Revenue Surpasses 300 Million Euros, American-Owned Chelsea Records First Profitable Summer Transfer Window

By Han Bing On August 28, various media sources revealed that Chelsea and AC Milan have agreed on a transfer deal for French player Nkunku, who will join the Rossoneri for a fee of 35 million plus 8 million euros.

Nkunku's transfer is a landmark event for American-owned Chelsea: after this sale, the Blues' summer player sales revenue nears 322 million euros, becoming the first elite club to surpass 300 million euros in summer sales. Historically in world football, Chelsea's summer sales revenue ranks second only to Ligue 1’s "black shop" Monaco (367 million euros in summer 2018). Although the transfer of Ganacho has also been nearly finalized (total price 46.3 million euros), Chelsea still posts a net surplus of 1.75 million euros in this summer's transfer market, marking the first profitable summer transfer window in the American ownership era.

Since Boehly and Clearlake Capital took over Chelsea in summer 2022, the club has shocked the world with spending exceeding 300 million euros in three consecutive transfer windows. However, doubts arose about Chelsea's ability to profit from the Premier League and meet the Profitability and Sustainability Rules (PSR). After all, the Blues spent over 1.094 billion euros in just three transfer windows, an unprecedented sum. Boehly's first season did not fully grasp the severity of the issue, but from the summer 2023 window onwards, the Blues adopted a "buy more, sell more; buy high, sell high" transfer strategy. The 464 million euros spent this summer set a world record, while the 293 million euros in player sales also broke the Premier League summer sales record.

This summer, Chelsea remains a major investor, but for three consecutive summers, player sales have exceeded 200 million euros each time, setting an unprecedented record. The 2023 summer window brought in 293 million euros, 2024 summer 208 million, and this summer has risen further to at least 322 million. Notably, Boehly's Chelsea has become adept at selling surplus players at high prices to other American-owned clubs or wealthy Saudi teams, serving as a model for profitable player circulation. This summer, Madueke was sold to Arsenal for 56 million euros, netting over 20 million euros profit. Short-term resale profits exceeding 10 million euros were also made on Vega and Petrovic, while academy graduates Humphreys (14 million) and Broja (23 million) each generated over 10 million euros in pure profit.

This summer, Chelsea generated transfer income from 12 departing players, while still having 32 players in the first team squad. They need to offload at least 5 to 7 more, indicating further transfer revenue to come. Although the Blues are still pursuing Ganacho, Simmons, and Fermin, even if one or more deals close, this summer transfer window will mark Chelsea's lowest net spending summer under American ownership.

Thanks to at least 322 million euros in summer sales revenue so far, Chelsea has successfully reduced the total net investment during the American ownership era to 773 million euros, averaging 193 million euros per season. Compared to the Blues’ nearly 600 million euros in total seasonal revenue, this sufficiently lowers the risk of violating PSR regulations to a manageable level.

Moreover, Chelsea has benefited significantly from sell-on clauses. In summer 2021 under the Abramovich era, the club sold right-back Livramento to Southampton with nearly 50% sell-on clause. In summer 2023, Livramento transferred to Newcastle for 37 million euros, unexpectedly earning Chelsea’s new American owners 17.5 million euros in sell-on fees. This summer also marked the start of Chelsea’s frequent use of sell-on clauses to balance finances. Last summer, young midfielder Hutchinson was sold to Ipswich with a 25% sell-on clause. This summer, Hutchinson’s move to Nottingham Forest brought Chelsea an additional 10.5 million euros in transfer income. Over the past three seasons, most player sales by the Blues included sell-on clauses, laying the foundation for extra future summer revenue.

Chelsea’s turnaround to profitability in the summer transfer market this year has revealed Clearlake Capital’s savvy approach to player trading. For them, most summer market operations resemble short-term investment products aimed at profit, with only a handful of core players considered untouchable due to their essential sporting value.