Chelsea's method for passing Financial Fair Play despite spending 425m euros.
Todd Boehly's Chelsea have spent 425 million euros since the start of the 2022/23 season, but they have a plan to ensure that the spending doesn't have an immediate impact on the Premier League club's coffers.
It has not gone unnoticed that the new trend at Stamford Bridge is to attach very long contracts to new signings so that the amortization (an accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time) of transfers is kind to Chelsea and they can circumvent the Financial Fair Play regulations.
The signing of Mykhaylo Mudryk is the latest example. Chelsea paid Shakhtar 100 million euros for the winger, split between 70m euros in the fixed part and about 30m euros in add-ons, and he signed a contract for eight and a half seasons until 2031.
As Calcio e Finanza points out, in Italy there is a limit of five seasons for a player's contract, but this is not the case in the Premier League.
Making the most of this rule, Chelsea, as you can see below, have put most of their recent young signings on long contracts.
Mykhailo Mudryk - June 30, 2031 Benoit Badiashile - June 30, 2029 Wesley Fofana - June 30, 2029 Detro Fofana - June 30, 2029 Cesare Casadei - June 30, 2028 Carney Chukwuemeka - June 30, 2028 Marc Cucurella - June 30, 2028 Gabriel Slonina - June 30, 2028.
Why are Chelsea giving out long contracts?
This is all about bridging the Financial Fair Play restrictions.
"What Chelsea have decided to do is to spread the cost of players by signing them on very long contracts," explained Kieran Maguire, a sports finance expert, on Sky Sports News.
"So, by signing Mudryk on an eight-and-a-half-year contract, the way it is dealt with for accounting and FFP purposes is you take that 88m pound cost and you divide that over eight and a half years, and it works out as just over 10m pounds per yer."
The new Financial Fair Play rules will cap the cost of the squad to a maximum of 70 percent within the 2025/26 season. But, by spreading the expenditure over different seasons, the room for manoeuvre grows.
Everton put up for sale by Farhad Moshiri with asking price of over £500m.
Everton have been put up for sale by Farhad Moshiri, who is looking for offers of more than £500m for the Premier League club.
In recent months Moshiri has sought outside investment but he has finally put Everton on the market, and would consider a minority or majority sale. A number of potential buyers have expressed interest.
Moshiri would like to recoup the money he has invested in the new stadium being built at Bramley-Moore Dock. It is understood that Deloitte has been instructed to handle the sale of the club, who are in the Premier League relegation zone. Deloitte offered no comment when approached by the Guardian.
The British-Iranian billionaire’s attempt to sell can be revealed on a day when Everton were dealt a double setback with Marcelo Bielsa expressing doubts over replacing Frank Lampard as manager and Tottenham hijacking their move for Arnaut Danjuma.
Newcastle United. They must have some of the most loyal fans anywhere.
I know Woolwich Wanderers fans love to point out how long it has been since Spurs won anything. But Newcastle?
Won the top division title 4 times. Last time? 1927 FA Cup? 6 times. Last in 1955. League Cup? Never. Charity Shield? 1909. Major European Trophy? 1. Fairs Cup. 1969.
Been runners up lots since those dates.
But hats off to an incredibly loyal, patient set of fans. Who must be "loving it" right now.
Chelsea's method for passing Financial Fair Play despite spending 425m euros.
Todd Boehly's Chelsea have spent 425 million euros since the start of the 2022/23 season, but they have a plan to ensure that the spending doesn't have an immediate impact on the Premier League club's coffers.
It has not gone unnoticed that the new trend at Stamford Bridge is to attach very long contracts to new signings so that the amortization (an accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time) of transfers is kind to Chelsea and they can circumvent the Financial Fair Play regulations.
The signing of Mykhaylo Mudryk is the latest example. Chelsea paid Shakhtar 100 million euros for the winger, split between 70m euros in the fixed part and about 30m euros in add-ons, and he signed a contract for eight and a half seasons until 2031.
