As Chelsea’s poor form continues in the Premier League, there’s a little talk of firing manager Mauricio Pochettino with the club languishing 11th position on the log.

As Chelsea grapples with a challenging season under Mauricio Pochettino’s leadership, discussions about a potential managerial change have surfaced.

Pochettino or Todd Boehly? Who Bears Responsibility for Chelsea’s Disappointing Season?

However, several factors, notably Chelsea’s precarious financial situation, make parting ways with Pochettino increasingly challenging, prompting the Blues to hesitate before taking such a drastic step.

 

Financial consequences of Pochettino’s removal:

Chelsea’s reluctance to sack Mauricio Pochettino primarily stems from the significant financial ramifications involved. Terminating the Argentine manager’s contract, along with his extensive coaching staff, would result in a substantial payout potentially exceeding £10 million. Such an expense would significantly strain Chelsea’s already tight finances.

Compensation packages finalized before June contribute to the Premier League’s Profit and Sustainability Rules for the current season. 

With Chelsea already teetering on the edge of breaching PSR regulations after spending over £1 billion on player acquisitions since Todd Boehly/Clearlake Capital’s takeover, the club faces pressure to raise tens of millions through player sales by June’s end to avoid surpassing spending limits.

 

PSR regulations and the impact of managerial departures:

While Premier League clubs are allowed a maximum loss of £105 million over three years, exemptions apply to certain expenditures like infrastructure, women’s football, and youth development. 

However, compensation packages resulting from managerial dismissals do not fall under these exemptions. 

Pochettino’s sizable backroom team, including Jesus Perez, Miguel d’Agostino, Toni Jimenez, and his son Sebastiano Pochettino, add to the financial strain of any potential termination.

Chelsea’s new ownership has already incurred significant costs due to managerial changes. Thomas Tuchel received £10 million in compensation, and Graham Potter is owed £13 million. These payouts further burden Chelsea’s finances.

 

Homegrown players and profit within PSR terms:

Chelsea’s attempts to offload homegrown players like Armando Broja, Conor Gallagher, and Trevoh Chalobah during the January transfer window aimed to generate revenue that counts as profit in PSR terms. 

However, challenges arose in securing suitable deals, with Broja’s £50 million valuation rendering a permanent move unfeasible before his loan to Fulham on deadline day.

Pochettino signed a two-year contract with a 12-month extension option upon joining Chelsea in the summer. Despite the club’s hopes that transfer dealings would secure them a Champions League berth, they currently languish in the Premier League’s bottom half.