UEFA FFP and Chelsea’s 12-13 accounts

Chelsea Flag
Monday, 06 January 2014 By Daniel Geey

Chelsea recently announced a £49.4m loss in their latest 2012-13 accounts. It was of significant interest that the press release stated that:

A long-term objective was financial sustainability, and the subsequent implementation of Financial Fair Play by Uefa and by the Premier League has brought that to the top of the agenda for football clubs. We are pleased therefore that we will meet the stipulations set down by Uefa in their first assessment period.

Chelsea explained that they would comply with UEFA’s Financial Fair Play Rules (FFPRs) which include only making a €45m loss over the 11-12 and 12-13 seasons. What most analyists presumed was that a big part of the club’s compliance policy was to use the UEFA FFPR Annex XI relief.

The aim of this blog is to illustrate how Chelsea are unlikely to be able to remove the costs of player contracts entered into before June 2010 because the club’s trend is actually getting worse. This is due to the club making a profit in 2011-12 (£1.4m) but a loss in 2012-13. Such deductions would have certainly lead to a much smaller loss for FFPR compliance purposes.


The Basics

For a summary of the FFPR basics click here. The FFPRs will start to bite from the 2013-14 season. The rules need to be borne in mind, however, from the 2011-12 season onwards because the 2011-12 and 2012-13 accounts will be used to determine a club’s license application in the 2013-14 season. As such Chelsea’s 2012-12 accounts (after the FFPR calculations have been made) will form one of the two accounting periods, for the first monitoring period, that UEFA will use to assess compliance.


The Annex XI Relief

To continue reading or watching login or register here

Already a member? Sign in

Get access to all of the expert analysis and commentary at LawInSport including articles, webinars, conference videos and podcast transcripts.  Find out more here.

Related Articles

Written by

Daniel Geey

Daniel Geey

Daniel is a Partner in the Sport Group.

Daniel’s practice focuses on helping clients in the sports sector, including rights holders, leagues, governing bodies, clubs, agencies, athletes, sports technology companies, broadcasters and financial institutions.

  • This email address is being protected from spambots. You need JavaScript enabled to view it.

Leave a comment

Please login to leave a comment.


Legal Advisors

Copyright © LawInSport Limited 2010 - 2022. These pages contain general information only. Nothing in these pages constitutes legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. LawInSport is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.