Chelsea set for unexpected FFP boost after worrying latest statement
It’s not what many expected from Mauricio Pochettino and Chelsea at the start of the season as a lavishly-assembled young squad joined forces with a Premier League favourite coach, but hopes of European qualification are still alive. For a team that has spent much of it’s second year in a row in the bottom half of the table, it’s somewhat of a success.
Chelsea are not only now within touching distance of their rivals for the Europa League places but they are actually one of the form teams in the league. It has been over two months since Chelsea last lost in 90 minutes in all competitions and only Liverpool, Manchester City, and Arsenal have a better record in the past 12 league games.
Since the consecutive 4-1 and 4-2 defeats to Liverpool and Wolves, Chelsea have actually been pretty good. There is mitigation here – notably that their defence remains worryingly leaky and no team in the top 12 has conceded more than their 23 during the same period – but the signs are going the right way.
Draws that felt like defeats to Brentford, Burnley (down to ten men for over half the game), and Sheffield United have left the season on the verge of constant crisis. The table doesn’t look too bad now though.
In the aftermath of their 6-0 hammering of Everton on Monday, they are within three points of Newcastle and Manchester United in fifth and sixth. The Blues also have a game in hand on their rivals as well as two on West Ham with an upcoming fixture against the Hammers at Stamford Bridge too.
It’s too soon to say that the tide has truly turned but never has the opportunity been more presentable. Perhaps never has the opportunity more important either.
Chelsea’s financial figures, released with a full breakdown last week, were messy. The £90.1 million losses were the lowest in a run of three years in a row that the club has been in the red, including consecutive £100m plus negative figures preceding this.
For the 2022/23 season it includes Champions League prize and broadcast money to boost it. It is both a warning for the now but also the future.
Although the drop in wages as well as huge player sales will see the 2023/24 accounts change drastically, there will not be the added revenue that comes from being in European competition. Larger -than-ever amortisation and agent fees will also make analysis of the books in a year more interesting.
Financial broadcasts suggest that Chelsea already are – and so logically will be still – pushing the profitability and sustainability rules (PSRs) margins for the next period. Depending on how the Premier League changes the current regulations it may well not be as cut and dry as it is now, but the pressure is certainly there regardless.
It is in this world that the sale of a hotel owned by the club for £76.5million to parent company BlueCo 22 Limited, attracted much attention. Without that sale the loss would have been the biggest in the clubs history.
With more signings expected to come, likely to be offset by more player sales from the academy, any stream of generating revenue possible will be needed. It is here that the previously maligned and undesired Europa League (and, whisper it quietly, even Conference League) become increasingly important.
Although it is still a world away from the genuine riches of the Champions League, Chelsea in their current state cannot afford to be passing up chances to get air time in Europe on any level. Qualification for the Europa League next season is expected to land around £3.2million – a far cry from the near £14million for the top-tier competition that Manchester City, Arsenal, and Liverpool will be playing in.
There is then just shy of £200,000 on offer for each group stage draw and almost £550,000 per win. Chelsea would be among the favourites to win the trophy for a third time if they were to end up competition in it, and so can reasonably think that around £2.5million could be made from group stage results as well as a bonus of nearly £1million for topping the group.
Reaching the last-16 is then worth another £1million with the quarters at £1.5million, semis giving £2.4million, and minimum of £3.9million for the finalists. Winning the whole thing brings in £73.million It totals around £20million for a successful season as well as the TV money, and more vitally a shot at the Champions League the following campaign if not already achieved via the league.
£20million can be the difference between meeting or missing the PSR threshold, selling or not selling a (likely) academy player, and also being deducted points. The Conference League is much less glamorous.
The champions can earn around £13million for winning the whole thing with a much smaller broadcast pool on offer too. Chelsea would be comfortably the biggest team to play in the competition should they end up finishing there.
It would pose new questions of the manager and squad but is also ultimately an improvement upon no European football both optically and financially. When skirting around the outside of a monetary cavern, it is clear just how useful these additional funds could go on to be in both the short and long run.
Just weeks ago they were seemingly out of the race for Europa or Conference League football, even if games in hand and a tight table did offer a slightly skewed vision of reality. Now Chelsea are back in the mix for good and are just a half-consistent run of games away from a substantial boost.
The issue will be turning promise into consistency between now and the end of May to keep these hopes alive.
