January Transfers 2023 (All I Want For Christmas is….)

[Editor]

Yeah Chucky, what you posted at 7.16pm is what myself and Lucky were saying. In that scenario, it’s a £5mil profit because there is 10mil left to account for (2 yrs left at 5mil a year). 15mil coming in and 10mil left to account for = 5mil profit.

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[Chucky McChuckface]

You two are correct in the “real world” accounting practises… I’m talking FFP! 🙂

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[Editor]

80 million transfer fee over 8 years is 10 million per year.

You have a player for 3 years so his cost 30 million so far.

You sell that player for 50 million.

30 Million Cost VS 50 Million Sales = 20 Million Profit!

Don’t forget we’re talking UEFA FFP rules… they’re not supposed to make sense! 🙂

No, again that’s not a profit or surplus in FFP terms.

Year 1 10mil
Year 2 10mil
Year 3 10mil
Year 4 10mil
Year 5 10mil
Year 6 10mil
Year 7 10mil
Year 8 10mil

So you sell him after that 3rd year. You’ve accounted for 3×10 (30mil). But there is 50mil still left to account for. You sell him for 50mil then any surplus is calculated by taking the incoming fee minus any remaining accounting costs. In this case (10×5 remaining =50)

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[Luckydestiny]

“30 Million Cost VS 50 Million Sales = 20 Million Profit!”

No banjo, over all it was 80m spent 50m clawed back, and overall loss of 30m but that 30m was spread over the first 3 years and accounted for and so all that remained to be accounted for was the 50m.

If at this point the player was sold for 60m it would not be a 10m profit all considered because overall the cost was 80m, but it would be a genuine surplus at that time for reasons outlined.

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[Chucky McChuckface]

Stupid rules… 😉

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[Rover]

To put how it works into context, the majority of Chelsea’s spending spree in excess of £280m will be spread across eight years, resulting in an annual cost of just £35m.
Chelsea can easily offset that cost with player sales which, unlike transfer fees for purchased players, are booked immediately into the financial records in one lump sum – and Potter has a number within his squad who could be sold at the end of the campaign.
This approach, crucially, is not against FFP regulations but UEFA has reportedly identified the loophole and are shifting the goalposts in future by setting a five-year limit for FFP – although this would not change things hugely.
If Chelsea’s £280m spree was spread across five years, it would equate to £56m a year. Again, that is a fee they can offset with player sales, TV revenue and sponsorship deals.
On top of this, from 2023-24, the allowable loss limit in FFP will be doubled from €30m (£26.6m) to €60m (£53.2m), while clubs judged to be in good financial health will be granted a further €30m in allowable losses over a three-year period. So even without CL Chelsea are in a good space. The EPL is THE Super League.

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[threeps]

Leeds thought they were in a good place when they signed loads of players on big long contracts too. Even the mighty Barcelona struggled and would of gone under if they weren’t so important to La Liga. Its a very dangerous game Chelsea are playing.

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[Luckydestiny]

It certainly appears to be high risk threeps, although just how high the risks are is beyond any of us to determine without clear understanding of the finances.

The examples you mentioned are completely different in that this money is guaranteed its no risk in the club.

The real danger imo is if boehly got the maths wrong and we fail to meet ffp, there will be consequences for that.

The long big contracts as you put it don’t worry me, because they are not as big as they are long, and the wages for likes of mudryk will only go up if he turns out to be worth more. He is a proper talent, if he don’t work out for us he won’t be a bad player all of a sudden and there could be takers at the 40m mark able to stretch to 100k per week. The long contracts protect his value in a way too because if he struggled we could loan him out for half his annual cost for a few years to cut losses and sell him at later date in which case it could even create a surplus considering the losses would have already be accounted for.

I worry about losing someone like mount to pool in the summer if we are forced to sell players we would have rather kept to meet ffp.

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[Rover]

With all due respect I’m sure Ted Boehly and his board know much more than us re finances. Life in general is a risk to different extents I suppose.

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[Luckydestiny]

That’s what we hope rover 🙏

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[Chucky McChuckface]

No we don’t… 🙂

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[Editor]

Don’t think you need to worry too much about losing Mount Lucky 😂. I’d be shocked if someone came in for him. Unless I’m missing something with Mount, is he really that good?

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[Editor]

Admittedly I don’t watch much of Mount but, at least when he plays for England, he’s one of those players who just baffles me as I have no idea what he offers. Seemingly Southgate started to see there were more capable players, too, as he got less games as the WC went on.

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[Luckydestiny]

Ed,

He is perfect profile for klopps midfield imo and I am almost certain they keeping an eye on him.

I think now he can play deeper and not always be played as a forward I think we will see the best of him. All considered I think his prem record is good especially for his age. Although same said of dele alli….

I won’t argue it though just expressing a fear not what I necessarily think will happen. I hope everyone thinks he is shite 😆

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[Luckydestiny]

Ed, mount was key in our champions league win, just look at his performances vs city, real and atletico.

Not saying he Frank lampard or anything but he has achieved much more at his age at higher levels than lamps did.

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[Editor]

But do Chelsea fans universally rate him? I’ve always thought of him as one of those who divides fans. Seem to think I’ve read a lot of Chelsea fans criticising him over the years.

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[Luckydestiny]

Yeah Ed, I had plenty of frustration with him this season myself but can say that about every player bar Thiago Silva to be honest.

Ten Mason Mount’s would not win you the league but a team with one mount won the champs league and he was crucial in every round we advanced through and especially the final.

It’s the usual problem Ed, consistency, at his best he is very very good but he only at his best when team is settled.

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[Luckydestiny]

A considerable proportion of non English chelsea fans do hate him Ed,just like Potter, they think anyone English given a chance is there based nationality rather than ability.

I would get that if he wasn’t talented or if he never delivered quality for us but he clearly has, as much as any foreign player purchased in his time bar silva anyway.

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[Editor]

Yeah fair enough Lucky. I found myself tearing my hair out whenever Mount played for England but he wouldn’t be the first to struggle to replicate his club form for his country. To be fair, Henderson used to massively divide Liverpool fans then seemed to win most of them over again.

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[Luckydestiny]

Yeah Ed he does struggle with England as he has with us many games this season.

Trouble with young players showing so much development at young age is you can’t help but project it in to the future and as we seen with others sometimes you hit a ceiling early on.

We will see but going back to why I brought him up, I do fear one of the possible downsides of our business if we have miscalculated will be having to sell someone like mount who would be 100% profit. Been reported klopp likes him and pool monitoring since initial talks of new contract started months ago. Yet to be agreed and 12 months remaining come summer.

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