THIS IS WHY ANCHELOTI IS AT CHELSEA.

Carlo Anchelotti is still the coach of Chelsea , even though they have slipped to the fifth position in the E.P.L.The main reason is that Chelsea and its owner Roman Abrohomovic, is very keen to cut spending. So he got rid of Ricardo Carvalho, Juliano Belletti, Deco, Michael Ballack, all old wood.This year Chelsea has a loss of 40 million pounds already.
And now if they sack the Italian Carlo Anchelotti , Chelsea will have to pay him a compensation of 10 million pounds, this will then make a straight loss of 50 million pounds. The owner does not even want to buy new players in January tranfer window. He wants to do it in the summer.
And the players from the youth team have not done so well as expected, plus the main ones like Drogba, tery , Lampard are in their thirties now.

CLUBS CUT FUNDS AND REDUCE SPENDING IN THE SUMMER.

In the summer of 2010- 2011,clubs had to cut down in spending and reduce in buying players as well as get rid of old dead wood. For example Chelsea did not renew the contracts of Ballack, Belletti, Deco and carvalho all over 30 years with huge weekly salaries. The five top league cut their spending by 1.32billion Euros, or 1.69 billion dollars. Clubs also cut their squads by a total of 546 players. to reduce their costs, at the same time investments in foreign talent also saw a big decline as Spain have increased their taxes and in England the new rule comes in September only 25 players and eight homegrown players come in force.

Spains La Liga saw a decline by 45 percent. In France Ligue1 saw 45 percent , while in England the decline was less it fell by 15 percent only.The big clubs like Barcelona , Real Madrid, Chelsea and Manchester United were very quiet in the market. But Manchester city spent merrily well over 100 million pounds.