Kieran Maguire: Chelsea ‘free to spend’ £800m on new signings
Chelsea are in theory “free to spend” the £800million they have taken out in debt on new signings.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the new Stanford Bridge regime’s financial strategy in the early days of their premiership.
A consortium of American investors led by LA Dodgers grandee Todd Boehly completed what was advertised as a £4.25billion takeover of the Blues in May this year.
That figure was made up of a £2.5bn purchase fee and a £1.75bn commitment to invest in infrastructure and the playing squad.
Per the Financial Times on Thursday (21 July), the new owners have raised debt by close to £800m, with a £500m term loan and £300m revolving credit facility.
Maguire explains that there are no restrictions in terms of how the West London club can spend the funds.
“This appears to be for whatever they want it to be,” he told Football Insider’s Adam Williams.
“There appears to be complete flexibility with this. However, I must confess, I take the £1.75bn over 10 years with a dose of salt. If it goes on player costs, that could potentially include player wages as well.
“But in theory, Chelsea are free to spend this money however they please.”
Chelsea have two more pre-season friendlies, against Arsenal and Udinese respectively, before they begin their 2022-23 campaign.
Thomas Tuchel’s side start the Premier League season away to Everton on 6 August.
In other news, Chelsea told to green light Kepa Arrizabalaga move as big-money windfall mooted.