[Football] When will Chelsea go bust?

[Seat Stealer]

At what monetary level does it become pointless to keep spending? After all, the amount of Income receivable is surely reaching saturation. I don't get spending billions on building a squad to win say £500m. The Champions league seems to be the holy grail with just over £2 billion (2022/23) distributed amongst ALL qualifying clubs. Are the big 6 heading for financial trouble? How many years can Chelsea continue to spend big and not qualify for the CL.? When will FFP finally hit them? It seems that Brighton are likely to earn more money from their current transfer policy, seeking low cost talent and selling big, therefore possibly earning more than some of the current big 6. So maybe, eventually we will be a big 6 club because we followed a different course. Thoughts!

 

[Diallo]

You never know, maybe one day USA might invade Ukraine too?

 

[Easy 10]

These huge 8 year contracts they've decided to hand out lately to dodge FFP are a massive gamble. All well and good if they land a superstar who settles and performs, but if they end up lumbered with, say, a Lukaku on MASSIVE wages, who completely stinks the place out, and is contracted there for the best part of a decade, then well...good luck moving him on and getting him off the books.

 

[nickjhs]

When will FFP finally hit them?

they are signing players on long contracts which means the cost of the players is divided by the contract length, Mudryk is on an eight year contract. When they sell a player all the revenue is credited to the season, so this is how they keep within the rules. It'll bite them big time if these long contract players don't perform and are sold at a loss. UEFA is also tightening the rules. No matter the contract length the cost can only be spread over five years.

@Easy 10 you beat me to it

 

[Seat Stealer]

I think moves are being considered to regulate amortisation of the players transfer fee over a max 5 year period rather than these inflated contracts that Chelsea are concocting. That will bring FFP a step closer. Expect Chelsea and others to throw toys from the pram. Probably resulting in more talk of a breakaway league.

 

[chickens]

I think moves are being considered to regulate amortisation of the players transfer fee over a max 5 year period rather than these inflated contracts that Chelsea are concocting. That will bring FFP a step closer. Expect Chelsea and others to throw toys from the pram. Probably resulting in more talk of a breakaway league.

Part of me wants the ESL clubs to get their wish and play their little circle-jerk circuit of clubs ad-infinitum, have them kicked out of their national leagues, divorced from the football pyramid, and ineligible for any other European competitions.

I for one wouldn’t watch them, and I suspect they’d wither and die over time. Or beg to be allowed back, which should only be allowed if they start at the bottom of the football pyramid.

I’m not convinced there’s as much viewer appetite for it as the architects of the ESL believe there is.

And as others have already stated, this new attempt to game FFP is already being clamped down on.

 

[Bozza]

I think moves are being considered to regulate amortisation of the players transfer fee over a max 5 year period rather than these inflated contracts that Chelsea are concocting. That will bring FFP a step closer. Expect Chelsea and others to throw toys from the pram. Probably resulting in more talk of a breakaway league.

UEFA have already acted this week on that...

[Football] - UEFA change FFP rules because of Chelsea

Uefa is to change its Financial Fair Play rules in response to Chelsea's recent trend of signing players on long-term contracts. Signing players on extended contracts enables Chelsea to spread the player's transfer fee over the life of that deal when submitting their annual accounts. That...

www.northstandchat.com

 

[portlock seagull]

They won’t go bust, but money is valueless for several teams now and that should concern all right minded football supporters. Just the latest step in destruction of ‘sport’

 

[A1X]

When Graham Potter takes them down to League 1

 

[Javeaseagull]

Part of me wants the ESL clubs to get their wish and play their little circle-jerk circuit of clubs ad-infinitum, have them kicked out of their national leagues, divorced from the football pyramid, and ineligible for any other European competitions.

I for one wouldn’t watch them, and I suspect they’d wither and die over time. Or beg to be allowed back, which should only be allowed if they start at the bottom of the football pyramid.

I’m not convinced there’s as much viewer appetite for it as the architects of the ESL believe there is.

And as others have already stated, this new attempt to game FFP is already being clamped down on.

The European Super League came about because Real Madrid, Barcelona and Juventus are jealous of the Premier League, simple as that. Without our 6 it will never come to fruition for all the huffing and puffing of those 3.

 

[WhingForPresident]

I don't see how Potter can fail with the squad he has at his disposal now, it's actually insane. Massive pressure on him for a title challenge next season.

