Chelsea currently sit in 11th place in the Premier League, but there has been no mention of manager Mauricio Pochettino getting sacked
As Chelsea continues to grapple with a challenging season under the stewardship of Mauricio Pochettino, there has been speculation about a potential managerial change.
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However, several factors, including the club's precarious financial situation, make it increasingly difficult for Chelsea to part ways with Pochettino making the Blues hesitant to take such a drastic step.
Financial implications of sacking Pochettino
One of the primary reasons Chelsea is cautious about sacking Mauricio Pochettino is the substantial financial cost associated with it. Dismissing the Argentine manager, along with his extensive backroom team, would entail a significant payout that could exceed £10 million. Such an expenditure would be a considerable hit to Chelsea's already strained finances.
Any compensation package agreed upon before June would count towards the Premier League's Profit and Sustainability Rules (PSR) for the current season. Chelsea is already treading on thin ice regarding PSR after spending over £1 billion on new players since the takeover by Todd Boehly/Clearlake Capital. Independent finance experts have estimated that the club needs to raise tens of millions from player sales by the end of June to avoid breaching spending limits.
PSR regulations and exemptions and impact of managerial departures
Premier League clubs are allowed to incur a maximum loss of £105 million over a three-year period, with specific exemptions for certain expenditures like infrastructure, women's football, and youth development. However, compensation packages following managerial sackings do not fall under these exemptions. Pochettino's large backroom staff, including Jesus Perez, Miguel d'Agostino, Toni Jimenez, and his son, Sebastiano Pochettino, add to the financial burden of any potential dismissal.
Chelsea's new ownership has already incurred significant costs in terms of managerial changes. Thomas Tuchel received £10 million in compensation when he was sacked just four months after the takeover, and Graham Potter is due £13 million in compensation. These payouts further strain Chelsea's financial situation.
Homegrown players and profit in PSR terms
Chelsea's efforts to offload homegrown players like Armando Broja, Conor Gallagher, and Trevoh Chalobah during the January transfer window were motivated by the desire to generate revenue that counts as profit in PSR terms.
However, they faced challenges in finding suitable deals, with Broja's £50 million valuation making a permanent move unfeasible before his deadline day loan move to Fulham
Pochettino signed a two-year contract with the option to extend by 12 months when he joined Chelsea in the summer. While the club had hoped that their transfer business would secure them a place in the Champions League, they currently find themselves in the bottom half of the Premier League.
Alternative routes to European competitions
Despite their Premier League struggles, Chelsea still has potential avenues to secure European competition spots. Winning the FA Cup would guarantee a place in the Europa League, and triumphing over Liverpool in the Carabao Cup final would secure a spot in the Europa Conference League.
In conclusion, while the pressure is mounting on Mauricio Pochettino due to Chelsea's underwhelming season, the financial implications and adherence to Premier League spending regulations make it challenging for the club to sack him. As the club navigates these challenges, Chelsea supporters eagerly await developments while Pochettino continues to prepare the team for upcoming fixtures.