Chelsea is in UEFA’s bad books, as they could face a ban from European competitions this season, including financial punishment, and will have a guiding plan on how to spend the club’s money for the next three years after breaching the European governing body’s spending limits.
UEFA has rejected the £200 million sale of the women’s team to sister company Blueco 22 Midco Ltd as the club was attempting to cover their financial losses from last season.
The Club registered an income of £ 76.5 million from the sale of two hotels to another sister company in June 2023, the amount decreased to £ 70.5 million to comply with the Premier League’s books and was removed from the UEFA sheet. As per UEFA rules, Assets sold to sister companies are not to be declared in the income of the club.
Now, Chelsea are in talks with UEFA over a settlement plan relating to the financial results of the year ending in June 2024.
The registered profit is £198.4 million and must be removed from their balance sheet. This is so the club can comply with UEFA’s limits on financial losses.
Each UEFA club can lose a maximum of £170 million over three years, and without the sales of its women’s team and the two hotels, Chelsea would have a three-year loss of £358 million.
UEFA has a rule that states clubs cannot exceed 80 percent of their revenue on player wages, transfers, and agent fees. But that is set to reduce to 70 per cent for next season.
Todd Boehly is ready to resolve the issue, and the settlement will be announced in May. Right now, Chelsea is fighting to qualify for the Europa League next season, although things are uncertain at this stage as the Blues must win in the UEFA Conference League to automatically qualify.
Chelsea will take on Legia Warszawa on April 10 in the Conference League at the Stadion Miejski Legii Warszawa im. Marszałka Józefa Piłsudskiego stadium.
