Chelsea Fucked?
- Thread starter Mystic
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Did he? I must have missed that.
Yeah, it was not long before the Everton thing, if I remember right.
With gas prices going up we all need some fire wood.
I think I saw an article written a a few years back that calculated average spend per PL fan attending a Prem match is about £55 which over 18 PL brings in around £8m. I think in the US the average fan spends well over a $100. A family ticket to an NFL game for 4 is just under $600.
Nationalise it.
Sell it for the debt Chelsea are in to Roman Abramovich
Freeze the asset in Romans name for an unspecified period of time.
Done.
I see his daughter is trying her best to distance herself from Putin.
Pretty sure that £55 will include the ticket (and if it doesn't, a lot of the £55 won't be spent with the club - it'll go on hotels / meals / retail spend / taxi fares etc). Additional match day income from food and beverages / merchandising is not big numbers in the grand scheme of things, and although the prices in the stands are high, a lot of that is to cover staffing - the bar staff will work a 7 hour day but will only be generating serious income for about and hour and a half of that. Club's are probably only making a standard-level catering margin when that's all totted up.
Then you need to deduct 20% VAT (pretty much everything a fan spends on is VATable) so your £8m becomes £6.6m (although probably back around £8m net when you take cups / European games into account). Then you've got overheads to cover (stewarding, maintenance, utilities, rates, cost of sale for food and beverage / merchandising etc). Finally, if you've made a profit, you might even pay tax on it (although most clubs have taxable losses from writing off player contracts), but you won't get tax relief for a lot of the spend on the land and buildings.
The uplift in retail from having more fans on site won't be that big either as the retail store is already more or less at full capacity on a match day (and I imagine we only built the larger store we have now because the old one in the Kop wouldn't cope with the extra footfall from the Main Stand).
That's why my broad brush numbers didn't look massively attractive, and I'd guess that's why the club is funding the Annie Road themselves (or at least that's what seems to be happening). The return isn't attractive enough for FSG to get their ownership group to put in more money when they could get a better return from the ice hockey team, or whatever it was they bought last year.
Assets?
It was a loose term… very loosely applied.
The stadium expansion will now cost £80m an extra £20m.
The hope is it will add an extra £40m in rev per year as they will host 6 concerts per year along with other events
They could host the concerts without the new stand but I think the argument is they will build the new stand to allow access to the pitch for all the stage gear. The entrance they have at the moment (Kpp end I think) is too low to allow big trucks to access so it’s more labour intensive getting stuff in.
£40m annual revenue is a load of bollocks though, they won’t earn anything like that (or if they do, most of it will go to the performers for the concerts so net profit won’t be anywhere near that kind of number). Most likely they’ll rent the ground out to promoters for a fixed fee - less risk that way if tickets don’t sell.
They do rent the ground out. Callum Smith looked into it for his world title defence and was quoted the same price as Wembley!
Does that mean he's gone? Bit of an ambiguous statement. Handed over to Chelsea Trustees
Most likely controls the trust. I'm sure the Tories have told him everything will go back to normal once this is over
Its still Abramovich's in name. So if Chelsea sell, he will get the proceeds. Assuming there are no asset freezes. Otherwise he may try and wait it out.
Interestingly, my reading of Chelsea’s accounts (admittedly from about a year ago, last time I looked) is that they don’t seem to have their own banking arrangements (they appear to use a central treasury function elsewhere in Abramovich’s group of companies and borrow from those other companies). If they haven’t already done so, they’ll need to sort that out pronto or their cash flow will dry up.
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