Chelsea Football Club can afford to sign Paul Pogba or Lionel Messi over the Summer.
Due to big deals in recent months, The Blues have opened some breathing space with regards to their Financial Fair Play situation, meaning they can afford to spend big at the end of this season with Pogba and Messi on their radar.
The sale of Fernando Torres, the new sponsorship deal with Yokohama Rubber and also Eden Hazard’s new contract extension, are three reasons why Chelsea’s finances are now in better shape leaving them the ability to splash the cash over the Summer.
Jake Cohen of LawInSport has been discussing why a new contract for Hazard has boosted Chelsea’s finances and admitted that the club will have the freedom to spent this Summer.
“It is not widely known outside football accounting that clubs can actually save themselves money in terms of FFP costs by giving their players new contracts, even if they are earning more,” said Cohen.
“Although Hazard’s wages have increased from approximately £9.62m a year to £10.4m annually, his FFP ‘book’ value has gone down. That’s because his £32m fee was amortised at £6.4m a year over an initial five-year contract.
“That deal had two-and-a-half years left to run, so the remaining £16m in ‘book’ value was spread out over the new five-and-a-half-year contract Hazard signed in February, decreasing his annual FFP cost from £6.4m to £2.91m.
“So even with the increase in wages, Hazard will cost Chelsea £2.71m less a year in FFP money from this summer.”
Cohen added: “There is no doubt Chelsea have the freedom to spend big money this summer.
“Unlike the last two years, Jose Mourinho does not have to rely heavily of significant player sales to fund incoming transfers and meet FFP rules.”
Written by Alex Batt – @AlexBatt – @AlexsArticles
