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Chelsea FC – Cut Spending and Look to Youth
Ever since Roman Abramovich became the new owner of Chelsea Football Club in 2003, they have been known to be big spenders in the English Premier League.
From 2004 to 2009, there was an estimated gross spend of over £325 million on players, although £245 million was returned to player sales during that time, and particularly during the 2009 season, there was a profit on player sales (cost of verses) of an estimated 68 million pounds.
Obviously transfer fees are only half the story, player wages are notoriously expensive, Chelsea spent a reported £142 million on player wages last year alone. This heavy spending is somewhat offset by sales of tickets, merchandise and replica shirts, advertising, television payouts and indeed the prize money for winning the Premier League, which is estimated to be around £15m.
Chelsea continue to maintain that they are in a strong financial position and are said to be on target to ‘break even’ over the next few years.
Since Abramovich’s takeover, the investment in footballing terms has paid dividends, with Chelsea enjoying a highly successful era; they 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 English team in seven years.
Chelsea are not the only big spenders in the Premier League, and there are growing concerns about the financial position of some football clubs. In addition to the huge spending of some clubs, this financial power is seen by some as an unfair advantage, if the club has the support of rich businessmen or a consortium.
Another issue of concern is the perceived lack of ‘homegrown’ talent, which can negatively impact the national team as well as the clubs, with a massive influx of quality foreign players into the Premier League.
Football governing bodies have now taken action. From the start of the 2010/11 season, the Premier League will introduce a squad limit of 25 players and a quota of “home-grown” players. From this season, clubs must have eight domestic players out of 25 squads.
A domestic player is defined as having been registered with the club for a period of at least three full seasons prior to the age of twenty-one.
Chelsea appear to be ahead of the game, having moved to their new ground in Cobham, Surrey in 2004 and opening their new multi-million pound training ground in 2007, which includes all the latest training, rehabilitation, medical, field and media technology. , and this is also the home of Chelsea’s youth team and academy.
Cobham is home to under 9s to 18s, all the way up to Chelsea’s first team. The academy is overseen by Chelsea sporting director Frank Arnesen who was appointed in 2005 and is well known for his ability to develop young players.
Chelsea already have several academy players on the verge of breaking into the first team. The long term strategy must obviously be to develop talented young players rather than paying huge sums for older players from other teams, this will also ensure future financial stability.
Developing home-grown players is seen as a vitally important goal for Chelsea. Cobam gives us the perfect platform for that. The general consensus is that the Premier League’s new rules on home players will be beneficial for the long-term future of football.
Another issue for Chelsea is the huge wages of the players. From the 2012-13 season, clubs entering European competitions will have to prove they are financially stable and will only be allowed to spend on player transfers and pay what they earn in revenue. is another factor that will encourage the development of youth players to reduce the huge transfer costs.
Before the start of this season, Chelsea have released several high profile players, who are said to be among the best at the club, it will be interesting to watch the development and wage structure over the next few years, again, I believe Chelsea are ahead of the game and will continue to dominate in English , European and world football.
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