The Chelsea Thread

[Mike.]

Most of our losses have been classified as 'exceptional'.. Things like Managerial compensation allow of which amounts to a whopping 42 million

So if you are willing to exclude these exceptional losses, then you can see that Chelsea have been steadily improving year after year. Factor in new and more lucrative existing sponsorship deals and you would find that we are cutting our losses. Factor in a new, bigger stadium with naming rights sold and thats another huge jackpot right there

The holy grail would obviously be the naming rights deal in the short-term. That is estimated to bring in 10m per year.

I expect the wages to remain stagnant this year. The departures of Anelka, Alex, Drogba, Bosingwa, Kalou as well as the possibly dpeartures of Malouda and Essien should be enough to subsidize the wages Hazard and possibly Hulk will have

Our revenue has been growing steadily as well. If we can get a new stadium + naming rights then we are on sound financial footing

Only your managerial losses have been marked as exceptional, and there is a question as to whether AVBs sacking will go down as exceptional. It may not do, which would be a massive blow. Naming rights wont be counted. Nether will a new stadium, because their revenue doesnt exist yet. Chelsea are more likely using their CL revenue to pad out their transfer funds. Wages, may remain stagnant, or indeed may drop. Previous sponsorships will help, but they are not mega deals

 

[Mike.]

Swiss Ramble on Chelsea's FFP Chances:

Many people ask me about CFC chances of meeting FFP targets after purchases of Hazard and (probably) Hulk, so heres a few thoughts.

1) CFC 10/11 loss (last year before FFP) was £67m, but that included exceptional items of £42m, so underlying loss was "only" £25m.

2) FFP allows some costs to be excluded (youth, depreciation, community), estimated at £18m, so CFC 10/11 loss was just £7m (in FFP terms).

3) FFP allows total losses of €45m (£36m) for first 2 years (11/12 + 12/13), if benefactor covers losses, so clubs have some leeway.

4) 11/12 CFC revenue boosted by CL win (£12m more prize money + gate receipts + sponsor bonuses), tho partly offset by player/coach bonuses.

5) CFC 11/12 PL revenue was £3m lower (6th place), but more from FA Cup win. Profit on player sales also likely to be lower than 10/11.

6) CFC 11/12 commercial revenue should have increased, not just from main Adidas & Samsung deals, but also secondary sponsors.

7) CFC 11/12 will be hit by pay-off to AVB (£12m?) and higher player amortisation, due to other purchases, e.g. Mata, Lukaku, Meireles, etc.

8) FFP allows exclusion of wages for players signed before June 2010, if break-even deficit only due to this factor, which will help CFC.

9) All in all CFC 11/12 per FFP rules still a loss, but within striking distance of FFP.

10) CFC 12/13 Hazard £32m & Hulk £38m obvs hurt FFP, but if 5 year contracts, annual impact only £12m player amortisation (£70m / 5 years).

11) CFC higher wages also a factor, but offset by departures (Anelka, Drogba, Kalou, Malouda, Boswinga, Ferreira, etc).

12) CL money up 20% in 12-15 cycle. CFC got £49m from CL last season they (& others) simply cannot afford to miss out on qualification.

13) CFC could still pull a few irons out of the fire, e.g. stadium naming rights (Gazprom Bridge, anyone?).

14) So Hazard & Hulk obviously make it more difficult for CFC to meet FFP (it was already a struggle), but may be closer than most believe.

15) Please note that this is NOT an attempt to forecast next CFC figures, but just some food for thought.

Guess I was bang on about Chelsea using CL money to pad out their finances.

 

[Quasit]

Swiss Ramble on Chelsea's FFP Chances:

Many people ask me about CFC chances of meeting FFP targets after purchases of Hazard and (probably) Hulk, so heres a few thoughts.

1) CFC 10/11 loss (last year before FFP) was £67m, but that included exceptional items of £42m, so underlying loss was "only" £25m.

Main thing that still isn't clear to me is do Uefa count these "exceptional costs" into FFP or not. People make it sound like they don't but whats the point in that? Those costs arent "constructive" like youth , community or say building a new stadium.

 

[Quasit]

Only your managerial losses have been marked as exceptional, and there is a question as to whether AVBs sacking will go down as exceptional. It may not do, which would be a massive blow. Naming rights wont be counted. Nether will a new stadium, because their revenue doesnt exist yet. Chelsea are more likely using their CL revenue to pad out their transfer funds. Wages, may remain stagnant, or indeed may drop. Previous sponsorships will help, but they are not mega deals

BUT the wages that contribute into FFP will rise.

 

[Mike.]

