Chelsea: What failing to qualify for Champions League means for Blues
Chelsea may have won the football lottery twice, but this time, owners Todd Boehly and Clearlake Capital’s return on investment is being questioned.
“We don’t care about Clearlake, they don’t care about us, all we care about is Chelsea FC” is increasingly becoming the anthem of a tumultuous season.
There had been chants of “Roman Abramovich” before, but those memories were tinged with rosy color, especially towards the end of the Russian oligarch’s reign when Chelsea were considered a cup team and lagged behind their rivals in terms of revenues.
Last season’s turnover of £490.9 million was Chelsea’s second-highest on record, but was still well behind their so-called “big six” rivals. As debt grows in the parent company, this gap needs to be closed.
Within Chelsea they say the debt is part of a highly structured investment approach common in elite sport and that there is a long-term plan for sustainability.
Yet Chelsea spent the most on manager wages last season, with third place on both transfers and wages, despite a drop in overall spending following unprecedented spending in the early years of the BlueCo.
The cost is clearly evident with the league’s high ‘depreciation’ bill (where they spread transfer fees over contract lengths of up to five years) at more than £200 million.
What is squandered by this ownership is the strong Profit and Sustainability Rules (PSR) position they inherited. More than £1.5 billion has been spent on talent but a return to consistent success in the Premier League is yet to materialise.
Chelsea are looking to add some experience to their squad at the end of the season, but more serious decisions are not openly discussed; Mid-season decisions should be avoided, especially with the FA Cup final approaching.
However, club sources stressed that accountability across the organization is established through annual reviews and can attract everyone at all levels if underperformance is identified.
The possibility of selling star players such as Palmer, Moises Caicedo and Levi Colwill has been repeatedly ruled out by the club, but since Abramovich and right up to the BlueCo era, some player sales have always been necessary to balance the books.
“Chelsea have always been very successful in terms of player sales, which have made the club much more money over the last decade than ticket sales,” Maguire said.
“The 22 Holdco business model is similar to that of the hedge fund in that signing young players to long-term contracts can be profitable and reduces the chances of players walking away from a Bosman deal without paying a fee.”
But without Champions League football everything is under threat, even attracting the interest of a high-profile new manager.
