Paying the account depends entirely on your ability. Is Chelsea’s “people selling treasure” indispensable for related transactions?

Written by Hanbing Since US boss Boli took over Chelsea in the summer of 2022, the Blues have been the double "world champion" in the amount of profits made by recruiting investment and selling players. Since the summer of 2022, the Blues' recruitment investment amount has been 1.652 billion euros (all units below are euros), which is equivalent to the total of Manchester United (853 million) and Paris Saint-Germain (841 million) in the second place (1.696 billion), and in the Premier League, it is also equivalent to the total of Manchester City's two heroes ranked 2nd and 3rd in the same period (1.687 billion). If Simmons, who is likely to join this summer, will be more than 1.727 billion euros in total.

But what people are more concerned about is the huge returns from Chelsea selling players during the same period. The Blues sold players totaled 741 million euros, ranking first in the world as much as the investment in signings. During the same period, European giants followed closely by Manchester City (476 million), Bayern (432 million) and Paris Saint-Germain (425 million), which was at least 265 million yuan from Chelsea. Among them, the Blues sold six players from Newcastle United, which were held by Saudi Arabia and Saudi Capital, and made a total profit of 128 million yuan, exceeding 1/6 of the total sales revenue. The amount seems to be not large, but since the first sell-off in 2023 to Saudi Arabia, Chelsea and Saudi Arabia have been questioned for suspected "related transactions".

If we include the Ligue 1 Strasbourg sold to Boli, there are indeed doubtful traces of "settling accounts" behind Chelsea's transfer operation that can buy and sell more. The Blues' transaction of selling players is closer to the capital operation of "left hand to right hand".

related transactions, as if nothing,

When acquiring Chelsea in 2022, North American Chenghu Capital accounted for 61.5% of the Blues' shares and became the controlling party. Boli and his co-investors in the Los Angeles Dodges (American Professional Baseball) and the Los Angeles Lakers (American Professional Basketball Team) hold a total of 38.5%. Boli himself only holds 13%, but has obtained the operating rights of the Chelsea team. At the same time, American Chelsea is closely linked to the Saudi Public Fund (PIF), because the latter has billions of dollars of funds handed over to Chenghu Capital, the major shareholder of the Blues, so the two naturally cannot be separated from their relationship.

As early as the summer of 2023, Chelsea sold defender Coolibali and goalkeeper Mendy to the Saudi League, and midfielder Kante also joined as a free agent. Chelsea not only received more than 40 million euros in transfer fees, but also freed up a lot of salary space. In the summer window of 2024, the Blues young player Hall was sold to Newcastle United, Angelo was sold to Riyadh for victory, and Felix, who was also sold to Riyadh for victory this summer window, once again aroused the media and fans' suspicion of the "related transaction" between Chelsea and Saudi capital.

Outsider's suspicion is mainly based on that almost all players who sell to Saudi Arabia can sell at a premium against the market rules. In 2023, goalkeeper Mendy, worth 12 million euros, sold for 18.5 million, and defender Coolibali, worth 15 million, sold for 23 million. Angelo, who was worth 15 million in 2004, sold at 23 million. Unlike the first two who were the main players of the Blues before leaving the team, Angelo almost never got a chance at Chelsea and could still sell it at a significant premium. Even the young player Haul who is circulating internally in the Premier League can sell nearly doubled 33 million for 18 million euros, and is in Newcastle United, which is controlled by Saudi Public Fund. As for Felix, who is worth 20 million this summer, it sold a high price of 30 million + 20 million euros.

Although the revenue of the players related to Saudi capital accounts for only 1/6 of the total sales of the Blues in the Boli Times, all five transactions that generate transfer fees are premiums, especially Felix's sale, which is more like the "timely help" from Saudi capital after Chelsea was fined by UEFA.

The method of closing accounts is rich and colorful, and the success of Chelsea in selling players is the same as the two previous transactions in which the Blues sold their own assets to the club's holding company, which are suspected to be "closed accounts".

In 2023, Chelsea sold two of Stamford Bridge's own hotels to Blueco, which holds Chelsea's holding company for 76.5 million pounds. The accounting was "income". The Blues' pre-tax loss in the 2022/23 season dropped from 166 million pounds to 90 million pounds. Two days before the end of the 2023/24 season fiscal year, Chelsea sold the club's women's team to Blueco for 198.7 million pounds, and the same accounting was "income", which changed the club's financial report in the 2023/24 season from a loss to a profit of 128 million pounds. UEFA determined that the violation was made and fined the Blues 31 million euros, but the Premier League actually recognized Chelsea's operation, and the Blues escaped the original huge losses that could lead to the Premier League's violation penalty points and fines.

Saudi Public Fund (PIF) has established close ties with Chelsea by handing over billions of euros to Chenghu Capital. However, such a connection is difficult to identify as ownership by UEFA and the Premier League as a result of the use of private equity funds as a commercial secret. After Saudi Public Fund held 75% of the shares of Saudi Arabia's four major giants in 2023, Boli also went to Saudi Arabia to attend the meeting with Riyadh Crescent Chairman Ben Nafer. The Saudi Public Fund Chairman and Prince Ben Taral attended the meeting, who sold 16.87% of its investment company King Holdings to Saudi Public Fund in May 2022, which shows how close the capital ties of the participants are. Shortly after this secret meeting, Chelsea midfielder Kanter joined Jeddah United, which is controlled by Saudi Public Fund.

The advantage of Felix's transfer terms is not only due to the high premium transfer fee, but also based on Chelsea's 20% transfer share when the player transfers, which is very rare for players who have only signed for two years. Premier League PSR rules stipulate that players' sales profits are based on their amortized book value, rather than the actual transfer fee cost. Felix signed with the Blues for seven years last summer, with a transfer fee of 52 million euros. His amortized book value was only 41 million euros when it was sold this summer. Felix's transfer to Riyadh victory is almost easily fulfilled, meaning Chelsea can earn more than 9 million euros in book profit from the transaction.

It is worth mentioning that even the 100 million euro prize of Chelsea's winning of the Club World Cup in July also came from the DAZN broadcast channel under the Saudi Public Fund. After winning the Club World Cup, Chelsea is looking for a new chest advertiser with an annual offer of 70 million euros, and Saudi Arabia's Riyadh Airlines is in priority. With all these things, how could people not doubt that the Blues' impressive sales of players' performance is essentially a "related transaction" linked to Saudi capital?