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Business as Usual in Football Finance
Keith Wyness, Everton’s former chief, has shed light on the seemingly unusual situation at Chelsea, where the club continues to pay their former manager Graham Potter a weekly wage, despite his dismissal. Wyness, who has extensive experience as a CEO in the football world and now offers advice to elite clubs through his consultancy, has clarified that such arrangements are pretty standard in the industry.
Chelsea’s Cashflow Considerations
It has come to light that Chelsea, following standard practice, is fulfilling its contractual obligations to Potter by maintaining his £200,000-a-week salary until October, despite his tenure at the club lasting only seven months. Wyness suggests that this could be due to a “cashflow issue” at Stamford Bridge, making it difficult to settle the agreement with a lump sum payment.
Potter’s Potential Tax Implications
The decision to continue payments over time, rather than in a lump sum, could also be influenced by tax implications for Potter and his team. Wyness emphasizes that such financial decisions are commonplace and do not reflect the personal dynamics between the manager and the club. He reflects on his own preference for lump sum settlements to sever ties but acknowledges that sustaining a payout schedule is a normal part of contract negotiations.
Financial Transactions Over Personal Relationships
Wyness reiterates that the ongoing financial arrangement between Chelsea and Potter is nothing more than a “financial transaction” and is not indicative of any underlying relationship issues. This practice of honoring contracts through continued payments is a routine aspect of football management dismissals, as Wyness has witnessed both approaches during his career in the sport.
