'The Bank of Roman': Chelsea look SAFE from breach of money rules despite HUGE spending – as Abramovich coughs up $329mn in a YEAR
Chelsea are said to have spent a total of almost $300 million last season, splashing out massive sums on midfielders Kai Havertz and Hakim Ziyech, striker Timo Werner and defender Ben Chilwell after spending less than $53 million on transfers during the previous campaign.
Those figures might make fans of Abramovich's enterprise feel nervous about the future and the prospects of meeting Financial Fair Play (FFP) rules imposed by governing body UEFA around spending – until the owner's vast wealth and the huge profit they have made on players such as Eden Hazard is taken into account.
Even without the add-ons as part of the deal that took Player of the Season Hazard to La Liga giants Real Madrid last summer, Chelsea made around $131 million from the transfer, creating a profit of around $227 alongside the departure of Spain striker Alvaro Morata to Atletico Madrid.
Assuming that #CFC acquire Kai Havertz £90m, their spend will be around £227m, including Timo Werner £50m, Ben Chilwell £50m and Hakim Ziyech £37m. They have also added Thiago Silva and Malang Sarr on free transfers. Prior season only saw purchase of Mateo Kovacic £40m. pic.twitter.com/imllCVjtqz— Swiss Ramble (@SwissRamble) August 31, 2020
#CFC business model is far more reliant on player sales than any other major English club. In the last 6 years, their £398m from this activity is nearly £100m more than the next highest (#LFC £305m & #THFC £276m) with the others much lower (#AFC £177m, #MCFC £147m & #MUFC £76m). pic.twitter.com/qdbTApBYia— Swiss Ramble (@SwissRamble) August 31, 2020
Despite a cost increase of more than $47 million through transfers, that vast profit and a saving of more than $77 million through the release of stars including winger Willian will allow Chelsea to stay within the rules, according to football finances oracle the Swiss Ramble.
The figures demonstrate just how important Russian-Canadian Director Marina Granovskaia, the key figure in Chelsea's transfer dealings, is to the club.
Chelsea are "far more reliant" on player sales than other English clubs, the analysis showed, offloading talent to the tune of around $522 million over the last six years.
Granovskaia has raked in almost three times more than rivals Manchester City have managed from selling players, and more than five times as much as Manchester United.
That money has been vital given the eye-watering operating loss of almost $650 million made by the Blues during the same period, reduced by player sales to a pre-tax deficit of around $142 million.
To keep up with the Manchester clubs, it could be argued that #CFC have to spend big, as their £890m over the last 6 years is almost exactly the same as #MCFC £892m and just ahead of #MUFC £870m. Long way ahead of rest of Big 6: #LFC £731m, #AFC £528m and #THFC £303m. pic.twitter.com/ilcpKhf5K7— Swiss Ramble (@SwissRamble) August 31, 2020
Obviously, there’s no such thing as a free lunch, so clubs eventually have to pay the cost of a spending spree in the transfer market via higher player amortisation. Indeed, #CFC £168m was by far the highest in the Premier League in 2018/19, ahead of #MCFC £127m and #MUFC £126m. pic.twitter.com/k2xPysPB0x— Swiss Ramble (@SwissRamble) August 31, 2020
A significant fall in those sales this season almost made the outlook "all go pear-shaped", the report revealed, as Chelsea went around $133 million above the FFP limit of $35 million.
Adjustments to financial reporting requirements made in the wake of the pandemic, though, mean that the next monitoring period will only cover 2018 and 2019 and will reduce some of the restrictions, leaving the club with a relatively insignificant FFP deficit of less than $6 million.
They are therefore almost certain to fall well within the regulations, although the expert scrutiny highlighted the lifeline that billionaire Abramovich continues to provide more than 17 years after buying Chelsea.
"Back in the real world, someone will still have to pay the bill," it said. "Fortunately for Chelsea, they can call on the 'Bank of Roman.'
"Their owner has pumped in £1.3 billion ($1.7 billion) since his arrival, including a chunky £247 million ($324 million) in 2019.
OK, enough fancy footwork in the accounts. Back in the real world someone will still have to pay the bill. Fortunately for #CFC, they can call on the “Bank of Roman”, as their owner has pumped in £1.3 bln since his arrival, including a chunky £247m in 2019. pic.twitter.com/1fNjoy7JjM— Swiss Ramble (@SwissRamble) August 31, 2020
In addition, #CFC could also easily improve their finances by selling some fringe players, such as Batshuayi, Bakayoko, Barkley, Emerson, Zappacosta and Drinkwater. They have plenty of time, as the transfer window this year only closes on 5th October.— Swiss Ramble (@SwissRamble) August 31, 2020
"Chelsea will consider this money well spent if it drives a challenge for the Premier League title – or even if it cements their spot in the top four."
Coach and club legend Frank Lampard, who Abramovich appointed last summer, played his part by confirming an extra windfall of more than $40 million with a win on the final day of last season.
Premier League clubs have to finish at least fourth to earn a lucrative place in the Champions League, which the analysis described as a "differentiator" between the elite.
The "fancy footwork" in the club accounts also concluded that Granovskaia could further improve the numbers by moving fringe players on, naming the likes of England midfielder Ross Barkley and Belgium striker Michy Batshuayi among the stars who could make way.
Chelsea have until October 5 to complete their market manoeuvres, having seen the transfer window extended as a result of the pandemic.Also on rt.com Chelsea close in on Kai Havertz as Leverkusen star NO-SHOWS for pre-season fitness tests in Germany