Amidst the usual headlines made during a normal football season, the 2023/24 campaign has been a standout and one of the main takeaways from the year will be growing issues with the Profit and Sustainability Regulations.
Fans know that better of course as, Financial Fair Play, and whilst the Premier League’s triple figure charges against Manchester City remain stuck in the long grass, Everton have already been double dipped this year for a points punishment, and Nottingham Forest have followed – with Championship side Leicester City next in the firing line. It is highly expected that more will soon follow.
That in turn brings us nicely to Chelsea, as they have certainly not been shy in the transfer market since Todd Boehly and the Clearlake Capital group came in. As of June 30 2023 (their first full year in charge) their assembled squad cost in excess of £1 billion, and the most recent set of accounts published by Companies House show that they spent £747 million on transfers last season.
The wage bill also rose by 18% to £404 million, which was the second highest in the English top flight and with their Premier League performances and results, fans will certainly question whether that expenditure is justified (or being earned).
It is however, believed that the sum includes the compensation paid to both Thomas Tuchel and Graham Potter following their sackings. With £75 million also spent on agents fees in the 12 month period up to February 2024 and a further £450 million being spent since (that will not be included in the accounts until next year) serious questions are again being asked about their own FFP position.
All fans know club accounts compared to FFP accounts are two different things, but people will certainly be making educated guesses as to where they feature now on the three year scale given only £105 million worth of losses are allowed to take place.
One thing is for sure, Chelsea fans can certainly expect further departures this summer as the club look to not only balance their FFP books, but also offset their own natural business losses, but that in itself will raise further questions.
Although the club made a £63 million profit on player sales, that was through accounting techniques, they physically made £203 million on the back of players that had originally cost them £592 million, and whilst a loss would be expected, clubs should certainly strive for less of a loss than those figures, so they can create real and true profit in other deals.
It will not just be Chelsea fans watching on with interest in the coming months.