D E B T
Chelsea F.C.
Is chelsea's finances restricted?
It is known to all football fans that Chelsea F.C. spend a lot of money to guarantee success. However, it may be possible that Chelsea may not have been as free with their money as the fans would have liked it to be. Since the takeover of Chelsea, it has been clear that close to £1 billion pounds have been invested. It may be that perhaps that this money could have been used to rid of the debt Chelsea actually have, which many fans do not know about.
Many Chelsea fans do not know that at 2009, Chelsea's debt stood at £709 million. However, because of smart thinking by the owner, all this debt was not made in Chelsea's name. Instead of being under Chelsea, the parent company Fordstam took the debt. This allowed the debt to not restrict Chelsea's actions, therefore allowing for a stronger financial position. This means that Chelsea have no debt to pay off, putting them into a good financial position. It is understood that Fordstam now has around £800 million in its name.
Debt is certainly not chelsea's weakest point. Thanks to quick thinking by the owner, chelsea were able to maintain a strong financial position. Since the debt is in Fordstam name, chelsea are able to compete with the likes of manchester city for players. Even though indirectly they have more debt than manchester united, chelsea were able to think quickly. They stand stronger than manchester united in this section, despite being in a worse position.