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richard

Chelsea Finances Thread

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Given the financial mess that bates had brought on the club

When Bates sold the club to RA, we had around 90 mill of debt and more than 250 mill of fixed asset. Do the math. The problem we had was cash flow - basically, we needed to repay around 30 mill of that debt, and didn't have the cash at hand. That had been sucked out of the club by ventures such as Chelsea Travel, and indeed, Chelsea Hotel (which was losing money at that time, but was still a huge financial asset). I'm not saying that the club was being well-run, because gambles were being taken. However, had the club been in such a terrible financial 'mess', RA wouldn't have touched it with a barge pole.

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Mutu7   

When Bates sold the club to RA, we had around 90 mill of debt and more than 250 mill of fixed asset. Do the math. The problem we had was cash flow - basically, we needed to repay around 30 mill of that debt, and didn't have the cash at hand. That had been sucked out of the club by ventures such as Chelsea Travel, and indeed, Chelsea Hotel (which was losing money at that time, but was still a huge financial asset). I'm not saying that the club was being well-run, because gambles were being taken. However, had the club been in such a terrible financial 'mess', RA wouldn't have touched it with a barge pole.

In 2003 we were one of the ten richest clubs in Europe by revenue. I doubt we were even one of the ten richest clubs in Division 2 when Bates bought the club. RA bought an attractive proposition, even with the debts. We were already in the Champions League, in London (Buck says both of those factors were important), had a modern recently refurbished (and usually full) stadium and a recent track record of success. He picked Chelsea for a reason.

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Not sure where to put this: http://www.101greatgoals.com/blog/tv-money-distribution-graphic-crazy-comparison-between-la-liga-and-premier-league/

It is certainly interesting.

Spanish TV money

xYaDaGs.png

English TV money

f91r5MR.png

I saw that on Revista de Liga this past Tuesday, hilarious. Incredibly short sighted of them, there's a reason why few people watch La Liga with the enthusiasm and interest usually saved for the Premier League. I remember looking up how much money Levante had spent recently after they got tonked 7-0 by Barca, turned out it was something like £2.5 million over 7 years on transfers!

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Zidane   

Not sure where to put this: http://www.101greatgoals.com/blog/tv-money-distribution-graphic-crazy-comparison-between-la-liga-and-premier-league/

It is certainly interesting.

Spanish TV money

xYaDaGs.png

English TV money

f91r5MR.png

The following video is brilliant:

http://www.youtube.com/watch?v=hWMdkGHL3-E

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Sarin   

Arsene Wenger would love coaching lower league teams in spain.

The amount of self righteousness he could spew forth at Barca and Madrid would be comical to watch.

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Scooba   

The following video is brilliant:

http://www.youtube.com/watch?v=hWMdkGHL3-E

Loved watching this video. Credit to Sevilla for not just being passive objects of the Spanish league. Ath. Madrid hopefully will help to change the hierarchy/structure. Potentially massive if they manage to finish second, how could you then justify paying a team below them 3/4x more?

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cam4blue   

Ath. Madrid hopefully will help to change the hierarchy/structure. Potentially massive if they manage to finish second, how could you then justify paying a team below them 3/4x more?

The same way they justified it when Villarreal finished 2nd a few years ago. They don't care, everyone looks out for themselves and only two teams are in a position to take advantage of that. Atletico have to sell their best players to survive, they can't afford to play hardball just because they finished higher in one league campaign.

Until they have collective bargaining it will stay the way it is (although there are moves to introduce collective bargaining at a legislative level, if it happens it will be 2016 at the earliest and it won't be a truly fair split even if it does happen).

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The same way they justified it when Villarreal finished 2nd a few years ago. They don't care, everyone looks out for themselves and only two teams are in a position to take advantage of that. Atletico have to sell their best players to survive, they can't afford to play hardball just because they finished higher in one league campaign.

Until they have collective bargaining it will stay the way it is (although there are moves to introduce collective bargaining at a legislative level, if it happens it will be 2016 at the earliest and it won't be a truly fair split even if it does happen).

There is another scenario - that other leagues, including the PL, go the way of individual club bargaining.

At face value that would actually be closer to EU competition policy that collective bargaining. Politicans will try to have intervene, but mst countries I would imagine, would actually support it, as it allows the creation of some national champions that can make a credible effort in the CL.

And the clubs that would benefit the most are the big English clubs, including Chelsea.

I would love it if we could out spend RM and Barca!!

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Just reading Jimmy Greaves autobiography at the moment. How times have changed. We sold him to AC Milan for £80,000. Greaves, who was 21 at the time, and had just finished the previous season with 41 league goals, wanted to back out of the deal during that summer but the club, according to Jimmy, pushed it through in fact whilst telling him they were trying to help him call it off. We were in some decline at the time and money was scarce. When Milan decided to sell him 6 months later, Jimmy chose to go to Spurs even though we came in for him too. He had a different version of that from the clubs as well. Spurs paid £99,999 in the end and the rest is history.

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