Unlike a lot of people on this board I think 4-2-3-1 is the best formation for this team because Mata is our best player and the 4-2-3-1 allows him to play in his best position and subsequently make everyone around him better. So to see what needs improvement I looked at what players were undroppable, this short list was Cech, Cole, Luiz, Azpi, Mata, and Hazard. Every other position lacked players who I would be comfortable with fielding week in week out against any competition in the world.
The places I feel need to be addressed are the backup goalkeeping positions, an elite CB, and elite defensive midfielder and a starting striker.
Firstly all the players out of contract would be released
- Turnbull
- Hilario
- Ferreira
- Benayoun
- Malouda
Players to be loaned:
- Courtois - Atletico Madrid: conditional on them buying Torres
- Omeruo - Premier League Club
- Kalas - West Brom
- Chalobah - Premier League Club
- Mcechran - Watford
- Piazon - Malaga
- Thorgan, Wallace - Vitesse
- Lukaku - Swansea
- Bertrand - Premier League Club
Players Transferred Out:
- Fernando Torres - Atletico Madrid (10M): conditionally on Atletico being loaned Courtois again they must purchase Torres, there are also in need of a striker with Falcao leaving this summer.
- Marko Marin - Bundesliga or used in deal to acquire another player (4M): he's weak on the ball, can't defend anything, his size is a hindrance, he is simply not good enough for this team
- Oriol Romeu - La Liga or used in deal to acquire another player (5M): he will be 22 by the start of next season and has only started a whopping 24 games in his career in the top flight, despite his La Masia pedigree he has never shown anything special
- Kakuta - anywhere (3M): not good enough
- Bruma - PSV (4M): not good enough
Transfer income: 26M
Total Transfer kitty: 126M
Players Transferred In:
- Patrick Van Aanholt LB - Vitesse (loan recall): better then Bertrand
- Kevin De Bruyne AM - Werder Bremen (loan recall): versatile attacker, brings width and great in the final third
- Robert Green GK - QPR (2M): solid backup, already lives in London
- Mark Schwarzer GK - Fulham (free): see Rob Green
- Luke Shaw LB - Southhampton (15M): will be immediately loaned back to Southampton
- Neven Subotic CB - BVB (20M): Big physical defender, the anchor for the back 4
- Milan Badelj DM - Hamburg (15M): Big physical central midfielder that can pick a pass and put out fires
- Roberto Soldado ST - Valencia (20M): Small stature but great a linking up with the midfield and puts in a shift off the ball
Total Spend: 72M
Transfer surplus of 54M for the January Transfer Window
Starting Lineup would look like: 
Bench: Schwarzer, Cahill, Ivanovic, Ramires, Oscar, Moses, Ba
Secondary team would look like: 
