Chelsea declares net loss of £70.6m despite record turnover

English Premier League football club Chelsea have announced a net loss of £70.6m ($88.1m) for the financial year ending 30 June 2016, with the deficit born of the Premier League leaders’ decision to buy out their existing kit deal with Adidas and the compensation paid to José Mourinho following his sacking last December.

Total sales of £329.1m represented a five-per-cent rise on £314.3m the previous year, but an overall profit of £4.7m was swallowed up by exceptional costs due to the unexpected sacking of manager José Mourinho a year ago and the decision to buy out the club’s kit partnership deal with Adidas.

The figures for the 2016-17 year through to the end of June will be boosted by a record £60m-per-season deal with Nike, as well as increased income from Premier League media-rights agreements.

The club slumped to a disappointing 10th place in the Premier League in the 2015-16 campaign, but is currently top of the table after 11 consecutive wins.

“The fact Chelsea Football Club recorded our highest revenues in a season when on-pitch performance was disappointing is a credit to our hard-working, dedicated staff and the robust business they have helped build,” Chelsea chairman Bruce Buck said. “It has long been our aim for the business to be stable independent of the team’s results and we continue to reinforce that.”