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Chelsea FC is threatened with exclusion from the Champions League under UEFA's Financial Fair Play regulations. The regulation is intended to ensure equal opportunities in
Chelsea FC is threatened with exclusion from the Champions League under UEFA's Financial Fair Play regulations. The regulation is intended to ensure equal opportunities in European soccer. How do you get the London soccer club back into the game? A Russian oligarch with one of the world's largest private fortunes and residing in London contacts your consultancy. The subject of the project is to be the London soccer club Chelsea Football Club (hereinafter: Chelsea FC). The oligarch acquired this club in 2003 for approximately 200 million euros; since then he has invested an additional 800 million euros in the club. Its track record to date includes numerous English national championships and cup victories and winning the Champions League in 2012 as the "crown of European club soccer." At the same time, European soccer has for years been increasingly characterized by the fact that many of the clubs that have been successful in the Champions League in particular do not cover their expenses and can only continue to exist with the help of financial support from patrons. In order to restore equality of opportunity, the European soccer association UEFA has therefore adopted the so-called "Financial Fair Play Regulation". In simplified terms, this prohibits all participants in the Champions League from covering any shortfall in expenses compared with income by private sponsors or investors. The deadline for submitting a correspondingly adjusted financial plan for the coming season is January 30. Failure to meet the requirements or the deadline could result in sanctions, including exclusion from the competition. And so Chelsea FC is also in a hurry to revise its financial planning. Chelsea FC has invited you to present a proposal for a consulting project. Please outline such a proposal. Chelsea FC does not want to adjust its planning for the upcoming season at the end of a consulting project, but rather to start as soon as possible. You are to develop initial solutions for Chelsea FC based on a current financial plan that has not yet been revised in light of the Financial Fair Play regulations. This should enable you to implement the requirements of the Financial Fair Play regulations at an operational level. In doing so, you will also address possible strategic conflicts of objectives
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