(Credit: Getty Images)

Ben Palmer

Sun 6 April 2025 9:00, UK

Chelsea face the possibility of a future ban from UEFA competitions after breaching limits on financial losses.

UEFA have rejected the Chelsea’s £200million sale of the women’s team to a sister company, as the club attempted to cover their financial losses from last season.

That deal helped the Blues post a profit for the 2023-24 campaign and avoid punishment under profit and sustainability rules (PSR).

However, PSR is the Premier League’s ruleset, and whilst Chelsea have avoided punishment from the English authorities so far, with the Premier League yet to clear the deal, it has been snuffed out by UEFA, who operate a different set of rules, The Times reports.

Chelsea negotiating settlement with UEFA

Chelsea are now reportedly in talks with UEFA over a settlement for the overspend, and the Blues are likely to pay financial penalty, whilst also agreeing to a spending plan for the next three seasons which would carry the threat of a ban with an additional breach in future.

As opposed to the Premier League, UEFA do not allow clubs to declare income from selling assets to sister companies.

Not only did the Blues sell their women’s team, but the club also registered an income of £76.5million from the sale of two hotels to another sister company in June 2023, which was revised down to £70.5m when the Premier League did not accept the original evaluation.

That sum has also had to be removed from Chelsea‘s balance sheet for UEFA’s financial ruling.

That plan could also include the threat of much harsher sanctions, should they breach the limits again, including exclusion from European competition for a season. UEFA will make the outcome of the settlement public in mid-May.

UEFA ruling comes at awkward time for Chelsea

Football Insider Verdict

Chelsea currently find themselves walking a tightrope. The club are desperate to keep pace with their rivals, but are going about it in a rather haphazard manner.

The first instinct for any football fan that heard the Blues had sold the women’s team for £200million was likely to be “really?”.

But not for any doubting of their quality, with the women’s team currently a fine example for the men’s on how to win football matches, but more so, that number is about half of what Billy Foley paid for Bournemouth in 2022.

Even to the untrained eye, that figure was, to put it kindly, somewhat surprising. But with the wider context of Chelsea news, it is easy to see why Todd Boehly and Co. are keen to improve finances where possible.

Chelsea are attempting to build a new stadium, or upgrade Stamford Bridge, as the club are beginning to lag behind their rivals in matchday revenue, sitting sixth out of Premier League clubs [BBC Sport].

What’s more, although they have current passed PSR for this year, expensive signings don’t pay for themselves, until you start winning major competitions, and Chelsea continue to splash the cash on teenagers from abroad like Geovany Quenda and Estevao Willian, who are potentially half a decade or more away from reaching their peaks.

Should the Blues find their way through this financial maze sometime soon, they may emerge with one of the most talented squads in Europe, and some healthy cash balances to match, but as things currently stand, that seems a long way off.