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Chelsea FC – Cut Spending and Look to Youth
Since Roman Abramovich became the new owner of Chelsea Football Club in 2003 they have been famous for being big spenders in the English Premier League.
From 2004-2009 it was estimated that there was a gross expenditure of over £325 million on players, although £245 million was recovered on the sale of players during that period and particularly during the 2009 season there was a profit on the sale of players (stanza expenditure) of estimated at £68 million.
Transfer fees are obviously only half the story, player wages are incredibly expensive, Chelsea spent a reported £142 million on player wages last year alone. This huge expenditure is somewhat offset by ticket sales, sales of merchandise and replica shirts, advertising, television payments and indeed prize money for winning the premier league, which is estimated to be around £15million.
Chelsea continue to maintain that they are in a strong financial position and are said to be on track to break even within the next few years.
Since Abramovich took over, the investment in football has paid off, and Chelsea have enjoyed a very successful period; they have won eight major trophies, including the Premier League 3 times, the FA Cup 3 times and the League Cup twice – making them the most successful team in England in the last seven years.
Chelsea are not the only big spenders in the Premier League, and there are growing concerns about the financial situation of some football clubs. In addition to the huge expenditure by some clubs, this financial power is also seen by some as an unfair advantage, if a club has the support of rich businessmen or consortia.
Another issue that causes concern is the perceived lack of ‘homegrown’ talent, which could adversely affect the national team as well as the clubs, given the huge influx of quality foreign players into the Premier League.
The football governing bodies have now taken action. From the start of the 2010/11 season the Premier League will introduce a squad cap of 25 players and a quota on ‘home’ players. From this season, clubs must include eight home-grown players out of a squad of 25.
A homegrown player is defined as one who has been registered with the club for at least three full seasons before turning twenty one.
Chelsea seem to be leading the way here, having moved to their new training ground in Cobham, Surrey in 2004 and opening their new multi-million pound state of the art training ground in 2007, which includes all the information latest about training, rehabilitation. , medical technology, pitch and media and is also home to Chelsea’s youth team and academy.
Cobham is home to the Under 9 team through to the Under 18 team, all the way through to the Chelsea first team. The academy is overseen by Chelsea sporting director Frank Arnesen, who was appointed in 2005 and is known for his ability to develop young players.
Chelsea already have several academy players poised to break into the first team. It is clear that the long term strategy is to develop talented young players rather than paying huge sums for older players from other teams, this will also ensure financial stability in the future.
Developing home-grown players is seen as a vitally important goal for Chelsea. Cobham gives us the perfect platform for that, It is a general consensus that the new Premier League rules on home players will benefit the long term future of football.
Another issue for Chelsea is the huge salaries of the players, From the 2012-13 season clubs competing in Europe will have to prove that they are financially stable, and they will only pay what they earn in revenue are allowed to spend on player transfers and wages. is another factor that will drive the development of youth team players to reduce huge transfer costs.
Ahead of the start of this season, Chelsea have released a number of high profile players, reported to be among the highest earners at the club, it will be interesting to observe the developments and salary structures over the next few years, again, I believe Chelsea are ahead, and will continue to be a major presence in English, European and World football.
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