tag:blogger.com,1999:blog-487486960623783530.post877523799473347047..comments2024-02-29T09:58:18.342+01:00Comments on The Swiss Ramble: Chelsea's Financial Fair Play ChallengeThe Swiss Ramblerhttp://www.blogger.com/profile/11423088862174893998noreply@blogger.comBlogger59125tag:blogger.com,1999:blog-487486960623783530.post-75830300526635672742012-02-05T23:53:57.401+01:002012-02-05T23:53:57.401+01:0030 June.30 June.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-9139815860809618062012-02-05T20:42:01.503+01:002012-02-05T20:42:01.503+01:00Swiss Rambler, now that Chelsea have, finally, rel...Swiss Rambler, now that Chelsea have, finally, released their accounts for last season, we see that revenues have essentially flatlined for four seasons in a row, despite the big increases in the Premier League TV rights in those years.<br /><br />One question - what date do Chelsea use for their year end, May 31st or June 30th?<br /><br />The reason I ask is that Chelsea didn't sign their new manager AVB until June 2011, yet his 'transfer fee' to Porto of €15m is charged to last year's accounts.<br /><br />Presumably, this means the accounts are for the year end June 30th, as otherwise this transaction should have been put in the accounts for 2011/12 and therefore would have been taken into account for purposes of FFP.Franknoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-11780681921002649702011-04-18T19:08:10.267+02:002011-04-18T19:08:10.267+02:00Is there a reason I can't grasp why my questio...Is there a reason I can't grasp why my question keeps disappearing? <br /><br />Did I trod on some shush-word or offend the chinese and was censored or something of the kind? :)<br /><br />G, OsloAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-13309278831629096752011-04-18T18:23:12.330+02:002011-04-18T18:23:12.330+02:00Hey there mr. Rambler.
Posting it here as it'...Hey there mr. Rambler.<br /><br />Posting it here as it's the piece that's maybe closest to the topic I'll ask about.<br /><br />The other day, now almost forgotten in the haze of Manuel Neuer's more or less confirmed move to Bayern, I read an interview with KH Rummenigge, on the state of finances in football. It was short and glum, but in it he mentioned something interesting; He said Platini had said that 11 of the 32 teams that played the current CL-campaign, would not have met the FFP requirements (if they had fully implemented I guess, but it wasnt more specific). As leader of the ECA that's worked with Platini on this issue, i consider Rummenigge a credible source.<br /><br />Anyway, that got me wondering who the 11 might be. I couldnt think of anyone better qualified to answear that question than you:<br /><br />Chelsea<br />Inter<br /><br />are no-brainers:<br /><br />Valencia?<br />Schalke?<br />Milan?<br />Roma?<br /><br />Some of the russian and ukrainian teams have rich owners partly funding the party I think?<br /><br />How about United? They are running at a loss for now, but I'm not sure about how much of it is FFP-related, such as their goodwill amortisation etc.<br /><br />If you had the time to answear this, I don't know - maybe it would even be an idea for a piece? - it would be appreciated.<br /><br />The source is included below:<br />http://www.tz-online.de/sport/fc-bayern/rummenigge-besorgniserregende-finanzen-europa-1206306.html<br /><br />G, OsloAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-58737976728068446202011-04-08T18:49:02.737+02:002011-04-08T18:49:02.737+02:00Excuse usingf this topic to ask a related question...Excuse usingf this topic to ask a related question but have you been watching the goings on at Glasgow Rangers and the latest news that the potential owner will increase the £5M a year he has promised to inject to pay for players.<br /><br />How does this sit against FFP, especially if Celtic win the title reducing Rangers football earned income.<br /><br />Will FFP restrict CWs' spending intentions (assuming they are real in the first place)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-41276785044565214212011-04-01T18:38:49.093+02:002011-04-01T18:38:49.093+02:00oops..there goes the naming rightsoops..there goes the naming rightsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-51139374490530752462011-03-08T20:08:24.210+01:002011-03-08T20:08:24.210+01:00@Anonymous (7:22),
