Great post on finances stolen from reddit.
Seeing as Chelsea are ruining football again, thought I'd take a look under the hood. Some major restructuring of our squad with some interesting insights
Fofana and De Jong are estimates and assuming 6 year contracts like Cucurella.
1. Salary - We've reduced our salary burden by 23M a year so far. Getting rid of Lukaku, Werner and Sauls salaries from last season. Even if we added Fofana + De Jong and didn't let anyone else go, our salary burden would only increase by 4.2M a year
2. FFP - again we're saving money here, reducing the book value cost by 34M a year right now. There would be a slightly more severe effect if we were to add Fofana and De Jong due to their high transfer costs
3. Potential Outgoings - expect to see more outgoings to create cushion for these additional deals and the renewal of existing players on below market deals
4. Cash Flow - this is where we're really getting hit and a sure sign that Clearlake are really committed. So far 150M has been committed this year with 53M recouped. There's the additional 23M salary saved that takes the recouped amount to 76M. Rumored deals for Fofana and De Jong will also be huge cash outlays for the new owners (pushing the total to 323M). As part of the deal with Roman, Clearlake had to commit 1.75BN over 10 years to supporting the club, well we're seeing it
5. Deal by deal losses - there's no way we'd be seeing these kind of deals made under the old ownership. On almost every single deal we're taking massive losses against initial investments. A reset like this could only be done with new owners who weren't financially or personally invested in those prior deals.
In my opinion, the new owners are doing a fantastic job already of getting value for the money we invest in the squad but at huge personal cost. I'm excited to see it continue.