Chelsea news: Todd Boehly has had a tough first year in charge at Stamford Bridge and the club have been made to pay financially
Chelsea's brand value has plummetted by nearly £100m ($124.2m) in the 2022/23 year, according to a paper from Brand Finance.
It has created an image of uncertainty and chaos from the outside and that feeling is one that is mirrored from the inside with a 32-man playing squad forced to change in different rooms due to wayward transfers. Since Todd Boehly and Clearlake Capital purchased the club, things have spiralled badly.
According to Brand Finance, Chelsea's value has dropped by £78m ($98m). With a mixture of marketing, commercial, PR and money making factors leading to the figure, the state of play is described at SW6 in the research. "Chelsea FC (brand value up 1% to €860.5 million) has dropped one rank to 10th, two ranks ahead of their Premier League finish in 12th, their worst result inalmost 30 years," it is explained.
"The club’s reputation suffered aheadof the 2022-2023 season due to sanctions placed onformer owner Roman Abramovich. Although Todd Boehly and his consortium’s acquisition of ChelseaFC (£2.5 billion on the club and £1.75 billion on future investments) in May 2022 was hoped to recover the club’s reputation, the club has endured a turbulent season due to multiple leadership changes.
"Following the dismissals of Thomas Tuchel and Graham Potter, ex-manager Frank Lampard was made interim managerof the club. These factors have made it a challenging year for Chelsea FC, and their performance next season will be crucial to halt any further decline in their brand value and strength. New manager, Mauricio Pochettino, joins on July 1st with a lot to contemplate."
It has seen them drop below Arsenal in the list and now down to 10th in the overall top 50. However, due to ever-increasing Premier League success there has been a 22.5% rise in Brand Enterprise Ranking - 'a measure of the worth of thecompany’s core business, to all investors, regardless of how that company is financed' - which now stands at £2.8bn ($3.4bn).
This takes into account the league perception, stadium ownership, squad value, global reach and fan strength alongside club heritage and brand strength, meaning that a temporary performative drop-off isn't too detrimental in the short-term, though the consequences could be felt in the future if things don't change.