Financial Fair Play

[The Skipper 20,609]

means we have a combined loss of 31mil pounds. for the 2 past years.

How have you worked that out sorry? If we're in a profit of £18.4m it means we've made £59m more from 2012/13. There's no loss at all...

[didierforever 7,349]

How have you worked that out sorry? If we're in a profit of £18.4m it means we've made £59m more from 2012/13. There's no loss at all...

???

addition dude.

2012-13: -49.4mil

2013-14: 18.4mil.

[The Skipper 20,609]

???

addition dude.

2012-13: -49.4mil

2013-14: 18.4mil.

You do realise that profits and losses are just simply carried on from the previous years right?

[didierforever 7,349]

You do realise that profits and losses are just simply carried on from the previous years right?

sorry?

i thought the 18.4mil is the ANNUAL profit!!!

[Barbara 15,149]

sorry?

i thought the 18.4mil is the ANNUAL profit!!!

That's impossible. The way you end a fiscal year is how you start the following. We ended 2012 with an almost 50m loss, you don't start the following year on a clean slate. You go from there.

To reach +1.4 profit, first we overcame -49.4.

[Tautvix 1,321]

That's impossible. The way you end a fiscal year is how you start the following. We ended 2012 with an almost 50m loss, you don't start the following year on a clean slate. You go from there.

To reach +1.4 profit, first we overcame -49.4.

We ended 2013 with 50m loss. http://www.dailymail.co.uk/sport/football/article-2531810/Chelsea-announce-annual-loss-49-4million.html

We had a small profit in 2012 because we won CL.

[didierforever 7,349]

That's impossible. The way you end a fiscal year is how you start the following. We ended 2012 with an almost 50m loss, you don't start the following year on a clean slate. You go from there.

To reach +1.4 profit, first we overcame -49.4.

http://weaintgotnohistory.sbnation.com/2014/11/13/7214597/chelsea-finances-future-ffp-fair-play

everything is about the year. the fiscal year.

all the data that is given is said to be for the fiscal year. the calculations done are based on the revenues for the year, the matchday revenue, the tv revenue. so how does it include the last year?

http://www.telegraph.co.uk/sport/football/competitions/champions-league/10676021/FFP-How-Manchester-City-and-Premier-League-clubs-compare.html

this article should make it clearer. it treats the 1.4mil profit (2011-12) and the 49.4 mil loss (2012-13) per year and as separate entities.

dont know why u guys are getting it all jumbled or maybe i am way way way off my mark.

[Barbara 15,149]

We ended 2013 with 50m loss. http://www.dailymail.co.uk/sport/football/article-2531810/Chelsea-announce-annual-loss-49-4million.html

We had a small profit in 2012 because we won CL.

Yeah, I mixed the order... point remains that if the previous year you had -49.4 you start the following fiscal year at -49.4. To call it even, you need to have your revenue to overcome your expenses in -49.4.

[didierforever 7,349]

Yeah, I mixed the order... point remains that if the previous year you had -49.4 you start the following fiscal year at -49.4. To call it even, you need to have your revenue to overcome your expenses in -49.4.

i m sorry... but its all in the heading itself... http://www.chelseafc.com/news/latest-news/2014/11/chelsea-fc-announces-annual-profit.html

"ANNUAL" profit.

if not that then This is the second profit in three years and the largest since Roman Abramovich became owner of the club in 2003.

should clear it up

or maybe this

The £18.4 million profit follows the £1.4 million generated two years ago. Strong revenue increases as well as a significant surplus on player sales during the 12-month period contributed.

[RoyalBlues 4,050]

I have to agree with didierforever, as that's what I think all this time. If we included all the previous years, no way we're even reach a break even.

[Barbara 15,149]

Guys, it's simple... the fiscal year ended on 30/06/2013 with a loss of 1.4. On 01/07/2013 starts a new fiscal year, instead of starting at 0.0 it will start at -1.4. The fact that it says ANNUALLY profit or loss just means that that's the balance after one year, saying it's annual has nothing to do with how the year book started on 01/07/2013. Where do you think the cumulative losses go to? Forgiven by banks and society? That companies say 'I have a debt, but the year ended, and that's now in the past, I'll start over with a clean slate'. It makes no sense whatsoever. Just take a look at the incomes we had. Do a rough calculation and see that we've been making much more than spending for a while, but the fact we couldn't break even or have some sort of profit is mainly because of losses from previous years that weren't just forgiven and forgotten. The Deloitte report is much more detailed.

