Xabi Alonso | Chelsea manager

Irwin99 said:
I have no idea how their finances are shaped by this.
Click to expand...

Do they have PSR trouble from not being in Europe? Surely those 8 year contracts + large transfer fees coming due implies not being able to make too many signings?
 
Given all we've heard about United benefitting from not being in Europe then Chelsea should have no problem walking a top 3 finish next season, so plenty to look forward to for them.
 
Antisocial said:
Given all we've heard about United benefitting from not being in Europe then Chelsea should have no problem walking a top 3 finish next season, so plenty to look forward to for them.
Click to expand...
Yeah reckon he is gonna benefit like Carrick has
 
I'm still baffled Alonso took this job tbh. Club looks like an absolute mess.
 
They have a great opportunity to trim the fat out next season and build a base. Too many underperforming players at the club
 
Teja said:
Do they have PSR trouble from not being in Europe? Surely those 8 year contracts + large transfer fees coming due implies not being able to make too many signings?
Click to expand...

I think not being in Europe might actually be freeing for us financially not having to abide by UEFA's more stringent financial rules vs the prem rules.

We do appear to be in a sell before buy situation though, so we'll see. Enzo Fernandez might be the sell we have to make.
 
Work to do for Alonso.

Looking forward to seeing what he does with the squad over the summer.
 
WeePat said:
I think not being in Europe might actually be freeing for us financially not having to abide by UEFA's more stringent financial rules vs the prem rules.

We do appear to be in a sell before buy situation though, so we'll see. Enzo Fernandez might be the sell we have to make.
Click to expand...
If you sold Enzo would you sign another replacement or just give the gametime to Santos and Barco?
 
sizzling sausages said:
If you sold Enzo would you sign another replacement or just give the gametime to Santos and Barco?
Click to expand...

Knowing Chelsea, we'd probably buy someone knew. But this summer seems to be about backing Alonso and doing what he wants for most the part, so if he wants a midfielder in to replace Enzo I'd imagine he would get that midfielder.
 
WeePat said:
I think not being in Europe might actually be freeing for us financially not having to abide by UEFA's more stringent financial rules vs the prem rules.

We do appear to be in a sell before buy situation though, so we'll see. Enzo Fernandez might be the sell we have to make.
Click to expand...

25/26 PSR compliance will be based on selling players. If you get back in Europe next season you will have to meet the 26/27 UEFA settlement compliance too.

This summer you probably need to sell Enzo Fernandez, Cucurella, Acheampong, at least one of Chalobah or Colwill, possibly both and Neto or Joao Pedro if you get a big enough offer.

Chelsea will have to consider offers for pretty much every single player. Nobody will be deemed unsellable.
 
MaMa given red said:
25/26 PSR compliance will be based on selling players. If you get back in Europe next season you will have to meet the 26/27 UEFA settlement compliance too.

This summer you probably need to sell Enzo Fernandez, Cucurella, Acheampong, at least one of Chalobah or Colwill, possibly both and Neto or Joao Pedro if you get a big enough offer.

Chelsea will have to consider offers for pretty much every single player. Nobody will be deemed unsellable.
Click to expand...
They weren't relegated
 
MaMa given red said:
25/26 PSR compliance will be based on selling players. If you get back in Europe next season you will have to meet the 26/27 UEFA settlement compliance too.

This summer you probably need to sell Enzo Fernandez, Cucurella, Acheampong, at least one of Chalobah or Colwill, possibly both and Neto or Joao Pedro if you get a big enough offer.

Chelsea will have to consider offers for pretty much every single player. Nobody will be deemed unsellable.
Click to expand...
Colwill, Acheampong, and Joao Pedro are going nowhere. You're completely overstating the situation.

As usual Chelsea will do some shady bookkeeping to remain compliant. Despite BlueCo's general idiocy, there still isn't a better selling club out there.
 
TheMagicFoolBus said:
Colwill, Acheampong, and Joao Pedro are going nowhere. You're completely overstating the situation.

