Chelsea are on a journey to self-destruction after embracing the private equity scam, writes ALEX BRUMMER

Amid the tens of thousands of words about the chaotic start to Chelsea’s season there has been one significant element missing from the raucous discussion. 

The incompetence at Stamford Bridge showcases private equity at its very worst. Ownership is of critical importance to football clubs, as it is for all businesses – whether they are supermarkets, department stores or advanced aerospace and engineering companies.

Ownership is of critical importance to football clubs, as it is for all businesses – whether they are supermarkets, department stores or advanced aerospace and engineering companies.

Private equity firms are often portrayed as offering a panacea for sclerotic, ill-run, publicly-listed companies and providing a route map for amateurishly-run sports teams.

But there have been a number of calamities and warning signs: Debenhams, Asda and care home provider Southern Cross. Chelsea fell into private equity hands in May 2022. The club had been seized by HM Treasury from friend of the Kremlin Roman Abramovich, following Russia’s invasion of Ukraine.

By the standards of his baseball team, the Los Angeles Dodgers, when Todd Boehly and California-based Clearlake Capital took control of Chelsea for £2.4billion it was in rude health. But all that private equity has brought to Chelsea is some too-clever-by-half accounting.

Chelsea appeared to have a bright future in 2021 after winning the Champions League

The Boehly consortium vowing to spend £760m in replacing or upgrading Stamford Bridge (pictured) but so far little has been done and it is the least impressive top club venue

To circumvent ‘fair play’ rules which limit transfer spending Boehly and co have brought financial engineering to the table. Instead of two-, three- or four-year contracts players are on ‘long leases’ of six to nine years, which allows their value to depreciate over the length of engagement.

This is a smart piece of accounting but it also means that when mistakes are made, the players on the biggest salaries are hardest to shift, and now Chelsea born and bred young lions are cannon fodder to be sacrificed.

In 2021, under German coach Thomas Tuchel, the club became European champions. The future looked bright with the Boehly consortium vowing to spend $1bn (£760million) or more in upgrading or replacing Chelsea’s historic but comparatively small stadium at Stamford Bridge.

So far, little has been done. Stairways are narrow, steep and difficult. Loos are less than sanitary. It is the least impressive top club venue.

When the team was a reliable, trophy-delivering enterprise, the shortcomings were tolerable. All this despite Stamford Bridge sitting on one of the most valuable and large pieces of real estate. Abramovich had plans to pour £1bn or more into west London before he was kicked out.

It is easy to understand why there was so much confidence placed in Boehly and co. They turned the Dodgers from serial losers into World Series champions and developed a shining new field of play at Dodger Stadium, despite it being the third-oldest venue in Major League Baseball. They added UK commercial expertise in the shape of property magnate Jonathan Goldstein.

What could possibly go wrong? Football is a notoriously fickle enterprise but generally speaking a bottomless pit of cash, steady ownership and skilful management and coaching delivers trophies.

At Chelsea the opposite has been the case. A carefully assembled team of experience and youth has been demolished with many of the best players now at rival clubs.

Enzo Maresca is the third manager in as many years with Chelsea anxious for speedy success

Conor Gallagher (left) has been shipped out to Atletico Madrid, while Raheem Sterling (right) could be on his way out before the transfer window comes to a close on Friday evening

Instead of assembling a well-functioning team the private equity owners embarked on a bizarre accumulation of a long list of would-be stars, the names of whom most supporters can barely recognise.

A £1bn transfer splurge has resulted in one of the most bloated squads in soccer history with 54 players (at last count), eight of them out on loan.

Instead of steadiness they have brought the volatility of hedge fund traders to the club. The owners are treating their main assets, the huge talent of established stars, with contempt.

Expensively acquired and hard-working players such as Raheem Sterling and upcoming academy talents such as Conor Gallagher, after his standout season, are being humiliated and traded as if they were objects rather than people.

Anxious for speedy success, there is a third new manager in as many years in Italian Enzo Maresca, 44, who arrived from Leicester City with no direct experience of managing in the Premier League or conquering Europe. He replaced Mauricio Pochettino, who left by mutual consent, after delivering sixth place in the 2023-24 season.

The patience of long-standing, intelligent supporters with deep knowledge of the game and football finances has been tested. One, who has an acclaimed podcast, said she had ‘not turned the television on for the first time in 20 years’ for the start-of-season game against Manchester City.

A lifelong supporter and renowned lawyer and campaigner against racism in football messaged: ‘What a mess.’

The churn of players has left many fans begging for a guide to their own team of unknowns in the programme instead of more easily identifiable visitors.

Pedro Neto is one of the latest additions to the most bloated squad in the Premier League

Chelsea appear to be a financially driven franchise on a journey to self-destruction

Football has become ever more scientific, analytical and statistical. Techniques have been brilliantly deployed by teams such as Brighton and Brentford, who perform way above their weight in terms of spending power, size of stadium and international support.

But such mathematical precision only works when blended with skilled coaching, brilliant psychology and leadership.

Some 2,550 private equity barons in the UK benefit from a tax loophole, known as ‘carried interest.’ The industry defends itself on the grounds that it employs millions of people and is a huge contributor to the success of the City.

But there is a tendency to sweep under the carpet the bad effects in terms of wasted jobs, an over-reliance on debt and an ability to circumvent good governance.

Chelsea shows the private equity scam at its worst, most culturally blind and uncaring.

It has delivered the worst of all worlds in west London: a financially driven franchise on a journey to self-destruction.