Former Crystal Palace questions Chelsea board’s tactics to sell hotel to their own owner
Chelse have been under watch for their massive spending since the arrival of Todd Boehly’s ownership, as the club has been spending exorbitantly. The Blues have been warned of the potential Premier League Financial Fair Play Rule.
Chelsea will have to make a profit next season in order to comply with FFP next season after the club was told to make revenue before embarking on another spending spree in the transfer window.
And now it seems the club has already made some revenue after their clever tactic of offering an FFP hotel bonus on top of £76.3 million. The Blues not only made sales through their on-site hotels, but they have kept hold of the revenue streams.
The Blues accounted for a pre-tax loss of £90.1 million last season, and it could have been far greater had they not sold the Millennium and the Copthorne to BlueCo 22 Limited. A subsidiary company owned by those at the top.
Former Crystal Palace chairman Simon Jordan has praised the Blues’ clever tactic to raise funds to avoid FFP breaching but also criticised them, speaking to TalkSport via ChronicleLive:
“Context is everything. It’s much easier to establish a fair market price for a piece of property than it is to establish a fair market price for a player with due respect because often the beauty is in the eye of the beholder. If you decide that a player is worth £50 million because it suits your commercial ends, you don’t really need to stack that up very much.’’
“If you do with a piece of property, you’re going to underpin it a little bit more substantially. The argument is similar but different, and, also, context is everything.’’
Jordan’s remarks make sense because the team will only be compensated during the transfer window if their players depart for a healthy profit. However, the Blues are in desperate need of cash, so our board came up with some really smart ideas on how to turn a profit without having to trade players.
Considering that the hotel was sold to the board chairman, who also owns a different business, the board suffered no losses. This demonstrates how outstanding our board is in these situations. Additionally, this will assist the club in making a profit.
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This is undoubtedly the finest method to stay out of trouble with FFP, and our board is made up of the most savvy individuals who know how to turn a profit. However, their primary problem is their careless spending during the transfer window, which they must understand and address in order to stop spending a lot of money on players.