Chelsea are reportedly looking to cut their wage bill by around £80million to fund renovations to Stamford Bridge.Funds to be allocated for stadium renovationthe Blues have also forged a partnership with US alternative asset management firm Ares Management which will inject around £404m into the club. Since Todd Boehly took over Chelsea they have spentwith the wage bill also increasing steadily with new signings.
Hence there will be concerted efforts to cut down on the wage bill, which is currently at least £150m, by either selling or loaning out players in the upcoming transfer window. "I think what we are trying to do is reduce the salary and essentially the opex [operating expenses] of the business by over $100m per year," said Clearlake's co-founder Jose Feliciano at the IPEM private equity conference in Paris.The club's owners are seeking funds for the costly renovations of Stamford Bridge and their continued desire to acquire stakes in additional clubs has forced them to adopt this approach.
An insider with knowledge of Ares' investment characterized it as a 'preferred equity deal' with former Chelsea director Mike Forde is believed to have played a significant role in facilitating this investment.