[Football] More possible FFP issues for Chelsea?

[SeagullsoverLondon]

Amazing how little anyone in the media has to say about Poch given he is now objectively worse than Potter who they slated. Funny from outside looking in though.

Can they afford to sack him though?

 

[dazzer6666]

Can they afford to sack him though?

No - covered in earlier posts....

 

[schmunk]

I don't understand what that is telling us. Is it break even fee for each individual player?

If so what does it tell us about their finances/ffp? It doesn't say how much they need to make to comply with ffp as far as I can work out. Or are we taking the 100m spoken about elsewhere in this thread as the figure they need? In which case they'd need to sell a collection of those players for a combined 100m above the break even figure?

Yes, it looks like you do understand!

The left column is the (best-estimate) amortised value of each player in the Summer 2024 transfer window - any variance from this on sale will be recognised as a profit or loss in the FFP/PSR calculation.

Therefore as you note, to make up an alleged £100M shortfall Chelsea would need to sell any combination of these players for an amount totalling at least £100M more than their respective values in this column.

This table doesn't however show any players with a zero PSR book value (e.g. academy players such as Colwill). Any sales of these players will be recognised as pure profit for the PSR calc.

The right hand column shows the (best-estimate) annual amortisation, i.e. the amounts that each player's PSR book value will reduce each season. This is simply current value divided by the number of seasons remaining on their contract.

 

[Uh_huh_him]

Per the financial expert on the TS clip, getting rid of Tuchel, getting off us and then dumping Potter cost them £45 million in this years accounts.

Sure - but £21m of that went directly to us.
Potter's wages will cost them £12m for the season and there will be coaching staff too.

The estimation sounds like :
£21m to Brighton
+ £12m Tuchel wages
+ £12m Potter wages
So no actual severance payment lump sum.

If this is the case, Sacking Poch won't make any difference to their financial position.
But Employing someone else will.

Probably in the region of £1m per month for 4 months.

 

[Uh_huh_him]

Potter had to play Champions League as well

 

[SeagullsoverLondon]

No - covered in earlier posts....

And with

Sure - but £21m of that went directly to us.
Potter's wages will cost them £12m for the season and there will be coaching staff too.

The estimation sounds like :
£21m to Brighton
+ £12m Tuchel wages
+ £12m Potter wages
So no actual severance payment lump sum.

If this is the case, Sacking Poch won't make any difference to their financial position.
But Employing someone else will.

Probably in the region of £1m per month for 4 months.

I am happy to do it for £0.5 million a month.
But would I be able to get them relegated from their current position?

 

[Garry Nelson's Left Foot]

Yes, it looks like you do understand!

The left column is the (best-estimate) amortised value of each player in the Summer 2024 transfer window - any variance from this on sale will be recognised as a profit or loss in the FFP/PSR calculation.

Therefore as you note, to make up an alleged £100M shortfall Chelsea would need to sell any combination of these players for an amount totalling at least £100M more than their respective values in this column.

This table doesn't however show any players with a zero PSR book value (e.g. academy players such as Colwill). Any sales of these players will be recognised as pure profit for the PSR calc.

The right hand column shows the (best-estimate) annual amortisation, i.e. the amounts that each player's PSR book value will reduce each season. This is simply current value divided by the number of seasons remaining on their contract.

Perfectly explained, thanks!

 

[Change at Barnham]

Yes, it looks like you do understand!

The left column is the (best-estimate) amortised value of each player in the Summer 2024 transfer window - any variance from this on sale will be recognised as a profit or loss in the FFP/PSR calculation.

Therefore as you note, to make up an alleged £100M shortfall Chelsea would need to sell any combination of these players for an amount totalling at least £100M more than their respective values in this column.

This table doesn't however show any players with a zero PSR book value (e.g. academy players such as Colwill). Any sales of these players will be recognised as pure profit for the PSR calc.

The right hand column shows the (best-estimate) annual amortisation, i.e. the amounts that each player's PSR book value will reduce each season. This is simply current value divided by the number of seasons remaining on their contract.

Thanks for that clarification, I think I'm now beginning to realise (and enjoy) just what a mess Chelsea are in.
I previously thought it was a cunning stunt being executed by clever financial wizards, but it seems they may have interpreted incorrectly the Premier Leagues appetite to stop clubs taking the piss.
If Chelsea are able to obtain a stay of execution this season by selling home grown players like Gallagher, Colwill and James, then next season they will be truly in the shit with no Get Out Of Jail cards left to play.

I'm beginning to feel an interesting 2024/25 season could be ahead, with possibly three decent sides like Leicester, Southampton and Leeds being promoted.
Chelsea fans must be both very nervous and angry.

 

[Psychobilly freakout]

Chelsea fans must be both very nervous and angry.

Feck em

 

[schmunk]

Chelsea fans must be both very nervous and angry.

