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No problems with FFP - £20m profit made


The Brit

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Time once again to laugh at all those nobs that say we are screwed if roman walks off, which he won't anyway....it's in all papers tonight that we have made £20m profit for last year and record £320m turnover...obviously a lot due to some stunning transfer business...but we are clearly in strong shape and can only get better with tv deal being even more lucrative...compare that to citeh and psg who were punished for this season etc

One version here

http://www.mirror.co.uk/sport/football/news/chelsea-unveil-huge-profit-increase-4616538

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Also our wage bill is a lot lower with overpaid players such as Frank, Cole, Eto'o and Torres off the books.

Right now I expect everybody's wages to be line with their worth for the team except Ivanovic (underpaid) and Mikel (over paid).

Still we'll probably have to more or less break even each year and keep our wages at this level. So for example if Hazard comes in looking for something silly like £250,000 a week we'd probably have no option but to sell.

The good job is that we have a clear direction and will correctly identify who we need to get instead a scatter gun approach that we have operated before. As we have seen over at United, a scatter gun approach can lead to overly inflated transfers and wages.

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While wage bill always has to be looked at, I don't think we are that on a knife edge as far as keeping a player like hazard is concerned...the stadium is an ongoing issue, but you have to remember that tv deals will only get richer, we will negotiate new shirt sponsor for next season and if we are successful, more money and commercial deals will roll in

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Definitely encouraging news, but nothing to get carried away with, we're fortunate sales have skewed perception a bit. Who knows, if we strengthen a little bit next year without selling we could be in the red again.

If we managed to string a few of these together in a row it shows we have definitely turned the corner. It must be extremely hard to turn a profit in this day and age, with a club of our standards, in a stadium so small!

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It has to be noted that the figures include the sales of Mata and Luiz but do not include the purchases of Fabregas and Costa. So it is quite likely that next years figures will be a little less impressive.

 

It makes me wonder if we might be facing up to having to sell a high value player from time to time. We got a bit lucky that we were able to sell Mata and especially Luiz for way above sensible values.

 

In the Times newspaper it lists our match day revenue for 2012/13 as 71million and Arsenal's as 93m and United's as 109m. That says to me that perhaps the key to long term financial stability is match day revenue. Yet it claims to increase the Bridge to 55'000 will cost around 300million.

 

It's a vicious circle really. To make profits you need to be successful and to be successful you need to spend heavily.

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It has to be noted that the figures include the sales of Mata and Luiz but do not include the purchases of Fabregas and Costa. So it is quite likely that next years figures will be a little less impressive.

It makes me wonder if we might be facing up to having to sell a high value player from time to time. We got a bit lucky that we were able to sell Mata and especially Luiz for way above sensible values.

In the Times newspaper it lists our match day revenue for 2012/13 as 71million and Arsenal's as 93m and United's as 109m. That says to me that perhaps the key to long term financial stability is match day revenue. Yet it claims to increase the Bridge to 55'000 will cost around 300million.

It's a vicious circle really.To make profits you need to be successful and to be successful you need to spend heavily.

You have to speculate to accumulate!

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We've improved our team and we've made a profit yet still people aren't happy. 

Company manage it's finances and manipulates in balance sheet there's no doubt about that and the closest we'll get to knowing what the real situation is will be to look at a 3 year average, that said things will happen each year that will give us a little scope, the finacial bods at the club will be aware that they can't post decent profits this year then completely undo them next year without it raising serious questions, for that reason they hold a little back in good years to smooth out the bad.

 

We're in good shape peeps, lets be happy about that.

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Great news and means we're very safe for a few years but we won't always have dead wood to sell like Luiz and Mata. That's £40 million of profit on two players - that won't happen very often unless we sell players who are key members of the squad.

 

The key now is to start bringing through the young players and creating our own stars whilst continuing the great work done in the scouting department and commercial side of the club. Obviously the big thing is the stadium issue so matchday revenues are competitive with other teams in the league.

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I'd like to know if this includes the large amount of extra money the TV rights brought in this year.

 

If it does not then the Costa/Fabregas money can be absorbed by that. If it does then this is probably not that great a number.

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There's also the future balance of keeping ticket prices affordable, paying off stadium construction and making a profit. I would hate for us to be like Arsenal (home of the mug) and run more like a German model (home of the football fan)... 

 

To operate the German model you need large capacity stadiums. Dortmund ,  for example, has an 82,000 capacity.

 

I cannot see us ever being able to match that. Until we can get a larger stadium, ticket prices are going to have to rise in order to even begin to compete with the other large Europeans clubs. We are already punching well above our weight, if you look at the size of the club compared to others.

 

The best we can hope for, in the short term, is they redevelop and add and attract more hospitality (as well as standard seating) . Then use that extra corporate income to help subsidise a decrease in general ticket prices. I know alot of people moan about corporates but those that do must surely understand that , without them, they would be paying EVEN more for their season tickets,

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There's also the future balance of keeping ticket prices affordable, paying off stadium construction and making a profit. I would hate for us to be like Arsenal (home of the mug) and run more like a German model (home of the football fan)... 

 

Whilst you have to admire German clubs keeping ticket prices low so their fans can watch Bayern win the league with ease and take their best players, I think the reality is that if you want Chelsea to remain competitive you have to look at the issue of matchday revenues realistically.

 

Prices will almost inevitably rise simply because we have a smaller supply of tickets available for such a large demand.

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another two things...chelsea are clever when it comes to transfer fees paid...I think they stagger them out over length of contract...so fabregas and costa wont show up as £62m spent on balance sheet next year, but just over £12m cos they both signed five year deals...

as for stadium and meagre matchday revenue compared to others, it is an obvious issue and one they obviously want to sort...looks like sb will be rebuilt eventually...the good thing is chelsea can spend whatever they want on it and none of it will count regarding ffp measures.

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another two things...chelsea are clever when it comes to transfer fees paid...I think they stagger them out over length of contract...so fabregas and costa wont show up as £62m spent on balance sheet next year, but just over £12m cos they both signed five year deals...

as for stadium and meagre matchday revenue compared to others, it is an obvious issue and one they obviously want to sort...looks like sb will be rebuilt eventually...the good thing is chelsea can spend whatever they want on it and none of it will count regarding ffp measures.

 

Thats not Chelsea being clever, its just how accounting works

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yet many fans don't know chelsea do that...even some supposed journos wrote it in their copy today...just wanted to make a point ffs

LoL relax. Was just saying this is how accounting is done and the point about being "clever" isnt really valid as this is how every team handles their finances

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