 

[Dick Swiveller]

These huge 8 year contracts they've decided to hand out lately to dodge FFP are a massive gamble. All well and good if they land a superstar who settles and performs, but if they end up lumbered with, say, a Lukaku on MASSIVE wages, who completely stinks the place out, and is contracted there for the best part of a decade, then well...good luck moving him on and getting him off the books.

And they are also removing a lot of their future FFP spending power. They still have to amortise the value however long they spread it out. This will put a smaller amount on the books every year but for more years. Will their fans remember these contracts in 5 years time when they can't splash the cash due to legacy signings?

 

[Doc Lynam]

I also can’t see how Potter signed up for this way of working. Wonder if it adds extra pressure!

 

[wellquickwoody]

At what monetary level does it become pointless to keep spending? After all, the amount of Income receivable is surely reaching saturation. I don't get spending billions on building a squad to win say £500m. The Champions league seems to be the holy grail with just over £2 billion (2022/23) distributed amongst ALL qualifying clubs. Are the big 6 heading for financial trouble? How many years can Chelsea continue to spend big and not qualify for the CL.? When will FFP finally hit them? It seems that Brighton are likely to earn more money from their current transfer policy, seeking low cost talent and selling big, therefore possibly earning more than some of the current big 6. So maybe, eventually we will be a big 6 club because we followed a different course. Thoughts!

That 2 billion is shared, but the advertising revenue from winning is another kettle of fish.

 

[Easy 10]

And they are also removing a lot of their future FFP spending power. They still have to amortise the value however long they spread it out. This will put a smaller amount on the books every year but for more years. Will their fans remember these contracts in 5 years time when they can't splash the cash due to legacy signings?

Yes, good point. They are gradually diminishing their own headroom with FFP over the coming years. And you can only have 25 players in your squad (not including U21s), so if some of these long-term signings don't work out, then you're pretty much stuffed.

Perhaps they're gambling on FFP being relaxed at some point in the future. Or breaking away from the PL to the ESL, where they'll make all their own rules up and spend whatever they want.

 

[Greg Bobkin]

I don't see how Potter can fail with the squad he has at his disposal now, it's actually insane. Massive pressure on him for a title challenge next season.

And that's the thing. There are thousands of fans (I'm guessing the vast majority) who want him out, but the rational thing to do would be write of this season and go again with a fully fit squad. Even if that means no Europe next season, they could easily 'do an Arsenal' and be flying by this time next year.

Whether the players would stick around for just domestic football, who knows? But one look at their bank balance would probably keep them happy!

 

[SAC]

(Much as we may whish otherwise), all the while the TV money is coming in, Chelsea will be fine. A season or two outside the top four and then the revenue will start to dry up and then they could be in trouble.

It was obvious that the English fans (of the big 6) didn't want their clubs to join a new league. I can't see them trying that one again soon. I'd be split, part of me likes the idea of these clubs buggering off but it wont be long before they either came back or were replaced by an equally unlikable big 6.

 

[Tom Hark Preston Park]

I don't see how Potter can fail with the squad he has at his disposal now, it's actually insane. Massive pressure on him for a title challenge next season.

Mudryk might just be the one save Potter's sorry arse, for this season at least. Assuming he doesn't restrict him to 20 minute cameos. Or play him at wing back

 

[SUIYHP]

I feel like I keep saying this, but I despise the clueless yank. He thinks too much like an NFL owner- Those big multi year contracts may work for players who only play around an hour of actual gametime per season, as the average NFL player does, but for a EPL player who will realistically have a few seasons in their prime it’s a huge waste of money. He’s stinking out the Premier League already and he’s not even owned Chelsea for a full season yet.

 

[Swansman]

They probably won't go bust. Spend money today, reap the rewards in 10 years.

The plan is to buy multiple clubs, make them profitable in the long run and then perhaps sell them off in the future. Roman Abramovich appeared to splash obscene amounts of money on Chelsea with people thinking "this can never be financially sensible, he just wants a toy to play with"... but had he sold it under circumstances where he could actually get most of the money, he would have made a very nice profit however.

Same may well be the case if Boehly & co sell the club in 20 years, but much like with Abramovich (and various other club owners) some initial investment might be needed in order to make sure the brand remains strong (through good, valuable players and good results on the pitch) throughout the process of becoming profitable and/or selling it with a profit.