Decent video.
Summary for those who didn't watch - looked at Chelsea 2022 accounts as a pre-cursor of what to expect from 2023
· Chelsea 2022 accounts: 1) club record revenue of £481M, 2) loss before tax £121M (second lowest profits in the league)
· Everton took a stray in the video as being mentioned having £92M operating loss and being one of the worst
· Breakdown of numbers:
1. Revenue: broadcasting, match day, commercial – pretty much most of growth comes from broadcasting (driven by winning champions league) with rest flat
- No European football (not just champions league but all other comps) will seriously impact broadcast revenue
- In 2022 £92m came from European TV money, which was 40% of total broadcasting revenue
2. Amortisation: Have highest amortisation charge in the premier league of £160M and this was pre-Boehly signing therefore will go up
3. Impairment (aka write-off!): Player impairment went up to £77M which is highest ever for a premier league club
· Chelsea transfer sale of £123M in 2022 is indicative of strong youth academy. Will use this strategy going forward to off-set future losses
· Wage to revenue ratio of 71% which is highest of big 6. Given the likelihood of lack of European football and no alternative revenue sources to compensate, this will inevitably increase unless players with big wages are not moved off the books in the window(s)
· Recently spent £10M to sack Tuchel, £21.5M to Brighton for Potter (Brighton winning!) and £13M payoff to get rid of Potter – for a total of £45M. Finding the right manager next could be a huge saving
