Recent financial reports have highlighted Chelsea’s efforts to navigate the Premier League’s Profit and Sustainability Rules (PSR) through unconventional means. The club’s American owners have been criticized for employing accounting strategies that some view as questionable.
Chelsea has sold several assets to entities within the same ownership group, including two hotels for £76.5 million and, most notably, the Chelsea women’s team for £200 million. This transaction was made just before the deadline for submitting the 2023-24 financial reports, helping the club post a significant profit instead of a substantial loss. The women’s team, which had a turnover of around £11.5 million and incurred a loss of £8.7 million, was valued at over £150 million in the sale.
The sale of the women’s team to Blueco 22 Midco Ltd, a company within the same ownership structure, contributed to Chelsea’s reported profit of £128.4 million for the year. This figure contrasts sharply with the previous year’s loss of £90.1 million. The move allowed Chelsea to avoid breaching PSR, which limits clubs’ cumulative losses over three years.
However, UEFA’s Financial Fair Play (FFP) regulations do not permit the inclusion of asset sales to affiliated companies as legitimate income. This discrepancy could lead to Chelsea facing penalties from UEFA, as they have been found to exceed spending limits. Discussions are ongoing between Chelsea and UEFA, with a financial penalty expected.
The tactics employed by Chelsea’s owners have been met with skepticism and criticism. Many question the legitimacy of valuing the women’s team at such a high figure, given its modest revenues and significant losses. The Premier League has not yet confirmed whether the sale price reflects fair market value.
In summary, Chelsea’s financial maneuvers have raised eyebrows in the football world, with concerns about the club’s compliance with both Premier League and UEFA financial regulations. The outcome of ongoing discussions with UEFA will be closely watched, as it may impact Chelsea’s future participation in European competitions.