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Chelsea FC – Cut Spending and Look to Youth
Since 2003, when Roman Abramovich became the new owner of Chelsea Football Club, they have been notorious for being big spenders in the English Premier League.
From 2004–2009, gross expenditure on players was estimated to be over £325 million, although £245 million was returned from player sales during this period, and in the 2009 season in particular, there was a profit on player sales (expenditure version) of an estimated £68 million pounds.
Obviously transfer fees are only half the story, player wages are notoriously expensive, with Chelsea spending a reported £142m on player wages last year alone. This massive expenditure is somewhat offset by ticket sales, merchandise and replica shirts, advertising, television payments and indeed winnings for winning the League One, estimated at £15m.
Chelsea continue to maintain a strong financial position and will reportedly be heading towards “break even” over the next few years.
Since Abramovich’s takeover, the investment in football terms has paid off and Chelsea have enjoyed a very successful era; they have won eight major trophies, including the Premier League 3x, the FA Cup 3x and the League Cup 2x – making them the most successful English team in the last seven years.
Chelsea are not the only big spenders in the Premier League and concerns are growing about the financial situation of some football clubs. In addition to the huge expenses of some clubs, this financial strength is also seen by some as an unfair advantage if the club has the backing of wealthy businessmen or consortia.
Another issue of concern is the perceived lack of “homegrown” talent, which can adversely affect both the national team and clubs with a massive influx of quality foreign players into the Premier League.
Football’s governing bodies have now taken action. From the start of the 2010/11 season, the Premier League will introduce a 25-man squad and a quota for ‘home-grown’ players. Starting this season, clubs must include eight domestic players from the squad of 25.
A domestic player is defined as being registered with a club for at least three full seasons before turning twenty-one.
Chelsea seem to be ahead of the game as they moved to their new training ground in Cobham, Surrey in 2004 and opened their new multi-million pound state of the art training ground in 2007 which includes all the latest training and rehabilitation. , medical, pitch and media technology and it is also home to Chelsea’s youth team and academy.
Cobham is home to players from under 9 to 18 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 known for his ability to develop young players.
Chelsea already have several academy players on the verge of breaking into the first team. Of course, the long-term strategy must be to develop talented young players rather than paying large sums for older players from other teams, which will also ensure future financial stability.
The development of home-grown players is seen as a vital goal for Chelsea. Cobham provides us with the perfect platform for this. There is general agreement that the Premier League’s new rules for home players will benefit the long-term future of football.
Another problem for Chelsea is the huge salaries of the players. From the 2012-13 season, clubs entering the European competition will have to prove they are financially stable and will only be allowed to spend on player transfers and wages what they earn in revenue. is another factor that will drive the development of youth team players to reduce massive transfer costs.
Before the start of this season Chelsea released several high profile players who were reported to be among the highest earners at the club, it will be interesting to see the development and wage structures over the next few years, again I believe Chelsea are ahead of the game and will continue to be a significant part of the English, European and world football.
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