Chelsea have announced a £153.4m post-tax loss for the financial year ending 30 June 2021.
The result is in stark contrast the 2019/20 financial year where the club generated a net profit of £32.5m.
The Blues' accounts were released on Thursday with Chelsea's directors explaining the results in a strategic report.
"The loss for the year before taxation was £155.9m compared to a profit of £35.7m for the prior year," the report (via BBC Sport) began.
"A loss of revenue caused by the majority of 2020/21 matches taking placed behind closed doors because of the COVID-19 Pandemic, as well as decreased profit on player sales and increased player amortisation were the principal reasons for this movement.
"This year saw an overall increase in turnover from £407.4m to £434.9m driven by an increase in broadcasting revenue."
A significant hole in Chelsea's revenue was created by the vast majority of 2020/21 games being played behind closed doors. This led to £46.8m reduction in matchday revenue compared to the previous season. Commercial revenue took a similar hit, falling by £16.8m.
This decreased revenue coincided with increased staff costs. Overall, pre-exceptional operating expenses rose £69.3m from last season, with the playing and staff budget spiking by £49.4m.
This news comes as little surprise as Chelsea spent big in the 2020 summer transfer window, bringing in the likes of Kai Havertz, Timo Werner and Ben Chilwell. They also changed managers, sacking Frank Lampard in favour of Thomas Tuchel, which would have incurred significant expenses.
Chelsea continued to be backed by long-term owner Roman Abramovich and despite rumours suggesting he might be open to selling the club, this does not seem likely to change in the immediate future.
"The company is reliant on its ultimate parent undertaking, Fordstam Limited, for its continued financial support. Fordstam Limited has indicated its continued support for the foreseeable future," the report continued.
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