We haven't spent 130 mill, we have spent close to ZERO considering all the income from Matic, Begovic, Ake etc, and we still haven't accounted for the income from Diego Costa.
Taken into consideration all the profit we have from winning the league and reaching the final of the FA cup, we should have some ridiculous spending power. Also, we will have big earners such as Terry and Costa off the books which should allow us some freedom in terms of wages as well....
I reckon our squad is good enough to challenge for the PL title and to reach the latter stages of the CL, however, we are highly dependent on avoiding injuries on key players. However, being Chelsea FC, we should (and I believe we will), sign some quality players in order to really push for titles this year....