Simon Jordan brilliantly explains why Chelsea have ZERO issues with FFP! 💰👍 | talkSPORT

Simon Jordan breaks down the reasons why Chelsea and Todd Boehly do not have to worry about Financial Fair Play right now as they look set to sign Moises Caicedo from Brighton and still have a bid in for Liverpool-target Romeo Lavia
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[@lucasmoreno5330]

This is where Simon adds genuine value to the discussion. I much prefer his technical ownership knowledge over him trying to argue with Eddy Hern.

[@mintvilla2956]

Simon's actually incorrect in this., The new 5yr rule only applies to UEFA. Chelsea aren't in Europe, so do not have to adhere to UEFA rules. The 5yr rule is not in the premier league rules.

[@BillyJacobs94]

​@mintvilla2956 you do realise that when they qualify for europe those rules will apply

[@madaxwayne]

but the caicedo deal wouldve been a year old by then they cant retroactively enforce that rule or chelsea would be fcked@@BillyJacobs94

[@keiron.4612]

He adds nothing he's A Muppet

[@rogerdavies2796]

​@@keiron.4612 Don't be silly

[@saveandinvestwithgiorgiolo8375]

Another important aspect not mentioned in the video is that Chelsea are reducing their wage bill as well by getting rid of high wage earners like Kante/Koulibaly/Havertz/Werner/Kepa/Pulisic and Aubameyang.

[@londonsfinest6070]

He did partially mention it when talking about Havertz being carried at 25 mill a year, if I understood that correctly

[@JuanThunder79]

I think he was on about 10 million a year wages at Chelsea plus bonuses, he had just over 2 years left on his deal when sold. So I think that probably equates to around around £25 million referred to in the video

[@VeryIntellijent]

Yep. Kante and Koulibaly especially had huge salaries.

[@Veyron1967]

But they are rumoured to be paying Caicedo £300,000 a week.

[@Shedend-2]

@@Veyron1967Chelsea isn’t paying Caicedo more than 120k.

[@francie6278]

It’s refreshing to hear from someone that understands the financial workings of a football club, so many people have opinions on situations they don’t understand at all

[@cheekclapper3357]

i just find it crazy how nobody is talking about the clubs that RECEIVE these transfer fees. They're not complaining.

[@jaya8002]

He’s not entirely accurate that’s the issue. He’s talking about the amortisation part. But what about the transfer payables. Overall you will see Chelsea post a considerable loss for last season. 21/22 it was at £120m. Last season will be every worse so they will break FFP rules, but it will just be a fine and maybe a summer ban at most. Seems like the owners have accept that to me

[@mikedon5205]

​@@cheekclapper3357really .. I used to complain because the way I saw it even if that money could be used to find better replacements , along would come the moneybags teams again hand out more cash and take those players too So in effect the club goes nowhere as far as being competitive all it is doing is being a feeder club

[@dannyk2376]

You mean its refreshing to hear someone completely ignore/gloss over the glaringly obvious? He’s not explained it well at all

[@notforplay84]

​@@jaya8002You have no idea what your talking about. Read FFP before you spew nonsense, that's why all this talk from clueless fans and pundits is nonsensical. And what is your background on losses? Do you know why Chelsea posted these loses last year? Do your homework, because if you think these billionaire businessmen are filthy rich because you don't think they know what they're doing then look in the mirror.. Your a fan and they own a football club

[@josephcole8046]

The point that SJ touched on, but didn’t go into much depth on, about Boehly believing football is way short of receiving optimal revenue is a massive factor in his plan as well. It’s actually the entire reason he has bought the club and the consortium behind him are willing to invest these huge fees. They see the potential. Football revenue is way below most US sports, despite US sports only having a North American audience and football having a global one. Boehly’s mad transfer spending has come about because he is front loading the amount he will invest in Chelsea in order to position them higher on the football food table for when Premier League and European football starts to realise those attainable revenue figures. He is essentially gambling that by, let’s say, 2030, Chelsea’s commercial revenue will be double or more what it currently is, and that that will be a trend across football’s premiere clubs as well. Saying that, I don’t think he or the other owners would be commissioned to spend over £1billion of other peoples invested money if they didn’t have very good reason to assume that will happen.

[@steviemac2681]

Well let's hope they don't stop the game every 5 minutes for adverts.

[@russellward4624]

Thats because of few things. Contracts aren't guaranteed in most American sports. They all have salary caps. And most importantly, they don't buy players with money. They trade players that make up equal value.

[@brianboyle2681]

Bang on - I would go even further to say that by 2030 the super league will be locked in and he wants to make sure he is in the room for that. This new Champions League will be an absolute shambles and won’t make the revenue the clubs want. Only until they take their economics into their hands like in the US will they get value.

[@josephcole8046]

@@brianboyle2681 Yes possibly, I said something similar in another comment as I think that partially explains why Chelsea are still doing 8+ year contracts etc. The transfer fees can still be amortised across that length of time on the Premier League books, it's only the UEFA balance sheets that have put the cap at 5 years, but in 5 year's time, it may be the case that Chelsea don't have to deal with UEFA anymore. Either that, or UEFA will be so desperate to keep the big clubs within their sphere of influence that they relent on the rule (and equally rules that are a nuisance to other clubs). UEFA don't really hold any of the cards going forward tbh.

[@John-zk7ku]

This is risky though. American Football is absolutely solid, it's like electricity or water in the US, through the college's etc it will always have a natural system and following, no matter how much they abuse fans with Ad breaks etc and crazy rules they put on players. Plus no other organisation will ever fight for players, It's a monopoly. Football in Europe isn't the same, if anything the reach is peaking and about to decline, Sky etc are paying billions for TB right but constant making less. Plus you can't treat players like prisoners in a draft system and pay them peanuts cos they'll just go to Saudi. Or stop playing well and demand moves they can get. American footballers have 0 power. Look at the guys careers the only league the NFL could end in an instant.

