Chelsea seemed doomed just a year ago. Eden Hazard left the club, and Blues had a transfer ban that didn’t allow them to bring in new players.
Maurizio Sarri departed for Juventus, and it all seemed hopeless. But Frank Lampard promoted some young academy players, and Chelsea qualified for next season’s Champions League. Now, in the middle of the coronavirus pandemic, they made history. They spent €255 million, which is the biggest amount of money the English team had spent in one transfer window in history. How did they do it?
Chelsea’s latest signing is Kai Haverz. German midfield maestro cost €101 million, and Frank Lampard also added Germany national team’s striker Timo Werner for €56 million, Ben Chilwell came from Leicester for €56 million also, and Hakim Ziyech was paid €41.5 million.
In addition to that two center backs from France were purchased for free. Malang Sarr came from Nice, and Thiago Silva was added from PSG.
How did this impact Chelsea finances?
CFC will pay for these players in two ways. The first one is the player amortization, which is the annual cost of writing off transfer fees. These transfers will be amortized in 5 years, which means the club will have to pay off €60 million a year.
But Chelsea will also have to spend big on the wages of these players. So that will add up to another €47 million.
This is a lot of money, but you should take into account that the only player paid for in the last transfer window was Mateo Kovačić. And Chelsea had some really big sales in the last two years. Players like Eden Hazard and Alvaro Morata left the club and Chelsea got €222 million for their transfers to other clubs in the last two years. That figure is so big that it can absorb all transfers from this season.
Also, some players with huge wages left the club. Hazard, Morata, Cahill, Pedro, and Willian all had huge salaries while at the club.
So, we come to the conclusion that Chelsea’s business model is very reliant on player sales. In the last 6 years, they sold the players for €446 million, more than €100 million more than Liverpool, €140 million more than Spurs, and more than 5 times more than Manchester United.
Can CFC survive player amortisation now?
Chelsea’s player amortization will be huge in the years to come, but they will surely sell some players. Victor Moses, Marcos Alonso, Kepa, and Hudson-Odoi are on the radar of other clubs. But also now they will get Champions League money.
So along with FIFA’s changes to FFP because of the coronavirus pandemic, Chelsea can survive the upcoming period, despite spending so big this summer.