Super Agent Jon Smith has claimed the sale of Chelsea could reach £3bn, and it could have an effect on other Premier League clubs.
Chelsea are currently going through a change of ownership, due to sanctions placed against Roman Abramovich. Any sale could have an effect on other Premier Leagues, with any potential new owner likely to pay the most anyone has ever paid for a football club.
Speaking exclusively to Caught Offside, Smith said: “I was talking to a couple of the potential inbound Chelsea bidders recently and the price discussions are now around the £3bn mark, which is by far the biggest sale of a football club, anywhere, in the world.”
Offers of £3bn epitomises the vast amount of money involved in football nowadays, and the sale of Chelsea could effect the valuations of rival Premier League clubs.
“The values of Arsenal, Tottenham Hotspur and Liverpool a year and a half ago (damaged slightly by the pandemic) were a billion and a half to £2bn. In fact, I believe Spurs turned down an offer of £1.8bn because they wanted the club’s valuation to begin with a number two,” added Smith.
Although Chelsea are a huge club in the Premier League and have recently won a Champions League, they aren’t miles ahead of some of their Premier League rivals in terms of stature.
The likes of Arsenal and Liverpool have been powerhouses in England for years now, and before the Abramovich era, Chelsea weren’t on the same level as their rivals.
“So, let’s assume Chelsea sells for £3bn – at that level, Spurs’ value gets dragged north of £2bn heading towards £2.5bn. Arsenal must be in that bracket. Liverpool must be in that bracket. Two years ago, just as the pandemic was starting, West Ham valued themselves at around £600m and I haven’t even mentioned Newcastle United and Manchester City’s values. But that has got to drag West Ham, at this moment in time, to around £750m,” Smith added.
If Chelsea are to sell for this enormous fee, owners of other clubs in the Premier League will be demanding more money than they previously would. A club like Arsenal, with their stadium, history, and fan base, would be valuing themselves at a similar level to Chelsea.
Not only will it have an effect on the bigger clubs in England, but it could create a bigger divide between those at the top and those at the bottom.
“Then there is a real dichotomy because you start going down the table and you have teams like Brentford, who is a very, very well run club, in London – if they can retain their Premier League status, which I am sure they will, the management is superb, the owner is a great guy – they have it all going for them, but is anybody going to more than £200m for Brentford? – I may be wildly wrong, but I don’t think so,” said Smith.
As Smith mentioned, Brentford are a well ran club, who rely on player sales to reinvest in their playing squad. Ollie Watkins, Ezri Konsa, and Said Benrahma are among those who have left the club in recent years, to help them run smoothly financially.
If clubs like Brentford, Norwich, and Watford start demanding higher fees to sell the clubs, they may find it very difficult. Although they will want a fair valuation in comparison to the figures Chelsea will be receiving, they don’t have the fanbase, stadium, or history in comparison to the bigger clubs.
That’s why we’ve seen Newcastle taken over recently, as they have the history and stature of club to be seen as a smart investment.