[@BigDome1]

It's an absolute joy to hear Simon talk about stuff like this.

[@HumanBeingsRThinkingBeings]

Grealish 100,Rice 105,Caicedo 115 Haaland 50M,Hojlund 72,Nunez 85 Media question - City,not USA Owners Clubs Media/Establishment Agenda against City?🤔

[@YOTD777]

Simon doesn't even understand what he is talking about....and you agree with him 😂😂😂 Tells us about your brains

[@bluemoon1716]

Think for yourself. Simon gets alot of things wrong and has his own bias

[@summerrr1]

What does Simon know about the topic? Did he used to own Crystal Palace or something?

[@nicolemonkeviciene791]

@@YOTD777 and you understand?? Can you have some random chat with Simon about accountancy in football??

[@jebspringfield2188]

You gotta love Simon Jordan! You could see the fog clearing in Martin O Neil’s head as he was explaining it.

[@GraemeRoberts]

"I'm not admiring it, I'm explaining it." Excellent work.

[@assuredantiques1832]

Hilarious 😂 so FFP rather than protecting football clubs from bankruptcy is actively speeding up their demise by indebting them far into the future. If revenues dont rise as expected then it all goes bust.

[@stephenmason9527]

To some degree, all clubs have operated this way for our entire lifetimes. And the bet on the sports financial increase has been a very safe and good one. Don't you wish you could've bought in for part of a Premier League team a few decades ago? You'd be set 🤑

[@assuredantiques1832]

@@stephenmason9527 sounds like the big short movie

[@scottmeehan2422]

But it helps out team who sold player as they have agreed to split fee over 8/5 years. So will have a guarantee income each year. Very rare these days are transfer fees paid up front.

[@jackzeldon2883]

Man Utd, Arsenal, Liverpool & Spurs owe Hundreds of Millions in Bank Loans & use Millions of Quid in Club Rev to pay the Interest on those Debts & not a word is said & nor should it be b/c those clubs are Massive Brands who can just sell all or part of the club to satisfy the debts.... Chelsea have Zero Debt - these are just FFP #'s on one side of the leger or other & have Zero meaning in real Life....... So many fans & Media have no idea how FFP functions...... FFP does NOT want to Police giant clubs from spending - in fact, if you read FFP it is filled w/ Loopholes designed to produce MORE spending by Wealthy owners of massive Clubs...... In fact, FFP punishes the smaller clubs for doing a Great job developing young talent b/c they get ZERO ffp credit on the ledger for taking a young player from a rookie to a super star b/c the Only way the Club can gain Value towards FFP is by Selling those players The Stated goal of FFP to ensure that Clubs do Not Bankrupt themselves using Club Equity against massive Bank Loans trying to keep up w/ the City, Chelsea, Utd, Liverpool type clubs....... The media brilliantly use Mis-Info to get fans in a lather & this exploded traffic to the Content produced by these media organizations.... Even if a club violates FFP the most they get are financial fines..... the reason smaller clubs must be protected by FFP from Themselves is b/c if a Global Brand like Liverpool, Man Utd, Chelsea or City actually did go broke they're will be stacks of Billionaires Queued a city block long to buy that club...... but the small to mid size clubs have no hope to attract buyers of that magnitude who are willing / able to overpay in order to rescue it from run away Debt

[@vinceslapchopper]

@@assuredantiques1832 unlike the housing market, I have yet to see a single sports league folding over. And I am pretty sure Boehly could not care less if he even breaks FFP, this is the owner of the Los Angeles Dodgers, the baseball club with the highest payroll in MLB where they have to pay luxury tax every year. Boehly is just doing the same in football and showing the rest of the Premier League how to play the transfer market game properly.

[@ifldiscovery8500]

Its how when Man City spends no one gets into the nuances how they are profitable, but when Chelsea overspedn adn achieve nothing all of a sudden the nuances count.

[@williamfarrell4754]

Both cheaters dont worry....

[@darrenslater6327]

City have never spent a billion in 12 months no one fucking has🤣🤣

[@russellward4624]

Because City generate more money than Chelsea. They aren't losing 100m a year. Theyve been profitable the last 6-7.

[@TravisBickle58]

​@@russellward4624If City are profitable for last 6-7 years then you are my wife. Let's go out for dinner hon😅

[@maumau6961]

​@@VR46314if Chelsea are cheats, what rule did they break? Man City cheated, Chelsea spent alot of money through loopholes.

[@stefanophonics]

I love how Simon explains things like this for the average person to understand. Well done sir! 👏

[@fk65682]

But they are only in credit this Summer. They spent £500mil last Summer and January. I don't know where there is confusion. I mean it is simple if you write it down on paper.

[@paulorganisation1]

Simon's explanation will fly over some people's heads😂.

[@NC-ck5oj]

It will end in disaster for chelsea. This is not sustainable.

[@chiller2512]

flew over my head like an Eagle

[@kabelomoeli]

@@chiller2512 Don't worry, just study

[@weallfollowmanutd]

​@@chiller2512I'm surprised. Simon was so clear.

[@antwango]

@@NC-ck5ojyup unless theres a clause that players can leave a 8+yr contract.... players at chelsea will grow old and never get to play anywhere else in their prime

[@LordBathtub]

Long story short the purchase price is split across the length of the contract whereas sales in their entirety are counted in whichever season they're sold in as far as FFP is concerned allowing clever accounting to spread ehe costs and mitigate FFP

[@seanvaz2391]

But sold players are very rarely paid for in full / upfront so how exactly are they accounting for the entire valuation in a single season or accounting year?