Main thing that still isn't clear to me is do Uefa count these "exceptional costs" into FFP or not. People make it sound like they don't but whats the point in that? Those costs arent "constructive" like youth , community or say building a new stadium.

They dont always, because they are exceptional, ie one offs. The fact that they then did the same with AVB means it may not be counted as exceptional this year.

 

[Quasit]

They dont always, because they are exceptional, ie one offs. The fact that they then did the same with AVB means it may not be counted as exceptional this year.

In Roman's case they havent been that exceptional in past 5 years.

 

[Alcaraz]

Guess I was bang on about Chelsea using CL money to pad out their finances.

In the short-term yes. But what I meant in my post was that in the long-term we can easily take a quantam leap with a new stadium plus naming rights as noted by Swiss Ramble in point number 13

As for 'exceptional costs', their is question mark over AVB's compensation although I think it would not be counted

 

[Mike.]

In the short-term yes. But what I meant in my post was that in the long-term we can easily take a quantam leap with a new stadium plus naming rights as noted by Swiss Ramble in point number 13

As for 'exceptional costs', their is question mark over AVB's compensation although I think it would not be counted

As I said to Carl, going in the right direction, still a long way to go.

 

[Alcaraz]

Only your managerial losses have been marked as exceptional, and there is a question as to whether AVBs sacking will go down as exceptional. It may not do, which would be a massive blow. Naming rights wont be counted. Nether will a new stadium, because their revenue doesnt exist yet. Chelsea are more likely using their CL revenue to pad out their transfer funds. Wages, may remain stagnant, or indeed may drop. Previous sponsorships will help, but they are not mega deals

Samsung deal up for renewal this year. And I fully expect they the deal to be an improvement on the old one. Main thing for the club is still the stadium and naming rights deal which they are pursuing

 

[TheRealMourinho]

The whole FFP thing has me so confused.
Could someone please try and clear it up for me? Also what are the consequences of not meeting the requirements?

 

[Quasit]

The whole FFP thing has me so confused.
Could someone please try and clear it up for me? Also what are the consequences of not meeting the requirements?

Pretty unclear still. Uefa already fined Besiktas 200.000e and banned them from next years Europa League due to some financial problems. Read somewhere they had problems paying the wages or something like that and it fell into "jurisdiction" of FFP.

 

[Alcaraz]

The whole FFP thing has me so confused.
Could someone please try and clear it up for me? Also what are the consequences of not meeting the requirements?

Worst come to worst, You are kicked out of the Champions League

Also basically FFP was created by UEFA to create a 'level playing field' and basically prevent clubs with sugar daddy's from gaining an unfair advantage over clubs who run on a more sustainable business model. Although it does have certain loopholes

 

[Mike.]

Worst come to worst, You are kicked out of the Champions League

Also basically FFP was created by UEFA to create a 'level playing field' and basically prevent clubs with sugar daddy's from gaining an unfair advantage over clubs who run on a more sustainable business model. Although it does have certain loopholes

Not true. There was only Chelsea before FFP was thoughT up, and you hadnt done anything yet. Its about getting clubs across Europe to be more sustainable, and cut the crazy inflation out of the game.

 

[Quasit]

Worst come to worst, You are kicked out of the Champions League

Also basically FFP was created by UEFA to create a 'level playing field' and basically prevent clubs with sugar daddy's from gaining an unfair advantage over clubs who run on a more sustainable business model. Although it does have certain loopholes

The main loophole has been "blocked" already. Sponsorships will be counted onto their fair market value and what exceeds that wont be counted by Uefa. Mainly because of that massive sponsorship City gained.

 

[oja20]

Was going to post the Swiss Ramble stuff. I can't see Roman risking us not playing in CL when thats his love.. He must know what he's doing, right?

 

[cfc12345]

Kalou and Bosingwa have been officially released today. Some Chelsea fans are ******* me off slagging off Kalou saying how **** he was and they are glad he has gone. Well atleast Kalou could score goals when we needed to unlike Torres whos **** they have their tongues up all the time. ( This is the Chelsea fans on twitter btw)

 

[TheRealMourinho]

Just seen photos of Hazard signing a fans shirt at the airport!
Cant wait till the announcement.

 

[BlueHeart26]

Just seen photos of Hazard signing a fans shirt at the airport!
Cant wait till the announcement.

link?

 

[Alcaraz]

 

[Alcaraz]

The main loophole has been "blocked" already. Sponsorships will be counted onto their fair market value and what exceeds that wont be counted by Uefa. Mainly because of that massive sponsorship City gained.

I dont know, has City's sponsorship been even partially excluded as of now?