Why can Chelsea pour so much money into the summer transfer of 2020? (Part 1)

Premier League

Why can Chelsea pour so much money into the summer transfer of 2020? (Part 1)

Chelsea poured 264 million USD into the summer transfer 2020, approximately the shopping costs of the remaining five teams in the top 6 Premier League.

Four recruits Kai Havertz, Timo Werner, Ben Chilwell, and Hakim Ziyech cost Chelsea $ 264 million, according to Transfermarkt. The total amount spent on the transfer of Liverpool, Man City, Man Utd, Tottenham, and Arsenal is $ 272 million when the Premier League has only two days to start. Chelsea still wants to spend $ 84 million to recruit midfielder Declan Rice from West Ham.

Havertz cost $ 95 million of Chelsea

Chelsea’s move is seen as strange, in the context of Covid-19 still raging. Liverpool reported three consecutive seasons of profit, with a total profit of $ 269 million. But, they still have a few million dollars to recruit midfielder Thiago Alcantara from Bayern Munich.

Man City also does not want to spend another six million dollars, to meet Napoli’s $ 89 million proposals for midfielder Kalidou Koulibaly. With Chelsea, deals often end quickly.

Even more unusual when in 2019, Chelsea reported a loss of 125 million USD, accounting for 21% of operating revenue. Only Everton lost heavier than Chelsea in Europe, with 146 million USD.

Chelsea is also the team that has lost the most money in Europe to depreciate players, with 218 million USD, 58 million USD more than second-team Juventus. For example, Chelsea bought Havertz for $ 95 million, under a five-year contract.

Transfer fees are amortized over the next five years, $ 19 million each year. Player depreciation is the total amount of player purchases divided by the number of years of contracts they have signed. The larger the depreciation, the more difficult it is for the team to report profit each year.

Depreciation of the last three seasons of Chelsea increased nearly 1.5 times, from 92 million USD to 218 million USD. This is twice as much for the second team. In other words, Chelsea is the team that has spent the most money on transfers over the past few years in Europe.

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