[@LordBathtub]

@seanvaz2391 as far as I know it's a quirk of the system. Tifo football did a great video explaining it not long ago

[@ob1slam]

I'm a Liverpool fan and I'm not mad at Chelsea for doing what they're doing. They've made Liverpool look absolutely stupid and I'm genuinely embarrassed by the way my club has handled the past 4 transfer windows.

[@rickys7435]

Support Chelsea then you mug

[@javinc1]

I can't imagine Kopp staying there much longer after this embarrassment AGAIN of a transfer window. I feel bad for Liverpool fans

[@ernestnicholas7043]

Keep glazing. "Liverpool fan"

[@lloydymk2013]

Liverpool made themselves look stupid not chelsea. They tried to hijack the caicedo deal abandoning lavia, inflating caicedo price when chelsea spent weeks in a standstill. Not wanting to go over 80... your club got klopp to talk his name in pre match interviews saying he's signed, then rejected! Then the audacity to go back to lavia like a bummy husband does his wife after eloping with his sidechick fails.... 😂😂 knowing that chelsea had tried and failed to sign lavia for 50 last summer, courting him... its been comedy. All self harm

[@Theoneandonly1172]

Love liverpool fans like you❤

[@marktaylor6266]

Legend of TalkSPORT- love listening to Simon. Best wishes on his road to recovery!! 🤞

[@warrengrant1390]

could listen to Simon talk on this subject all day

[@dannyk2376]

Simon seems to forget that they also have amortsied figures on the books for players previously bought and the fee’s recieved for sales will also be in installments so does not hugely offset the spending. No club can sustain starting each season with £120-130m already gone in player fee’s whilst continuing to spend. The trick might work for year 1 and maybe even year 2, but by year 3 you’re massively in the hole. They need even more sales and CL football next season.

[@ail8322]

Fees received for sales are in installments, but you can recognize that revenue immediately under FFP. Also he did talk about amortized figure on the book, which is why Kai was a Profit and not a loss. His amortized value was around 25 and then went and got sold for 65 or so

[@jaya8002]

Add in that this is a club have record losses of £100m+ each of the last two years

[@kingcecil7126]

Didn't he just say that?!!

[@glowwurm9365]

I think what folks also fail to appreciate is your taking players with large wages off the book and replacing them with incentivised contracts. These players starting salaries are smaller than those of whom they’ve replaced. Do you think Jackson’s on as much as Aubameng? Or that Nkunku earns as much as Havertz? Or Sanchez as much as Kepa? Or Gusto as much as Azpi? Folks can speculate all they want but I’m fairly sure the accountants at Chelsea are slightly more clued up than the average armchair pundit!

[@jackodees1765]

@@ail8322 While that is true, the players they had before Boehly took over weren't exactly free. Lukaku alone will cost Chelsea near 20 million a year in ammortization.

[@izzyonthemap]

Chelsea aren’t doing anything wrong based on the fact they’ve sold many players during their contracts running at chelsea football club. This adds credit to their balance sheet and helps to balance books in the immediate few seasons ahead within FFP rules. BUT if they don’t qualify for the champions league as well as retain a bulk of the financial value their players cost, before selling them then they are going be doomed. Lucky they have poch, that’s the best bit of business they did bc he can do wonders for the football club. let’s see.

[@AodhanBeag]

At these prices Joelinton, Guimaraes and Tonali trio for Newcastle seems like great value already

[@cosmicbaggy9637]

If this were Simon being asked about City's spending he'd be absolultely crucifying them...

[@albertbell7120]

Or Newcastle

[@captainsaus6740]

Agree with everything Simon says there but he misses the historical write down of prior purchases from his calculations. The reality is Todd Boehly spend is being amortised at £135m, but there will be a sizeable chunk of amortisation on historical purchases to account for as well.

[@s1dew1nd3r4]

Exactly! Hence the outrage from everyone

[@bigears3399]

Valid, but which historical purchases are still left at the club? As soon as you sell a player you realise any gains/losses on their book value. The majority of the squad now is either new players or academy players. The only ones I can think of from the abramovich era are ziyech, kepa and lukaku? Ziyech and lukaku are still on track to be sold before the end of the window so will be disposed of with only kepa left who is on loan at Real (70 mil fee over 7 year contract so only 10 mil a year carrying loss anyway)

[@rickysrighteyebrow8167]

It's almost as if teams have discovered that games are won and lost in the midfield.

[@raga6655]

Absolutely spot on.

[@JoshBradshaw-uk6gb]

Fantastic work Simon Jordan. Broken down so effortlessly and understandably for all. Glad to have you back 👍🏻

[@smu02ns]

but incorrect. tune in at 1130 today for a better understanding

[@johngranahan6102]

I appreciated that explanation and always good to see Martin O'Neill

[@Toon1893]

When Saint Max left us and this 'fair market value' thing was spoken about by Richard Masters about all transfers, not just between same owned clubs but 'all' transfers.....how do they decide what is classed as 'fair market value' when a player can go from £4.5m to £115m within 18 months! Just sounds like a load of nonsense

[@Bdbtg28691]

You had multiple clubs that were willing to meet that valuation for Caicedo with no conflict of interest. The Saudi state owning their league, the clubs and Newcastle will mean that there will be more scrutiny. No club outside Saudi were interested in ASM for that price. I think people were more concerned with the fees that Chelsea were receiving rather than the ASM one as that felt closer to market value.

