How Chelsea Are Avoiding Strict Fair Play Rules Despite Heavy Spending As EPL Clubs Complain

Premier League clubs are up in arms over Chelsea's transfer policy, with the club forking out close to one billion euros since Todd Boehly and his co-owners took over.

Moises Caicedo became the latest marquee signing to arrive at Stamford Bridge, with the club paying a British record transfer fee of 115 million euros to Brighton and Hove Albion.

The Ecuadorian was at the centre of a prolonged war between Chelsea and Liverpool before he decided to join the former. It is the second time that Boehly has shattered the British transfer fee during his short time in West London. In January, he paid 105 million euros to Benfica for the services of World Cup-winning midfielder, Enzo Fernandez.

These two are the standout signings Chelsea have made, alongside Mykhailo Mudryk (88.5 million euros), Wesley Fofana (75 million euros), and Christopher Nkunku (52 million euros), among others.

The general question, even among fans, is how Chelsea have managed to remain on the good side of the strict Financial Fair Play Rules. The spending notwithstanding, the club is still pursuing deals for Romeo Lavia (60 million euros) and Crystal Palace's Michael Olise (45 million euros).

How Chelsea are avoiding FFP

For starters, Boehly's Clearlake consortium found a loophole in the Finacial Fair Play Rules that they have exploited for the past year. Caicedo became the 22nd player to be given an 'abnormal' contract of over five years.

The excessive length of contracts enables the club to spread its transfer fees across a number of years. For example, Caicedo penned an eight-year deal which means that when balancing out their books, the Blues won't necessarily fill out the 115 million euros at once but would spread it over the eight years.

It is this loophole that the Premier League intends to seal by limiting contracts offered to players to only five years. The European football governing body, UEFA, had already done so over the summer, but Chelsea did not conform to that yet, given that they won't be playing in Europe this season. The EPL is now set to match the same rules as UEFA to prevent the future use of such contracts, as Daily Mail reports.

The massive clearout this summer will also play a huge part in helping Chelsea present balanced books. Close to seven players have left the club, reducing the wage bill and turnover. The club has also recouped at least 215 million euros in transfer fees, which in theoretical terms, has been used to finance moves for Caicedo, Nkunku, and Axel Disasi, who was bought for 38 million euros.

The other player whose exit would help in reducing the wage bill is Romelu Lukaku, who is still stuck at the club, raking in 325,000 euros. Not much hope can be expected of his potential transfer fees, though. He was bought for 97.5 million euros two years ago and Chelsea would be lucky to get even 40 million euros if they find a suitor.

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Challenges for Chelsea

However, Chelsea will have to grapple with the effects of revenue loss. Fair Play Rules dictate that a club is not supposed to make a loss of more than 105 million euros over three years. Their latest books point to a loss of 121 million euros and the gap will have to be addressed even as they continue splurging cash on new players.

As the Mirror reports, it might be too big of a challenge, given that Chelsea are yet to secure a shirt sponsor for this season. There have been talks of an American company, Infinite Athlete, coming on board with a 40 million euros deal, but that might be too little. Gate collections won't offer much relief either, with Stamford Bridge's capacity standing at slightly over 40,000.

Their absence from the Champions League this season also means further loss of revenue, with the club set to miss out on at least 80 million euros that could have helped out in balancing the books.

The long contracts could have worked had Chelsea not splashed another 300 million euros this summer on new players. But the Fair Play Rules are catching up on them; they need solutions and they need them fast.

Nkunku's injury changes Chelsea's plans

Sports Brief reported that Chelsea could be forced into signing a new attacker after winger Christopher Nkunku was ruled out for almost four months after surgery for a knee injury.

Nkunku suffered the injury in the first 20 minutes of their final pre-season game in the United States against Borussia Dortmund and required an operation.

The club has five potential replacements, including former academy star Michael Olise, for whom they have submitted an offer to Crystal Palace.