As Calcio e Finanza points out, in Italy there is a limit of five seasons for a player's contract, but this is not the case in the Premier League.
Making the most of this rule, Chelsea, as you can see below, have put most of their recent young signings on long contracts.
Mykhailo Mudryk - June 30, 2031 Benoit Badiashile - June 30, 2029 Wesley Fofana - June 30, 2029 Detro Fofana - June 30, 2029 Cesare Casadei - June 30, 2028 Carney Chukwuemeka - June 30, 2028 Marc Cucurella - June 30, 2028 Gabriel Slonina - June 30, 2028.
Why are Chelsea giving out long contracts?
This is all about bridging the Financial Fair Play restrictions.
"What Chelsea have decided to do is to spread the cost of players by signing them on very long contracts," explained Kieran Maguire, a sports finance expert, on Sky Sports News.
"So, by signing Mudryk on an eight-and-a-half-year contract, the way it is dealt with for accounting and FFP purposes is you take that 88m pound cost and you divide that over eight and a half years, and it works out as just over 10m pounds per yer."
The new Financial Fair Play rules will cap the cost of the squad to a maximum of 70 percent within the 2025/26 season. But, by spreading the expenditure over different seasons, the room for manoeuvre grows.
Going to have to change that song to:-
"Same old Chelsea. Always cheating."
The net spend on transfers last Summer was more than £200 million. And in the current window, an extra £140 million +. That is before the humungous wage bill.
This makes a mockery of FFP. But Chelsea fans (both of them) need to remember that for the next several years they are going to start at minus £20 million plus each year in the transfer market.
Looks like it's gonna be a lively game tonight in Spain.
Atletico Madrid fans hang a sick effigy of Real Madrid star Vinicius Jr off a bridge on the eve of their derby showdown after the Brazil winger was targeted with racist abuse last time they played.
The figure was accompanied with a banner that read: 'Madrid hates Real'
Atletico Madrid fans have hung an effigy of Real Madrid forward Vinicius Jr from a bridge in the Spanish capital ahead their Copa del Rey clash this evening.
The shocking act has been unanimously condemned by the clubs and Spanish football bodies, who have called for criminal proceedings against the perpetrators.
It is not the first time the Brazil international has been targeted, by his city rivals, after he was subjected to racist abuse during their LaLiga clash earlier this season.
The city rivals will meet each other for the 231st time later tonight when they battle it out at the Bernabeu stadium to secure a place in the semi-final of the cup, but already the action on the pitch has been overshadowed.
The inflatable doll, donning a Vinicius Jr shirt, appeared under one of the bridges in the Spanish capital on Thursday morning and was accompanied with a banner that reads.
Silvio Berlusconi promised 'bus full of wh***s' if Monza beat Juventus - and they won 2-0
After scoring on the field Monza's star will get the chance to score off it after club owner Silvio Berlusconi promised to organise a bus full of prostitutes for the team if they beat Juventus or AC Milan.
Comments
Todd Boehly's Chelsea have spent 425 million euros since the start of the 2022/23 season, but they have a plan to ensure that the spending doesn't have an immediate impact on the Premier League club's coffers.
It has not gone unnoticed that the new trend at Stamford Bridge is to attach very long contracts to new signings so that the amortization (an accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time) of transfers is kind to Chelsea and they can circumvent the Financial Fair Play regulations.
The signing of Mykhaylo Mudryk is the latest example. Chelsea paid Shakhtar 100 million euros for the winger, split between 70m euros in the fixed part and about 30m euros in add-ons, and he signed a contract for eight and a half seasons until 2031.
As Calcio e Finanza points out, in Italy there is a limit of five seasons for a player's contract, but this is not the case in the Premier League.
Making the most of this rule, Chelsea, as you can see below, have put most of their recent young signings on long contracts.