[@UserName-br5zu]

Because it’s not just about market value. It’s about the buying and selling club. £4.5m would have been a lot to the club who Brighton bought Caicedo from hence he was cheaper than his true worth. Now he’s going for his true worth because he’s being sold by a PL club who can afford to hold out for that money.

[@Bdbtg28691]

@@UserName-br5zu same thing with Enzo. 15 million to Benfica, 105 million just 6 months later.

[@Toon1893]

@Bdbtg28691 yeah the point I'm making isn't about ASM or any other deal done really, only said that because its when it was brought up, its more about how or who decides what is 'fair market value' it sounds a totally pointless statement, i understand if its between dual owned clubs for obvious reasons....what i don't understand is why it would be 'all' transfers with no links between teams, and how 'fair market value' can ever be proven between 2 teams with absolutely no links!

[@Toon1893]

@UserName-br5zu yeah but I'm asking who decides and how fair market value is determined, so it is about that lol

[@lozcontreras]

In terms of FFP, all good. Bank balance soon to be -€1billion. They don’t actually get paid upfront for sales, and they don’t actually pay teams over 8 installments over 8 years. This is something Chelsea fans don’t seem to understand with how it’s explained, it’s just how it is amortized for FFP.

[@JYPapin]

SJ criticized City for doing exactly the same- selling academy players with no cap to balance the books and City has more revenue than Chelsea. If City were giving 6,8 year contracts to get around FFP he’ll be all over them not to mention most Chelsea sales were to teams closely related to Boehly’s consortium. City gives max 5 year contracts even for expensive buys like Gvardiol.

[@vPzWalkerx]

" not to mention most Chelsea sales were to teams closely related to Boehly’s consortium" 14 sales, 2 were to saudi clubs which is what i assume you're talking about 2/14 to saudi from chelsea 1/8 to saudi from city 2/7 to saudi from liverpool Tad dramatic to claim MOST of our sales were to "closely related". p.s lapotre could also be going to saudi now so city are racing towards 2/9 players being sold to saudi which is a much bigger percent than 2/14 but that doesn't fit the agenda so we won't mention other clubs.

[@frankreynolds9930]

City main problem has always been their dodgy sponsorship which makes them richest club in the world. Literally no one cares about their sales.

[@Joolz1982]

Very insightful and enjoyable to listen to.

[@ibbyz999]

Chelsea can actually still do what they did last year as the new rule only applies to Uefa not the epl, ie teams playing in Europe. As chelsea are not in Europe this season they are not limited to the 5 years uefa have enforced. Hence why they are carrying on spending the way they are. So expect more of this in this window and probably January. I'm not happy being a Liverpool fan but fair play to them

[@dashawnballard52]

They can’t get away with pure spending, if they spend more they will break the 3 year 105 million dollar loss rule

[@ShozzleMeNoz]

This is complete nonsense.

[@ibbyz999]

@@ShozzleMeNoz How is it? Have you understood what Simon has said? What Chelsea are doing is called amortisation. Chelsea's estimated amortised spending in the past three windows under Boehly, using initial transfer figures reported, comes to £157.2 million; this significantly lower number is almost entirely offset by an accounting profit from player sales of £149.6million over the same period. Do your research mate

[@ShozzleMeNoz]

@@ibbyz999 Hahaha. Do you think I only just learned about amortisation. Every club uses it. It is a standard accounting when you have an asset with a fixed lifespan i.e. the length of a player's contract. It is absolute nonsense that you get a free year where you escape UEFA's FFP rules just because you're not in UEFA competitions.

[@lfcspectre4335]

Sir Simon = Top LAD Proper Clobber ✊💯 Facts

[@thomasoflaherty3520]

Real Madrid eh

[@abyss7049]

Wait a minute, Simon is saying that they are doing it over 5 years now, because the prem changed the rule to stop these crazy contract lengths... but it is reported Caicedo is signing a 8 year contract? Has the rule been changed or not, or am I just missing something

[@jacktroote8708]

The rule has changed. So you can give a player whatever length you want but the max the FFP amount will spread over will be 5. So caicedo can sign a 8 year contract but the money effect through FFP will be spread over 5

[@p10rambo]

That is the uefa rule, the fa still allows it

[@ccam7802]

not the contract length, chelsea were paying transfer fees over the length of the player contract. that's what has been stopped

[@abyss7049]

@@jacktroote8708 Cheers mate. I never looked into it but that makes sense

[@edmanning274]

@@ccam7802... its not that either. Its how they account for the value of the player on their balance sheet. They could pay the entire transfer fee up front, but the value of the asset they are buying (the player) will be amortised (split into annual amounts) for accounting purposes.

[@andretirta9801]

6:11 "chelsea is okay like everton were" best part

[@martinrooney6883]

I've got so much respect for Martin O'Neil. I'm a celtic fan and he transformed our club, he also gave me and my dad some of the best memories with each other during that time before he past away.

[@matthewquinney1628]

Newcastle’s Midfield looking like a bargain

[@Kyleterp1]

Wages/agent fees/ transfer fees/amortization wand such are going to be part of the new uefa salary restrictions. If chelsea don’t make the CL in the next year or so, it could get ugly for them

[@CROSSNSHOOT]

FFP is basically a joke and a front😂

[@superpantman]

This is where Simon excels. He understands the legislation behind FFP and spending models.

[@PedroDiMaggio-dk4lb]

He didn't explain anything. Chelsea have to increase their profit AND hope every single player they've bought works out successfully because they cannot off load these players for the same price they bought them for. It's a recipe for disaster and a massive gamble. If I was a Chelsea fan, I'd be shitting myself.

