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Chelsea is afraid of deducting points and selling the hotel, and the crazy buying of people has cost 1 billion, and the Premier League PSR can't control him?

Chelsea is afraid of deducting points and selling the hotel, and the crazy buying of people has cost 1 billion, and the Premier League PSR can't control him?

Chelsea is afraid of deducting points and selling the hotel, and the crazy buying of people has cost 1 billion, and the Premier League PSR can't control him?

On April 14, the latest information showed that Chelsea sold two hotels to barely meet the Premier League PSR regulations and avoid being deducted points this season.

The parent company of Chelsea Football Club is Blueco 22, which is controlled by Boehly, and the company has a subsidiary, Blueco 22 Real Estate. Chelsea sold the Millennium Hotel and the Copthorne Hotel to Blueco 22 Real Estate, adding £76.5 million in revenue.

This is a typical insider transaction!

But the funny thing is that the Premier League's PSR (Profit and Sustainability Rules) does allow such transactions.

There have been similar situations in the past in the Championship and lower leagues. The club ran out of money, and the owner could not give the club a blood transfusion without a reason, so the club sold the assets to the owner to get the funds. Reading, Derby County, Sheffield United have all done this. But then the EFL blocked the road and stopped it. The Premier League considered whether to study EFL in 2021, but the matter was opposed by many clubs, so it did not enter the voting process at all.

Chelsea earned £76.5 million to bring their losses for the 2022-23 season to £90.1 million, which is right within the Premier League's PSR red line of £105 million.

In fact, Chelsea did not sell hotels before, they wanted to hide from the world and count Mount's transfer income of 55 million into the 2022-23 season, but it was later discovered by the Premier League, Mount's transfer was completed on July 1, and the transfer fee income of 55 million pounds must be included in the 2023-24 season. So Chelsea came up with the idea of selling the hotel assets, and Poli's "financial skills" were okay, right?

In fact, there are many questions surrounding whether Chelsea violated the Premier League's PSR regulations.

Chelsea is afraid of deducting points and selling the hotel, and the crazy buying of people has cost 1 billion, and the Premier League PSR can't control him?

What is the cumulative loss in three years?

22-23 Revenue of £512.5 million and loss of £90.1 million

In the 21-22 season, revenue was £481.3 million and losses were £121.3 million

In the 20-21 season, revenue was £434.9 million and losses were £153.4 million

In fact, Chelsea's cumulative loss of 360 million pounds in three years is more than three times the red line of the Premier League's PSR that the cumulative amount in three years must not exceed 105 million.

So Chelsea must not be sent to relegation?

In fact, for various reasons such as politics, the Premier League did not consider the situation before Poli took over in May 2022, because at that time Chelsea were subject to various sanctions, not allowed to sell tickets, not allowed to have sponsors, and if those two years were included, Chelsea fans might have to rebel.

To avoid controversy, the Premier League's financial assessment of Chelsea began in the summer of 2022, with the 2022-23 season being the first season to be reviewed.

So what exactly are Chelsea's 2022/23 financial statements?

Revenue of £512.5 million and loss of £90.1 million

Revenue composition

Matchday £76.5 million

Broadcasting rights £225.9 million

Commercial sponsorship £210.1 million

A net investment of £464.7 million was spent on player transfers

Player wages cost £400 million

Chelsea is afraid of deducting points and selling the hotel, and the crazy buying of people has cost 1 billion, and the Premier League PSR can't control him?

The huge controversy brought about by the 1 billion Hao Array

A simple question is that Poli spent £1 billion on players, which is 10 times the Premier League's PSR regulations, is this not illegal?

First of all, the $1 billion was spent in four transfer windows over two seasons, and according to the financial statements, it was divided over two financial years, almost £500 million in each financial year.

But Poli took an amortization approach, signing a very long contract with the player. The Premier League usually signs 2+1 contracts with players, but Poli doesn't do that, and he signs for 8-10 years.

For example, Enzo's transfer fee is 100 million pounds, the contract is 8 years, and the amortization is 12.5 million pounds per year, so the cost included in the 2022-23 season is 12.5 million pounds, not 100 million.

So, the cost of a bunch of player transfers in the 22-23 season adds up to £142 million.

Chelsea is afraid of deducting points and selling the hotel, and the crazy buying of people has cost 1 billion, and the Premier League PSR can't control him?

Financial outlook for the 23-24 season

Because Chelsea lost the Champions League and didn't even qualify for Europe, all revenues will be affected this season, and it is expected to reach 500 million pounds.

But now Chelsea players are spending £400 million on wages, second in the Premier League behind Manchester City's £422 million. But Manchester City is because of the treble, and the winning bonus is more according to the contract.

In this case, Chelsea's financial pressure is very high, and the slightest carelessness will violate the Premier League's PSR regulations.

Although the Premier League can ignore the previous 20-21 and 21-22 seasons due to sanctions, the epidemic, women's football and other factors, the Premier League will keep an eye on Chelsea's operations in the 23-24 season.

That's why Chelsea have a big transfer sale in the summer of 2023, especially selling a large number of academy players, because the transfer fees of academy players are all counted as profits, and there is no difference.

While Chelsea have spent £400 million on signings this season, £220 million have been recovered from the sale of players.

But that's not enough.

Poli would have to squeeze his losses this season to £10 million in order to keep his combined losses from last season's £105 million redline.

This means that Chelsea will be undergoing a larger player purge before the end of the season and the deadline of the financial year on 30 June. Not only will the Academy players such as Conor Gallagher, Armando Broja and Maatsen be sold, but even long-term injured captain Reece James and up-and-coming centre-back Colwill will also be sold. At the same time, some of the high-paid players introduced in recent years have to be sold, and some of them will be sold because the long-term contract is not easy to negotiate.

If Chelsea don't recoup at least £200 million in the sale of players this summer, their finances will certainly be in trouble and they will face a tougher penalty next season than Everton and Forest, and even relegation.

However, the Premier League's PSR rules are not perfect, and they also protect the giants everywhere in terms of details.

For example, if Poli signs a huge commercial sponsorship contract with Chelsea through an affiliate of Clean Lake Investment in order to expand the scale of revenue, just like the operation of Manchester City and the Abu Dhabi consortium, won't the Premier League be unmanageable?

Chelsea is afraid of deducting points and selling the hotel, and the crazy buying of people has cost 1 billion, and the Premier League PSR can't control him?

If Chelsea get through this season, the 24/25 season is still a year of adjustment, and you don't see any hope.

The people you buy now, you can only expect them to get out of their injuries as soon as possible and make a difference. Chelsea won't buy anyone again for a long time to come.

Chelsea will pull a few youngsters from their own academy, play a few games, brush up the stats and then continue to sell out.

With the Champions League and European competitions still not qualified, Chelsea's revenues have grown slowly. The only positive factor is that there may be a slight decrease in salary expenses after the sale of a few high-paid seniors.

So, the management of Chelsea FC cannot be described as chaotic, but at least it is in an extremely difficult phase, with the east wall being torn down and the west wall being overstretched.

And all of this is also self-inflicted, when Poli first bought Chelsea, he didn't understand a lot of things, and he came together, which was a predicament of his own making.

Against this backdrop, you can't expect Pochettino to build the team on his own terms, or to expect a young squad to mature quickly.

In the history of modern football, Chelsea would be an excellent teaching material, both from a competitive point of view and from a business point of view, and this is a complete failure.

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