Chelsea has somehow succeeded in burning over the past decade through a dazzling £ 1,291 billion, and yet they still look financially fit.
According to athletics, the West -London giants have lost a stunning £ 354,000 a day, every day for 10 years.
Since the adoption of Roman Abramovich, who was also not shy to splash the money – the new owners have only blown more than £ 1 billion on players.
They are already on their third permanent manager, after Binning Thomas Tuchel for only three months in the new era. Graham Potter and Mauricio Pochettino have also come and gone, with hefty compensation packages in tow.
So how did Chelsea remove this?
One word: creativity and a little financial sorcery.
They have handed out eight -year -old deals for players, distribute the costs about the contract and keep things neatly on the balance.
The athletics also reports that the club has remained within the Premier League profit and sustainability rules by selling assets to itself.
They have melted the ladies team at another entity within their ownership group, raised £ 200 million and booked a profit of £ 198.7 million in a magical way. That brutal movement changed what another large loss would have been in a profit before taxes of £ 128.4 million.
For this they sold two hotels and a parking space to a sister company, which in 2023 drew £ 76.5 million – just in time to help them succeed in the PSR test of that year.
Add it all and Chelsea changed what financial disaster could have been in a profit of £ 275.2 million. Technically above board, smart within the lines.
What the PSR says
The PSR rules of the PREM are simple, clubs cannot lose more than £ 105 million for three seasons, with the exception of certain diversions.
Should Chelsea really sell the ladies team?
Let us assume that the hotel sales were accepted in the bills of 2023. That was still left of Chelsea by £ 281.8 million in losses on the PSR roads of 2022-2024 after the £ 105 million limit.
Developments such as depreciation on non-football activa £ 43.5 million and £ 41.4 million spent on the women's team from that total. Add some leeway for community spending and other permitted costs, and suddenly it is not such a huge gap.
Chelsea is still in the green on paper.
But UEFA will not be so friendly. UEFA Play due to stricter rules.
Their version of Financial Fair Play only loses £ 68 million and they frown to sell to sister companies.
That wipes away the £ 275 million accounting trick and leaves Chelsea on shaky soil.
UEFA also limits the amortization of the player to five years – which means that £ 100 million Men Moises Caicedo, who was signed an eight -year -old deal, adds £ 7.5 million more to UEFA books a year.
So, although Chelsea may survive the Premier League investigation, they are in a much tighter place when it comes to Europe.
Where is the wage account?
Chelsea's wage account for 2023–24 was no less than £ 338 million, still the fourth highest in the competition, and only £ 2.2 million lower than 2021-22.
In between, it peaked at £ 404 million, one of only two English clubs ever above £ 400 million.
That included payouts to Tuchel and Potter, plus their coaching teams. The exit of Pochettino added more.
The club is also massive employers – the management of the administration rose from 646 to 773, making them the third largest employer in English football, just behind United and Liverpool.
Despite a turnover decrease of nine percent, the wage and omzetratio improved slightly to 72 percent, a decrease of 79 percent. Strip the payment of Poch and it falls to 70 percent – still only the 12th best in the competition.
What really does Chelsea need to continue?
Champions League Football – Urgent.
Like many of the top clubs in England, Chelsea needs the UEFA money to keep daily losses under control. Without that, the creative accounting may not be enough to keep the lights on.