What is FFP (Financial Fair Play) | Why Chelsea can spend so much money in the transfer market?

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[Soutikbarui]

To answer some questions on how Chelsea are able to spend so much.

1. Roman made Boehly x Clearlake sign a contract to spend £1.5 billion on the squad. This, also includes an agreement that dividends cannot be taken from the club for 10 YEARS.

2. On spending, simply put amortization. By signing u21 players on 7yr deals, Chelsea are able to spread the cost. Eg, "IF" they sign Mudryk, according to FFP, only 40 million will appear on this years books. Whilst the balance is played over 7 years.

3. For Chelsea fans saying how can we spend 100 on Mudryk but not Enzo. Paying a transfer fee, eg 100m for Mudryk, is different from a release clause. transfer fee means spread costs(less than 10m a year x7). A clause is paid at once, meaning 120m on the books.

That would put Chelsea on the wrong side of FFP, meaning we get charged, a transfer ban or even a UCL ban.

IMO, Benfica demanding 120m for a player who they signed for 12m 5 months ago is absurd. They have no guarantee clubs will come with a similar offer in the summer.

Or if he will still have the same hype as post WC

They chose to embarrass Chelsea in the media rather than negotiate. Benfica never wanted to sell so saying pay the RC is a way of fending off clubs, it worked.

Chelsea have found a workaround to FFP, whilst onlookers complain

@Maxwell Ndhlovu

[tarangjain]

Baba I think the Math is incorrect somewhere. 425M euros transfer fee will get amortised over the contract length but the 75M euro wages are already yearly. So it should be 425/6 + 75 = 145.8M. Not sure if I am missing something

[advaitakar]

Matlab jab Tak players result de rahe hain tab Tak this model is sustainable. Once the club starts performing poorly in Europe and league..this model can completely backfire. So basically high risk high reward system hai.

[sreerajkaranamkattil]

Thanks a lot for explaining these terms n explaining them in a a very simple way 🤝🏽🤝🏽👍🏼

[aryan__]

FFP is such a shame Baba,

Lets take a example of Utd and City, iske hisab se agar aapke club ki earning zyada hai you can spend more. Takeover ke baad City spend nhi kar paati thi kyunki uska revenue itna nhi tha whereas Utd ka revenue zyada tha toh wo spend kar sakte the. This simply means agar tumhare clubs ke paas fans hai toh tumko automatically kharch karne ka right mil jaata hai, jiski wajah se aaj bhi top club aur bottom club mein itna difference hai. Kher kya hi kar sakte hai kyunki policy makers hi in bade club ko favour karte hai naise Madrid Utd Juve wagera

[manavbagga]

For mudryk's case, shouldn't it be (80/7)+5 = 16.43 M a year? Since 5M are yearly wages?

[ratnesh]

baba i think you've got the maths wrong here, 500/6(number of years on contract)... it the average number of contract should be 4 at max 5 years rn...so if you divide it's 125m or 100m per year as per Chelsea is concerned.

[anunaysrivastav]

To dusri teams aise kyu nhi kharid rhi hai players

[mdaburaihansk]

Chelsea💪 comeback Stronger...
Miss U Tuchel 💔💜

[Kido_]

Baba it's good to see you with Mah, Matiz and Younes on the Mah pod..

Just 1 suggestion.. your voice was bit loud and other 3 was a bit low..

[dr.malik]

You are wrong brother when you are adding yearly wage in total purchase price wheareas it should the purchase value divided by no of years and then add that no to yearly salary.

[ak-egff]

But baba, player ki salary bhi toh add hogi ki nhi??

[Culesam]

Baba did you upgrade the camera it looks great

[offsidebyamile]

Man City, Chlesea and Man united ruining football transfer market..whats new..excuses excuses

[mayankjoshi]

Baba there is no ffp in premier league... Ffp which prem will apply will not be same as la liga clubs, prem will hv more ffp. Is that fair???

[aadishjain]

That is poor calculation, you calculated 70M wages for 6 years?? It should be 1 year na.

[mffmff]

Bhai RB and at least 2 midfielders chaihay e. Defensive midfield toh bhai ek abhi Immediately

[Rahulkhariwal]

bhai transfer mart me currency euro kese karo

[annoncoyg]

Roman hi chala raha boley ke peeche se yeh pattern poora Roman wala hi hai

[munimrmcf]

Ok so Chelsea have used money in advance. Now we will see in future if they again splash money in tw.