Chelsea, who are amidst a civil war, will be interested to get a potential financial boost by FIFA. The club was sold to the current owners back in May, 2022 for £4.25 billion. Amongst the owning group Todd Boehly (13%) & Clearlake Capital (62%), these two have the most stakes of the club. And naturally they themselves hold the driving seat behind all the decisions.
However, disagreement in decisions over a period of time have caused a ownership issue between the two parties. And now, both of them want to buy each other out, to have full authority of the club. It is believed that both of them value their investment more than the actual price. So, it will be interesting to see what happens in the near future and if one buys another out what will be the initial price of the each share.
But Chelsea, who are struggling to maintain Premier League‘s PSR policies, have to find out some revenue generating sources asap. Expanding the stadium to collect more profit from ticket sales can be a great option but it will take a lot of time. Commercial income can be a handy option in this situation. But a newly formatted FIFA Club World cup tournament can also boost Chelsea’s financial stability.
Newly formatted Club World Cup
Chelsea will be competing in the next year’s Club World cup campaign. But this year the format will be different. The new edition of Club World cup will contain 32 clubs across the globe. Usually it was 8 before the new format, but to match the feeling of a World Cup, president Gianni Infantino decided to add more teams.
It will be staged every 4 years just like the World Cup. FIFA management want to promote this newly formatted tournament to the level of UEFA Champions League. However, to do that they would need a lot of capital. So, Infantino decided to value their broadcasting rights for around £4billion.
But such value is being left alone by the investors. Apple have recently offered FIFA around £1billion for their Broadcasting rights, but Infantino rejected the deal. As per the reports of Sportspro, FIFA will organize a meeting with the broadcasters and stakeholders to find some solutions.
Infantino will try his best behind the talks as they the governing body believes it is a ‘crisis situation’. FIFA have pledged to pay a good sum money to the top clubs to participate in the competition.
How will FIFA help Chelsea financially?
Infantino have told big European clubs like Chelsea that they can gather around £86million for each appearances at the competition. However, these amounts seem very optimistic. But it can touch that mark sooner or later. As top clubs have their support behind the plans. So, Chelsea have to be patience for the moment and they can earn fruitful amount of money week in and week out.
It is speculated that sponsors have offered around £150m to get involved with the tournament. But without a television broadcaster it seems hard to pay that amount to the top clubs. So another thing is also reported that FIFA could be preparing to broadcast their tournament themselves to increase their commercial credibility. A safe guess of the amount that Chelsea can earn will be around £20-25million.
The Blues can find their financial stability to match the PSR rules through this income. It can also help them to save money for future to expand the Stamford Bridge or build a new home ground, which they are planning since the past few decades. Chelsea will be very glad if the deal regarding the broadcasters strikes soon with FIFA. The first edition of newly formatted Club World cup will be starting in June/July, 2025 and it will be hosted in the USA.
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