How can Chelsea continue to spend money on transfers?

Enzo Fernandez, a midfielder for Benfica, would bring Chelsea’s overall spending since Todd Boehly took over last summer to more than £550 million if they are successful in signing him.

Transfermarkt estimates that if the club signs Fernandez for 120 million euros (£105.6 million), it would have spent 328.5 million euros (£288 million) on eight new players in January as they try to improve their performance, which has dropped them to the bottom of the standings.

As part of a record-breaking £2.5 billion spent by Premier League teams thus far this season, it follows a summer in which they spent a Premier League-record £270 million, the second-highest summer spending by any club in the world behind Real Madrid (£292 million) in 2019.

However, with Jorginho, Hakim Ziyech, and Conor Gallagher all rumored to be moving on deadline day, there could also be some huge outgoings.

So, how does Chelsea manage to maintain its spending, and how do the numbers stack up in terms of Financial Fair Play regulations? BBC Sport examines the numbers in further detail.

How can Chelsea afford to keep bringing in new players, asks The Football News Show.
What are the spending guidelines?
Chelsea must follow the Premier League’s profit and sustainability criteria as well as Uefa’s Financial Fair Play (FFP) requirements because they frequently compete in European competition.

The profitability and sustainability guidelines of the Premier League permit cumulative losses of £105 million over a three-year span. Any club that posts losses above that amount may be subject to sanctions, such as hefty fines or even a points deduction.

Uefa’s present regulations allow clubs to spend up to 5 million euros (£4.4 million) more than they make over the course of three years, but they are allowed to spend up to 30 million euros (£26.6 million) if the owner of the club covers the full cost.

For teams who violate these criteria, as Wolves in 2020, Uefa has a long list of potential sanctions, like as warnings, fines, or even the loss of European championships.

While permissible losses over a three-year period have increased to 60 million euros (£49.96 million), new rules implemented in June limit clubs’ spending on wages, trades, and agent fees to 70% of their revenue.

Clubs have three years to put these changes into effect.

According to football finance specialist Kieran Maguire, Chelsea’s most recent finances, which go up to 2021, show only a £5 million three-year FFP deficit, giving them a reasonable amount of room to maneuver in terms of allowable losses.

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How is Chelsea still able to spend so much?
Kieran Maguire on Monday Night Club on BBC Radio 5 Live

There are 2 problems.

Can they afford it financially? Because they are purchasing players and making installment payments for them, they can. The club’s finances are thus in good shape.

In terms of Financial Fair Play, the accounting is more like Graham Potter than Harry Potter since it’s so peculiar and amazing.

When you purchase a player, the cost of the player is split out over the duration of the contract. Mykhailo Mudryk, for example, was purchased for £89 million, and his contract is for eight and a half years. Therefore, if you do the math, he is costing them £10 million annually for FFP. Even if the actual payments are made in installments, all of the revenues from the sale of a player are deposited into the accounts right away. We have Tammy Abraham’s and Fikayo Tomori’s sales. Profit of £77 million was realized.

Additionally, they won the Champions League, Uefa Super Cup, and Fifa World Club Cup, all of which brought in additional revenue. Therefore, things aren’t as horrible as some of the commenters seem to be portraying them to be.

Mudryk signs an £89 million, eight-year deal with Chelsea.
Sutton: The club is in “totally turmoil” over transfers.
Who is coming? Who will be excluded? The MOTD examines Chelsea’s offensive alternatives.
Chelsea’s new arrivals
Recruiting since Boehly’s acquisition (summer 2022)
Brighton, Marc Cucurella, £60 million
Juventus’ Denis Zakaria is on loan.
Raheem Sterling, £50 million; Man City
Benoit Badiashile, £35 million, Monaco
Napoli paid £33m for Kalidou Koulibaly.
Datro, David Molde – Fofana, £8m
Carney Chukwuemeka was acquired by Aston Villa for £20 million.
Vasco da Gama – Andrey Santos, £10 million
Inter Milan paid £12m for Cesare Casadei.
Atletico Madrid will pay £9.7 million to borrow Joao Felix.
Wesley Fofana, £70 million, Leicester
Shakhtar Donetsk – Mykhailo Mudryk, £89 million
Barcelona paid £10.3 million for Pierre-Emerick Aubameyang.
Noni Madueke, £30.7 million, PSV Eindhoven
Chicago Fire’s Gabriel Slonina £8m Malo Gusto – Lyon, £30.7 million Overall: £476.4 million… plus Chelsea’s outgoings
2020–2023: Important Chelsea outgoings
Alvaro Morata, £31 million, Atletico Madrid
Roma Tammy Abraham, £34m
Kurt Zouma, £29.8 million, West Ham
Fikayo Tomori – £24m, AC Milan
Timo Werner, £25 million, RB Leipzig
Emerson – £13 million – West Ham
Atalanta’s Mario Pasalic cost £12.8 million in total.
What dangers exist?
Kieran Maguire, a financial expert in football

It’s a highly risky tactic.

If the players don’t perform as expected, you’ll be stuck paying the player’s whole salary cost of £7 million or £8 million year for seven to eight years. No other teams are prepared to take that salary off your hands for as long as they are. Four or five players are willing to sit down for the remaining contracts, so there are those. In terms of Uefa, they are even taking up space on your 25-man roster or tying up money on your salary.

If they are outstanding players, that is fantastic because it means you still have five or six years left on the deal and can command the highest price if Real Madrid approaches you in two years.

What happens if Chelsea is unable to make the Champions League?
Dr. Rob Wilson, a football financial expert from Sheffield Hallam University, appeared on the Football News Show.

Chelsea would receive about 110 million euros in prize money if they made it to the Champions League final. Due of this, numerous Champions League teams, including Manchester City, Liverpool, and Real Madrid, appeared on the most recent Deloitte wealthy list.

Without those continued Champions League income or higher Premier League rankings, your revenues naturally fall down, and I would argue over the following 18 to 24 months, it puts a tremendous amount of strain on the football club.

In the end, you must either renegotiate the contracts to lower a player’s salaries or sell them if you are unable to pay the contract worth over the course of a year and it appears that you will violate Financial Fair Play.

When you sign a player for five, six, seven, eight, or even nine years, the actual danger is that. They are just one injury away from losing a lot of value and becoming unsellable.

Chelsea is improvising as they go along,
Sports analyst for BBC Chris Sutton

The spending is simply astounding. Todd Boehly cannot be accused of not backing up his statements with actions.

From the outside, it appears that they are making it up as they go.

It’s comparable to saying, “Any good player around, we’ll pay anything, and we’ll bring him in.”

Enzo Fernandez impressed me greatly when I watched him at the World Cup. Due of his youth, they are purchasing potential. He is a long way from being finished.

It’s astonishing that Chelsea will spend that much ($120 million). But January may be quite chaotic.

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