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Greg

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Ah Chelsea those cheeky chappies at Stamford Bridge. Backed by JP Morgan and the Bank of America, splashing over a quarter of a billion on first team players and hoovering up every youth prospect going. They're good lads though, they didn't ruin football like the Saudis.

 

 

Edited by The Prophet

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2 minutes ago, The Prophet said:

Ah Chelsea those cheeky chappies at Stamford Bridge. Backed by JP and the Bank of America, splashing over a quarter of a billion on first team players and hoovering up every youth prospect going. They're good lads though, they didn't ruin football like the Saudis.

What's the craic with them and FFP? Has Abramovichs historic spend all be written off or what?

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7 minutes ago, Minhosa said:

What's the craic with them and FFP? Has Abramovichs historic spend all be written off or what?

 

Football finance expert Dr Rob Wilson of Sheffield Hallam University said: ‘In layman’s terms, the £4.25billion sale price of Chelsea could have wiped out the debt and losses that had been accumulated at the club over the last 20-odd years so essentially, Chelsea then start at zero base under the terms of FFP.

 

Whereas a club like Arsenal, for example, who are consistently owned, cannot write off that debt repayment and those losses in the same way so it frees up cash.’

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10 minutes ago, The Prophet said:

 

Football finance expert Dr Rob Wilson of Sheffield Hallam University said: ‘In layman’s terms, the £4.25billion sale price of Chelsea could have wiped out the debt and losses that had been accumulated at the club over the last 20-odd years so essentially, Chelsea then start at zero base under the terms of FFP.

 

Whereas a club like Arsenal, for example, who are consistently owned, cannot write off that debt repayment and those losses in the same way so it frees up cash.’

How can that be fair FFS?

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19 hours ago, The Prophet said:

 

Football finance expert Dr Rob Wilson of Sheffield Hallam University said: ‘In layman’s terms, the £4.25billion sale price of Chelsea could have wiped out the debt and losses that had been accumulated at the club over the last 20-odd years so essentially, Chelsea then start at zero base under the terms of FFP.

 

Whereas a club like Arsenal, for example, who are consistently owned, cannot write off that debt repayment and those losses in the same way so it frees up cash.’

 

Yeah, but the money from the sale goes to Abramovich and not the club, so how can it be counted as the club's income?

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3 minutes ago, Cronky said:

 

Yeah, but the money from the sale goes to Abramovich and not the club, so how can it be counted as the club's income?

The money doesn’t go to Abramovich though, does it? Plus the sale price included a set amount for redeveloping the ground (£1.5bn or something similar?), so I’d presume that just gets ploughed into the club. 

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21 hours ago, joeyt said:

think we were linked last Jan

 

 

 


I have this unfounded and untested idea that we would sign him and replace Dan Burn with him. Imagine pairing him with Schar, Botman and Trips. 

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21 hours ago, The Prophet said:

 

Football finance expert Dr Rob Wilson of Sheffield Hallam University said: ‘In layman’s terms, the £4.25billion sale price of Chelsea could have wiped out the debt and losses that had been accumulated at the club over the last 20-odd years so essentially, Chelsea then start at zero base under the terms of FFP.

 

Whereas a club like Arsenal, for example, who are consistently owned, cannot write off that debt repayment and those losses in the same way so it frees up cash.’

 

I don't think that's correct, debt is not relevant to EPL FFP other than cost of interest, if any. Anyway, Chelsea have taken on £850m of debt since they were taken over.

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18 minutes ago, Jackie Broon said:

 

Anyway, Chelsea have taken on £850m of debt since they were taken over.

What’s this debt? 
 

Edit- nevermind, found it:

“Chelsea’s new owners are raising roughly UK£800 million (US$957 million) of debt as they bid to reshape the running of the English soccer giants, according to the Financial Times (FT).

The consortium led by US billionaire Todd Boehly completed its UK£4.25 billion (US$5.08 billion) takeover of the Premier League club at the end of May. The group is now looking to implement a financial plan to boost the Blues’ operations and update the Stamford Bridge stadium.

Bank of America and JPMorgan are among the banks said to be involved with the financing.

The financing arrangements consist of a roughly UK£300 million (US$359 million) revolving credit facility and a UK£500 million (US$598 million) term loan. This would eclipse the reported US$650 million raised by City Football Group (CFG), the owner of English soccer champions Manchester City, back in July 2021 to invest in its network of clubs.

As part of the consortium’s UK£4.25 billion Chelsea takeover, UK£1.75 billion (US$2.09 billion) was allocated to invest in the club, including players, talent academies and the stadium. The new loan would reportedly form part of the commitment, while the revolving credit facility is for working capital purposes.

The investment pledge was critical to meeting the terms set by Chelsea’s previous owner Roman Abramovich, who put the West London club up for sale after Russia invaded Ukraine. The UK government sanctioned Abramovich in March, accusing him of close links to Vladimir Putin.

The terms of the sale also included restrictions on debt levels to protect the club.

According to the FT, Chelsea will not bear any of the interest expense associated with the debt because of the structure of the financing and all proceeds will go into the business.”

 

 

Edited by Manxst

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