UEFA report reveals staggering Chelsea deficit

However vast and consistent Premier League spending may be, the money is not limitless. Not even in England. The numbers make that clear. Several clubs are posting record losses, according to financial statements released by UEFA. While Aston Villa and Arsenal’s deficits are significant, Chelsea top the list. Despite winning the Conference League and returning to the Champions League as fourth-place finishers in 2024-25, UEFA’s European Club Finance and Investment Landscape report reveals a €407 million ($480.3 million) deficit in Chelsea’s accounts.

That figure represents the biggest pre-tax loss in the club’s history and in English football history. Across Europe, only Barcelona’s even deeper €555 million ($654.9 million) loss in 2020-21 exceeds Chelsea’s financial hole last season.

UEFA’s report, which lists the 10 clubs with the largest single-season losses, includes four other English sides alongside Chelsea: Tottenham, Aston Villa, Nottingham Forest and Manchester City. Chelsea’s €407 million ($480.3 million) deficit, by far the worst, is more than double that of second-placed Olympique Lyon, who posted €188 million ($221.8 million) in losses.

Palmer and Caicedo to stay

Given losses of that magnitude, and despite Chelsea reaching the Champions League round of 16 while battling for a top-four Premier League finish, some might expect a summer fire sale at Stamford Bridge. That is not the case. The Daily Mail reports that club officials insist their financial position “does not force them to sell their top stars.”

According to the report, the €407 million ($480.3 million) loss is “the result of non-cash accounting adjustments required under UEFA regulations and linked to the acquisition of the club,” adding that “the club is operationally profitable and compliant with UEFA.” In other words, Chelsea are not required to sell key players such as Cole Palmer or Moisés Caicedo to meet UEFA Financial Fair Play limits.

What punishment could follow such losses? For now, as The Athletic reports, “this should not lead to the imposition of more severe sanctions.” Chelsea’s cumulative losses over the past three years total €622 million ($734 million). However, the London club reached an agreement with UEFA last summer allowing that level of deficit, provided losses remain within the previously agreed framework. “Chelsea have a football earnings loss limit of just €5 million ($5.9 million) for the 2025-26 season,” The Athletic adds.

More trouble for Aston Villa

The UEFA report has not only shaken west London. While Chelsea have managed to avoid breaches of Premier League and UEFA financial rules in recent seasons, Aston Villa entered 2025-26 with the league’s worst Financial Fair Play position, as reflected in a restrained summer transfer window. Given the financial strain in Birmingham over recent years, the report’s findings were hardly surprising.

Villa rank fifth in Europe for losses in 2024-25, with a €94 million ($110.9 million) deficit. Unai Emery’s side were fined €11 million ($13 million) last July by UEFA’s Club Financial Control Body for breaching football earnings and squad cost rules. The club have posted losses for three straight years, with cumulative deficits exceeding €330 million ($389.4 million) since 2022-23.

On the field, the Emery era has delivered historic success. Financially, however, room for maneuver is shrinking. Villa have qualified for European competition in three consecutive seasons: Conference League in 2023-24, Champions League in 2024-25 and Europa League in 2025-26. Although, like Chelsea, they reached a summer agreement with UEFA setting a maximum €5 million ($5.9 million) loss for the current campaign, Villa will need to complete “a major first-team player sale” to stay within permitted limits.

Arsenal and Liverpool post record revenues

England’s most successful teams on the field can point to healthier balance sheets. Arsenal’s numbers are close to break-even. Although the Gunners recorded losses for a seventh straight season, their €1.5 million ($1.8 million) deficit is the lowest in seven years. Record revenues of €787 million ($928.7 million) put the club on the verge of its first profitable season since 2017-18, if not for €17.3 million ($20.4 million) in losses related to player amortization.

Liverpool, the reigning Premier League champions, also reported record revenue in UEFA’s European Club Finance and Investment Landscape: €801 million ($945.2 million), up 14.5 percent from the previous season. Increased income from broadcasting, matchday and commercial streams drove a €101 million ($119.2 million) year-on-year rise compared to 2023-24, resulting in a post-tax profit of €9 million ($10.6 million) at Anfield. Another record for the Reds: their wage bill.

With €488 million ($575.8 million) spent on salaries, Liverpool have the highest payroll in the Premier League, surpassing Manchester City (€465 million / $548.7 million), Arsenal (€385 million / $454.3 million) and Manchester United (€357 million / $421.3 million), according to The Athletic. The more than €50 million ($59 million) increase from the previous season is tied to bonuses paid out following the 2024-25 Premier League title win.

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