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Chelsea are trying to cut their wage bill by £80MILLION, admits co-founder of co-owners Clearlake, after turfing out a long list of big-earning stars… as club bring in £400m investment from a US firm

  • It is believed that the investment could go towards potential stadium expansion 
  • Chelsea have sold 13 senior squad members either permanently or on loan 
  • Listen to the latest episode of Mail Sport’s podcast ‘It’s All Kicking Off!’ 

Chelsea are looking to cut their annual wage bill by around £80million ($100m), one of Clearlake’s co-founders has revealed, with the club also on the verge of significant investment from US firm Ares Management. 

Since the takeover from Todd Boehly and Clearlake Capital in 2022, Chelsea have spent around £1billion on player transfers, with their wage bill unsurprisingly increasing amid the mass of incomings. 

The club had sought to move on some squad members in the last three windows. Kalidou Koulibaly, Kai Havertz, N’Golo Kante and Romelu Lukaku are among the names to have left the club in the summer window, either permanently or on loan. 

A number of English homegrown players have also been allowed to leave in order to bring in profit immediately onto the books and help counteract the long-term affects of amortisation, which involves spreading the cost of a transfer across the number of years on a player’s contract.

However, in a bid to procure greater funds into the club, Chelsea have reportedly partnered with US alternative asset management firm Ares Management, who are set to invest a further £404m ($500m).

Todd Boehly and Clearlake Capital bought Chelsea in 2022 and have since spent heavily

Todd Boehly and Clearlake Capital bought Chelsea in 2022 and have since spent heavily

Romelu Lukaku is among the Chelsea stars to leave the club in the last transfer window

Romelu Lukaku is among the Chelsea stars to leave the club in the last transfer window

Kalidou Koulibaly - who had only arrived in 2022 - joined Saudi Pro League side Al-Hilal

Kalidou Koulibaly – who had only arrived in 2022 – joined Saudi Pro League side Al-Hilal

This is largely due to the club’s owners looking to finance the expensive Stamford Bridge stadium renovations, as well as build stakes in more clubs, according to the Financial Times

A source close to Ares’ investment described it as a ‘preferred equity deal,’ while former Chelsea director Mike Forde is believed to have played a key role in securing the investment, according to ESPN.  

‘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.’

He added: ‘I think what we are trying to do is reduce the salary and essentially the opex [operating expenses] of the business by over $100m (£80.6m) per year.’

Stamford Bridge is currently only able to house around 40,000 fans, which is far fewer than their top six rivals Arsenal (60,700), Tottenham (62,850), Man United (74,000), Liverpool (61,370) and Man City (53,400). 

The club is currently believed to be weighing up the decision whether to redevelop the current stadium, or to build a new ground entirely at Earl’s Court. 

It is also thought that the investment could be used to help improve their Cobham training facility, and go towards the multi-club model that Boehly and Clearlake are believed to view as vital to the club’s future.

Kai Havertz joined Arsenal for £65million

N'Golo Kante left for Al-Ittihad in Saudi Arabia

Kai Havertz joined Arsenal for £65million while N’Golo Kante left for Al-Ittihad in Saudi Arabia

The expansion of current ground Stamford Bridge or moving to a new site are options being considered

The expansion of current ground Stamford Bridge or moving to a new site are options being considered

In addition to being hampered by the number of fans they can admit, Chelsea are still yet to secure a front-of-shirt sponsor that would surely have earned them an annual fee in the region of tens of millions.

Without the lucrative qualification of Champions League football either, Chelsea’s revenue streams took a further hit in a season of record-breaking expenditure.

Cutting the wage bill has been identified as a possible course of action by the club’s owners. 

Chelsea’s current spending on wages is at least £150m. Raheem Sterling is believed to be the highest earner on £325,000 per week, while the likes of Malang Sarr – who was not even included in the Blues’ Premier League squad – pockets around £120,000 a week.

While Chelsea have spent lavishly, their investment has not seen progression on the pitch, and the Blues last season finished 12th with fewer than half the points of champions Manchester City (44). 

Mauricio Pochettino’s side have struggled for form this season and sit in 14th with just one win from five. 

IT’S ALL KICKING OFF! 

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