The Stamford Bridge legend isn't happy with the way his former club have started the season under new manager Mauricio Pochettino.
Despite over £1billion of investment in players since American owner Boehly took over last year, the Blues sit 14th in the Premier League having won just one of their opening six games.
But former defender Leboeuf has taken aim at how Chelsea are being run, saying it is hampering their prospects of signing the world's best players.
Chelsea have struggled during the early weeks of the season, winning just one of their first six games in the Premier League to languish down in 14th place
Chelsea owner Todd Boehly has splashed out over £1billion on new players since taking over
Chelsea legend Frank Leboeuf says he is 'disgusted' with the way Chelsea have declined
'Let's be realistic - Chelsea are a mid-table club,' he told CasinosEnLigne.com.
'Attracting players will be tough and players like [Kylian] Mbappe won't want to come. The big players want to play in the Champions League.
'Arsenal had that problem for years, and so did Manchester United. Top players won't come to Chelsea because the club has fallen.
'It's unbelievable what the club has become just two years on from their Champions League win. I'm disgusted with it.
'I have nothing against Todd Boehly, but they need to change things quickly or else they'll kill the club.
'I'd say the people in charge of recruitment are the most to blame. It's OK to sign young players to long contracts if they're committed, but the board has forgotten to balance the team.
'The spine of the team is very young apart from [Thiago] Silva and there's not much experience there. Even Enzo Fernandez looks very young, despite knowing the game inside out.'
Leboeuf added: 'I don't see the leadership, and that's the main problem. The recruitment team didn't think of that, and I think everybody is responsible.
Mauricio Pochettino hasn't been able to improve Chelsea's fortunes right away after coming in
Leboeuf believes Chelsea should try and capitalise on Victor Osimhen's problems at Napoli
'Boehly approved the deals and Pochettino is in charge. If I was asked to manage Chelsea, even I'd say no!
'The lack of leadership is an irreversible problem - and I don't know how they can fix that.'
Leboeuf, 55, suggested Chelsea should capitalise on Victor Osimhen's problems at Napoli to sign the Nigerian hotshot in January.
He added: 'Chelsea also need help in midfield, someone like Toni Kroos or Luka Modric. They may be older and not play as many games but they could definitely serve the club well.'