Chelsea Finances Thread

[Bob Singleton]

According to the Daily Mail, and others (but I suspect on the back of the Mail article), the club are seeking exemptions from the PL spending rules on the basis of our income being severely curtailed due to the sanctions imposed on the previous owner by HMG (club shop and other outlets closed, no ticket sales, etc., etc).


https://www.dailymail.co.uk/sport/football/article-11711921/AHEAD-GAME-Chelsea-set-ask-exemptions-Premier-Leagues-spending-rules.html?ico=topics_pagination_desktop

[Mark Kelly]

6 minutes ago, Bob Singleton said:

According to the Daily Mail, and others (but I suspect on the back of the Mail article), the club are seeking exemptions from the PL spending rules on the basis of our income being severely curtailed due to the sanctions imposed on the previous owner by HMG (club shop and other outlets closed, no ticket sales, etc., etc).


https://www.dailymail.co.uk/sport/football/article-11711921/AHEAD-GAME-Chelsea-set-ask-exemptions-Premier-Leagues-spending-rules.html?ico=topics_pagination_desktop

It's a good thing to try I expect but everyone else will just point to the amount of money we've spent and make it all about them instead, which is why there are articles like this. Gotta get them clicks and comments.

[Bob Singleton]

From PA Media (via The Guardian)

❝Chelsea claim government sanctions imposed on former owner Roman Abramovich were a factor in them posting losses of £121m for the 2021-22 season.

Abramovich was sanctioned in March last year as the government sought to freeze the assets of individuals believed to have connections to the country’s president, Vladimir Putin, following the invasion of Ukraine. Chelsea were placed under a special licence which restricted their ability to sell tickets, accept event bookings and sign contracts with players.

The restrictions remained in place until 30 May last year when a new consortium led by American businessman Todd Boehly completed its £4.25bn takeover of the club.

Chelsea said turnover had increased to £481.3m from £434.9m the previous year despite the sanctions. Commercial revenue increased to £177.1m. The losses were attributed to increased operating expenses, including matchday and non-matchday costs.

The financial results do not capture Chelsea’s summer 2022 or January 2023 acquisitions, when they spent more than £500m on new players. The 2021-22 results show £118m was invested in the playing squad but a profit of £123m was made on player sales including Tammy Abraham, Marc Guehi, Fikayo Tomori and Kurt Zouma.

Chelsea insisted they continued to comply with Uefa and Premier League financial regulations despite the losses and the impact of the government sanctions. In a statement released on Monday the club also said the impact of the sanctions on the club’s financial results would continue to be felt “in the following years”.❞

[blueboy1905]

3 hours ago, Bob Singleton said:

In a statement released on Monday the club also said the impact of the sanctions on the club’s financial results would continue to be felt “in the following years”.❞

Now this sounds ominous.  Stuck with Potter or the alternative ie: taking a massive financial hit on getting rid of him plus the lack of income from no European football for next season and beyond.  No guarantee of getting rid of the deadwood players on huge wages and new potential sponsors now looking at Chelsea F.C as a busted flush does not fill me with confidence  with the direction of our club.

[Mark Kelly]

13 minutes ago, blueboy1905 said:

Now this sounds ominous.  Stuck with Potter or the alternative ie: taking a massive financial hit on getting rid of him plus the lack of income from no European football for next season and beyond.  No guarantee of getting rid of the deadwood players on huge wages and new potential sponsors now looking at Chelsea F.C as a busted flush does not fill me with confidence  with the direction of our club.

I think one thing we can take some comfort with is that the vast majority of the players the club bought were essentially "one's for the future" we shouldn't be getting too bent out of shape just yet regarding them , Mudryk clearly isn't match fit , Noni was just England U21 man of the match , Casedei is doing well at Reading and Santos has made his full debut for Brazil so he's getting there.

Potter on the other hand ....

[boratsbrother]

Boehly and co  getting ready to deflect blame if the **** hits the fan over the next few years. 🤔

If it does hit the fan then it will be their reckless spending on signings,  hirings and contracts in the first year which does the damage, not the money lost due to sanctions!

[ROTG]

Not the best of news, which puts the club in a weaker position negotiating player sales.

Add on the loss of revenue from European football, no shirt sponsor, P*ssing UEFA off with long term contracts loophole for FFP, one can foresee the UEFA and the FA waiting in the background ready to pounce should the numbers not equate.

Interesting times ahead if the club suffers another season of mediocracy under the guidance of GP. 

[Michael Tucker]

27 minutes ago, ROTG said:

Interesting times ahead if the club suffers another season of mediocracy under the guidance of GP. 

It's not just Potter though, is it? What on earth is Boehly doing? We're in a dire situation right now, aren't we?

[ROTG]

2 hours ago, Michael Tucker said:

It's not just Potter though, is it? What on earth is Boehly doing? We're in a dire situation right now, aren't we?