[ZanSnake 1,211]

I don't know anything about FFP, but surely the fact that we have broken even, plus possible future deals (such as Luiz, if i read right) and sponships deals that may occur on dependance of our current form (Premier League title, etc.) means we are set for a significant rise in profit in the coming-seasons based on the fact we have a smaller stadium in comparison of clubs in the same 'level' as us who haven't been able to reach that level and are struggling to gain a significant enough rise with the players they have on their wage bill.

[RoyalBlues 4,050]

Guys, it's simple... the fiscal year ended on 30/06/2013 with a loss of 1.4. On 01/07/2013 starts a new fiscal year, instead of starting at 0.0 it will start at -1.4. The fact that it says ANNUALLY profit or loss just means that that's the balance after one year, saying it's annual has nothing to do with how the year book started on 01/07/2013. Where do you think the cumulative losses go to? Forgiven by banks and society? That companies say 'I have a debt, but the year ended, and that's now in the past, I'll start over with a clean slate'. It makes no sense whatsoever. Just take a look at the incomes we had. Do a rough calculation and see that we've been making much more than spending for a while, but the fact we couldn't break even or have some sort of profit is mainly because of losses from previous years that weren't just forgiven and forgotten. The Deloitte report is much more detailed.

Let's see this example from FM

I always thought what Chelsea reported it annually is that the profit/loss part "Last Season" column.

Of course there is a balance part that is overall incomes and expenditures since the beginning. But, don't think that's what they published it in every year. It's a secret, lol.

[didierforever 7,349]

Guys, it's simple... the fiscal year ended on 30/06/2013 with a loss of 1.4. On 01/07/2013 starts a new fiscal year, instead of starting at 0.0 it will start at -1.4. The fact that it says ANNUALLY profit or loss just means that that's the balance after one year, saying it's annual has nothing to do with how the year book started on 01/07/2013. Where do you think the cumulative losses go to? Forgiven by banks and society? That companies say 'I have a debt, but the year ended, and that's now in the past, I'll start over with a clean slate'. It makes no sense whatsoever. Just take a look at the incomes we had. Do a rough calculation and see that we've been making much more than spending for a while, but the fact we couldn't break even or have some sort of profit is mainly because of losses from previous years that weren't just forgiven and forgotten. The Deloitte report is much more detailed.

every club gives their year end, only fiscal year's record. thats how u judge how good or bad your year has been. chelsea has not made a 18.4 mil profit since 1905. thats crazy talk. we incurred 100s of millions of losses in the roman era. this just shows how the club has progressed or regressed in the last season.

i dont know why you are confusing 2 different things. also, i have given you articles explaining this.

[Rom2013 446]

Guys, it's simple... the fiscal year ended on 30/06/2013 with a loss of 1.4. On 01/07/2013 starts a new fiscal year, instead of starting at 0.0 it will start at -1.4. The fact that it says ANNUALLY profit or loss just means that that's the balance after one year, saying it's annual has nothing to do with how the year book started on 01/07/2013. Where do you think the cumulative losses go to? Forgiven by banks and society? That companies say 'I have a debt, but the year ended, and that's now in the past, I'll start over with a clean slate'. It makes no sense whatsoever. Just take a look at the incomes we had. Do a rough calculation and see that we've been making much more than spending for a while, but the fact we couldn't break even or have some sort of profit is mainly because of losses from previous years that weren't just forgiven and forgotten. The Deloitte report is much more detailed.

The cumulative losses or earnings go to the owners equity. I never saw the Balance Sheet of Chelsea, and I don't know how our consecutive losses are financed (I would say with increases of capital)... but if we were a normal club we would be broke for sure.

The values we are talking for profits or losses are just related with this year (or in our case last season).

If in the profit of last season is not included the money of Luiz we are in a good situation to reach a balanced financial position. if that's not the case we still have a lot of work to do and without the sells of Mata, De Bruyne and Luiz we would have maybe 50 or 60M£ of losses.