Chelsea avoided PSR charges by “selling” £76.5m worth of hotels from Blueco 22 LTD to Blueco 22 Properties LTD If that was Newcastle people would be up in arms…
Chelsea avoided PSR charges by “selling” £76.5m worth of hotels from Blueco 22 LTD to Blueco 22 Properties LTD If that was Newcastle people would be up in arms…
Maybe. Maybe not. That would not be considered profit for PSR or FSR calculations unless: a) The initial acquisition was funded from footballing revenue AND b) Acquisition and disposal were at fair (market) valuations If a) and b) are both satisfied then they have done nothing wrong. If one if not, then this will result in an adjustment to PSR and FSR calculations.
@santismagic I think the final line of the first paragraph in the picture confirms it no?
No. I’ve just scanned through the accounts - will review them in more detail later - but my initial takeaway is that Chelsea are completely f*cked irrespective of whether this transaction is permitted for PSR or not. Chartered Account here :) Will estimate how severely tomorrow when I have time. Reading the notes relating to the transaction though: 1) The Premier League was yet to sign off the valuation (done by 2 surveyors of Chelsea’s choosing) at the time the accounts were submitted 2) No explanation of the funding source for the property. If it was funded from equity or debt instead of footballing or commercial revenue then it cannot be counted towards PSR because that would be a loophole for injecting equity without breaching PSR.
Just had a bit of time to analyse the accounts. Hard to know for certain because they don’t include all of the detail needed to reverse engineer the PSR calcs but it looks like with the hotel sale, they just scrape inside the limit. My estimations put them at a £103m loss for the 3 years; £105m is allowed. I was generous to them with my assumptions too. Without the property sale, they’d be in breach by ~£75m. Their much bigger problem is this financial year though. The way it looks to me (even more guesswork involved) they need to make £100m of profit on player disposals by 30 June to clear it. And I have no idea how they afford more players in the Summer. They’re in trouble. Plus, not to mention the historic charges they should already have faced by now. Maybe the PL was waiting to see the damage this year before charging them in one go?