Just had a read through Chelsea finances summary... dear me. Some impressive stuff. Selling the club's property was outlawed from the EPL PSR calc possibilities a few years back after Villa and Derby (among others) used it to get by, but PL rules still allow it thankfully for Chelsea who sold a hotel for a high profit to one of their owners companies, otherwise they'd have missed the mark by £74m for 22/23. Next (this) seasons' PSR challenge is a significant one for them. Be interesting to see what else they can sell. If they don't get into Europe again this year it could be a fair old catastrophe. 2nd highest squad cost in PL history... and record losses for a PL year.
On PSR (from SwissRamble) The big question now is whether Chelsea will comply with PSR this season. Based on my estimate for Chelsea’s cumulative PSR loss for the two years up to 2022/23 of £141m (even after the hotel sale), they would have to somehow generate a PSR profit of £36m this season to meet the target. Assuming that allowable deductions remain at £35m, this means that they would basically have to break-even in the accounts. That seems a tall order, given that revenue will be much lower due to not playing in Europe, while profit from player sales is currently also less than 2022/23 The wage bill should fall, but player amortisation (and possibly impairment) will increase. The expectation is that Chelsea will address this with player sales before the end of June, especially Academy products such as Conor Gallagher, Reece James, Armando Broja, Ian Maatsen and Trevor Chalobah. There are two other possibilities: Chelsea pull another rabbit out of the hat with more property sales, though a stadium disposal might be prevented by the Chelsea Pitch Owners, as they own the Stamford bridge freehold. The club might argue that further adjustments to the PSR calculation should be made to take into consideration: Revenue lost when sanctions were applied by the government Exceptional player impairment (as claimed by Everton) Lost player sales, due to the transfer market being deflated by COVID and the economic sanctions preventing deals being made.
Indeed, I even support Chelsea and reading through that **** is making my brain hurt! I always decide to stick to the footballing side of the sport. If you try to get all into the business and finance side a) Thats not fun, in the slightest and b) It kinda ruins the football fun aspect of it all. If we are going to have our head up an accountants arse and view the sport from that angle, we might aswell just all admit that Leicester are the best team ever, because they won the league having spent peanuts, they are the champions of the universe and any other team that comes along could never hope to ever be better because they will have spent far more, so all clubs may as well pack up and go home now, close down the league, end the sport, its done! No banter, no matchday fun, just a bunch of spreadsheets and corrupt businessmen.
Dont see that happening this summer, we probably havent even finished paying for him yet, so unless someone like PSG or Real came in with a £125m offer or something ******ed thats too good to turn down, I doubt it. Besides as good as the kid has been this season, which he has, its always best to wait to see if he replicates the form again the following season before you spend silly money on a player. Thats how we ended up spending £110m on players like Caicedo. Seen too many a player have a single great season, then becomes "meh". I hope to god that doesnt happen and dont think it will, but like buying a player based on one world cup or euros performance, doing it based on one season is also dumb imo.
It's not something I let influence my match day experience to be honest. I still just get have a few beers and (usually) enjoy myself. As a corrupt businessman myself, nothing get's me hard like a PSR spreadsheet of a club walking the tightrope, but that's not for match days.
Please post that on the Spurs board. Some of the posters on there are obsessed with balance sheets and ffp over the actual football results.
The West Stand broke into a rendition of “Highest EBITDA in the Premier League, you’ll never sing that” when I went a few weeks ago. Bagels everywhere when news of Levy’s bonus was released.
Don't know who you are watching, but I'm watching Cole Palmer the Chelsea player and he's going to be a worldie. In the right team.
I agree with your assessment. Just saying, I wouldnt be spending £100m+ on a player who has had one great season. Our board would, so I am happy we got him for £40m, because if we were buying him from City on the back of this seasons performance, we would probably be paying £120m + . My club has mispurchased so much lately that it has made me cynical. After Cucurella, Caicedo, Lukaku etc....