Mykhailo Mudryk - June 30, 2031
Benoit Badiashile - June 30, 2029
Wesley Fofana - June 30, 2029
Detro Fofana - June 30, 2029
Cesare Casadei - June 30, 2028
Carney Chukwuemeka - June 30, 2028
Marc Cucurella - June 30, 2028
Gabriel Slonina - June 30, 2028.
Why are Chelsea giving out long contracts?
This is all about bridging the Financial Fair Play restrictions.
"What Chelsea have decided to do is to spread the cost of players by signing them on very long contracts," explained Kieran Maguire, a sports finance expert, on Sky Sports News.
"So, by signing Mudryk on an eight-and-a-half-year contract, the way it is dealt with for accounting and FFP purposes is you take that 88m pound cost and you divide that over eight and a half years, and it works out as just over 10m pounds per yer."
The new Financial Fair Play rules will cap the cost of the squad to a maximum of 70 percent within the 2025/26 season. But, by spreading the expenditure over different seasons, the room for manoeuvre grows.
BRING BACK BIG SAM
Everton deserve him.
Everton have been put up for sale by Farhad Moshiri, who is looking for offers of more than £500m for the Premier League club.
In recent months Moshiri has sought outside investment but he has finally put Everton on the market, and would consider a minority or majority sale. A number of potential buyers have expressed interest.
Moshiri would like to recoup the money he has invested in the new stadium being built at Bramley-Moore Dock. It is understood that Deloitte has been instructed to handle the sale of the club, who are in the Premier League relegation zone. Deloitte offered no comment when approached by the Guardian.
The British-Iranian billionaire’s attempt to sell can be revealed on a day when Everton were dealt a double setback with Marcelo Bielsa expressing doubts over replacing Frank Lampard as manager and Tottenham hijacking their move for Arnaut Danjuma.
I know Woolwich Wanderers fans love to point out how long it has been since Spurs won anything. But Newcastle?
Won the top division title 4 times. Last time? 1927
FA Cup? 6 times. Last in 1955.
League Cup? Never.
Charity Shield? 1909.
Major European Trophy? 1. Fairs Cup. 1969.
Been runners up lots since those dates.
But hats off to an incredibly loyal, patient set of fans. Who must be "loving it" right now.
"Same old Chelsea. Always cheating."
The net spend on transfers last Summer was more than £200 million. And in the current window, an extra £140 million +. That is before the humungous wage bill.
This makes a mockery of FFP. But Chelsea fans (both of them) need to remember that for the next several years they are going to start at minus £20 million plus each year in the transfer market.
https://uk.sports.yahoo.com/news/ranking-every-premier-league-club-130738598.html
Atletico Madrid fans hang a sick effigy of Real Madrid star Vinicius Jr off a bridge on the eve of their derby showdown after the Brazil winger was targeted with racist abuse last time they played.
The figure was accompanied with a banner that read: 'Madrid hates Real'
Atletico Madrid fans have hung an effigy of Real Madrid forward Vinicius Jr from a bridge in the Spanish capital ahead their Copa del Rey clash this evening.
The shocking act has been unanimously condemned by the clubs and Spanish football bodies, who have called for criminal proceedings against the perpetrators.
It is not the first time the Brazil international has been targeted, by his city rivals, after he was subjected to racist abuse during their LaLiga clash earlier this season.
The city rivals will meet each other for the 231st time later tonight when they battle it out at the Bernabeu stadium to secure a place in the semi-final of the cup, but already the action on the pitch has been overshadowed.
The inflatable doll, donning a Vinicius Jr shirt, appeared under one of the bridges in the Spanish capital on Thursday morning and was accompanied with a banner that reads.
'Madrid hates Real'.
After scoring on the field Monza's star will get the chance to score off it after club owner Silvio Berlusconi promised to organise a bus full of prostitutes for the team if they beat Juventus or AC Milan.
They hope she will stiffen up the back 4