A few points on Chelsea's 2022/23 accounts.
Club maintain they are confident of avoiding PSR breaches. They have been pretty consistent on this point and are in keeping with the £105m allowable losses for the cycle ending 2022/23.
There are some concerning numbers at face value: £90.1m pre-tax losses, a £404m wage bill, and £745.2m spent on new players (1 July, 2022- 30 June, 2023) with £454.1m after the financial year cutoff, and worth bearing in mind ahead of the next books. Amortisation is also up from from £162.5m to £205m.
Arguably the most worrying number is the £249m operating loss, which is a Premier League high for 2022/23. Leicester (£152m) and Everton (£115m) are also in the top four operating losses and both got charged.
But unlike Leicester and Everton, Chelsea raised £203m from player sales and made a net trading profit of £62.9m.
And, crucially, the sale of a hotel from Chelsea to BlueCo for £76.3m is understood to count as part of PSR calculations, even though it's excluded under EFL rules. It's worth noting, this won't help with UEFA's FFP.
The next set of books, for 2023/24, will reflect only Clearlake-Boehly's tenure, and the drop-off year is the one with Covid allowances.
The £55m sale of Mason Mount to Manchester United is already on next year's books. Newcastle are expected to list Lewis Hall's £28m (when triggered) on 2025/26 not 2024/25, but buyer and sell can actually declare a transfer on different financial years under some circumstances, so that one remains a bit unclear for now.
Chelsea's wage bill will also decrease when the next set of figures come out due to the lack of European football under a new incentive-driven structure. It's understood all new signings from January 2023 agreed to a salary cut if #UCL wasn't achieved. This won't entirely compensate for the lack of Champions League or European football this season, though, which is another big hit to the books.
Player sales between now and June 30 will provide a fuller picture. Sources still insist £100m+ in outgoings are as much about raising funds to help complete a four-window recruitment plan, as well as navigating an inflated market which clearly Chelsea have obviously contributed to.
The numbers do look relatively bleak, but post-tax and with allowable deductions they become slightly more palatable, hence why #CFC have not been charged to date.
Key is how 2023/24 affects the club, and regardless of breaches, how much budget they have and/or can raise, to bring in 3-4 key signings this summer.
Regardless of domestic financial rule changes expected to be ratified this summer, PSR will be in place for the three-year monitoring cycle ending 2023/24. And even under new rules, points deductions are here to stay.
Chelsea insist they are not concerned, and the good news a bit further down the line is they are guaranteed Club World Cup income. This can be put on the 2024/25 books, even though the tournament ends in mid-July.