Chelsea risk BAN from Europe after breaking Uefa’s strict financial rules despite internal £200m sale of women’s team
CHELSEA risk being banned from Europe after breaking Uefa’s financial rules, according to reports.
The Blues recently sold their women’s team for a world-record £200million.
Due to Chelsea Women being flogged to sister company Blueco 22 Midco Ltd, however, Uefa do not recognise the £200m from the sale as revenue.
Uefa rules dictate that clubs within its jurisdiction cannot make a loss of more than £170m over three seasons.
Deducting money raised through sales to their sister company, Chelsea’s losses over the last three years are set to total £358m – although cash spent on the women’s team, academy and infrastructure could yet be deducted from the total.
According to The Times, Blues chiefs have entered talks with Uefa over reaching a settlement.
The two parties could agree upon a “sustainability” plan in order to ensure that Chelsea comply with financial rules in future.
Todd Boehly and Co are said to be “relaxed” regarding the situation, largely owing to their positive relationship with Uefa.
Should the Blues break Uefa’s financial rules again in future, however, they would risk being banned from European competitions.
While finding themselves in hot water with Uefa, Chelsea are fine when it comes to the Premier League’s financial rules.
Unlike Uefa, Prem clubs are allowed to declare sales to sister companies as income generated.
Last summer the “loophole” was subject to a vote by Prem clubs, who opted against closing it.
Chelsea last week announced £468.5m revenue for the financial year ending June 30, 2024.
This was down from £512.5m the previous year, owing to their absence from Europe last season.
The Blues went into this weekend fourth in the Premier League with eight games remaining.
Enzo Maresca‘s side are aiming to return to the Champions League following a two-year absence.
The Blues are set to earn handsomely from their participation in the Club World Cup this summer.
Uefa have confirmed that the winners of the competition stand to earn nearly £100m in prize money, while the Blues could earn as much as £68m for just winning their three group matches.