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Anyone who will rate Chelsea as an average or small club probably just started watching football games recently because how will you rate Chelsea as a small club. Chelsea as a football club is 120 years old and in these years they have achieved so much to be rated as an elite club and their reputation speaks volume.
I don't think he's referring to the the number of years Chelsea has been in existence when he said Chelsea is a small club. I think he was referring to Chelsea not having history in the 70s and 80s. Chelsea is just a team that came out to the limelight from 2004 when Jose Mourinho won them the premier league. Chelsea is a big team, but they are not an elite club. Real Madrid, Barcelona, Manchester United, Liverpool, Bayern Munich. AC Milan etc. these teams are elites clubs.