As usual Chelsea will do some shady bookkeeping to remain compliant. Despite BlueCo's general idiocy, there still isn't a better selling club out there.
Click to expand...
I'd be very very surprised if you considered selling Cucurella. Seems like a blueprint Alonso player
 
TheMagicFoolBus said:
Colwill, Acheampong, and Joao Pedro are going nowhere. You're completely overstating the situation.

As usual Chelsea will do some shady bookkeeping to remain compliant. Despite BlueCo's general idiocy, there still isn't a better selling club out there.
Click to expand...

They won't be able to get away with shady bookkeeping to meet the 26/27 UEFA settlement compliance. You'll need over £200m profit on player trading.

The likes of Chalobah, Colwill, Acheampong, Santos and Palmer would be your best bets at making big profits.
 
If Google's AI is to be believed, Villa earned 42 million quid in total (prize money, TV money, ticket sales etc) for their europa league win.

Chelsea not getting that next season won't be a massive financial hit. Just sign two fewer rando 19 year olds and we're good.

Obviously the Europa is another route into the real money spinner Champs League so there's that.
 
duffer said:
If Google's AI is to be believed, Villa earned 42 million quid in total (prize money, TV money, ticket sales etc) for their euros league win.

Chelsea not getting that next season won't be a massive financial hit. Just sign two fewer rando 19 year olds and we're good.

Obviously the Europa is another route into the real money spinner Champs League so there's that.
Click to expand...
You likely will also pay lower wages due missed targets and boni
 
MaMa given red said:
They won't be able to get away with shady bookkeeping to meet the 26/27 UEFA settlement compliance. You'll need over £200m profit on player trading.

The likes of Chalobah, Colwill, Acheampong, Santos and Palmer would be your best bets at making big profits.
Click to expand...
Where are you getting £200m from?

Also, acting like that's unachievable without selling half the first XI is naive. We've got plenty of dross to move on - and this summer when our finances still benefit from the CWC win will be the time to reduce the amortisation bill for 26/27.
 
hellhunter said:
I'd be very very surprised if you considered selling Cucurella. Seems like a blueprint Alonso player
Click to expand...
Agreed - though if Barca come in with a huge offer it would probably be considered. Wouldn't mind going after Diouf at West Ham especially if we're going to play with wingbacks.
 
TheMagicFoolBus said:
Where are you getting £200m from?

Also, acting like that's unachievable without selling half the first XI is naive. We've got plenty of dross to move on - and this summer when our finances still benefit from the CWC win will be the time to reduce the amortisation bill for 26/27.
Click to expand...

The above article and pretty much every football finance expert.

Your dross won't generate much profit. You need to sell players where you'll make 100% profit or significantly clear the book value.
 
MaMa given red said:
The above article and pretty much every football finance expert.

Your dross won't generate much profit. You need to sell players where you'll make 100% profit or significantly clear the book value.
Click to expand...
The article you posted makes no mention of £200m anywhere.

The bolded is not correct. The accounts in question are for 26/27, so they are impacted by our amortisation and wage bill. If players are moved on for a net transfer loss this summer, that improves the 26/27 books at the cost of 25/26 accounts, which are in good stead due to the CWC and CL participation this year.
 
TheMagicFoolBus said:
The article you posted makes no mention of £200m anywhere.
Click to expand...

200 million adverts on that god awful website.

If the shit really hit the fan, we could get a decent amount for the likes of Estevao, Santos, Pedro or Enzo.

Don't forget the annual Arsenal buying of one of our players. Maybe they'll finally get Mudryk.
 
MaMa given red said:
25/26 PSR compliance will be based on selling players. If you get back in Europe next season you will have to meet the 26/27 UEFA settlement compliance too.

This summer you probably need to sell Enzo Fernandez, Cucurella, Acheampong, at least one of Chalobah or Colwill, possibly both and Neto or Joao Pedro if you get a big enough offer.

Chelsea will have to consider offers for pretty much every single player. Nobody will be deemed unsellable.
Click to expand...

