Teaching Soccer

Chelsea may have an outstanding recent domestic win ratio, a squad packed with great players who can play open attacking soccer and be one of the richest clubs in world soccer, but the owner Roman Abramovich has one major problem to resolve. The main issue facing the Chelsea owner is that despite his personal millions and his willingness to spend it at the club, every season Chelsea finish it is likely to see a balance sheet in the red.

A club may be able to make a decent amount of money from club and kit advertisement deals, the sale of soccer merchandise, the sale of players and prize money won, if they are good enough, but for Chelsea the enormous costs of maintaining their squad is still a big drain on resources. With UEFA adopting strict new rules for 2012, meaning that all participating teams in their competitions must be running within strict financial rules, Chelsea needs to find a way to increase their earnings while remaining in European soccer’s elite.

Addressing this thorny issue began last summer when a few first team players were allowed to change clubs. Michael Ballack left for Leverkusen, Deco and Juliano Belletti joined Fluminense, Joe Cole moved North to Liverpool and Ricardo Carvalho rejoined former manager Jose Mourinho at Real Madrid. Even this trimming of the playing squad and a higher reliance on younger players has not been completely effective in reversing the club’s constant tumble into debt.

The initial level of spending made by owner Abramovich was aimed at helping Chelsea fast-track to becoming the biggest club not only in English soccer, but also European and world soccer. Currently either Real Madrid, Manchester United or Barcelona enjoy the status of the worlds ‘biggest’ club, depending on the criteria used for the title and there are two key reasons why Chelsea, despite Abramovich’s large expenditure and a policy for paying huge wages, have been unable to match the standards set by the existing soccer giants: The seat capacity of Stamford Bridge and the income the stadium generates and the clubs worldwide apparel in terms of merchandising.

Addressing the issue with the size and revenue generating capabilities of Stamford Bridge is something which Roman Abramovich may consider reviewing sooner, rather than later. Stamford Bridge may, if the whispers are true, soon be part of Chelsea’s decorated past, rather than their future. While no specific details have been confirmed by any sources at the club, rumours are circulating that Mr Abramovich is considering moving the club into a purpose built new stadium, of at least 60,000 capacity, and such a move is required if Chelsea are to realistically hope to claim the title of the world’s biggest club.

The proposed new stadium and its larger capacity will have a positive, instantaneous effect on resolving Chelsea’s financial situation. The added revenue from the bigger ground would, provided the club can fill the larger stadium, provide considerably more income for the club at each home game. The increased revenue from a new ground will be incredibly beneficial in helping the club follow the new guidelines UEFA wants imposed in time for the beginning of the 2012 season. Another plus financially is that Chelsea could choose to sell their stadium naming rights to the highest paying sponsor, as neighbours Arsenal did with their new Emirates stadium.

Building a new ground could also improve the clubs ability to increase sales in merchandising as the added exposure would see the club achieve saturation in markets such as the Far East and the Americas.

The long term future of Chelsea relies on the owner investing his time and money not just in players, but in the very foundations of the club. If Chelsea truly desire ambitions to overtake the others and become the world’s biggest soccer team, then developing their Stamford Bridge ground is the first and most important step they need to take in order to achieve that.