Chelsea FC faces potential exclusion from European competitions, including the Champions League, after violating UEFA’s financial regulations. Despite their improved performance this season giving them a chance to qualify for the Champions League, their financial practices have put them in a precarious position.
The club recorded a £198.7 million profit by selling their women’s team to a sister company, and previously raised £76.5 million through a similar transaction involving two hotels. While these asset sales to related entities comply with Premier League rules, UEFA does not recognize such transactions when assessing financial compliance.
Without these £275.2 million in transactions, Chelsea’s three-year losses total £358 million, significantly exceeding UEFA’s permitted threshold of £170 million. According to The Times, Chelsea is currently negotiating with UEFA on a settlement that will likely include a fine and a “sustainability plan” governing their spending until 2028.
The consequences could be severe. As a repeat offender of financial regulations, Chelsea risks harsher penalties, potentially including a ban from European competitions. UEFA is expected to announce the details of the settlement next month.
Financial experts have also questioned the valuation of these transactions, particularly whether the women’s team is genuinely worth £200 million given its revenue and recent financial performance. The Premier League had already forced Chelsea to reduce the value of the hotels deal by £6 million, and similar adjustments might be required for the women’s team transaction.
This situation highlights the growing tension between ambitious club spending and UEFA’s increasingly strict financial sustainability rules, which aim to ensure fair competition across European football.