We have CWC and Cl money in the current year, it's the year from 30th June 2026 to 2027 that will be more problematic I think. PSR and account for those aren't due until 2027 and filing in 2028. Anything that could force BlueCo out is ultimately a positive as I see it.
 
TheMagicFoolBus said:
The article you posted makes no mention of £200m anywhere.

The bolded is not correct. The accounts in question are for 26/27, so they are impacted by our amortisation and wage bill. If players are moved on for a net transfer loss this summer, that improves the 26/27 books at the cost of 25/26 accounts, which are in good stead due to the CWC and CL participation this year.
Click to expand...

You will lose £200m from not being in the Champions League or having the CWC money in the following years accounts.

Selling those players at a loss now won't help!
 
Mb194dc said:
We have CWC and Cl money in the current year, it's the year from 30th June 2026 to 2027 that will be more problematic I think. PSR and account for those aren't due until 2027 and filing in 2028. Anything that could force BlueCo out is ultimately a positive as I see it.
Click to expand...

Correct.
 
MaMa given red said:
You will lose £200m from not being in the Champions League or having the CWC money in the following years accounts.

Selling those players at a loss now won't help!
Click to expand...
What? Of course it helps - because once sold those players' transfer fee amortisation and wages aren't on the books for 26/27 anymore.
 
TheMagicFoolBus said:
What? Of course it helps - because once sold those players' transfer fee amortisation and wages aren't on the books for 26/27 anymore.
Click to expand...
You also lose the asset associated with the player. For example, Garnacho was bought for £40M, amortised over 5 years. So his current book value after a year is £32M. If you sell him, you lose a £32M asset. So whatever you sell him for, you take away £32M from that number in terms of accounting profit and loss. If you sell him for £30M, then you'd net a £2m loss, making things worse. If you sell him for £40M, you gain £8M profit.

There is salary to account for, but that's a much smaller number than the transfer fee, maybe a £2m saving a year. Worth doing, but if you're trying to make up losing £80M in CL income, there's a lot more to go.
 
Wonder how this will go if the owners start interfering in the manager's job again. Will he walk like Maresca did?

Doesn't seem like a great place to go. Chelsea are a mess.
 
MaMa given red said:
25/26 PSR compliance will be based on selling players. If you get back in Europe next season you will have to meet the 26/27 UEFA settlement compliance too.

This summer you probably need to sell Enzo Fernandez, Cucurella, Acheampong, at least one of Chalobah or Colwill, possibly both and Neto or Joao Pedro if you get a big enough offer.

Chelsea will have to consider offers for pretty much every single player. Nobody will be deemed unsellable.
Click to expand...

Colwill isn't going anywhere. Don't think Acheampong is either. Chelsea have been trying to sell Chalobah for years, weirdly has not had many takers. Neto could go, but won't really recoup our fee and Joao Pedro and Enzo might be out of our hands anyway as they're heavily linked with Real/City and Barca so they could force their way out.

It all depends on what Alonso wants though. We're led to believe he will have big say on incomings and outgoings. The idea that we have to sell half the starting line up is just fear mongering.
 
quadrant said:
You also lose the asset associated with the player. For example, Garnacho was bought for £40M, amortised over 5 years. So his current book value after a year is £32M. If you sell him, you lose a £32M asset. So whatever you sell him for, you take away £32M from that number in terms of accounting profit and loss. If you sell him for £30M, then you'd net a £2m loss, making things worse. If you sell him for £40M, you gain £8M profit.

There is salary to account for, but that's a much smaller number than the transfer fee, maybe a £2m saving a year. Worth doing, but if you're trying to make up losing £80M in CL income, there's a lot more to go.
Click to expand...
You are failing to account for the year when that loss is allocated. The point is that Chelsea can absorb short term losses this year due to supplemental income that will be worthwhile for next year.

To use your example, Chelsea will be very happy to absorb a £2m loss on Garnacho this summer to save £10m next year and for the remainder of the UEFA monitoring period (amortisation + wages).
 