[@neitherhereorthere7131]

@@PedroDiMaggio-dk4lb sorry you got upset

[@PedroDiMaggio-dk4lb]

@@neitherhereorthere7131 I'm not upset. Sorry you didn't understand basic arithmetic like that fraud Simon. 😂

[@Mac-dx4rd]

@@PedroDiMaggio-dk4lbhe explained it quite well I thought but yes you are right and he said it’s a gamble he even said that

[@Jcshh]

@@PedroDiMaggio-dk4lbwe’ve just picked up a new sponsor for £50m a season btw

[@Witsey]

Todd is a businessman, he knows what he’s doing.

[@kevd3046]

Simon knows the craic..good to see him back and coming back in after his cancer diagnosis and telling his story has made me book appointment..respect due

[@daviel1005]

This whole divided by 8 (now 5 with the new rules) thing only works if you aren't overspending every summer. That being said, if someone wants to spend their money in a certain way then I don't see why that should be legislated against and I've never really understood Simon Jordan's arguments against it.

[@mr786xcx]

When you look at it like this it makes sense.The only problem which I can see is you buy a player and put him on an 8 year contract then after 3 years you want to move that player on and that player doesn't want to go then you've got a huge pay off to make. 😉

[@leroygunnerman6340]

Or he gets injured badly

[@megacadman]

That's why they're on low salary

[@Mac-dx4rd]

@@megacadmanthey aren’t on low salaries why do you keep saying that ?

[@Mac-dx4rd]

Exactly that there is the risk

[@frankreynolds9930]

​@@Mac-dx4rdBecause they are. Except Sterling and to a degree Fofona and Cucurella.

[@anurag1588]

Silly question but why are the incoming signings allowed to be accounted for on the basis of the length of contract but outgoing players aren't?

[@nivin156]

Because 8 is bigger than 3.... duh!!! & so Naturally won't breach FFP...so salty even after the explanation 😁 ???

[@HailiMary]

Not in Europe ,,has no shirt sponsor,,spent like 800 million in one season and still FFP wow,,that’s magic😂😂😂😂😂

[@Mac-dx4rd]

Didn’t watch him explain it quite well then ?

[@amanamendra3153]

Watch this video haters like you need to understand how FFP works rather than running your mouth. Cry more😂

[@HailiMary]

@@Mac-dx4rd even a deaf and blind can understand it quite clearly ,,,u still need it ?

[@HailiMary]

@@amanamendra3153 mark my words my boy ,,surely a point deduction,fine ,transfer ban or even relegation incoming

[@Mac-dx4rd]

@@HailiMary no but you obviously didn’t understand, I will break it down for you quickly they have spent a lot of money which is spread out over many years and have sold players which is instantly received (for ffp terms) yes it’s a gamble for the future but for now it’s fine it’s really not that complicated

[@gavinjoyce5278]

Eyesight is a wonderful thing. Look what’s happened to Everton now it’s not a slap on the wrist financial it’s points deduction

[@barryniconienko9287]

I just found your channel, and this the best explanation of FFP I’ve heard. Have you folks talked about the disaster FSG has become, from the best front office in the EPL, to losing Edwards, and Ward the next? Is it the fact that FSG is trying to buy an NBA team? I digress, but thanks!

[@frasierfreak92]

Nothing Liverpool does is related to them buying an NBA team. You can’t move money out of Liverpool to that.

[@ifthisismyhandlewhereismyspout]

So are Chelsea not going to able to buy for the next 8 years then since theyre spreading almost a billion in costs over that time? Something tells me they will never stop spending like this. FFP punishemnts need to be much harsher. What ever happened with Man City and their whole cheating scandal? The whole things a joke. Once again money rules all.

[@ThatGuyNorm]

850 million in 2 years. How can they get away with this with no European football. It's ridiculous

[@magicaces13]

FFP always has been and will be about protecting the big clubs. Its not bringing fair financials across the competition. It's far the opposite and is a complete joke.

[@brucegarethgeorge]

But what Simon isbnot accounting for is that the players sold are not paid for upfront but paid for over a few years as well

[@wazzywax3248]

are you for real g? studying accounting should be a must now

[@brucegarethgeorge]

@@wazzywax3248 are you're an accountant?

[@shaunswarbrick1493]

Martin took an eyes open nap from 1:30 to 2:30

[@claudemakelele2856]

Tell these clowns Simon. You are the man

[@vPzWalkerx]

@@Coolheghog9112 People said the same during the sanctions 😂

[@deadnicedave]

Football has lost it's head, end of. £115m for Caicedo, nothing but utter madness.

[@peterhunter8274]

It’s a smack on the wrist unless you play in Italy. Juventus got docked points and kicked out of Europe. No other league has had anything like that level of accountability or punishment

[@travisbickle5829]

Well not many clubs are as openly run by the mafia as Juve are.

[@newstreetbridge834]

Juventus weren’t just overspending

[@TheGiantKillers]

The rumour mill is that the FA are looking to October where they see Everton as an opportunity to hit them hard and send a message out to the rest of the League.

[@darrenslater6327]

@@TheGiantKillersEverton? City are the ones with 100+ FFP breaches they need to be relegated as a statement

[@Beyondqqq]

​@newstreetbridge834 Overspending wasn't the problem, it was for over inflating player values. If most prem clubs were under the same scrutiny as Juve, the entire league would be banned.

[@garywright8846]

What about the Inland Revenue, won’t they want their share and the VAT, do they pay that on transfers?

[@ivalemfana]

Arsenal still have spent more on netspend than chelsea since Arteta arrived .

[@masonnealgrove7595]

No mate

[@tumusantrina2055]

It's because u hate Arsenal where did they spent

[@ivalemfana]

@@tumusantrina2055 I don't hate Arsenal , but take some time and see which teams have spent the most in terms of netspend .

