Pretty sure agents fees get added to the amortisation pot, rather than being taken as a cost in the financial year they are incurred. It's still a hole to fill, but "only" £10m each year (assuming 8 year contracts) rather than having £75m to find now.
Chelsea are screwed... £90m in losses, and £75m was made selling a hotel to themselves. Guess they can just sell it back to themselves on June 30. The club’s accounts for the year ending June 30, 2023 saw them post a pre-tax loss of £90.1million ($112m), while wages climbed from £340.2m (2022) to £404m in 2023. Only Manchester City’s annual wage bill (£423m) is higher than Chelsea’s. (from What Chelsea's latest accounts tell us about their PSR prospects)
With the amount of loopholes that seem to exist I'm genuinely becoming more and more amazed that Everton and forest managed to fail psr. Seeing as infrastructure investment doesn't count for psr spending (as far as I am aware), doesn't this mean owners can invest as much money as they want as long as the club builds "infrastructure" and sells it to the owner (i.e. disguising the owner investment as an asset sale)?
Chelsea earned €93.6m from being in Europe in the 22/23 season. That is a big hole they need to fill in this season's results. And it's likely they won't be in the CL next season either. They may sneak into Europe still but as an example, reaching the quarter-finals of the CL gave them that €93.6m figure, reaching the same stage in the Europa gives you €30.9m. Winning the Europa Conference gave West Ham €21m. Champions League Revenue 2022/23 (estimate) What was the magic figure Chelsea needed to hit last summer with sales? Because I can't help but think that figure is even higher this summer....i guess it all depends on what they decide to spend.
They didn't hit the magic figure I don't think. The account I posted seemed to suggest the actual amount generated by sales in the accounts was lower than estimated. In the end they needed to sell a hotel to meet the limit. And it seems like they'd need more this season, than last season. Given no Europe and massive amounts spent on new players in Summer 23. Mount and Hall already banked, but looking at all this they're gonna need a fair few more.
Genuine question but do you not fear under the current direction battling relegation could become a genuine possibility? Obviously so much we don't know but do get the sense the club could enter a bit of a death spiral of needing to sell players, not having enough space to get the required level in, and then points deductions on top. All the while not getting closer to the CL football you'd need to plug the hole. Morale could become a huge issue too in the event of all the above. I think Chelsea fan groups should be (and maybe already have?) raising concerns about the owners.
I don't know but why would they fall in that pot? agent fees are one off costs. a football player is considered an asset of value and amortisation is don't to write down the value of the asset over thr life of the contract. if I pay an estate agent fee say I can't add thst fee to the value of the house
Standard accounting rules say that any cost associated with making an asset usable to a business can also be capitalised as part of the cost of the asset, as well as the actual cost of said asset itself. For example, if a business buys machinery, then then any delivery/installation costs can be included as part of the total value of the asset to be written off over a number of years (exact length of time depends on the business' depreciation policy). With footballers, then any agent fees paid to bring a player into the club are added to the transfer fee and amortised over the contract length. The same applies to agents fees payable on contract renewal, but that's going further down the accounting wormhole...
Hmmm, not all agents fees though? I think clubs also pay agents to go sell their player on. I think we paid Harry kewell's agent a huge whack of cash to see him off
Obviously in that example the cost was recorded as a one off in the year it occurred, but it's fair to assume given Chelsea's spending spree that the vast majority of the £75m they've spent relates to player acquisition rather than disposal.
It's already at an all time low. The ticket exchange for Everton tomorrow is bleak from the supporters clubs. Matthew Upper and the Shed has so much availability last time I checked. Fans honestly aren't bothered anymore and when the Chelsea Supporters Trust try to reach out to ownership raising their concerns on the direction of the club and its financial sustainability, they get a Chat GPT response from the club CEO of all people. It pissed even more fans off when the next day Boehly is talking to Forbes about the direction of the club. None of them want to face th fans head on.
do you think ambramovich was ever going to allow that money go anywhere once it was deposited.. he might be sanctioned but thry still can't just seize it. it was all bluster and waffle.
