The Premier League has permitted Chelsea to record the sale of two hotels to a sister company for £76.5 million ($101 million) and to transfer ownership of the women’s team to the club’s parent company. However, UEFA has clearly stated that such transactions are not allowed under its financial regulations. Each case will be reviewed individually by UEFA’s independent panel, but the overarching message is that these types of financial maneuvers will not be accepted.
According to The Times, any penalties resulting from a breach of UEFA’s financial rules would not affect Chelsea’s participation in this season’s Conference League but could be applied before the next season begins. UEFA’s Club Financial Control Body has a range of sanctions at its disposal, from warnings and fines to more severe actions, such as banning a club from European competitions. A notable example of this is AC Milan’s one-year exclusion from European football in 2018 due to multiple Financial Fair Play (FFP) violations.
In an interview with The Times, Kieran Maguire, a football finance expert, commented, “Chelsea’s compliance with UEFA’s Financial Sustainability Rules could be particularly challenging given that UEFA is less lenient with real estate transactions involving related or associated parties. This might also be relevant if the women’s team has been transferred to another entity within the Clearlake-Boehly group.”
Chelsea’s situation is further complicated by UEFA’s stricter financial regulations compared to those of the Premier League. The new “football earnings” rule allows clubs to incur losses of only €40 million (around £34.5 million) over two seasons (2022-23 and 2023-24), which is much more stringent than the Premier League’s limit of £105 million ($138.5 million) over three years.
Chelsea reported a loss of £89.8 million ($118 million) for the 2022-23 season, which was worsened by the absence of Champions League revenue. The situation is even more concerning as the club continued to spend heavily this summer, further straining their financial position. Todd Boehly and his partners need to be cautious, as UEFA has kept Chelsea under scrutiny since September 2022, along with 19 other European clubs. While the governing body has not yet imposed sanctions due to various Covid-related considerations, this could change next season if Chelsea qualify for a European competition following a significant squad overhaul under Enzo Maresca.
As UEFA continues to tighten financial oversight, Chelsea must find a way to navigate these challenges. While their place in this season’s Conference League is secure, the future looks uncertain, as the governing body could impose severe penalties for any financial rule breaches.
Chelsea performance and stats
Chelsea
It has a even goal difference after scoring 0 goals and conceding 0.
Chelsea will play the next match in Europa Conference League against Servette on Thursday 29th of August in Carouge. The prediction is Chelsea winning the match.