[@Z.S1992]

Comparing Arteta's spend in 4 years to just over a year of spending since Boehly came in, top stuff👍🏼

[@robertemmanueljonjo2889]

Using fanciful argument to justify your team spending 800 odd millions in 3 transfer windows

[@ForburyLion]

If two clubs conspire you can have this situation Club A have a home grown academy player with a market value of £200m. This player has a £0 accounting value as they did not buy them. Club B buy the player for £200m, This gives Club A a £200m accounting profit. Club A then buy the player back a week later from Club B for £200m and sign them to a 5 year contract. They now have a cost of £40m a year for 5 years but, They still have the £200m profit on the books so they effectively have a further £160m to spend in that financial year. The best part about this is no cash actually has to change hands, because accounting. As for Club B, they have £200m cost and then £200m income which they have to recognise in that year, so net effect £0.

[@TheMercWithMouth]

Thought ffp only allowed for £30mill loss each season. Ultimately if todd gets away with it, thats his good fortune.

[@abdullahiabdullateef973]

It has increased to 60mill

[@Metali-tin]

Euros not GBP. Around £52m.

[@theludraman]

revenue is generally recognized when received so that explanation only holds if the payments on their sales are being received up front. that would be irregular

[@Bigb3nn]

These envious rival fans just need a smart owners

[@macker33]

Wonder will you still think hes a smart owner in five years time

[@onetwo8847]

"smart owners" 😂🤦‍♂ Do you have ANY idea how ruined you are gonna be in the long run...?

[@logicshenjere900]

For the first time in history, Simon used his knowledge for the benefit of viewers.

[@KAL-589]

Thanks Simon for clearing this up for all the sad, hurt Liverpool fans screaming ffp ❤

[@craighewitt223]

Not screaming anything! He wanted you not us, seriously, it's no big deal, don't know why our own are crying about it?

[@KAL-589]

@@craighewitt223 You obviously missed to read all the comments from the previous videos....

[@jasonrussell2303]

Look at wht Chelsea hav spent compared to Liverpool and u still couldn't beat us in your own back yard

[@KAL-589]

@@jasonrussell2303 🤡🤡🤡🤡🤡

[@tom-ir3nv]

Maybe Chelsea will manage to finish higher than mid table now

[@johngarrett7861]

Simon is clearly very knowledgeable is this area i wish he stuck to it instead of trying to talk about boxing!

[@CdNithin-pr2kw]

If caicedo signed for liverpool the talk now would be "are they going to win the league or treble" However if chelsea sign players are they breaching ffp rules. A British record transfer has been completed now and instead these talkspsort Muppets keep talking about ffp breach allegations.

[@adr2567]

Obviously because Chelsea are destroying FFP and making a joke of sustainability 😂

[@kanebobbin]

They've spent about 3x as much as liverpool in 7 years in three windows that might be the issue

[@cheekclapper3357]

if anything the sustainability of football within the premier league is improving with these transfers. Brighton sign Caicedo for 3.5 million, and sell for almost 100x that amount.

[@wisdomnzube4121]

They are all salty Liverpool and United fans.... They see Chelsea and City as foreign clubs.... Liverpool, United Newcastle as English clubs.

[@kanebobbin]

@wisdomnzube4121 newcastle owned by Saudi liverpool owned by yanks United owned by yanks I don't what your talking about

[@joshuagray5799]

Talksport are lucky to have Simon on there show he is so clued up pleasure to hear him talk and me just learn

[@saindst]

So chelsea have no problem unlike what every other youtub comment 'football finance expert' says. Got it.

[@deaconsyxx322]

Someone Tag Arnold and Murtagh in this so they can effin’ learn! 🤣

[@iguiste23]

Yup we were talking about this yesterday and I laughed about the fact they spent over half a billion last season and still finished 12th. Chelsea's spending in under two years has been insane. The clubs lost the plot and people say Man Utd, Liverpool and Man City spend a lot? yeah but not £800.000million a year that's out of of this world even for a PL football club. 🤣😂

[@johnhopkinson4054]

They brought in 250 mil from sales which you conveniently fail to mention so really 550 mil spent

[@jayspringer56789]

They've sold alot to. They are building something and it is going to be scary for the rest of the league when they have a full team of players under 25 years old with 5+ years left on their contracts. If other teams don't start buying more youth players, they will be in big trouble in a few years. Only time will tell but it looks scary to me.

[@DrSoulKing]

​@@johnhopkinson4054 It's weird you talk about -550m net spend like it's completely normal 😅 They talk about Saudi Qatar Emirates but none of them ever spend that much.

[@DrSoulKing]

​@@jayspringer56789 They finished 10th last year and it wont be better this year 😅 You don't build a team with money but with motivated players for success.

[@abdullahiabdullateef973]

@@DrSoulKing Football is all about money. If you don't spend you can't compete

[@masonnealgrove7595]

Thing is you always have to include the last few years of transfers that will also be deprecating not just last years spend.

