They can because they are buying players and paying for them in instalments. So the finances of the club itself are fine.
Why can Chelsea spend so much money
How are Chelsea able to spend so much?
They were able to because of a legal accounting method called amortisation, which allows them to spread the cost of signings in the books over the length of a contract. It is why Fernandez and Mudryk signed an eight-and-a-half year contract, and Badiashile, Madueke seven-and-a-half.
Why is Chelsea so expensive to buy?
Strong domestic demand has made Chelsea London’s most expensive area, exclusive research for The National conducted by Savills Research has found. Last year The National exclusively revealed London’s 10 most expensive postcodes, but this year marks a first for Savills, with a change of metric to areas.
Can Chelsea still spend money?
Under Uefa’s current rules, clubs can spend up to 5m euros (£4.4m) more than they earn over a three-year period, though they can exceed this level to a limit of 30m euros (£26.6m) if it is entirely covered by the club’s owner.
How do Chelsea get around financial fair play?
The answer is Amortisation. In football terms, amortisation is spreading the payments of transfer fees. So for example, Chelsea sign a player on a five-year contract for 50Million, 50K a week. CFC would be bound to pay 10M a season in transfer fees and 2.6M in wages.
Leave a Reply