MaMa given red said:
Correct.
Click to expand...

Don't be surprised if BlueCo or the authorities pull a rabbit out of the hat... I forsee no major psr problem for us.

If there's one thing we learned in the last 12 months, it's that football is totally craven to money and investment, be it TV, Qatar, or US private equity borrowing in our case.

It's when Ares and other debt comes due, if BlueCo haven't increased value. Then trouble.
 
TheMagicFoolBus said:
You are failing to account for the year when that loss is allocated. The point is that Chelsea can absorb short term losses this year due to supplemental income that will be worthwhile for next year.

To use your example, Chelsea will be very happy to absorb a £2m loss on Garnacho this summer to save £10m next year and for the remainder of the UEFA monitoring period (amortisation + wages).
Click to expand...
No I'm not. As I understand it, the deal with UEFA has both year by year caps and a cumulative three year rolling cap. So loading losses into the current good financial year doesnt save you anything next year. Your rolling total is still affected.
 
quadrant said:
No I'm not. As I understand it, the deal with UEFA has both year by year caps and a cumulative three year rolling cap. So loading losses into the current good financial year doesnt save you anything next year. Your rolling total is still affected.
Click to expand...
Your understanding is incorrect. Chelsea's flexibility varies significantly from year to year as per the terms of the agreement:

For 25/26, Chelsea are limited to a maximum of €60m loss. As mentioned previously, this year will not be a problem due to CWC and CL income for the 25/26 season
For 26/27, Chelsea are limited to a loss of €0m - unless there is a gap between the -€60m figure in 25/26 and wherever we end up
For 27/28, the limit is again €60m

So as you can see, a £2m loss in 25/26 to save £10m in 26/27 makes perfect sense. You also forgot to include the amoritsation of Garnacho's transfer fee in your original post, so arguing that we'd only save £2m in his wages for 26/27 is incorrect.
 
MattofManchester said:
Wonder how this will go if the owners start interfering in the manager's job again. Will he walk like Maresca did?

Doesn't seem like a great place to go. Chelsea are a mess.
Click to expand...

He probably would walk if they did that. But at the moment, all the noise points to them realising it's been a huge mess and the need to change course. I'll truly believe it when I see it though.

This ownership has zero good will in the bank. So any good intentions and briefs about a change of direction will be treated with lots of scepticism and indifference from Chelsea fans until we see results.
 
MattofManchester said:
Wonder how this will go if the owners start interfering in the manager's job again. Will he walk like Maresca did?

Doesn't seem like a great place to go. Chelsea are a mess.
Click to expand...

It is mental. I reckon they'd have comfortably finished in the top 5 if they'd just avoided pissing off Maresca and had kept him for the duration.

It's high-risk for Alonso - it looks like he's jumped from the frying pan and into the fire with another dysfunctional senior management/squad to deal with and at his stage of his career, you don't really want two high-profile failures on your CV.

I am a bit worried about them though - I think Alonso has massive potential and also think Chelsea have a lot of talent on their books. If the idiots in charge get out of the way and let Alonso do his thing, they will surely be top 4/5 contenders next season, at least. That's a big 'if' though.
 
Infra-red said:
It is mental. I reckon they'd have comfortably finished in the top 5 if they'd just avoided pissing off Maresca and had kept him for the duration.

It's high-risk for Alonso - it looks like he's jumped from the frying pan and into the fire with another dysfunctional senior management/squad to deal with and at his stage of his career, you don't really want two high-profile failures on your CV.

I am a bit worried about them though - I think Alonso has massive potential and also think Chelsea have a lot of talent on their books. If the idiots in charge get out of the way and let Alonso do his thing, they will surely be top 4/5 contenders next season, at least. That's a big 'if' though.
Click to expand...
Perhaps I've drunk too much BlueCo Kool Aid but given that we know that Maresca was actively seeking the City job whilst still at Chelsea and walked away without compensation, it feels harsh to blame our coterie of morons
 
You must log in or register to reply here.