Chelsea continue to be linked with a move for Crystal Palace winger Michael Olise this summer.
Reports from our colleagues at the Mirror have emerged on Thursday that the Blues have stolen a march on Manchester United in the battle for Olise. Palace are said to want between £60-70m for the 22-year-old who scored 10 times from 14 league starts and provided six assists over the past season.
However, it is said that the forward’s preference is to play in the Champions League, which hands a clear advantage to Arsenal and Liverpool who are also reportedly interested. One factor Chelsea will also need to consider is their financial fair play situation (FFP).
The Premier League’s Profit and Sustainability Rules (PSR) mean that clubs cannot lose more than £105m across a three-year period. And Reach Plc’s Business of Football Writer, Dave Powell, has explained how the Blues could be planning to overcome any PSR concerns after spending heavily over the past few seasons.
“Whenever Chelsea are linked with further transfer spend the questions are immediately thrown up with regards to their position when it comes to profit and sustainability rules,” he said.
“Estimates from football finance expert Swiss Ramble back in April placed the sum required to pass under the PSR threshold, even after the sale of the club’s hotel to an associated party, at £36m. Chelsea’s player trading has been strong, and it is that which has underpinned their ability to carry on spending in the transfer market, although there will come a point soon where the number of profitable assets at their disposal will start to significantly diminish.
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“Signing Olise, over the maximum period allowed to be amortised of five years, would be costed as a £12m charge in the club’s audited accounts from next year, with Chelsea’s current year-end running until the end of June, with any deal likely to see his transfer of registration after this period should Chelsea be unable to move on players.
“But that will be a key move for Chelsea now, ensuring PSR headroom to both aid the 2023/24 financial year, as well as create some space moving into the following financial year.
“With assets such as Conor Gallagher and Trevoh Chalobah that can be moved on at pure profit, Chelsea have the ability to address PSR issues and to add new additions, with the money recouped from sales allowed to be accounted for in its entirety immediately, while signing players can be spread over the life of the contract through amortisation.
“Chelsea need a return to Champions League and its riches soon, and running the risk of sanctions is something that they are unlikely to do, with movement likely before the end of the month.”
