• ! ! ! IMPORTANT MESSAGE ! ! !

    Discussions about police investigations

    In light of recent developments about a player from Premier League being arrested and until there is an official announcement, ALL users should refrain from discussing or speculating about situations around personal off-pitch matters related to any Arsenal player. This is to protect you and the forum.

    Users who disregard this reminder will be issued warnings and their posts will get deleted from public.

Chelsea FC: Enzo’s A Messca

Hleb's Sirush

Established Member

Analysing Chelsea’s latest accounts: What £205m amortisation figure, £404m wage bill mean for PSR​


Chelsea face a battle to comply with the Premier League’s profit and sustainability rules (PSR) and could be forced to sell players before June 30 after their financial state was laid bare in a sobering set of accounts.

The club’s accounts for the year ending June 30, 2023 saw them post a pre-tax loss of £90.1million ($112m), while wages climbed from £340.2m (2022) to £404m in 2023.

Only Manchester City’s annual wage bill (£423m) is higher than Chelsea’s. Last season, City won the Premier League, Champions League and FA Cup. Chelsea men’s team finished 12th in the league, though the women’s side won the Women’s Super League and the women’s FA Cup.

Chelsea’s accounts also show that between July 1, 2022 and June 30, 2023, they spent a total of £745.2m on new players. Their accounts note that a further £454.1m has been spent on players since June 30, 2023. They raised £203m from player sales and made a net profit of £62.9m on player trading overall, thanks to the sales of Timo Werner to RB Leipzig, Kalidou Koulibaly to Al Hilal and Jorginho and Kai Havertz to Arsenal.

Chelsea's worrying numbers
OPERATING PROFITS/LOSS £M
Chelsea-249
Leicester-152
A Villa-139
Everton-115
Leeds-78
Newcastle-66
N Forest-61
Tottenham-55
Wolves-54
Arsenal-39
Southampton-37
Man City-36
Fulham-35
Man Utd-31
Liverpool-23
Bournemouth-21
C Palace-20
Brighton-16
West Ham-12
Brentford4
Since a consortium led by Todd Boehly and Clearlake Capital bought the club in May 2022, Chelsea have splurged a combined £1.2bn on new signings.

This has resulted in their amortisation — how transfers are accounted for in club’s financial reports, with the cost of acquiring players, including fee and salary, spread out over the length of their contracts — soaring to £205m, up from £162.5m in 2022.

Due to the £454.1m spent on players after June 30, 2023 — such as Moises Caicedo, Cole Palmer and Axel Disasi — Chelsea’s amortisation figure for the 2023-24 period will likely have increased further. The club’s £205m figure is already a Premier League high, with Manchester United in second on £152m. Manchester City’s stands at £145.4m.

What does this all mean for Chelsea’s PSR calculations?​

Analysis from football finance expert Kieran Maguire

“Chelsea need to start selling again, but if you have got a £400m wage bill, then that means you have players on very big wages and there are a limited number of clubs willing to take those players off your hands, or a limited number of clubs a player would be willing to transfer to.
“They are still good at selling players, and that is the one thing they have always had in their favour. Mason Mount will grab back £60million, but Chelsea are under more pressure now regarding June 30, especially as we have seen the PSR commissions say, with respect to Nottingham Forest, that if you sell later in the year, tough, you know what the rules are.

“My concern is more for the three-year reporting period ending in this season because they have not had the benefits of European football. We had all been told that the wage bill will go down under Clearlake Capital, but the fact it shot up has taken me back.

“It will drop this season because they will not be paying European bonuses, for example. The amortisation charge is completely out of control and that is with their eight-year contracts applied. It is £50million more than Manchester City. They are going to have to work extremely hard to keep within PSR by June 30.”

Chelsea's wages are high
WAGES £M
Man City423
Chelsea404
Liverpool373
Man Utd331
Tottenham251
Arsenal235
Leicester206
A Villa194
Newcastle187
Everton159
Leeds146
N Forest145
Fulham139
West Ham137
Brighton128
C Palace124
Wolves121
Southampton113
Bournemouth100
Brentford99
When asked by The Athletic about their accounts, Chelsea maintained confidence that they will remain compliant with the Premier League’s PSR for the period ending in 2023-24 season. Chelsea added that they expect their wage bill to be different in the 2023-24 accounts after moving players out last summer.

How does it look going forward?​

Analysis from football finance expert Kieran Maguire

“The main issue is that these accounts are worse than everyone expected. I can’t see any positives. They can’t grow matchday revenue this season because Stamford Bridge is full. TV income will be down around £70million because of not playing in Europe and unless they win every match until the end of the season, then finishing eighth or ninth is £3million per place, so they may get a little bit more.

“Qualifying for the Europa League and Conference League does not make money, it is only the Champions League that puts plusses on the bottom line. If you get to the final of the Europa League or the semi-final, then that is about OK, but you aren’t making much money before that.

