Chelsea recorded a loss of £96.6 million ($128m) for the 2018-19 season, the club announced on Tuesday.
The Blues had posted profits in the previous two years, but a club statement reported the loss was due to player signings, a lack of Champions League football and the dismissal of Antonio Conte and his coaching staff in July 2018.
Conte led Chelsea to a fifth-placed finish in 2017-18, meaning they missed out on Europe's elite club competition in the following campaign.
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However, with the arrival of Maurizio Sarri, along with the signings of Kepa Arrizabalaga, Jorginho and Mateo Kovacic, Chelsea then finished third and won the Europa League.