Chelsea Thread - 2022/23 | Pochettino confirmed as new manager

[hammocity]

It was, in the Cashflow Statement and the Balance Sheet. In plain sight but none of the financial wizards, who seemed to know every detail of our accounts, ever highlighted it.

It's a disgrace, the Rags have been paying interest on their leveraged buy out debt since the Glazers took over. With Abramovich providing the soft loan of 1.6b and paying no interest it's akin to inflated sponsorship which partly lead us to CAS. There's no way that debt should have been written off as easily as that, there should have been interest applied for FFP purposes even if there was no tangible added on debt.

In another world Abramovich could have died, Chelsea could have been relegated and the club worth a fraction of the debt. What if Abramovich's next of kin called the loan in? Supposedly FFP was brought in to stop that happening, it's bollocks Chelsea have got away with this and now have a further loan of 800m, it's taking the piss.

They've had two bites of the cherry, one when Abramovich came in pre FFP, tried to stop our progress with the Hateful 8, and now they go again with another go whilst we remain under the severest scrutiny, mindful UEFA will ban us for going a Euro over our limit, around 220m net spend in five years where we have picked up a boat load of turnover from our success.

 

[KS55]

It’s never been just City and PSG. We had an entire transfer ban.

Wasnt that about signing up young players rather than ffp? That is a FIFA issue, not UEFA.

 

[Prestwich_Blue]

It's a disgrace, the Rags have been paying interest on their leveraged buy out debt since the Glazers took over. With Abramovich providing the soft loan of 1.6b and paying no interest it's akin to inflated sponsorship which partly lead us to CAS. There's no way that debt should have been written off as easily as it, there should have been interest applied for FFP purposes even if there was no tangible added on debt.

Great post generally but this is a brilliant point and one that hadn't really occurred to me before.

If a loan was made to an employee, the difference between the interest rate applied to the loan and what was considered to be a market interest rate would be treated as a benefit in kind, with the employee paying tax on that at the relevant rate.

I agree that FFP should have treated it as a disguised expense, and disallowed it from the FFP calculation. Applying a notional 5% to that £1.6bn gives an additional "expense" of £80m a year.

 

[Vialli98]

Now you've done it. :)

I'm just saying, I understand why City fans think there's a genuine agenda against City specifically but it's not something I think it's particularly true :)

 

[Vialli98]

It’s definitely calmed down since Pep has been here, before that we had an agenda thread!

Go to the message board of any club and they'll tell you there's an agenda against their club. United fans think the authorities and press are all ABUs. Chelsea right now are accusing UEFA of having a long standing agenda against Chelsea. If every fanbase thinks it about themselves it stands to reason that there is no actual agenda against any particular club?

 

[Vialli98]

That was a FIFA ban fella.

Wasnt that about signing up young players rather than ffp? That is a FIFA issue, not UEFA.

Yeah fair enough that is true but I guess the underlying point of being in the firing line from the football governing bodies still applies but I stand corrected :)

 

[KS55]

I'm just saying, I understand why City fans think there's a genuine agenda against City specifically but it's not something I think it's particularly true :)

Keep digging, mate!
Do the words “organised and clear” ring any bells?

 

[Vialli98]

Keep digging, mate!
Do the words “organised and clear” ring any bells?

I've been posting on this site for long enough to know saying some things won't sit well with the locals but at least I'm honest in my beliefs. I remember when I said I thought KDB being injured by Rudiger was accidental and that resulted in a pile on spanning multiple pages :)

 

[Shirley]

Go to the message board of any club and they'll tell you there's an agenda against their club. United fans think the authorities and press are all ABUs. Chelsea right now are accusing UEFA of having a long standing agenda against Chelsea. If every fanbase thinks it about themselves it stands to reason that there is no actual agenda against any particular club?

You obviously didn’t pay too much attention to the media shortly after our take over.

 

[terraloon]

Of course I’m fine with it. My club benefited from it. I wouldn’t really have cared if it was City but hey.

More than one way of writing of a debt such as turning debt into equity.

Nothing wrong with that indeed nothing wrong with extending contracts to reduce amortisation