Posted May 31, 201212 yr anybody worried all this spending on players and these massive wages might ruin us when this fifa fair play comes in? cant see kakuta, piazon etc getting a chance either with all this spending
May 31, 201212 yr Personally I couldn't care less. But you can be sure Platini and Blatter will be seething after our CL win and the signing of Hazard on a reported £78 million deal.
May 31, 201212 yr Our wages have gone down a huge amount considering the players that have gone (Alex, Anelka, Kalou, Drogba, Bosingwa) Perhaps a few more will leave too. Plus i read that after the CL win we can basically spend £100m without worrying about the FFP. So basically the CL win has massively helped us for the future
May 31, 201212 yr It's Financial Fair Play, not FIFA. Do you think that the club hasn't considered this when making these purchases? I'm sure Roman has employed some very intelligent people to analyze every purchase and sale and how it will affect the FFP. That being said, the FFP rules aren't 100% certain to be implemented in the way that Platini would probably like them to be implemented, and I'm sure once Barcelona or Madrid are in danger of being disqualified for their debts the rules will mysteriously vanish.
May 31, 201212 yr Author Our wages have gone down a huge amount considering the players that have gone (Alex, Anelka, Kalou, Drogba, Bosingwa) Perhaps a few more will leave too. Plus i read that after the CL win we can basically spend £100m without worrying about the FFP. So basically the CL win has massively helped us for the future i didn't read that but if so thats great news!
May 31, 201212 yr Nope and I don't undarstand why other are...it's like we don't trust our own management and owner's judgement. Did we get that far with and incompetent management? No. Not worried at all. sh*tty should be though as they have MUCH less revenue than us.
May 31, 201212 yr It all seems quite weird anyway, I mean how do you regulate these things? Are Man City going to get away with their blatantly over the top 'sponsorship' deal? If so a precedent is set and there will always be a way around the rules. Accountants shuffle some money around and a company that Roman has some connection with can offer to sponsor us in some way for absurd amounts of money and the FFP rules aren't broken and Roman gets to spend what he wants.
May 31, 201212 yr We are a big player and also one of the clubs to blame for this whole ffp in the first place. I don't think we have to worry about this for awhile. I support some sort of control in spending.
May 31, 201212 yr I simply can't see how a club as big as Chelsea could fail at this. Surely we have quite a few people who are experts on this and will know exactly what we can and can't do. If we somehow screw this up then heads will roll. And that's a figure of speech, not a threat
May 31, 201212 yr I am. But with the caveat that I know very little of the overall picture. The moves for Hulk and Hazard, while amazing, remind me in unflattering ways about the moves for Torres and Luiz 18 months ago. That was big money spent in a very short period of time, when we had seemingly put away the chequebook for big deals up until that point. The Marin deal, so quickly done and so cheap for a promising young player, felt much more like the kind of deal FFP would force us to do in future. But essentially I trust the people running the club wouldnt screw our chances of competing in Europe by overspending. And its comforting to hear that winning the big one was such a financial windfall.
May 31, 201212 yr We'll be fine. The losses we reported were only down to a depreciation in player value, we actually reported profit last year anyway. Bosingwa, Drogba, Anelka and Kalou leaving is already £22m of the wage bill alone, factor in Alex + wages and that's around £30m. Ticket prices increased hugely so our revenue will be higher, not to mention sponsorship deals with Sauber and Audi which will rake in the cash. Bear in mind we are bound to have other departures this summer too, so more off the wage bill, cash generated etc. Ignore the tripe spouted by the media and rival fans, we'll be fine.
May 31, 201212 yr I find it hard to believe that Roman, Buck and Gourlay would allow us to fall prey to FFP so no, I'm not worried.
May 31, 201212 yr In short, no. The players leaving us have alleviated a fair bit of our wage bill and the amount of money we made from winnnig the CL means that, iirc, we're close to breaking even this year (or on course to do so next year). Also, big clubs will always find loopholes for the FFP so it'll be no problem.
May 31, 201212 yr Although it looks like we are splashing the cash this summer, it also seems like we're taking the new regulations seriously. We have been signing some good youngsters, which might indicate that we're more interested in developing them into good players rather than buying the finished product. It's also important to remember that we have released players like Drogba and Anelka who earned a lot of money, along with Bossie and Kalou who I believe earns a lot considering their roles in the team, which frees up some cash. Edited May 31, 201212 yr by Anders
May 31, 201212 yr Its not my money so couldn't care less. Seriously tho, I dont think FFP comes into effect until next season, making this the last big spend. I could be wrong , wouldn't be the first time
June 1, 201212 yr For anyone who's interested and on Twitter, follow @SwissRamble It's a Swiss based football economics group and have posted a bunch of interesting states relating to CFC and FFP today. Here are some snippets: ''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.'' ''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.'' ''For those that would like a more detailed analysis of Chelsea's finances and FFP, I wrote this is February: http://swissramble.blogspot.ch/2012/02/chelsea-look-good-in-blue.html''
June 1, 201212 yr Interesting. Anyway I'm not worried for Chelsea. We (the game/business) need the control and I hope we are the club that promotes it. As a matter of fact wasn't it Gourlay who stated it some months ago that the club promotes it..? Have to check that from somewhere. This would be a big signal to other greedy areas of business to promote "financial fair play". Don't know about you but I don't roll in money and inequality is one of the biggest cause of problems in this world.
June 1, 201212 yr Full article from Feb is a great read. Many things I did not know about. Anyway things seem to be OK but offloading people like Yossi, Malouda and Essien seems like a must to reduce the wage bill and get some sales (not sure how much we can get for this bunch). I am sure all scenarios have been covered at board meetings and the management know what they are doing with the expesive purchases. They wouldn't risk CL exclusion just for 1 signing. And so wouldn't Roman as this is by far his favorite competition. If we can increase Sponsorship revenue, do better in Prem next year (should happen really 1-2 place easily with this squa) and offload those three and maybe Frankie at the end of next season then we should be perfectly fine for FFP as revenue would go up and expenses down due to lower wages.
June 1, 201212 yr What is the penatly for breaking the rules ? I am really not fussed to be honest, What are they going to do Kick us and City out of the Champions League thus exluding some of Europes top players ? or is there finacial sanctions... which would be a laugh ! ... I really dont think this has been thought through properly and is going to be a nightmare to impose. Be interesting to see where it goes, personally I turst the club on this one.