Actually, you do not need to u...@Anonymous (7:22),<br /><br />Actually, you do not need to use your intuition on the revenue growth, as most of it is already in the bag. The new commercial deals (Adidas £8m, Samsung £4m) are contracted, while the higher ticket prices have been implemented (£3m). Similarly, the new TV deals are in place for the Premier League (£7m) and Champions League (£5m). I agree with you that the naming rights (£10m) is far from a fait accompli, but that still means that £27m of the projected £37m revenue growth comes from done deals.<br /><br />Bonus schemes can be changed every year, but even if Chelsea's were unchanged, it would pay out less, unless their on-pitch success matches last season.<br /><br />Profit on player sales is almost impossible to estimate, but I don't think that it's unreasonable, given that this year's figure of £13m comprises one veteran plus two youngsters. In the 3 years preceding 2009/10, Chelsea's profit on player sales was £9m, £22m and £29m, i.e. an average of £20m a year.<br /><br />I have indeed tried to be conservative with my assumptions on amortisation, as my guess is that adds and drops will cancel each other out.<br /><br />I think that the point I wanted to make is not that each individual estimate was 100% accurate, but that it was not so impossible for Chelsea to meet the FFP break-even target as most had assumed, especially as most (not all) of the required steps had already been taken.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-77972145656105613072011-03-08T19:22:45.170+01:002011-03-08T19:22:45.170+01:00Hi Swiss, i remember you did a similar piece trans...Hi Swiss, i remember you did a similar piece transforming man city's finances and that looked easy too. <br />I have to say though that standing back from the detail I find it hard to believe that it is realistic for a high achieving star based team stuck at £210m turnover for 4 years to suddenly leap like a salmon to £250m pa in sales, especially in what will is an increasingly competitive market. <br /> Intuitively it just doesn't sound right and i think the naming deal is definitely suspect.<br />I also can't figure out how its feasible to just knock £14m bonus money off the wage bill unless the team is underperforming (and losing income) or players bonuses have been bought out?<br />I also can't see how £14m player trading profits can be a sustainable option for a team that's not spending and is ageing and question really whether they do spend £10m pa in qualifying youth development expenditures.<br />Against that though, you haven't allowed for a fall in player amortisation off the existing player pool which looks likely given pre 2011 spending of circa £100m over the past 4 years seems nowhere near enough to keep player amortisation at 2010's £37mpa amortisation.<br />Overall, I think the challenge for chelsea is to keep earning either £210m or £250m pa and not spend more than £120-160m on wages (allowing £100m for net player trading and amortisation and other costs) as their's is a buy in strategy that relies on big name transfer activity.<br />The lack of an interest bill and freedom to negotiate commercial deals a fresh certainly helps them stay up with united and arsenal in the player spending stakes despite the smaller ground but its the whole balanced package that needs considering not just the component parts and chelsea are coming from a narrow pricey player base that they need to replicate or replace to sustain all these wonderful incomes...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-14688861249976857612011-02-27T14:39:22.859+01:002011-02-27T14:39:22.859+01:002 The Swiss Rambler
Do you have email or skype fo...2 The Swiss Rambler<br /><br />Do you have email or skype for discussing some questions about your posts? I would be very grateful if you contact me st_anger345@yahoo.com<br /><br />Thank you!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-31336722570716724942011-02-27T13:39:24.856+01:002011-02-27T13:39:24.856+01:00This is all very well, but you may have to factor ...This is all very well, but you may have to factor in settlements for random air rifle attacks lol<br /><br /><br />http://www.dailymail.co.uk/sport/football/article-1361057/Ashley-Cole-accidentally-shoots-fan-Chelsea-training-ground.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-57836773833918384592011-02-24T14:27:01.661+01:002011-02-24T14:27:01.661+01:00Another excellent article.