 

[CHAPPERS]

Funny thing is Colwill is now way to expensive for most clubs. I can't see anyone being able to afford/wanting to pay the money Chelsea need and Colwill's now huge wages on top. They should have sold him to us when they could.

As for Gallagher. He has one year left on his deal, who is going to spend more than 20 million on him, realistically? Runs around a lot but hasn't scored this season and has four assists in the league.

Reece James is a crock but might fancy a pay day in the Saudi league before he is forced into retirement.

They are in huge trouble for the next few years given that any non HGP they manage to sell (for way less than they paid) instantly enters the books as a loss.

 

[Kalimantan Gull]

Thanks for that clarification, I think I'm now beginning to realise (and enjoy) just what a mess Chelsea are in.
I previously thought it was a cunning stunt being executed by clever financial wizards, but it seems they may have interpreted incorrectly the Premier Leagues appetite to stop clubs taking the piss.
If Chelsea are able to obtain a stay of execution this season by selling home grown players like Gallagher, Colwill and James, then next season they will be truly in the shit with no Get Out Of Jail cards left to play.

I'm beginning to feel an interesting 2024/25 season could be ahead, with possibly three decent sides like Leicester, Southampton and Leeds being promoted.
Chelsea fans must be both very nervous and angry.

Also sounds like Enzo Fernandez wants out of this clusterfuck and will push hard for a move. He is the one player there with a global reputation and wants Champions League football. They will almost certainly have to settle for a loan fee though as no-one is paying the amount he cost.

 

[jackanada]

It's a bit Leedsy isn't it?
Obviously Leeds ran out of actual money putting everything (badly) into securing Champions League.
Chelsea seen to be doing similar but with allowable money/FFP. They've spent the absolute maximum and stored up difficulty for future seasons with the long contracts amortisation gambit. If there was a financial plan you've got to think it was akin to Risdales "la la don't worry, champions league gravy, splendid".

 

[Brian Fantana]

Yes, it looks like you do understand!

The left column is the (best-estimate) amortised value of each player in the Summer 2024 transfer window - any variance from this on sale will be recognised as a profit or loss in the FFP/PSR calculation.

Therefore as you note, to make up an alleged £100M shortfall Chelsea would need to sell any combination of these players for an amount totalling at least £100M more than their respective values in this column.

This table doesn't however show any players with a zero PSR book value (e.g. academy players such as Colwill). Any sales of these players will be recognised as pure profit for the PSR calc.

The right hand column shows the (best-estimate) annual amortisation, i.e. the amounts that each player's PSR book value will reduce each season. This is simply current value divided by the number of seasons remaining on their contract.

I *think* I'm grasping this. So, if they were to sell Enzo Fernandez for example. He has approx £87m of unamortised value sitting on the books. As a crude example, Chelsea would need to sell him for c£187m in order to hit that figure of making up a c£100m shortfall. I appreciate they can spread that figure across multiple player sales, but I wanted to use a single player example in order to test my understanding!

 

[Hiheidi]

How many academy players will they need to sell to make up the £100 million shortfall? Off the top of my head they have Chalobah, Colwill, Gallagher, Reece James, Maatsen, Hall, Broja.

 

[Uh_huh_him]

Thanks for that clarification, I think I'm now beginning to realise (and enjoy) just what a mess Chelsea are in.
I previously thought it was a cunning stunt being executed by clever financial wizards, but it seems they may have interpreted incorrectly the Premier Leagues appetite to stop clubs taking the piss.
If Chelsea are able to obtain a stay of execution this season by selling home grown players like Gallagher, Colwill and James, then next season they will be truly in the shit with no Get Out Of Jail cards left to play.

I'm beginning to feel an interesting 2024/25 season could be ahead, with possibly three decent sides like Leicester, Southampton and Leeds being promoted.
Chelsea fans must be both very nervous and angry.

There was quite a lot made of Boehly's assumption that UCL revenue was guaranteed.

A second season without European football will massively screw up their options.

 

[dazzer6666]

How many academy players will they need to sell to make up the £100 million shortfall? Off the top of my head they have Chalobah, Colwill, Gallagher, Reece James, Maatsen, Hall, Broja.

None of whom will now go for what Chelsea would expect/want because everyone knows they will be a forced seller and desperate.

 

[albionfan37]

Let’s hope we don’t pick up any of their “fans” when that shitshow of a club gets relegated

 

[Nobby Cybergoat]

Chelsea fans must be both very nervous and angry.

The ones I've encountered are still lording it over us that Moises chose to leave us for them and that we couldn't get Levi.

I'm just biding my time on these points

 

[Easy 10]

Maybe they've bet the farm on this European Superleague coming into play some time within the next few years, which they will naturally assume they'll be entitled to join regardless of their recent PL travails.

They certainly have the arrogance and sense of entitlement, if that is indeed their plan. Would not surprise me.