Chelsea Exclusive: Big points deduction update today after surprise twist
Chelsea have avoided a potential profit and sustainability (PSR) breach for 2022-23 after their hotel sales were approved by the Premier League, sources have told Football Insider.
Chelsea’s latest published accounts revealed they sold two Stamford Bridge hotels to a sister company last year for a total of £76.5million.
That meant their losses fell from potentially as high as £166.4million to £89.9million for the 2022-23 financial year alone.
ESPN reported on 4 September the Premier League has now ratified the hotel sales after it conducted a “fair market valuation” under the associated party transaction (APT) rules.
Sources have told Football Insider Chelsea would have failed the PSR rules had the Premier League not approved the sales, in what has been deemed a surprise in many quarters.
The likely punishment would have been a points deduction after Everton and Nottingham Forest were both docked points last season following their spending breaches, but the London giants will not suffer a similar fate after they have now passed PSR for 2022-23.
Chelsea likely to be hit with fine after potential Uefa breach
Chelsea are expected to have been close to the spending limit again last season, with the PSR rules stating top-flight clubs can lose a maximum of £105million over a rolling three-year period.
In a further attempt to offset their major losses, the Premier League side sold their women’s team to a sister company in June this year, with the deal believed to be worth in excess of £150million.
The Times reported on 28 August Uefa has confirmed clubs will not be permitted to register earnings from selling assets to sister companies, meaning Chelsea are likely to have breached the governing body’s financial rules.
But finance expert Stefan Borson told Football Insider the west London club likely always expected to break those rules and will pay whatever fine comes their way.
The Premier League proposed to close the loopholes Chelsea have exploited at its annual general meeting in June, but it was left two votes short after only 11 clubs backed the motion.
The governing body is believed to be considering a fresh bid to change the rules and could ask clubs to vote on its new proposal later this month.
Football Insider revealed on 9 August the Premier League would likely succeed with a new motion if the changes are more closely aligned with the current Uefa rules.
That would mean the regulations would be more focused on football-related profits as opposed to profits generated from non-football-related assets – ensuring at least some of the loopholes would be closed.
In other news, fans stunned by “corrupt” Premier League after Chelsea news.
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