Premier League legal authorities have not yet approved Chelsea`s contentious sale of its women`s team to its parent company.
Chelsea disclosed in their 2023-24 financial reports, partially revealed on Monday, that they had generated £198 million from the “repositioning of Chelsea Football Club Women” as part of a “disposal of subsidiaries” to BlueCo 22, the parent company.
While the exact amount remains undisclosed, the Chelsea women`s team is believed to be valued at over £150 million.
Kingsmeadow, the former ground of Kingstonians and AFC Wimbledon, and the current home of Sonia Bompastor’s Women`s Super League leaders, is also understood to be part of the deal.
These transactions helped Chelsea shift from a £90 million loss in 2022-23 to a £128 million pre-tax profit last season.
Despite expectations that Chelsea will avoid breaching Profit and Sustainability Rules (PSR) for the last term, the club has confirmed that the Premier League is still to approve its valuation of the sale.
The Premier League is currently reviewing the deal, focusing on whether the transaction between these “associated parties” reflects “fair market value.”
In 2023, Lyon Feminin, considered Europe`s most successful women`s team, was sold to a US conglomerate for approximately £45 million.
In contrast, Angel City NWSL franchise, based in Los Angeles, was valued at £190 million in an auction in September.
Chelsea is expected to argue that a nine-figure valuation is justified, but they might need to reduce the declared value. However, this adjustment is unlikely to negatively impact their PSR standing over the three-year assessment period.
Chelsea’s official statement regarding the sale stated: “The profit for the year before taxation was £128.4m, compared to a loss of £90.1m in the previous year. This improvement is due to increased profit from player disposals and the repositioning of Chelsea Football Club Women Ltd.”
“This new strategy will ensure that CFCW receives dedicated resources, management, and commercial leadership, focusing exclusively on the growth and success of the women’s team.”
“Overall revenue for the year decreased to £468.5m because the men’s team did not participate in the Champions League.”
“However, broadcasting revenue was positively impacted by the men’s team achieving a better league position (sixth in the Premier League) and reaching the semi-finals and finals of the FA Cup and League Cup, respectively.”
“Operational costs decreased during the year, offsetting the revenue decline and resulting in a stable operating loss compared to the previous year.”
“The women’s team reached the semi-finals of the UEFA Women’s Champions League for the second consecutive year and won the Women’s Super League, further boosting broadcasting revenues.”
“Matchday revenue increased to £80.1m, with an average attendance of around 40,000, and three additional women’s team matches were hosted at Stamford Bridge during the year.”
“Commercial revenue grew to £225.3m, driven by increased income from player loans and strong sales in non-matchday activities, such as stadium tours and merchandise.”
“Reduced operating expenses, including matchday and non-matchday costs, profits from player disposals (£152.5m), and profit from subsidiary disposals (£198.7m) led to the group reporting an overall net profit of £129.6m after tax.”
