Chelsea face the threat of a future ban from European football, including the Champions League, after violating UEFA’s strict financial regulations.
Despite a tumultuous season, the Blues have put themselves in a strong position to qualify for the Champions League for the first time since their last top-four Premier League finish in 2022. However, their significant spending in recent years has raised concerns with UEFA, who do not accept some of the financial practices the club has used to sidestep potential sanctions from the Premier League.
Last summer, Chelsea recorded a £198.7m profit by selling their women’s team to a sister company, a move that was repeated in 2023 with the sale of two hotels for £76.5m. While selling assets to sister companies is allowed under Premier League rules, it is not accepted by UEFA. As a result, these large sums must be excluded from the financial record used to assess compliance. Without this £275.2m in extra revenue, Chelsea’s losses over the past three years total £358m, far exceeding UEFA’s permissible loss threshold of £170m.
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According to The Times, Chelsea are already in discussions with UEFA about a potential settlement, which is expected to include a fine and a “sustainability plan” to regulate their spending until 2028. UEFA is likely to announce the details of this settlement next month.
However, due to their breach of the rules, Chelsea could face harsher penalties, including a ban from European competitions. Even under the Premier League’s scrutiny, the value of the hotel sale was reduced by £6m, and similar adjustments could be made regarding the sale of the women’s team. There are ongoing questions about whether the £200m valuation of the team is fair, considering Chelsea’s recent revenues and financial losses.