On the bright side Ken Bates is still alive and kicking and I am sure would be happy to buy the club again for one pound if it went south :0)

[My Blood Is Blue]

It’s never boring being a fan of this club….

[boratsbrother]

With that amount of turnover we should be making a profit, not making huge losses!

 

[Mark Kelly]

5 hours ago, Michael Tucker said:

It's not just Potter though, is it? What on earth is Boehly doing? We're in a dire situation right now, aren't we?

It looks very much to me that the finances are going to dictate a fire sale of sorts where we practically tear down everything and rebuild again , hence the long contracts on the younger players and the reliance on a manager like Potter who is generally a slow burn but gets there in the end.

I feel sure we will be seeing a load of players shifted in the close season , starting with Mount and Mendy and I keep seeing reports of how much City want Chilwell too which Boehly may decide to cash in on .

It's a dogs breakfast but I suppose still miles better than not existing any more !

However , the main protagonists in making this a story are The Sun and the Daily Mail two publications that are virtual cesspools and even the Mail add the caveat that "many other clubs also made a loss" so it may not be as dire as they are making out for clicks.

[Ham]

5 minutes ago, Mark Kelly said:

It looks very much to me that the finances are going to dictate a fire sale of sorts where we practically tear down everything and rebuild again , hence the long contracts on the younger players and the reliance on a manager like Potter who is generally a slow burn but gets there in the end.

I feel sure we will be seeing a load of players shifted in the close season , starting with Mount and Mendy and I keep seeing reports of how much City want Chilwell too which Boehly may decide to cash in on .

It's a dogs breakfast but I suppose still miles better than not existing any more !

However , the main protagonists in making this a story are The Sun and the Daily Mail two publications that are virtual cesspools and even the Mail add the caveat that "many other clubs also made a loss" so it may not be as dire as they are making out for clicks.

UEFA won't be able to do anything anytime soon as COVID and then the sanctions have very much dictated where or finances were these last few years. The direct impact of the sanctions was not being able to sell tickets but it's hard to quantify the impact of not being able to renew contracts and having to pay tens of millions to replace those players.

The summer window is going to be a shit show because we are going to have to make all of our sales by 30 June in order the balance the books for the previous financial year. 

Other clubs know this and will low ball us. We're going to get fleeced. 

[Bob Singleton]

1 hour ago, Ham said:

[SNIP]

Other clubs know this and will low ball us. We're going to get fleeced. 

Saw a rumour the other day that some Middle East clubs - on the back of Ronaldo joining Al Nassr - might be interested in Lukaku. Given few, if any, European clubs are likely to want him given his wages and his recent performances, one can but hope we can "do an Oscar" 😉

[FrankLampard8]

38 minutes ago, Bob Singleton said:

Saw a rumour the other day that some Middle East clubs - on the back of Ronaldo joining Al Nassr - might be interested in Lukaku. Given few, if any, European clubs are likely to want him given his wages and his recent performances, one can but hope we can "do an Oscar" 😉

I could be wrong and money talks but I think Lukaku thinks way too much of himself and his standing in world football to chip off to the Middle East at this point in his career. I know no one thinks more of themselves than Ronaldo but there is obviously a big difference in age there and Lukaku will think he has more left to give - even though he's probably wrong. 

[Mark Kelly]

2 hours ago, Ham said:

UEFA won't be able to do anything anytime soon as COVID and then the sanctions have very much dictated where or finances were these last few years. The direct impact of the sanctions was not being able to sell tickets but it's hard to quantify the impact of not being able to renew contracts and having to pay tens of millions to replace those players.

The summer window is going to be a shit show because we are going to have to make all of our sales by 30 June in order the balance the books for the previous financial year. 

Other clubs know this and will low ball us. We're going to get fleeced. 

I'm sure that Covid and the loss of important players due to the sanctions was raised with UEFA by the club last time these papers run the story which was about six months ago , I think they're all just making mischief based on the club publishing the accounts and the opportunity for some good old click farming and to once again ramp up the anti Chelsea sentiment of those clubs supporters who haven't won anything for years and blame Chelsea instead of their owners and players. 

I do think for everyone's benefit that we do have a root and branch clear out and shift those we really don't need and who would rather be elsewhere once and for all though 

[Bob Singleton]

14 minutes ago, FrankLampard8 said:

I could be wrong and money talks but I think Lukaku thinks way too much of himself and his standing in world football to chip off to the Middle East at this point in his career. I know no one thinks more of themselves than Ronaldo but there is obviously a big difference in age there and Lukaku will think he has more left to give - even though he's probably wrong. 

Yes, that's the fly in the ointment... I agree with you that Lukaku probably thinks he can still be a major force at a big European club. Unfortunately for him, the likes of Madrid, Bayern, Inter, etc don't quite see it that way.  Still, in most things I'm a 'glass half full' sort of person, so here's hoping we can wipe off a significant part of our on-paper losses with his removal.

