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Quadruple player sale won’t fix Chelsea’s new FFP problem as Clearlake stare down UEFA punishment

https://www.thechelseachronicle.com/news/quadruple-player-sale-wont-fix-chelseas-new-ffp-problem-as-clearlake-stare-down-uefa-punishment/

Chelsea are in the process of completing a number of big player sales, however there are still fears that they may not meet the criteria recently laid out to them by UEFA.

As they continue to spend big money on new signings, these are being funded with the sales of some individuals who were firmly on the fringes of starting for Enzo Maresca.

Kiernan Dewsbury-Hall has officially moved to Everton after just one season with the club, while Armando BrojaLesley Ugochukwu and Carney Chukwuemeka all look set for moves.

It has been said that Chelsea are desperate for sales to stay onside with UEFA after they were punished for breaking financial rules.

The Blues need to sell players in order to be able to register new signings such as Joao Pedro, Liam Delap and Jamie Gittens for the upcoming Champions League.

Chelsea will still have FFP problems after quadruple player sale

Financial expert Adam Williams has exclusively told The Chelsea Chronicle that while the Blues are in clear waters when it comes to the Premier League, they still have work to do as far as UEFA goes after these four players leave Stamford Bridge.

He said: “Chelsea are in an unusual position with PSR. The first thing to note is that the Premier League has one set of financial rules, while UEFA has another.

Under the Premier League system, Chelsea aren’t allowed to lose any more than £105m over a rolling three-year period, with allowable add-backs for things like investment in the academy, infrastructure and the women’s team. On paper, Chelsea are miles over the limit, but – as everyone knows by now – because they have executed these PSR sleights of hand with the women’s team and hotel sales, they aren’t in any trouble with the Premier League rules.

“UEFA’s rules are more complex, and they don’t count the hotel and women’s team sales, so Chelsea are in a much more precarious position. As we know, the club has already breached UEFA FFP. Incidentally, it hasn’t been called ‘FFP’ for some time now, but we’ll use that as shorthand for UEFA’s rules.

Chelsea broke both the allowable loss limit provision of the rules, which is lower than the Premier League’s limit at about £70-75m over three years, and the squad cost ratio rule, which limits spending on wages, transfers and agents fees to 70 per cent of turnover plus profit on player sales. They’ve been fined and they now have to adhere to a number of conditions as part of a settlement with UEFA over the next few years.

“In terms of the immediate impact that’s going to have, Chelsea need to have a ‘positive transfer balance’ in terms of the squad they register for the Champions League this coming season compared to the one they registered in Europe in 2024-25. That’s not actually as hard as it sounds. Why? Because it’s only the amortised cost of the players they have signed this season that they need to offset, not the full headline transfer fees. That’s about £50-60m, not the £250m or so they have spent.

Madueke will have made up a big chunk of that, but you also have to remember that the profit on player sales is calcualted on the player’s amortised book value, not the headline figures. So the profit on his sale to Arsenal will have been around £30m. Similarly, they will only have broken even on the Dewsbury-Hall sale, not made any meaningful profit.

“If Chukwemeka goes for £22m, as we understand is imminent, that will be an FFP profit of around £12m. For Ugochukwu, it will be about £6m. If they get £20m for Broja, that will be pure profit. But then again, none of those players were in Chelsea’s UEFA squad last year, so they will help the club with the allowable loss limit element of the UEFA’s rules, but not the provision that means they have to have a positive transfer balance. Chelsea will get there, and it has always been the plan to use players as trading chips anyway, but it means they still have work to do.

Todd Boehly tipped to completely change Chelsea model

Chelsea have been free-spending in the three years since Todd Boehly took over the club, easily paying more for players than any other club in that time period.

However, Williams believes the losses they are making every season is going to need to drastically change, and the recent settlement with UEFA will be the start of a new era.

The bigger concern is the financial targets they need to hit over the next few years as part of the UEFA settlement. That is going to fundamentally change how the club is run, I predict. They need to dramatically slash their costs or massively increase revenue, or a combination of both.

They are losing £200m per season at the operating level, so there is big, big work to be done to get into a position where they hit UEFA’s targets. And remember, they can’t use the same accountancy tricks as they have with the Premier League rules. By 2028-29, they need to be fully compliant with the £75m allowable loss limit. The squad cost ratio rule seems to carry less of a stringent punishment, but if they continually fall foul of that too, there will be reprisals.

There are so many moving parts with Chelsea, but it’s the UEFA rules that they need to be concerned about. I think the day that they agreed the settlement with UEFA was Day One of a new era for the ownership. We’ll see how that manifests itself over the next few years.

One of the biggest ways Chelsea could increase their revenue would be a move away from Stamford Bridge, with the capacity of the stadium minnowing some of their elite rivals.

Boehly is keen on a new stadium, however it is expected to be a number of years before this becomes a possibility for the Blues.

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18 minutes ago, ZAPHOD2319 said:

 

Around 150m more expected from Jackson, Nkunku, Disasi maybe Badiashile...

Overall we created a fantastic group of players and I don't expect us to be active a lot on market in the next years...

Literally 5 year transfer ban wouldn't hurt us.

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