Written by Han Bing Since American owner Boehly took over Chelsea in the summer of 2022, the Blues have become dual "world champions" in both transfer investments and profits from player sales. From the summer of 2022 to now, Chelsea's total investment in transfers amounts to €1.652 billion (all amounts are in euros), which is equivalent to the combined total of Manchester United (€853 million) and Paris Saint-Germain (€841 million), ranked second and third, respectively, totaling €1.696 billion. In the Premier League, this also corresponds to the combined total of Manchester City's and Manchester United's investments, ranked second and third during the same period (€1.687 billion). If we include the likely signing of Simons this summer, Chelsea's total transfer investment will exceed €1.727 billion.

However, what people are more concerned about is Chelsea's enormous returns from player sales during the same period. Under Boehly's leadership, the total income from player sales reached €741 million, which also ranks first in the world, matching their transfer investment. Following Chelsea, the European giants with the highest income from player sales are Manchester City (€476 million), Bayern Munich (€432 million), and Paris Saint-Germain (€425 million), all trailing Chelsea by at least €265 million. Among these, the six players sold to the Saudi league and Newcastle United, which is controlled by Saudi capital, brought in a total profit of €128 million, accounting for more than one-sixth of all sales income. While the amount may not seem large, since the first sale to Saudi Arabia in 2023, Chelsea and Saudi Arabia have faced ongoing accusations of "related transactions."

If we also consider the sale of players to Strasbourg, a French club acquired by Boehly, Chelsea's ability to buy and sell players indeed shows suspicious signs of "balancing the books." The transactions involving Chelsea's player sales are more akin to capital operations that resemble "transferring money from one hand to another."

Related transactions, seemingly present yet elusive

When acquiring Chelsea in 2022, North American Clearlake Capital took a 61.5% stake in the club, becoming the controlling party. Boehly and his co-investors in the Los Angeles Dodgers (MLB) and Los Angeles Lakers (NBA) collectively hold 38.5%, while Boehly himself holds only 13%, yet he obtained operational control over Chelsea. Meanwhile, the American Chelsea has close ties with the Saudi Public Investment Fund (PIF), as the latter entrusts billions of dollars to Clearlake Capital for management, making it impossible for the two to be completely disconnected.

As early as the summer of 2023, Chelsea sold defender Koulibaly and goalkeeper Mendy to the Saudi league, while midfielder Kante also joined as a free agent. Chelsea not only earned over €40 million in transfer fees but also freed up a significant amount of salary space. In the summer transfer window of 2024, young player Hall was sold to Newcastle United, and Angelo was sold to Al-Nassr, along with Felix, who was also sold to Al-Nassr this summer, reigniting media and fan suspicions about Chelsea's "related transactions" with Saudi capital.

The external doubts primarily stem from the fact that almost all players sold to Saudi Arabia by Chelsea have been able to fetch inflated prices against market trends. In 2023, goalkeeper Mendy, valued at €12 million, was sold for €18.5 million, and defender Koulibaly, valued at €15 million, was sold for €23 million. Angelo, valued at €15 million in 2004, was sold for €23 million, which is quite different from the other two who were mainstays at Chelsea before leaving; Angelo hardly got any opportunities at Chelsea yet was still sold at a significant premium. Even Hall, a young player who circulated within the Premier League, was sold for nearly double his value of €18 million, heading to Newcastle United, which is controlled by the Saudi Public Investment Fund. As for Felix, valued at €20 million this summer, he was sold for a high price of €30 million plus €20 million.

Although the income from player sales related to Saudi capital accounts for only one-sixth of the total sales income during Boehly's era, all five transactions that generated transfer fees were at inflated prices. Notably, the sale of Felix seemed like a "lifeline" from Saudi capital after Chelsea was fined by UEFA.

Various methods of balancing the books

Chelsea's success in selling players mirrors the previous two transactions where the club sold its own assets to the holding company, which also appear to be suspiciously "balancing the books."

In 2023, Chelsea sold two hotels it owned near Stamford Bridge for £76.5 million to Blueco, the company that controls Chelsea, recording it as "income," which reduced the pre-tax loss for the 2022/23 season from £166 million to £90 million. Just two days before the fiscal year 2023/24 ended, Chelsea sold the women's team to Blueco for £198.7 million, also recorded as "income," which turned the club's financial report from a loss to a profit of £128 million for the 2023/24 season. UEFA deemed this move as a violation and fined Chelsea €31 million, but the Premier League surprisingly recognized Chelsea's operations, allowing them to avoid the potential penalties and fines from the Premier League for their previously massive losses.

The Saudi Public Investment Fund (PIF) established a close relationship with Chelsea by entrusting Clearlake Capital with billions of euros. However, this relationship is difficult for UEFA and the Premier League to classify as an ownership connection, as the use of private equity funds is considered a commercial secret. After the Saudi Public Investment Fund acquired 75% of the shares in the four major Saudi clubs in the summer of 2023, Boehly even traveled to Saudi Arabia to meet with Al-Hilal's chairman, Ben Nafeel. The chairman of the Saudi Public Investment Fund and Prince Al-Talal also attended the meeting, where the latter sold 16.87% of his investment firm, King Holdings, to the Saudi Public Investment Fund in May 2022, indicating how closely linked the attendees are in terms of capital. Shortly after this secret meeting, Chelsea's midfielder Kante joined Al-Ittihad, which is controlled by the Saudi Public Investment Fund.

The favorable transfer terms for Felix are not only due to the high transfer fee but also because Chelsea retains a 20% cut of the transfer fee for the player's second transfer, which is quite rare for a player signed for just two years. The Premier League's PSR rules state that the profit from selling a player is based on its amortized book value rather than the actual transfer fee cost. Felix signed a seven-year contract with Chelsea last summer for a transfer fee of €52 million, and when sold this summer, his amortized book value was only €41 million. The variable clauses in Felix's transfer to Al-Nassr are nearly all easily realizable, meaning Chelsea could gain over €9 million in book profit from the transaction.

It is worth mentioning that even the €100 million bonus Chelsea received for winning the Club World Cup in July also came from the DAZN broadcasting channel, which is under the Saudi Public Investment Fund. After winning the Club World Cup, Chelsea sought new front-of-shirt sponsors, offering €70 million per year, with Saudi Arabia's Riyadh Air in a priority position. Given all these factors, how can people not suspect that the Blues' impressive player sales performance is essentially a "related transaction" connected to Saudi capital?