Simon Jordan explains why Chelsea have ZERO issues with FFP and can afford Moises Caicedo and Romeo Lavia

Simon Jordan has brilliantly explained how Chelsea are able to spend such huge sums while still complying with Financial Fair Play.

Since the Todd Boehly-led takeover of the Premier League club in May 2022, the Blues have laid out over £900million.

4

Boehly is chucking money about like it’s nobody’s businessCredit: Getty
Caicedo is set to join the club for a fee of £111million

4

Caicedo is set to join the club for a fee of £111millionCredit: Getty

The latest blockbuster deals have seen them splash out a British record £115m for Moises Caicedo from Brighton, while they are set to complete the signing of Romeo Lavia from Southampton for more than £50m.

Chelsea have attracted attention for handing their new players extremely long-term contracts, with many penning eight-year deals to join the club

Former Crystal Palace owner Jordan has outlined how that approach under Boehly is helping the Blues to stay within the laws of the game, albeit with a huge loophole.

Speaking on talkSPORT, Jordan explained: “Here’s what’s happening with their transfers. I think they’ll struggle to do it in a longer game, until they start getting some achievements on the pitch, but here’s where they really are.

From Arsenal rejection to British record move - Inside the Moises Caicedo transfer saga
Caicedo passes Chelsea medical as Brighton star nears British record transfer

“They’ve spent £800million on players, they’ve spent £600million last year and capitalised that over eight years because all of those players were on eight-year contracts, so all of a sudden that £600million spend is averaging at £75million per year because you’re dividing £600million by eight.

“He’s now had that change because the football fraternity has said ‘you can’t do that over eight years’, so they’ve rolled it back to five years.

“This year’s spend will be £300million, or round about that, and that’ll be reducing to £60million per year – so he’s now losing £75million each year for last year’s spend, plus £60million this year, but he’s gone and sold £250million worth of players in three transfer windows and all of those players have deduced an outcome that is profitable to Chelsea.

“He sold Kai Havertz for £60-odd-million after he bought him for £60million, but on his balance sheet at the time he sold Havertz he was carrying him at £25million so he sold him at £60million and booked a £35million profit.

Mount's move to Man United is one of many that is aiding Chelsea's balance sheet

4

Mount’s move to Man United is one of many that is aiding Chelsea’s balance sheetCredit: Getty
Jordan believes that Chelsea may come unstuck eventually

4

Jordan believes that Chelsea may come unstuck eventually

“He sold Mason Mount who is an academy player for £60million, so he’s booked a £60million profit, so over the three windows he’s booked somewhere in the region of £200million worth of transfer gains on his balance sheet and he’s reducing it by £135million every year, so he’s £65million in credit right now on his balance sheet in terms of transfers. That’s how he’s doing it.

“Now eventually, if Chelsea don’t pull up revenue and start to get back in the Champions League or generate other revenue streams, this is going to catch up with them sooner rather than later, but right now £800million worth of spend equates to £135million a year worth of transfer losses, then you’ve got £200million worth of transfer gains on Havertz, Mason Mount, Ruben Loftus-Cheek and on and on we go.”

Jordan added: “It’s a gamble in terms of the consequence of Financial Fair Play, so let’s have a look at what the consequence is.

“The consequence in Financial Fair Play is a financial consequence. Are we suggesting that people who have paid £2.5billion for a business and are funding £800million worth of transfers won’t take a smack on the knuckles like other clubs are getting right now? £10million here or £20million there.

“I’m not suggesting that he’s aiming for that but right now people are saying how the hell can you spend £800million on transfer fees and not be breaching Financial Fair Play? Well, I’ve just told you.

“If you’re depreciating that at £135million a year and you’ve just sold £250-£260million worth of players over three transfer windows with most of those players – with the exception of Timo Werner who was sold at break even – are booking you a profit, you’ve just covered the last 18 months worth of potential losses and going into next year as well.

“In 18 months’ time if Chelsea are still spending at this level and are still carrying that level of depreciation and haven’t balanced the books by selling more players and haven’t got into the Champions League, then they’re going to get caught.”

talkSPORT football match centre

Keep up-to-date with all the latest Chelsea fixtures and results and live Premier League standings in our new match centre.

What's your reaction?

Related Posts

1 of 667