In the age of Financial Fair Play, Europe’s top clubs have no longer been allowed to operate with a bottomless checkbook. Essentially these rules, imposed by UEFA in 2011, place a cap on player costs for each club. The cap differs from club to club based on how much revenue a club earns.
The new regulations put an emphasis on maximising earnings. The more money a club brings in, the more it is allowed to spend without suffering the wrath of UEFA. Teams such as Manchester City and Paris Saint-Germain are among those who have been dealt sanctions by the federation for failure to comply with FFP (Financial Fair Play) standards, providing a cautionary message for other big spenders. With the possibility of punishment hanging above their heads, clubs have come up with different ways of balancing their budgets.
Chelsea have relied on smart business acumen while employing an extensive player loan system to remain clear of FFP troubles. Monday’s deadline day deals involving André Schürrle and Juan Cuadrado are the newest examples of Chelsea’s astute business in the transfer market, with the £24 million sale of Schürrle to Wolfsburg helping to finance much of Cuadrado’s £27 million purchase from Fiorentina.
In the last year, the Blues have become the standard bearer among major clubs in terms of transfer dealings, using a string of financially sound moves to revamp its roster and form one of Europe’s most formidable sides. Since last January, Chelsea have used the sales of Juan Mata (£37.1M to Manchester United), Kevin De Bruyne (£16.7M to Wolfsburg), David Luiz (£50M to PSG), Romelu Lukaku (£28M to Everton) and now Schürrle to almost completely finance the additions of eight players over the same time frame.
Cesc Fàbregas (£27M), Diego Costa (£32M), Filipe Luis (£15.8M), Nemanja Matić (£21M), Loic Rémy (£10.5M), Kurt Zouma (£12M), Mohamed Salah (£11M) and now Cuadrado have cost Chelsea a total of £156.3 million, while the combined transfer fees accrued from the sales of the five players listed in the previous paragraph total about £156 million. While this does not account for player salaries, it provides a good picture on the surface of how intelligently Chelsea have managed their transfers since last January. The late transfer deadline day news of Ryan’s Bertrand’s £10 million sale to Southampton adds even more cushion to the bank account.
These dealings are especially shrewd when considering the money was acquired for players that were not first-choice selections in the mind of Blues manager Jose Mourinho. While very productive during his time at Chelsea, Mata had fallen out of favor with Mourinho and was being used mostly as a substitute, and De Bruyne was unable to crack into CFC’s lineup. David Luiz was revered at Stamford Bridge, but a world record transfer fee for a defender from PSG for Chelsea’s third-choice centre back could not be ignored, and Lukaku’s fee was an Everton record despite the Belgian sitting behind Costa in the Blues’ striker hierarchy. Likewise, turning a bench player like Schürrle into £24 million represents great value. While Salah did not pan out on the field for Chelsea, he was resourcefully included on loan as part of the Cuadrado deal with Fiorentina and could see his value rise if he impresses during the loan spell.
The performance of the new additions has proven that Chelsea can manage profits with results on the pitch. Costa currently leads the Premier League in scoring with 17 goals in league games this season, while Fàbregas has produced a league best 15 assists, seven more than any other player. Matić has become an elite holding midfielder since his return to West London last winter and the ceiling for the 20-year-old Zouma at centre back appears to be sky high.
Transfer dealings are one of many factors that play into how much money a club brings in annually, along with match day revenue, sponsorships and television deals, among others. But for a club like Chelsea, whose match day revenue is limited compared to other European giants due to a relatively small 43,000-seat capacity at Stamford Bridge, smart transactions on the transfer market are a way to stay clear of FFP violations while remaining in contention for silverware in Europe and England even without as much commercial revenue as clubs like Barcelona and Manchester United. These types of practices have helped Chelsea create a sustainable method of operation in European competition for years to come.
