• Wednesday, April 24, 2024
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BusinessDay

How Chelsea can sign Osimhen without breaking FFP rules

Osimhen-smiles (3)

Reports suggest that English Premier League outfit Chelsea is poised to activate the release clause of Napoli striker Victor Osimhen.

However, the Blues must navigate the Premier League’s Profit and Sustainability rules to avoid potential sanctions.

Despite extending his contract until December 2026 with a release clause of €130 million, the 25-year-old Nigerian striker is expected to depart the Serie A champions for the Premier League in the upcoming months, with Chelsea leading the race for his signature.

Chelsea‘s ambitious pursuit of a new striker is fueled by the need to bolster their attacking options.

Nevertheless, the club faces challenges in adhering to the Premier League’s Profit and Sustainability regulations, which limit clubs to a combined loss of £105m over a three-year period.

Despite spending close to £1billion on new additions since taking over the reins at Chelsea, co-owners Todd Boehly and Clearlake Capital are reportedly ready to get out their chequebook once again.

The issue for Chelsea moving forward is how they square this spending with the Premier League’s profit and sustainability regulations (PSR), the rules in place which allow for clubs to make a combined loss of no more than £105m over a three-year accounting period.

Recent examples, such as Nottingham Forest and Everton, illustrate the consequences of breaching these regulations, with both clubs facing points deductions.

According to projections by football finance expert Swiss Ramble, Chelsea’s three-year financial results until 2023/24 forecast a loss of £323m, exceeding the PSR limit by £96m, despite deductions related to infrastructure investment and academy expenditures.

While the club may achieve compliance for the 2022/23 period, prudent transfer dealings are essential to address potential future breaches.

Selling Conor Gallagher, an academy player whose transfer fee is estimated at £50m and Nicolas Jackson who joined the Blues in last season’s summer transfer could be sold for over £40 could significantly improve Chelsea’s financial position, as proceeds from these players’ sales will directly impact the PSR calculation.

Additionally, securing lucrative commercial deals, such as the recent sleeve sponsorship with BingX, further aids in financial stability.

Ultimately, Chelsea’s transfer strategy hinges on the club’s ability to balance incoming and outgoing transfers to remain within PSR guidelines. As negotiations with Osimhen progress, Chelsea must navigate these financial constraints to secure the striker’s services while upholding regulatory standards.