“There must be a lot of pressure on the club. The fact there was a £90million loss and that was after selling the hotel to themselves. Under EFL rules, you are not allowed to put that (hotel sale) into your PSR calculations.

“If they can’t do that for the Premier League, then it will make a bad situation even worse.”

What else do the accounts tell us?​

The accounts show that Chelsea borrowed £428.5m interest-free, although no information is given regarding who lent the money.

Chelsea also sold a hotel to BlueCo 22 Limited — a company which lists Boehly and other Chelsea board members as its directors — for £76.3m, which would have gone towards reducing the £90.1m loss.

It is unclear whether the Premier League will allow for money generated from the hotel sale to another company associated with the club to be used towards the PSR numbers. Chelsea say this was done in line with Premier League rules and was run past the league.

The accounts also reveal that the club considers Blues Investment Holdings to be its ultimate parent company. Blues Investment Holdings is incorporated in the Cayman Islands, which is a British-owned territory that is best known for its status as a tax haven. Manchester United’s parent company is also registered there.

Chelsea’s overall revenue increased from £481.3m in 2022 to £512.5m in 2023, with the majority of this rise coming from their commercial department.
Their commercial income grew to £210.1m for the year ended June 30, 2023, having totalled £177.1m in the previous year.

These figures come off the back of it being revealed on Friday that Chelsea spent £75.1m on agent fees between February 1, 2023 and February 2, 2024. This was more than any other Premier League side, with Manchester City spending £60m during the same period.

@Farzad impressed? @Rasmi tag your Dad in for this one
Lovely.

Don't think it will be long before Chelsea start pulling Barca style levers to stay relevant.

But then again if they let them get away selling hotels to themselves they might not need to. We will see.
 

Yousif Arsenal

On Vinai's payroll & misses 4th place trophy 🏆
Trusted ⭐
Let's see how long he gonna last. He have to make good so they have opportunity to get top 4
 

Tir Na Nog

Changes Opinion Every 5 Minutes

Country: Ireland
This is not a Chelsea manager at all, they should've have appointed that dickhead from Porto he suites them down to the ground. That's the sort of management style and playstyle that's suited to Chelsea not this Pep wannabe who'll suck him off after City hit them for 5.
 

Andrew Cole Linighan

Active Member

Country: England

Player:Saka

I was watching Sky Sports News last night. The report was that the New Chelsea Manager, had signed a 5 year contract, with the option of a further year. How much of that contract will he see of that, actually being the Chelsea manager. Might be replaced this time next year.
Chelsea fans were being asked about his appointment. If I was a Chelsea fan, I would say, 'Lets see if he can survive the first 6 months first'.

Chelsea Ligainggris GIF by MolaTV

Everton Fc Yes GIF by Everton Football Club

Carlo Ancelotti Yes GIF by KralBet

Premier League No GIF

Chelsea Fc Smile GIF by BT Sport

Champions League Football GIF by UEFA

London Football GIF by Tottenham Hotspur


A small selection of ex Chelsea Managers.
 

grange

Losing my brain cells 🥸

Country: USA

Player:Havertz
I was watching Sky Sports News last night. The report was that the New Chelsea Manager, had signed a 5 year contract, with the option of a further year. How much of that contract will he see of that, actually being the Chelsea manager. Might be replaced this time next year.
Chelsea fans were being asked about his appointment. If I was a Chelsea fan, I would say, 'Lets see if he can survive the first 6 months first'.

Chelsea Ligainggris GIF by MolaTV

Everton Fc Yes GIF by Everton Football Club

Carlo Ancelotti Yes GIF by KralBet

Premier League No GIF

Chelsea Fc Smile GIF by BT Sport

Champions League Football GIF by UEFA

London Football GIF by Tottenham Hotspur


A small selection of ex Chelsea Managers.
I liked how this started morphing into Tottenham managers towards the end
 

Country: USA
Chelsea are a joke club. Clueless ownership, idiots running recruitment and a championship manager. There are kids now who have no memory of Chelsea competing for a prem title.
 

Arsenal Quotes

He is like a new signing

Arsène Wenger on a player coming back from injury

2024 Summer Transfers Deadline

Daily Transfer Updates

Friday, July 19

Marseille would offer around £20m for Eddie Nketiah, but it’s likely that Arsenal would ask for more [Alan Nixon - The Sun]

West Ham are frontrunners to sign Reiss Nelson and a fee of £15m-20m could be enough to clinch a deal [Evening Standard]

Inter and Juventus have asked Arsenal about loaning Jakub Kiwior, but the club will only let him leave on a permanent transfer [Goal Poland]

Academy striker Chido Obi-Martin visited Manchester United’s training ground to discuss a move to the club [AcademyScoop]

Crystal Palace are preparing a £30m bid for Emile Smith Rowe [Ed Aarons - The Guardian]
Top Bottom