Abramovich

the footy money man on TS was saying they would be unaffected by FFP because they are one of the largest net sellers (of players), and financial loans dont count twards FFP
 
Chelsea lost £154m last season in the year to June 2021. This on a turnover of £435m.
They had positive book value of £1.265bn and have Capital and Reserves of about a year's turnover.
Their market value pre Ukraine will however have been much much greater, based on a projection of future earnings. It could have been as high as £4.5bn.
This valuation is based on what they generate.
Media and Competition winnings are only part of their £435m revenue.
Pre Covid their Matchday revenue inc SC's was about 15% of Turnover, Media/Broadcasting was 45%.
The next big one is Commercial Revenue which was £180m or 40% of Total.
This is primarily from 16 Commercial Partners.
Nike £60m per year, Three £40m per year being the biggest two. Three have already cancelled.

No more revenue from Commercial sources, or further Matchday revenue (tickets) will really hurt, but they have big reserves.
Being unable to sell players and get funding from the owner will sting badly too.
But if Sponsors and Partners walk away and they fail to attract the same income then their Market value will fall. Losing out of contract players, devaluing existing players by inability to sign new contracts will impact squad value and team performance and their Media appeal. All are factors in who will buy and at what price.

But if the Government lift sanctions and/or special arrangements are made for the sale of the Club quite quickly, then they will ride this out much easier.
There is no existential risk for Chelsea at all, so I am hopeful that they are completely de-railed, that Abramovich loses the entire value and nobody sees them as quite as big a jewel.
It all depends on what these sanctions really mean and how long they last.
 
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