More than ever, it seems like the Premier League is cracking down on FFP violations.
Nottingham Forest and Everton were recently charged for violating financial regulations; this is Everton’s second sanction of the season.
Of course, there have been many concerns raised about some of the larger teams that appear to spend whatever they want, whenever they want, following Everton’s second charge.
Chelsea has, as everyone is aware, spent enormous sums of money over the last 18 months, although they have not yet been charged.
David Ornstein provided an update on Chelsea’s circumstances on The Athletic Football Podcast. He stated that while the London team has managed to stay within the parameters for the time being, they will need to exercise caution moving forward due to changes in the Premier League’s amortisation rules.
“A lot of people have been saying ‘what is going on with Chelsea?’ Because their spend has been unprecedented since the Todd Boehly and Clearlake Capital ownership came on board. A bit of housekeeping to explain how they are compliant this time around.
“They will have to be careful going forwards, because the costs will continue and it will be interesting to see how they balance the books after the Premier League capped amortisation of transfer fees, from no cap, to a cap of five years.
“We will all be watching closely to see if they sell someone like Conor Gallagher in January because those homegrown players represent pure profit. Whether you like it or not, they’ve actually done quite well financially to fall within the limits,” Ornstein said.
One to watch
Chelsea have managed to steer clear of financial sanctions so far after a huge summer of sales, but this model isn’t sustainable.
The Blues’ transfer spend is still way ahead of anything they’ve recouped, and the fact that those costs can’t be spread over eight years now after this rule change could make things tricky later down the line.
Whether or not Chelsea can stay on the right side of this line remains to be seen, but one thing is for sure, their spending needs to slow down in the coming transfer windows.
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