Simon Jordan brilliantly explains why Chelsea have ZERO issues with FFP! 💰👍 | talkSPORT

Simon Jordan breaks down the reasons why Chelsea and Todd Boehly do not have to worry about Financial Fair Play right now as they look set to sign Moises Caicedo from Brighton and still have a bid in for Liverpool-target Romeo Lavia

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[lucasmoreno]

This is where Simon adds genuine value to the discussion. I much prefer his technical ownership knowledge over him trying to argue with Eddy Hern.

[saveandinvestwithgiorgiolo]

Another important aspect not mentioned in the video is that Chelsea are reducing their wage bill as well by getting rid of high wage earners like and Aubameyang.

[francie]

It’s refreshing to hear from someone that understands the financial workings of a football club, so many people have opinions on situations they don’t understand at all

[josephcole]

The point that SJ touched on, but didn’t go into much depth on, about Boehly believing football is way short of receiving optimal revenue is a massive factor in his plan as well. It’s actually the entire reason he has bought the club and the consortium behind him are willing to invest these huge fees. They see the potential.

Football revenue is way below most US sports, despite US sports only having a North American audience and football having a global one. Boehly’s mad transfer spending has come about because he is front loading the amount he will invest in Chelsea in order to position them higher on the football food table for when Premier League and European football starts to realise those attainable revenue figures.

He is essentially gambling that by, let’s say, 2030, Chelsea’s commercial revenue will be double or more what it currently is, and that that will be a trend across football’s premiere clubs as well.

Saying that, I don’t think he or the other owners would be commissioned to spend over £1billion of other peoples invested money if they didn’t have very good reason to assume that will happen.

[BigDome]

It's an absolute joy to hear Simon talk about stuff like this.

[stefanophonics]

I love how Simon explains things like this for the average person to understand. Well done sir! 👏

[assuredantiques]

Hilarious 😂 so FFP rather than protecting football clubs from bankruptcy is actively speeding up their demise by indebting them far into the future. If revenues dont rise as expected then it all goes bust.

[jebspringfield]

You gotta love Simon Jordan! You could see the fog clearing in Martin O Neil’s head as he was explaining it.

[GraemeRoberts]

"I'm not admiring it, I'm explaining it." Excellent work.

[ifldiscovery]

Its how when Man City spends no one gets into the nuances how they are profitable, but when Chelsea overspedn adn achieve nothing all of a sudden the nuances count.

[dannyk]

Simon seems to forget that they also have amortsied figures on the books for players previously bought and the fee’s recieved for sales will also be in installments so does not hugely offset the spending. No club can sustain starting each season with £120-130m already gone in player fee’s whilst continuing to spend. The trick might work for year 1 and maybe even year 2, but by year 3 you’re massively in the hole. They need even more sales and CL football next season.

[paulorganisation]

Simon's explanation will fly over some people's heads😂.

[LordBathtub]

Long story short the purchase price is split across the length of the contract whereas sales in their entirety are counted in whichever season they're sold in as far as FFP is concerned allowing clever accounting to spread ehe costs and mitigate FFP

[obslam]

I'm a Liverpool fan and I'm not mad at Chelsea for doing what they're doing. They've made Liverpool look absolutely stupid and I'm genuinely embarrassed by the way my club has handled the past 4 transfer windows.

[JoshBradshaw-ukgb]

Fantastic work Simon Jordan. Broken down so effortlessly and understandably for all. Glad to have you back 👍🏻

[marktaylor]

Legend of TalkSPORT- love listening to Simon. Best wishes on his road to recovery!! 🤞

[Toon]

When Saint Max left us and this 'fair market value' thing was spoken about by Richard Masters about all transfers, not just between same owned clubs but 'all' do they decide what is classed as 'fair market value' when a player can go from £4.5m to £115m within 18 months! Just sounds like a load of nonsense

[captainsaus]

Agree with everything Simon says there but he misses the historical write down of prior purchases from his calculations. The reality is Todd Boehly spend is being amortised at £135m, but there will be a sizeable chunk of amortisation on historical purchases to account for as well.

[izzyonthemap]

Chelsea aren’t doing anything wrong based on the fact they’ve sold many players during their contracts running at chelsea football club. This adds credit to their balance sheet and helps to balance books in the immediate few seasons ahead within FFP rules.

BUT if they don’t qualify for the champions league as well as retain a bulk of the financial value their players cost, before selling them then they are going be doomed. Lucky they have poch, that’s the best bit of business they did bc he can do wonders for the football club.

let’s see.

[warrengrant]

could listen to Simon talk on this subject all day