Chelsea plan to cut player’s annual wage by £80M
The Blues have spent £1 Billion in the transfer window under Todd Boehly
A few of Clearlake’s co-founders indicated that Chelsea are trying to reduce their annual pay expenditure by about £80 million ($100 million), and the team is also about to get an essential loan from American company Ares Management.
Chelsea have spent about £1 billion on player moves since taking control from Todd Boehly and Clearlake Capital in 2022. As a result of the large influx of new players, it is not a surprise that Chelsea’s salary cost has increased.
In each of the past three transfer windows, the club attempted to offload a few squad members. A few players who departed the club in the summer transfer window include Kalidou Koulibaly, Kai Havertz, N’Golo Kante, and Romelu Lukaku, either permanently or on loan.
A handful of English-born athletes have also been let to depart to boost revenue immediately and mitigate the long-term effects of amortisation, which includes dividing the cost of a transfer throughout the duration of a player’s contract.
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To raise more money for the team, Chelsea have apparently teamed up with US unconventional asset management company Ares Management, which plans to invest an additional £404 million ($500 million).
As reported to the Financial Times, this is partly because the club’s owners want to fund the pricey repairs of the Stamford Bridge stadium and acquire holdings in more clubs.
As reported by ESPN, Mike Forde, the previous head of Chelsea, is thought to have played a significant role in securing Ares’ investment, described as a “preferred equity deal” by a person close to the transaction.
‘We have bought an asset that is very coveted by many other potential buyers,’ said Clearlake’s co-founder Jose Feliciano at the IPEM private equity conference in Paris.
‘Ultimately, we are extremely aligned with that supporter and fan base because the best way to make our club more valuable is to win.’
‘The team had a tough first season, our first season. We have a tremendous amount of talent.’