Chelsea are facing the threat of a UEFA ban from European competitions after attempting to dodge financial fair play rules by selling their women’s team for £200m [$257m] to sister company BlueCo.
While the sale helped Chelsea stay within Premier League financial limits, UEFA does not recognise internal transactions of this kind as valid income. Without that revenue, and the sales of two hotels also excluded, Chelsea’s three-year financial losses stand at £358m [$462m], well above UEFA’s permitted £170m [$220m] threshold.
Under EPL rules, the sale allowed Chelsea to restrict losses and avoid punishment despite heavy spending since Todd Boehly and BlueCo took charge in 2022.
But UEFA’s stricter financial sustainability regulations tell a different story. They view the internal asset sales as artificial revenue, leaving Chelsea in danger of a clear rule breach. A decision on possible sanctions against them is expected in May.
Could Chelsea be banned from Europe?
One of the most damaging potential outcomes is a ban from European domestic tournaments, even if Chelsea qualify. Whether through a top-six/seven Premier League finish, or by winning the UEFA Conference League, the Blues could still be blocked from entering next season.
Such a ban would hurt Chelsea financially and their reputation, affecting sponsorships, matchday income and their ability to attract elite players.
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Next season will bring even more pressure as UEFA’s new rules will cap spending on wages, transfers and agent fees at 70% of club revenue, down from 80%, making financial discipline even more critical.
According to The Times, Chelsea and UEFA are in talks over the possible punishments for the London giants. The publication suggests a fine and a spending plan are the most likely outcomes. For now, Chelsea’s bold workaround may have bought them time domestically, but it could cost them on the European stage.
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