richard

Chelsea Finances Thread

1,878 posts in this topic

I doubt whether Birmingham or Middlesborough are complaining about CFC! Would they have got two such good players for nothing if we were not able to go out and replace them?

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No, I doubt they would Nick. But that in itself doesn't exactly deal with the complexities of the financial future of football.

In all the analytical reports I've read, including accountancy comments, they mostly agree that player wages need to be capped/come down, and transfer fees need to be re-evaluated. Also, agency fees are a big problem to many clubs.

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It seems the general consensus is that wage capping is probably the best way to "save" football in terms of finance because wages are themselves the major problem. But remember this would have to be a wage capping all over Europe under regulations of UEFA as opposed to just England. Maybe this sounds obvious to point out but it seemed people were specifically talking about football in England.

Wage capping is certainly a positive idea and is possible to implement, but will only work only on a European scale. I read an interesting article recently in La Tribune entitled "European Football seeks a new economic model" which discussed the subject of finance nowadays and argues that the way forward is the French system. (Unfortunately I don’t have the article anymore and although I can find it on their site you have to pay to look at it so I can’t quote or use stats!) In France there are already strict wage capping rules, the only country in Europe I believe - I am not sure of the exact rules and regulations but it was brought in place mainly due to the financial crisis’ some clubs found themselves in.

As I said I can’t quote any statistics, but the progress made since the capping was introduced was very positive, I think there are now only 3 top clubs with financial worries (and their situations are getting better). Now in comparison with say England or Italy, Frances problems are minor (although they were never as high). The problem for France is that now few top players want to play here because they know they can get more than twice as much in other top European countries.

The opinion of the French is that they are "the good student of Europe" and many don’t seem to mind that they are, as such, punishing themselves. They feel that the effects are starting to show with the success of Monaco and to a lesser extent Lyon, but I don't know if these were a one off instance. In any case, their top clubs such as Monaco this season will always be losing their top players to English, Italian and Spanish teams willing to pay these sky high wages.

The system may very well help the French national team as more young French players get the chance to play at the top French clubs and in the CL. But in terms of domestic football I don’t think we’ll be seeing a European dominance (ok there really never was, but now it seems that it takes Monaco and others 3 or 4 years to build a good team, they do well once in the UEFA Cup or CL and then sell their performing players and have to start the process again with no guarentee of a new success) Monaco, Lyon and Marseille fans may be delighted to see their club win the title, but lets face it who outside of France cares? This is why it would not work alone in England, high paid players would move to Spain, Italy etc and we’d lose our status in European football.

I know that Michel Platini feels very strongly about bringing this system in as compulsory for all European clubs (and has stated he will quit his role if nothing is done). I don’t see why UEFA don’t take this great example of France and implement it. Yes there would be problems as Crowey and others suggested and some might expect to see the top 10 clubs or so go off and form this super league, but it has worked in France with few problems so why not in other countries?

It is unarguable that the effects of wage capping have seriously cut down debt in French football clubs – so again why wouldn’t the same happen in other leagues? Remember the problem isn’t only in the smaller leagues, but also in the top ones where you’ll find a great deal of teams with huge financial woe and I wouldn’t be surprised if in the next 5 years or so a few more top European clubs go bankrupt, this is not going to stop until something is done.

Once harmonised over Europe it would also mean that countries brave enough to do something about it like France would no longer suffer in terms of competition due to not being able to pay wages found in leagues like the Premiership.

So come on UEFA, take the example of France and bring in wage capping!

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Bob, Just a quick one. I did raise this subject back on June 1st anyway. I found the post and copied it for you

Well, this is certainly the most emotive debate I've seen on here in a while. I'm quite surprised that no one's mentioned the idea of salary caps yet.

As written by many of you on this site, the topic of exorbitant wages brings to mind what they do here in Oz for the aerial ping pong (AFL) to introduce salary capping. Some of the figures being banded about are crazy. They’re just telephone numbers. The average Chelsea supporter is on £35,000 a year. (I've been away for 10 yrs please excuse if this is out). The point is the genuine supporter pays his/her hard earned money to watch Chelsea players in excess of 25 grand a WEEK and some of the performances put on by some of our players? Well the mind boggles. Just because RA has loads of money, it should not mean that we have to go silly. As stated in many of the rags every player and his dog have been linked to us. I mean come on £20m for a 31 yr old on £120,000 a week?

