Chelsea’s revenue has quadrupled under Abramovich, Swiss Ramble points out that the club’s finances are still a fair way below the top three in England in terms of finances in Manchester City, Liverpool and of course Manchester United.
#CFC revenue quadrupled under Abramovich, rising from £110m to £435m, the 4th highest in England, but a fair way below the top 3 clubs. Their £177m growth since 2012 significantly outpaced by #MCFC £339m & #LFC £299m, while #MUFC generated £1.3 bln more revenue in last 10 years. pic.twitter.com/oCko2CzPN2
— Swiss Ramble (@SwissRamble) March 7, 2022
As such, the financial expert concludes that while Chelsea have made substantial profits from selling players of the years, the club has still run at an enormous operating loss under Abramovich and have relied on his money more than any other English club has relied on their own owner’s finances in that period.
The issue for the club’s future may come from an American owner in the style of the Glazers taking over the operations of the club and either being more frugal with their investments or by simply adding interest to the loans they provide their new club.
Even something as small as interest payments would have a huge impact on Chelsea’s available cash to spend on player transfers or wages and, ultimately, how successful the club could be on the pitch.