I was personally stunne...Another excellent article.<br />I was personally stunned at how credible your "turnaround plan" was for Chelsea (get on the phone and sell it to Abramovich quick!)<br /><br />As I get older and less able to play the game I find myself becoming more and more interested in the business of football and your site is a treasure trove.<br /><br />I hesitate to suggest topics for you to write on (after all this is your hobby - none of us are paying for this!) but I'd be fascinated to see a piece on Rangers predicament.<br /><br />They are classic "Big Fish - Small Pond - Poisoned Water" material!<br /><br />Congratulations again on this site it's a goldmine! (I will even forgive you your Goonerist tendencies!)<br /><br />DannyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-66417772269702797022011-02-24T13:22:44.886+01:002011-02-24T13:22:44.886+01:00You should look at Dutch club Vitesse, the first f...You should look at Dutch club Vitesse, the first foreignly owned club in the Netherlands. Officially owned by Georgian businessman Merab Jordania, there is speculation that the true owner is in fact Abramovich. Dutch media hasn't really been able to unravel the mystery behind the finances of the owners, perhaps you could :) A little background:<br /><br />http://worldsoccerreader.com/2011/02/dutch-digest-vitesse-and-their-unique-ownership-situation/?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-81673175310737749372011-02-24T13:22:07.309+01:002011-02-24T13:22:07.309+01:00hey swiss,
have you ever considered writing sth a...hey swiss,<br /><br />have you ever considered writing sth about a club becoming independent of its owner? chelsea becoming independet of abramovich or like in germany hoffenheim becoming independent of hopp as recently announced? <br /><br />i would really enjoy reading such an article (especially regarding hoffenheim) because of the very controversial discussing its been going on regarding FFP.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-53007415908243453302011-02-22T16:51:41.407+01:002011-02-22T16:51:41.407+01:00Speaking of FC Copenhagen, I'm wondering wheth...Speaking of FC Copenhagen, I'm wondering whether you've ever looked into the finances of Scandinavian football in general, specifically the widespread suspicion that a lot of the money that moves around does so without appearing on any accounts.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-75684905779592647642011-02-21T16:16:37.876+01:002011-02-21T16:16:37.876+01:00Loved the article, very detailed.
Could you answ...Loved the article, very detailed. <br /><br />Could you answer for me, if the accounts of Fordstam limited are taken into account, what would stop Abramovich transferring a profitable company e.g. Sibneft into Fordstram, Im sure Fordstram, would then be profitable. Can chelsea be seen to make a profit from also selling oil as well as football shirts?ryannoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-23153236117485053952011-02-20T21:57:35.715+01:002011-02-20T21:57:35.715+01:00Great article, as ever, but as has been raised abo...Great article, as ever, but as has been raised above, it's doubtful that Chelsea can afford to replenish their squad, and keep to FFP.<br /><br />They missed a trick in keeping the team together for 09-10, in my view. Should have taken that bid for Terry from Man City, and moved Drogba and/or Lampard too. That double came at a steep cost in my view.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-87631687278535500802011-02-20T18:24:20.984+01:002011-02-20T18:24:20.984+01:00As a Dane I can tell you that FC Copenhagen dont p...As a Dane I can tell you that FC Copenhagen dont publish their accounts for the football part. It is all included within the holding Company "Parken Sport & Entertainment" which as you mention also consists of fitness chains, holiday companies and the Danish National Arena "Parken". <br /><br />The holding company, however, presented some horrible figures last fall which showed a loss of £26 mio. The entire organization was acutally close to bankruptcy and only a deal with their bank saved them. The bank helped PS&E with a plan to save the organization and the situation is again stable. This fiscal year PS&E expect a profit in the range of £10 mio where their CL adventure accounts for app. £ 13 mio. Så they are widely dependent on qualifying in CL.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-84155859942683304502011-02-20T12:15:59.883+01:002011-02-20T12:15:59.883+01:00There was az interesting article about FC Copenhag...There was az interesting article about FC Copenhagen on guardian:<br />http://www.guardian.co.uk/football/2011/feb/19/fc-copenhagen-champions-league-chelsea<br /><br />Their sporting director says:<br /><br />"First we came up with a long-term business plan, with the football club as the focal point and other businesses, such as holiday companies and fitness chains, supporting the football club. So that gave us a solid financial footing."<br /><br />Sound very interesting stuff, the way the club is run.<br />Any chance you could write a post about them?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-22878366513190053672011-02-19T22:16:05.985+01:002011-02-19T22:16:05.985+01:00Swiss,