[Holymoly]

I think last year's loss (albeit with mitigating circumstances) is the final nail in the coffin for the Chelsea careers of the likes of RLC, Gallagher, Mount or even Chalobah. Probably selling three of them for pure profit will sort out the FFP worries at a stroke. It's not like we don't need to prune the squad drastically anyway but it would have been nice if we could have done it keeping the academy boys. Unfortunately the hard truth is that, Mount aside (possibly), they probably won't ever be troubling the first team squad once everyone is fit and firing and being English they will command a premium on the market.

It's not personal, it's business.

[Mark Kelly]

50 minutes ago, Holymoly said:

I think last year's loss (albeit with mitigating circumstances) is the final nail in the coffin for the Chelsea careers of the likes of RLC, Gallagher, Mount or even Chalobah. Probably selling three of them for pure profit will sort out the FFP worries at a stroke. It's not like we don't need to prune the squad drastically anyway but it would have been nice if we could have done it keeping the academy boys. Unfortunately the hard truth is that, Mount aside (possibly), they probably won't ever be troubling the first team squad once everyone is fit and firing and being English they will command a premium on the market.

It's not personal, it's business.

I'd like to keep Gallagher if Mount is going to soften the blow a bit , I have a feeling he could push on , RLC can go tomorrow for all I care , conflicted re Trevoh , I think he deserves a better career than bench warmer , he'd do a great job with regular football in the upper half of the Prem.  We have a wealth of players to get rid of though Ziyech , Pulisic , RLC , Mount (his desire not our want) CHO ( a busted flush) , Mendy , I'm sure we'll be OK 

[ROTG]

3 hours ago, Ham said:

Other clubs know this and will low ball us. We're going to get fleeced. 

Spot on 

Also where is 2 billion coming from to build rebuild the stadium?

[thevelourfog]

2 hours ago, Mark Kelly said:

I'd like to keep Gallagher if Mount is going to soften the blow a bit , I have a feeling he could push on , RLC can go tomorrow for all I care , conflicted re Trevoh , I think he deserves a better career than bench warmer , he'd do a great job with regular football in the upper half of the Prem.  We have a wealth of players to get rid of though Ziyech , Pulisic , RLC , Mount (his desire not our want) CHO ( a busted flush) , Mendy , I'm sure we'll be OK 

I think Gallagher being the one to keep is what means he's the one we'll get decent offers for. I don't think he's a player you could turn down £30-35m for in our current situation. I like Chalobah and I'm glad he got his due here, but I'd like to see him wanting to go, if that makes sense ... He's not good enough to get in the team ahead of Fofana, Badiashile, or Silva (maybe even Colwill, but I'd not rule out a sale there) but is too good enough to be a bit-part at a mid-table side. 

Loftus-Cheek isn't going anywhere until his contract is up, imo. Probably also true of Hudson-Odoi and Pulisic. We'll have to pay for them to be off the books.

I think there genuinely is something to be afraid of with our finances. We can likely take a hit on CL money this season, but we can't do it again. And we have no room for manoeuvre in sacking the coach, regardless of how next season pans out. Clearlake have taken a really risky strategy, and I can't help but think it's so risky that they cannot have known all of the implications for their decision making. Did anyone actually run the numbers on sacking Tuchel and bringing in Potter, plus his staff, without making the CL?

Edited March 28, 2023 by thevelourfog

[jasonb]

I think about 11 will go and a couple on a free we will reduce the fees to get the salaries off our books in some cases, guess we will buy a keeper and defensive midfielder probably Rice to play alongside Enzo. Of course if the rumours are correct we already have signed Nkunku.

I think the finances will be the push for this.

I also notice the noise about City again flouting the rules has now died away. 

 

 

 

 

[Ham]

5 hours ago, Bob Singleton said:

Saw a rumour the other day that some Middle East clubs - on the back of Ronaldo joining Al Nassr - might be interested in Lukaku. Given few, if any, European clubs are likely to want him given his wages and his recent performances, one can but hope we can "do an Oscar" 😉

 

4 hours ago, FrankLampard8 said:

I could be wrong and money talks but I think Lukaku thinks way too much of himself and his standing in world football to chip off to the Middle East at this point in his career. I know no one thinks more of themselves than Ronaldo but there is obviously a big difference in age there and Lukaku will think he has more left to give - even though he's probably wrong. 

The big question is what the cuisine is like in Saudi/Qatar. 

3 hours ago, ROTG said:

Spot on 

Also where is 2 billion coming from to build rebuild the stadium?

That's got nothing to do with FFP. 

[Mark Kelly]

31 minutes ago, Ham said:

 

The big question is what the cuisine is like in Saudi/Qatar. 

 

When you are a gourmand like Romelu , quantity is better than quality.  As long as they have Louis Vuitton  nosebags I'm sure he'd feel valued. 

[Holymoly]

3 hours ago, ROTG said:

Also where is 2 billion coming from to build rebuild the stadium?

That's not a P&L expense. Goes straight to the Balance Sheet. Just a cash flow question really.