[@NC-ck5oj]

I think he's risking the future of the entire football club. if things dont go to plan on the pitch in the next 5 -8 years, chelsea could go bust

[@adrianrandall2378]

Great explanation of Chelsea’s strategy by Simon

[@spark556]

Imagine if City did this 😂 he would lose it

[@jackzema4598]

Taking financial advice from Simon Jordan is certainly not a clever thing to do. Plastic FC without £80 million in champions league money this year will lose a lot more than the £120 million they lost last season. Boehly thinks he’s a genius, when clearly he is quite the opposite. Plastic FC would need an unprecedented success in the last 3 windows signings for this not to go very, very badly for them. Every year for the next 8 years Plastic FC will be starting the summer minus £135 million in transfer fees thanks to Todd’s genius of spreading the cost over 8 years. Not to mention these ridiculous 8 year contracts that are being handed out to every signing, when at least 50 percent of signings flop, Plastic FC will be stuck with flops on 8 year mega contracts. The fact that Todd can’t see the mess he is getting into is pleasing, I’m looking forward to the book in a few years time - How not to run a football club by Todd Boehly

[@96saqlain]

Basically, the 19 other club owners are stupid not to find these loopholes. Nobody is stopping the 19 other clubs from doing this. Liverpool, Man city, United, Newcastle have all got the money to do what Chelsea is doing. You need owners with ambition.

[@tomwhite5868]

You need good accountants more like...

[@Michael-ff4pq]

It's because the other clubs have a brain and don't just want to buy all the players and put them on massive contracts!! Imagine paying all this money with 8 year contracts only for players to fail, then there's no way of getting them off the books.... the chelsea owner hasn't a clue and is treating the club like having a cheat code on fifa 😂

[@96saqlain]

@@Michael-ff4pq that’s where you need good scouts. And the scouts have picked out absolute gems since January. Most of the signings have been less than 30 million going by the current state of the market will definitely be sold at a profit whenever they are needed to sell. They are billionaires for a reason. Being ignorant and calling them clueless won’t make your club better and sign some decent players

[@Sven78872]

Proof that FFP is just an accountancy tool that football clubs can easily navigate. Nett spend is circa £750m in a calendar year against a turnover of £480m. What other industry could a business spend £270m more than income. How can it be sustainable to still be accounting for £135m of spend 5 years down the line. Absolute car crash waiting to happen with players on 8 year contracts

[@cardiacresp]

Chelsea have spent something like a billion dollars in one year on transfers. If FFP is to actually mean anything chelsea should be absolutely shredded by the regulators!

[@zzairinnzzainoll527]

FFP is just a scam. It's the reason why rich club can buy players and not preventing them. it's the other way around. no small club can ever challenge for titles with FFP. small clubs make good homegrown players and FFP allows rich club to buy them. What Pundits should do is to promote renewal able short terms contracts to players and educate them. No one want to do this because there is no money in it.

[@soljaman7926]

Moises Caicedo chose Chelsea over Liverpool who were 12 position last season and with no champions League football 😂😂😂😂 Crazy

[@finnredmond3192]

They gave a lifetime contract to the kid

[@LOBBYTHEROBBER]

You're not following this soljaman. More reading , less commenting.

[@KellysHeroes777]

He's also getting paid probably double what Liverpool can offer

[@soljaman7926]

@@finnredmond3192 that's not the case, though , it's about promise and loyalty

[@soljaman7926]

@@LOBBYTHEROBBER I know more than you

[@terrygoddard5665]

Simon Jordan, don’t really like what he says but he clearly knows this stuff and found it a real good insight

[@philthatcher6111]

Matt Law and Ben Jacobs expertly break down Chelsea's happenings on a daily basis. Both are regarded decent journalists and majority of Chelsea fans have faith. Chelsea will be okay, all these players coming in, payments are spread out over a decade ish...

[@les_crow]

Didn't they already change the law allowing that?

[@YinWhoo-zx2sz]

That's exploiting the rules for financial merit.

[@simonh1791]

As a liverpool fan i was really hoping you were going to say the opposite i gotta be honest. Been a rough few days haha

[@YouAimYourArrowsHigh]

Forgive me if Ive got this one badly wrong but isnt Jordan assuming all the Chelsea sales have been paid in full up front? What if Mount and Havertz's fees are being broken down into 5 year installments? Also, Chelsea have cleared the decks this year with selling off players they didnt need. Who are they gonna sell next year to recoup money? Soon theyre gonna have to sell the players theyve only just signed... while still paying the original transfer fees over the 8 year contracts 😂

[@JamesHussain82]

Would you rather sell a flop with 2 years left or 5 years left?

[@ow8374]

Ok professor 🤓

[@zackabdull912]

what you are talking about might cause cash flow problems for smaller teams that don't generate much money but in the books, it's written that they received it and some companies deal with that specific problem they give you the money upfront and they go and owe e.g. Arsenal if Chelsea ever face cash flow problems second, the majority of the money generated by the clubs goes to wages and Chelsea cleared a majority of their heavy earners, and their wage bill is slightly healthy, which frees up money. lastly, all Chelsea has to do is not lose more than 105m for every 3year period to avoid ffp

[@YouAimYourArrowsHigh]

@@zackabdull912 ah okay. Thanks for explaining it

[@YanbuQatar]

@@YouAimYourArrowsHigh most of the 800 mil has been under 21 kids from around the world..mainly south america..theyve been loaned off to mainly to chelsea's sister club strasbourg and other places to develop and gain more market value..if they then find themselves in contention for the chelsea squad they get in there..if not they get sold..hence making more money for what chelsea bought them for along with the 8-9 year contracts everyone signed so the value of the players dont drop because of contract length..at least thats the plan

[@michaelmckie9164]

No one is talking about NUFC & FFP. That’s all they talk about.

[@louisl5864]

Everyone’s always been obsessed with what we do, if it wasn’t for us football would be boring and everyone knows it 😂 we ARE the transfer market

[@masqueraver3552]

wee martin sitting thinking i was on couple of hundred a week when won european cup 🤣

[@jaya8002]

I actually can’t believe some of the misinformation being given here. Simon said unless they’ve carried huge losses on the last 3 years 😂😂go and look at there loss level £500m over the past 3 years

[@mcfcok3773]

He talks a good talk. But hes bitter as they come, its hilariuos.

