Chelsea set record with highest pre-tax loss in English history as huge €407m deficit is revealed

The European Club Finance and Investment Landscape report, which is published on an annual basis, details the 10 clubs that suffered the greatest financial losses over any given season. Chelsea fill an unfortunate position at the top of that chart.

The Premier League has never seen numbers like this before, with only La Liga giants Barcelona - whose finances were impacted by the Covid-10 pandemic - seeing bigger losses as they hit €555m (£484m/$655m) in 2020-21.

Chelsea’s losses have topped £200m ($271m) across four successive seasons, with declining revenues being offset against ever-increasing costs. A source has told The Athletic that “Chelsea’s huge loss last season was, like Barcelona’s before them, driven by significant non-cash, accounting entries”. The Blues were also stung by a €31m (£27m/$37m) fine from UEFA for breaching the financial rules put in place by European football’s governing body.

The Athletic’s source claims that “the huge deficit was reflective of neither the club’s underlying operating performance nor how finances will look in the current and future seasons”. Those in west London are said to have been “tidying up historic issues, with several high-cost, one-off items booked into the same financial reporting period”.

Chelsea’s finances are said to be difficult to read as they have engaged in several transactions that “land in the gaps between UEFA and the Premier League’s respective financial regulations”. Deals of that kind include the sale of the club’s women’s team, two hotels and a car park.

The Blues’ rolling losses over a three-year period have reached €622m (£542m/$735m) - a figure which sits well above the €60m (£52m/$71m) permitted by UEFA’s Football Earnings rule. It is, however, claimed that financial-related penalties will be avoided.

Chelsea have entered into an agreement with UEFA that allows them to operate in line with “the projected deficit submitted in the business plan” - meaning that losses must be kept inside figures that were previously signposted.

The Athletic’s source maintains that the Blues have not breached Profit and Sustainability Rules (PSR) for 2024-25 that exist in the Premier League, which steers them clear of any potential points deductions.

Said source stated that “the club is confident it is operating in line with the terms of the settlement agreement and other financial rules, citing improved underlying performance and, among other things, significant player sales”. Chelsea raised roughly £300m ($407m) in the summer transfer market of 2025.

The Athletic go on to report that “the large 2024-25 loss was not representative of Chelsea’s finances moving forward and is instead the end product of a period of business rationalisation”. The Premier League giants expect to “comply with financial rules both at home and abroad, aided by revenues which will grow this season, not least because of a return to Champions League football”. Elite European competition is said to have earned the Blues roughly £80m ($108m) in prize money this season - as they have made their way into the last 16.

Chelsea have spent heavily on new recruits during Clearlake Capital’s ownership era, with lengthy contracts being handed out to superstar arrivals. Many of those deals have been completed with one eye on the long-term future.

There has been more managerial change at the Bridge this term, with Conference League and Club World Cup-winning coach Enzo Maresca being ushered through the exits early in 2026, and Liam Rosenior is now being charged with the task of delivering consistency on the field that will ultimately aid efforts to restore stability off it.