Chelsea are under threat of a future ban from European competitions, including the Champions League, Europa League and Europa Conference League for breaching UEFA’s stringent financial regulations.
Despite a turbulent season, the Blues have positioned themselves well for a return to the Champions League, which they haven’t featured in since their last appearance in the 2021/2022 season.
However, the West Londoner’s lavish spending in recent years may lead to complications with UEFA, whose financial rules are less lenient than those of the Premier League. Some of Chelsea’s accounting strategies, while acceptable domestically, are not recognized by Europe’s governing body.
For example, Chelsea reported a £198.7m profit last summer after transferring ownership of its women’s team to a sister company. A similar move in 2023 raised £76.5m by selling two of its hotels, previously owned by the club.
Selling assets to sister companies is permissible under Premier League rules but not under UEFA regulations. As a result, the substantial income generated from such deals must be excluded from the financial statements used to assess UEFA compliance.
Without the £275.2 million in additional income, Chelsea’s losses over the past three years amount to £358 million, far exceeding UEFA’s stipulated threshold of £170 million.
According to The Times, Chelsea are already in discussions with UEFA regarding a settlement that is expected to include a financial penalty and a “sustainability plan” outlining spending limits through to 2028. UEFA is likely to announce the final terms of this agreement next month.
However, given the previous breach, the settlement may also include stricter consequences, potentially even a ban from European competitions.
Olaoluwa is a dedicated sports writer and passionate football enthusiast with two years of experience. Known for his keen analysis and commitment to the game, his work reflects a deep love for football, blending strategic insight with the emotional moments that make it a global passion. He is focused on honing his skills and consistently aims to inspire and engage readers through every article he writes.
