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[Football] The ticking Profit and Sustainability (FFP) timebomb...
- Thread starter Bozza
- Start date
Nobby Cybergoat
Well-known member
- Jul 19, 2021
- 8,622
Chelsea finances worse than expected
Sounds good.
I'm a bit of a dunce with this, so should I read that if they are amortising £200m per year, they need to make £95m profit from other sources, I guess day to day profit and player sales, each year to avoid PSR sanctions?
nwgull
Well-known member
Everton were ulitmately deducted 6 points for a 20m excess. I wouldn't be surprised if that becomes a precedent - ie 1 point for every 3.33m overspend.
Chelsea finances worse than expected
Chelsea in the Mud
Weststander
Well-known member
It's more complicated than that e.g. it's combined with other club income and operating expenses to give the overall loss for the year.
But you can say that the sheer magnitude of the Chavs annual amortisation as a cost; £406m we can see in 2022/23 and certainly at least £228m a year moving forward (£1,140,595 / 5) but probably far more due to the later buys of Lavia and Caicedo for example, has given CFC a near impossible job of meeting P&S and FFP.
Unless, each year they sell a couple of homegrown players for huge fees. Homegrown because the proceeds are all profit.
If they sold a Caicedo or Fernandez for the around the fee they bought them or less, it wouldn't help greatly in P&S / FFP accounting terms.
Weststander
Well-known member
You've got to hand it to Bloom, FSG and Lewis/Levy.
They run their clubs within the rules.
For all the bleating of the cheats, just look at the states of their squads and transfers
Everton gave Arsenal, 50 million plus for Walcott and Iwobi
It's a mystery why they went over the limits.
Brighton/Liverpool/Arsenal/Spurs have shown you can grow a club, increase revenue streams and stay within the rules.
Those above clubs have also had to sell top players to reinvest.
Nobby Cybergoat
Well-known member
- Jul 19, 2021
- 8,622
Basically only Colwill and Gallagher who they can sell to help them out of trouble?
Interesting though that Chelsea need the sale by the end of June. Buying teams will be looking through their options around that time, maybe seeing who is making their name in the euros. It would be a mug club prepared to offer the sort of money Chelsea need by then.
We will need those players to be willing to sign for us, which is where our wage restrictions will put players off, especially those used to much higher wages at Chelsea.
- Oct 17, 2008
- 14,488
But whoooo could’ve possibly seen this coming?!
Boehly, according to Chelsea fans at the time, was a financial genius who found a brilliant secret loophole to get around FFP.
It’s simple! Buy the best players in the world who are 100% guaranteed not to flop, paying whatever it takes, BUT - here’s the clever bit - spread the cost across eight seasons!
It’s a double win!!! That way, in FFP accounting the cost is spread across a long amortisation period, AND you get the benefit of having the likes of Cucurella, Mudryk, Caicedo, Jackson, Sanchez and all their other world class star players on 8 year deals!
It’s genius because it all but guarantees nobody will want to sign them and match their ridiculously long and expensive contract, meaning they get to stay at Chelsea and keep bringing the continued success they’ve brought to the club, without fear of losing them!
Absolutely genius!!! Why has nobody else done this?!
Boehly, according to Chelsea fans at the time, was a financial genius who found a brilliant secret loophole to get around FFP.
It’s simple! Buy the best players in the world who are 100% guaranteed not to flop, paying whatever it takes, BUT - here’s the clever bit - spread the cost across eight seasons!
It’s a double win!!! That way, in FFP accounting the cost is spread across a long amortisation period, AND you get the benefit of having the likes of Cucurella, Mudryk, Caicedo, Jackson, Sanchez and all their other world class star players on 8 year deals!
It’s genius because it all but guarantees nobody will want to sign them and match their ridiculously long and expensive contract, meaning they get to stay at Chelsea and keep bringing the continued success they’ve brought to the club, without fear of losing them!
Absolutely genius!!! Why has nobody else done this?!
From memory when I looked at contract length of the youth teamers they all run for years and pay a high wage, with the exception of Gallagher.
If you are a youngster, you are not giving that up, you are not getting that elsewhere.
At best they will go on loan
No one sensible is paying anything decent for James, a great player when fit, but he's never fit
They still have Lukaku coming back.
Weststander
Well-known member
For all the bleating of the cheats, just look at the states of their squads and transfers
Everton gave Arsenal, 50 million plus for Walcott and Iwobi
It's a mystery why they went over the limits.
Brighton/Liverpool/Arsenal/Spurs have shown you can grow a club, increase revenue streams and stay within the rules.
Those above clubs have also had to sell top players to reinvest.
The others haven’t played ball, through cheating or incompetence or boxing themselves into a hole through jam today impatience.
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Weststander
Well-known member
Chelsea
Forest
Wolves
Have to sell players this summer, according to various reports.
Mancgull
Well-known member
As a buying club just wait until the end of June and see what bargains can be picked up. Bit like the Jan sales.
nwgull
Well-known member
Add Leicester to that list (which makes sense as I doubt we'd have seen it as realistic to go after one of their key players in January when they're chasing promotion).
I believe Wolves are good as they sold players and sacked the manager that moaned about it, as well run clubs would do if needed
They are also very dodgy with the ownership group.
Ah, but therein lies the big snag, both for us and for Chelsea. Chelsea won't be able to push for full market price, but might be reluctantly willing to sell at a cut price through sheer necessity.
We might be willing to pay that cut price, bit the player might not agree to come to us for half - or even a third or a quarter - of their existing wage. So we don't get a bargain, and Chelsea have to go on paying them several £million a year......... and of course, Chelsea paying off their contract so the player could 'afford' to live on £40 or £50K a week for three or four years wouldn't help their FFP situation.
It really is a lose-lose situation - even the player will lose by having to stay at Chelsea for five or six years!
Nobby Cybergoat
Well-known member
- Jul 19, 2021
- 8,622
Just say we, (and I don't think we will) did go and buy Colwill off them for £40m
That would be the least excited I have got over a big signing, just because it's helping that lot out of trouble
So how big a pay cut do you think Colwill would take? £50K a week? £100K?
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