Been trying to find if you've answered...Swiss,<br /><br />Been trying to find if you've answered this specific question before but I couldn't...<br /><br />In a case where a player carries a large amortisation figure, Torres at 9 mil/jr, would it be beneficial for the club to extend that player's contract to lower their annual amortisation and stretch it out?<br /><br />Lets say player X was bought during the summer of 2010 for 100 million and signed a 5 year contract, 20 mil/yr amort. So in the summer of 2012, their remaining amortisation would be 60 million. By signing a new contract for 5 years, it would drop the annual amort. to 12 mil/yr (or 8 mil/yr savings). <br /><br />Or am I missing some part of accounting 101?<br /><br />Thanks, and great job on the article.Jason Baileynoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-83631279211295121822011-02-18T17:55:09.418+01:002011-02-18T17:55:09.418+01:00'though the suspicion remains that this could ...'though the suspicion remains that this could instead be a last throw of the dice in order to win the CL in the next two seasons' spot on! I also suspect that Roman would want to win the CL first and then see what to do with the club after that.possibly he will just lay low and try to remain in the CL after that coz they owe him too much so he can't just leave. my best bet on fair play would be if all the big guns of europe unite and agree to follow the rules,then the likes of chelsea,mancity would have to comply or the big guns would threaten to form a break away league F1 style.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-58947428027945151542011-02-18T14:10:11.413+01:002011-02-18T14:10:11.413+01:00Absolutely brilliant read - one of the best articl...Absolutely brilliant read - one of the best articles I have read in the last few years. Quality - can't wait for your next article.<br /><br />I have a different angle on this, say Liverpool have the opinion that they won't qualify for the Champions League no matter what so decide to deregard the FFP rules and sign say £80m of players in 2 years time in the knowledge that Man U, Chelsea, Arsenal and maybe City will be sticking to their budgets trying to keep within the European contraints. <br /><br />Okay, granted Pool won't make Europe but mightn't that be a price to pay if they have a competitive advantage in the domestic league?<br /><br />Also would the next available champions league spot go to a team below 4th when a team (or teams) in one of those positions cannot compete due to these rules?Kennynoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-24214343905986134512011-02-17T23:57:55.412+01:002011-02-17T23:57:55.412+01:00@Anonymous (7:40),
Yes, that's technically co...@Anonymous (7:40),<br /><br />Yes, that's technically correct, though I'm not sure that many clubs did actually sign players on such short-term contracts last summer. Given that the 2010/11 accounts are the last ones not included for FFP, they don't really have an opportunity to do so now. The other issue, of course, is whether players would be happy to sing shorter contracts.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-10793202932771223962011-02-17T19:40:55.979+01:002011-02-17T19:40:55.979+01:00I have a question concerning amortisation. Let'...I have a question concerning amortisation. Let's say a player was signed for £20 million last summer and signed a short two-year contract at that time. If he signs a new five-year contract after one year of his original deal, wouldn't this mean that half of the amortisation (£10 million) would be part of the accounts for 2010/11 while the rest would be split into five parts (£2 million/year)? It might be something of a gamble, as you can't guarantee that a player will sign a new deal at the right time, but wouldn't this be a possible way of reducing costs for the first few years under the new regulations? Sign players on short contracts before the new regulations take effect and then sign new, longer, contracts later to reduce later amortisation?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-50974575400618159172011-02-17T04:42:45.240+01:002011-02-17T04:42:45.240+01:00Swiss Ramble,
Love your blog, read every week, gr...Swiss Ramble,<br /><br />Love your blog, read every week, great post, blah, blah, blah ..... What I really want to ask is what you thought of last night at the Emirates? COYR !!!!!!!!!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-487486960623783530.post-37612679882692205192011-02-17T01:04:25.293+01:002011-02-17T01:04:25.293+01:00@Anonymous (6:19),
There are many variables, but ...@Anonymous (6:19),<br /><br />There are many variables, but perhaps this stat will help explain the difference: last season Chelsea's prize money (including TV allocation) for reaching last 16 of Champions League was €32m, while Fulham only earned €10m for reaching the final of the Europa League.The Swiss Ramblerhttps://www.blogger.com/profile/11423088862174893998noreply@blogger.com