Chelsea’s loan system is one of football’s most lucrative investment vehicles. A year or two away from Chelsea can do wonders for a young player’s transfer value and, in turn, Chelsea’s transfer purse.
A large reason for Chelsea’s loan army is its role in helping the club skirt Financial Fair Play regulations. Whereas Manchester City have sister clubs from New York City to Melbourne and Manchester United have an official club-branded tractor partner, the Blues have their youth to bring in a steady stream of FFP-compliant income.
Chelsea’s success does not come simply from the number of players they stash around England and Europe. The club carefully chooses the players’ destinations to maximize each player’s development. That is, to maximize the increase in a player’s transfer value over the course of the loan.
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Chelsea have six of the top 10 and 10 of the top 25 biggest market value gains for loanees, per Transfermarkt. Thibaut Courtois, Andreas Christensen, Hernan Crespo, Alex, Thorgan Hazard and Mikael Forssell appreciated a total of over £70 million. Add in Claudio Pizarro, Tomas Kalas, Lewis Baker and Romelu Lukaku’s loan to West Bromwich Albion and the Blues made nearly £100 million by loaning their young or fringe players.
At the other end of the scale, Chelsea took the hit on four of the biggest market value losses. Michael Essien lost £12 million of market value during his stint at Real Madrid. Andriy Shevchenko, Fernando Torres and Baba Rahman round out Chelsea’s presence in the top 25 losses. Those three lost a combined £14 million.
Chelsea are still firmly in the black after accounting for their worst losses. Beyond the financials, those players who lost value scarcely compare to those who gained. Michael Essien concluded a stellar nine-year career as a Blue with his loan to Real Madrid. As much as anything that loan was about reuniting him with Jose Mourinho, who brought him to Stamford Bridge in the first place.
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The £10 million the club lost on Shevchenko and Torres pales compared to how much they lost on their transfers. Shevchenko is indisputedly Chelsea’s biggest transfer bust of all time. Chelsea signed him for a then-club record £30 million. Three years and 22 goals later, they loaned him to AC Milan and then released him to Dynamo Kiev.
Fernando Torres also started his Chelsea career with a club-record transfer (£50 million) and concluded with a loan to AC Milan. He at least scored 48 goal, a much better goal-per-million pound ratio than Shevchenko. And, obviously, he scored That Goal which made him worth every last penny.
For as much as some fans (and supporters), including this writer, lambast Chelsea for not having a clear and open path from the academy to the loan army to the first team, the fact is that is a secondary reason for the loan system.
The Blues prepare the loanees to be top-flight footballers around Europe’s best leagues, and a few secondary and occasionally tertiary leagues. If that league happens to be the Premier League and the club happens to be Chelsea, so be it. But that is not the goal for the majority of Chelsea youth.
The loan system is the golden goose of Cobham. The club and players understandably have to maintain public appearances and say otherwise. Marquee signings do not come cheaply. Youth players do. Chelsea have perfected the art of cashing in the youth players to turn around and buy proven stars. The financials and the trophy case make it hard to argue.
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Now, about that question of who will be the next John Terry…….