The impact of a lack of Champions League football is set to be felt by Chelsea when they publish their annual accounts for the 2023/24 season in the coming months.

Having made the quarter finals of European football’s top tier knockout club competition back in 2022/23, the last financial year that was published, the Blues failed to qualify last season or this season, although they are in a better position during the current campaign to potentially land a top-four spot and bring an end to that run for the 2025/26 season.

The failure to make the Champions League is hugely impactful for clubs given the lucrative nature of the competition, not just through prize money but also through broadcast money that is derived from taking part.

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On Thursday, the 28th annual Deloitte Football Money League was published, outlining the financial strength and performance of the biggest clubs in the world, with a detailed look at the top 20.

Chelsea dropped one place to tenth in this year's list, with Arsenal's return to Champions League football for the last two years at the forefront of their revival, with the Gunners jumping from 10th to seventh, leapfrogging not only Chelsea when it came to revenue, but also Tottenham Hotspur and Liverpool.

While for many clubs the 2023/24 accounts haven’t been published yet, Deloitte’s Sports Business Group, which advises governments, investors, sport governing bodies and organisations, liaised with clubs ahead of the report’s publication to determine the headline figures.

In Chelsea’s case, revenue was down 7% year-on-year, falling from €589.4m in 2023, to €545.5m (£459.9m based on exchange rates correct as of January 24).

While commercial revenue was set to jump from €242m to €262m (£220.9m), and matchday revenue was set to rise from €88m to €93m (£78.4m), the drop in revenue is attributed in a significant way to the fall in broadcast money, even though the slice of the Premier League’s domestic TV money increased.

That fall is due to the fact that Chelsea received €260m when it came to broadcast revenue for 2022/23, while in 2023/24 that figure is set to be around €190m (£160.2m). That is a figure that is the club’s lowest in relation to broadcast income since before the pandemic, underscoring the importance of having Champions League football regularly and as part of the business plan. Given the lack of it this season, also, it is likely that the current financial year of 2024/25 will offer up some similar challenges.

Chelsea’s wage bill sat at £404m for the 2022/23 season, but the Deloitte report suggests that figure may be reduced significantly for 2023/24 to around £337m, largely due to some big contracts leaving and also a lack of any Champions League qualification bonuses to be handed out. That reduction is set to place Chelsea’s wages to revenue ratio at around 72%, down from 79% the previous year, and that will be an important metric when it comes to complying with the forthcoming squad cost ratio rule that will be used in the Premier League next year, regulation that will replace the current, and much maligned profit and sustainability rules.

Tim Bridge, lead partner in the Deloitte Sports Business Group, said: “Money League clubs continue to break records with ongoing growth in commercial and matchday revenues. While on-pitch performance is critical for teams to reach the top echelons of the rankings, high performing clubs are also able to diversify the way they generate revenue through unlocking innovative partnerships and developing the land and stadium space that they own or operate.

“While commercial revenue dominates the income of the top ten Money League clubs, broadcast income remains crucial for teams in the second half of the rankings. As competitions expand and create more broadcast and matchday opportunities, these can further increase the earning potential for clubs. At a time where there is more demand than ever for a greater number of matchdays, this must be balanced with player welfare, as they ultimately bring the on-field success that can earn clubs many further rewards off-field."