Even if there is some truth to the rumour it's just crazy. RA & PK should stipulate you play for Chelsea when we pick you and minimum wages let’s be generous £55,000 a week take it or leave it. If all clubs followed suit as they do here, the players still play and give their all With TV chipping in it's gone crazy. Set the trend before football goes bust.

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Rachel: That for me says it all. What a great example from the French. The proof of it actually working and eradicating the problems of huge debts clubs have incurred, is good reason for UEFA to act.

It makes sense to bring in wage capping throughout Europe.

Personally I think teams would think long and hard about forming a super league in Europe because of the restrictions it would bring.

Light at the end of the tunnel? I hope so.

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Who cares whether or not some chinese person is wearing a Chelsea shirt in some remote part of the Middle East? What difference would it make to Chelsea's already astronomical wealth if Chelsea are the most supported club worldwide? Do we really need to have our kits made by a recognisable global brands such as nike?

Due to the fact we have so much money, I could design the kit, be the sponsor on the team shirt (Blakey), and be the only supporter in Stamford Bridge at home games and the club would still be the richest in the world! (thanks to RA)

The only reason why the hierachy at Chelsea want to make the club a global brand is purely to make themselves more money, strictly business. The only people who benefit from this, are those at the highest echelons of our club. I've noticed lately that the prawn sandwich brigade are moving into the Bridge and many of you guys aren't happy about it, because quite frankly they have no positive affect on a saturday afternoon between 3 and 5pm. The 'prawn sandwich supporter' is essentially the same as a 'Global Supporter', they only benefit the few in power at a football club, not the supporters or the team on a matchday. Manchester UTD needed this kind of support to generate revenue, Chelsea on the other hand don't need this.

My point is; why do people on this board care about making Chelsea a global brand when it has no direct impact on themselves or on the team?

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Roman has been very generous to the club that we love. He has brought opportunities to Chelsea for success that we simply did not have before.

However, I don't think it would be fair for him to do this for eternity. At any rate, his wealth does not earn him immortality, and there's no guarantee that his decendants will wish to bankroll the club to an unlimited amount for an indefinite period.

Getting the club self sufficient is the only way that, in the long term, we can continue to enjoy the success that we do today. I for one don't want this to be a happy flash in the pan, one that we can enjoy for a few years and then suffer the heartbreak of losing it all.

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He has set up things for the future, not just the short term, that should help us regain some of that money, but the fact that we are getting somewhere in competitions shows that his influence has benefitted us, and this in turn can also help us get some money back.

The fact we are that rich does not mean we shouldn't care about profits, and I think you may need to organise your priorities abit more. The fact is that money, (though many say it isn't) is virtually everything in football in this day and age, and therefore we need to get some back, we don't want to rely on RA for the rest of his life. Progression in the future to ragain expensies is vital, and Ra knows this, and so does everyone else here, and therefore, I think we are in good stead for the future, even if we don't need this extra money now.

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While I don't agree with Blakey about our global brand - I believe we have to attempt to put the club on a sound financial footing for its own best long term interests. The future is never predictable, and relying on RA's benefaction without planing ahead seems like a mistake to me - I do agree with him on what he calls the 'prawn sandwich' issue. Football is the working mans game. I hate to see it yuppified. Right now it is getting harder for a regular guy to afford to attend Chelsea matches, let alone bring his family. Just like working class people get priced out of residential areas by the prawn sandwich mob with the higher salaries and greater spending power, so our football club seems to be going the same way. It certainly detracts from the atmosphere, and the ethos of a club for the common man is no more than a fantasy. It hurts that the Piers and Crispins are outbidding the regular supporters.

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We need extra revenues from global sources and the prawn sandwich brigade. What I would like to see is an expanded matthew Harding stand. Which would have cheaper ticket prices than now. This would hopefully bring back the older type of fan . This then should give us a better atmosphere at the bridge.Global branding and prawn sandwich would help to subsidise lower ticket prices.

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