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Chelsea confident they won’t breach FFP as financial pundit predicts profit maximization period

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As Chelsea’s summer releases continue, some of their rivals will be watching jealously as they flex their financial muscles.

The imminent arrival of Wesley Fofana from Leicester for around £70 million will bring the total for this window to a whopping £250 million – and still is.

With head coach Thomas Tuchel confirming that ‘we may need a little more players in some positions’ and Barcelona’s Pierre-Emerick Aubameyang and Everton’s Anthony Gordon among those targeted, the final total could exceed £300 million.

Todd Boehly has arrived as Chelsea owner and has spent significant sums this summer

Blues boss Thomas Tuchel saw his team revamped this summer, but he still wants more

Blues boss Thomas Tuchel saw his team revamped this summer, but he still wants more

It would also miss out on Chelsea’s own Premier League single-window record – the £230 million they spent in the summer of 2020.

With that in mind, others are also monitoring the situation under Financial Fair Play rules.

Football finance specialists suspect that Chelsea’s situation will, of course, be one of those monitored by UEFA. Meanwhile, some figures predating the Todd Boehly-led regime have expressed personal concern that they are headed for danger at this pace of spending.

On Chelsea’s part, it almost goes without saying that the new regime will include an experienced business team led by Boehly, Behdad Eghbali and Jose Feliciano, who have no doubts about the rules and have worked accordingly.

There is a confidence that they will comply and there is also an understanding of the need for releases such as Romelu Lukaku, Timo Werner and Emerson Palmieri to balance the books.

Tuchel admitted he still wants to sign more players before the end of the window on Thursday

Tuchel admitted he still wants to sign more players before the end of the window on Thursday

The picture won’t be clear until Chelsea’s expenses are completed and their financial results, including this window’s operations, are released.

Even then, there will be factors that can blur that image.

Football finance expert Dr Rob Wilson of Sheffield Hallam University said: ‘In layman’s terms Chelsea’s £4.25bn sale price could have so essentially wiped out the debt and losses the club had accumulated over the past twenty years, Chelsea is then starting on a zero basis under the terms of FFP.

“Whereas a club like Arsenal, for example, which is constantly owned, cannot write off that debt repayment and those losses in the same way, so that money is released.”

While football returned to normal last season, and there is a feeling that such compensation should no longer be given, clubs can still argue that their results are still affected by Covid losses.

Marc Cucurella was signed for £60 million from Brighton - one of those to push the club's summer spending above £200 million

Marc Cucurella was signed for £60 million from Brighton – one of those to push the club’s summer spending above £200 million

Player amortization – spreading and recording the payment of a player’s fee over the duration of their contract rather than as an immediate lump sum – will also affect their balance sheets.

FFP will also change soon. This is the last year before clubs are restricted from spending a certain percentage of their earnings on transfers, agents and wages.

In 2023 they will be allowed to spend 90 percent. That figure will drop to 80 percent over the next two years and then 70 percent. That change creates a gray area for authorities.

“Clubs could say they were preparing for the new regulations,” explained Dr. Wilson.

Raheem Sterling (center) was a player who previously signed Chelsea in the window for a huge sum

Raheem Sterling (center) was a player who previously signed Chelsea in the window for a huge sum

“What UEFA will probably do is assess them against the old guidelines and then see how they fit in with the new ones. This is actually the last roll of the dice, so you’ll probably get away with it this year, and then you’ll have to get those positions back next year.’

Chelsea can also argue that some spending has been pushed into this accounting period as a result of sanctions against former owner Roman Abramovich, which left them out of business by the end of the latter.

In their 2020/21 results, Chelsea estimated that they would have turned in £500 million for the first time had it not been for the pandemic.

Their stadium size limits the income Chelsea can bring in. But since his arrival, Boehly has been trying to improve the commercial and business departments, which could bring immediate FFP benefits.

Wesley Fofana was recently left out of Leicester's squad as he nears a move to Chelsea

Anthony Gordon is the subject of significant Chelsea interest and could be moving in the window late

Wesley Fofana (left) about to join Chelsea, who also want Anthony Gordon (right)

“I think we’ll see a more Americanized approach to Chelsea, focused on monetization and profit maximization,” explained Dr. Wilson out.

“So, happy to spend because they know they can improve sports performance, but that expenditure is being made to get higher commercial revenues, better sponsorship deals and, ultimately, to move to a new stadium so they can maximize that revenue.” .

“That’s what it’s about, maximizing revenue to generate profit for return on investment.”

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