[@alexbarbatzidis7336]

Ppl will for real listen to this and after go back and say "Chelsea are breaching the rules" smh…

[@geoffreywesonga7865]

Well explained. If it's Chelsea buying you complain. If it's newcastle, Mancity Arsenal. They are doing good business. Shut up, Chelsea go go go up up up

[@Ibrakadabra-cg6ho]

But chelsea dont get 65m upfront for havertz, but around 20m over 3 years. An other point, he uses the small netspent amount in romans last years to compensate the huge outgoings now (alongside the 8 year contracts and so on)

[@mercuryelite]

Chelsea recieve the full amount over 3 years. But they get to book the entire fee this year. That is how the accounting works.

[@YOTD777]

It is not for Simon to explain to fulfill his ego, but for UEFA through FFP to investigate and decide 😂😂😂

[@Mac-dx4rd]

What ? He explained it simply quite well I thought

[@YOTD777]

@@Mac-dx4rd Why not wait until FFP make their case and stop listening to Simon pontificate about nothing.

[@Mac-dx4rd]

@@YOTD777 you can see what the rules are on uefa and premier league websites

[@RL-]

​@@YOTD777there's nothing to investigate, which is why Jordan is explaining these very simple rules for the hard-headed or pancake-brained types banging on about 'how does FFP not apply to Chelsea?!'. He's explaining very clearly why nothing is wrong. If you're alluding to the recent investigation into Chelsea as if it's related, it isn't. That was about scrutinising Abramovich-era transactions from 2012-2019 to see if the numbers were accurate. Boehly's team brought it to light, self-reported the discrepancies to UEFA and were cooperating fully. The investigation concluded in July and Chelsea paid a fine. They're not being investigated for spending too much, or whatever else the average KZbin comment section monkey thinks at the moment.

[@michaelandreou4996]

If football clubs did a subscription buisness model where each club showed thier own Teams game live for a price. £2.99 a game, £12.99 a month or £79.99 a year. Something along those lines then i think every fan of thier respective teams would pay that and they would make absolute bank!. Too many times are our teams on and are not on TV. We as fans want to watch every single one of our games.

[@Jcshh]

Sky and TNT (BT) would throw their toys out the pram as per usual. Been saying this model would be so much better for years!

[@michaelandreou4996]

@@Jcshh surely if the 20 Prem clubs came together though they would realise that selling subscriptions themselves is way more profitable for them. Just dont renew the Sky/BT contract.

[@matthewhosken4987]

Come to Australia mate I see every game and it costs me $65 a month about £30

[@todd1928]

How is that that any purchase gets divided over the length of the contract but every sale is upfront in the money they recieve? This seems dodgy as hell.

[@corroded]

The creative bullpoop with accounting that a player bought for £60m, when so sold for £60m means £25m profit is unbelievable... these rules are actively being exploited. Personally I think these long deals are going to come back and bite Chelsea in the rear end, they are going to have a lot of players on long contracts with high wages who don't want to go anywhere.

[@nuudelz3711]

The long term contracts will be the next item they look at for breaching FFP. None of their signings are staying for the full 9 years

[@Eye-it-azz]

Another genius move by Chelsea is that they’re handing out prison sentence contracts, Enzo signed a 10 year contract, his salary is spread out, FFP beaten.

[@ClarenceBaloyi]

Academy players can have value 9n the balance sheet if the epl makes it a rule that all plays have buy out clause - it's not perfect, but it's better thank what's going on now

[@MarquisdeSuave]

Timo Werner wasn't "break even", he was sold at a 30 million dollar loss. Kai Havertz was sold at around a 20 million dollar loss. Pulisic was sold at a 36 million dollar loss (not counting add-ons which might make the loss anywhere between 45-50 million). Lukaku, whom they are still paying over 350k per week, will be at least a 50-60 million dollar loss

[@jonhayes7322]

Avfc - Grealish £100m profit, Carney C £20m profit, Philogene, Archer, Ramsey, £30m profit as academy players, latter 3 with buybacks… we won’t be seeing ffp for years 😃😃😃😃

[@barrypegg3070]

Change the rules. To register player the buying team should have to disclose what they are paying and when, plus what they are also paying to agents, signing on fees etc. The selling and buying clubs should then have to reflect those values in the books. None of this selling club reporting full transfer value on day 1 when they might not actually be paid for years. Similarly, the buying club would have to report when the money is paid to third parties not just based on length of contract. If the clubs want to do something to sell the debt or borrow the money to finance a deal that should be ignored and just go on the actual transfer values. If a buying club is found guilty of not reporting these figures correctly, simply tell the player he is fee agent and can sign for any club except the one he was registered too.

[@senanur1983]

Its simple. Sell players = immediate profit on the books. Buy players = spending on the books over 5 or 8 years. Chelsea are safe for next couple of years unless they drop out so bad like this season.

[@prezike6683]

There are other football finance expects who have been writing heavily on on Chelsea’s FFP situation and say different with data to support their claims and been dismissed by some as an amateur by some, yet they are actual experts. Glad you invited them on to engage on this complex subject. I hope some keep an open mind to other perspectives on this, but this does not mean everything said is entirely wrong by any side. however, the reality is that Chelsea may be willingly and knowingly, accepting that they will violate FFP. Why that is is certainly a worthwhile question to ask. I have my own thoughts, but I’ll keep them to myself for now here.

[@liamclarke5275]

You're forgetting their wages as well in the FFP calcs

[@jaimeleonguzman4328]

Incoming liverpool expert ffp analytics