Chelsea Football Club may face a ban from European competitions for not following UEFA`s financial rules, according to reports.
Recently, Chelsea sold their women`s team for a record-breaking £200 million.
However, because Chelsea Women were sold to Blueco 22 Midco Ltd, a company related to Chelsea`s owners, UEFA does not consider the £200 million sale as actual income.
UEFA regulations state that clubs cannot lose more than £170 million over a three-year period.
When the money from the women`s team sale is not counted, Chelsea`s losses over the last three years are estimated to be £358 million. It`s possible that money spent on the women`s team, youth academy, and infrastructure could reduce this total.
Sources indicate that Chelsea officials are in discussions with UEFA to find a solution.
They might agree on a “sustainability” plan to ensure Chelsea meets financial rules in the future.
It is understood that Todd Boehly and the Chelsea management are not overly worried about the situation because they have a good relationship with UEFA.
However, if Chelsea violates UEFA`s financial rules again, they could be banned from European competitions.
While Chelsea is facing scrutiny from UEFA, they are within the Premier League`s financial rules.
Unlike UEFA, the Premier League allows clubs to count sales to related companies as revenue.
Last summer, Premier League clubs voted on whether to close this “loophole” but decided to keep it open.
Chelsea recently announced a revenue of £468.5 million for the financial year ending June 30, 2024.
This is less than the £512.5 million from the previous year, mainly because they did not participate in European competitions last season.
Chelsea is currently aiming to qualify for the Champions League again after a two-year absence and are in a good position in the Premier League to do so.
Chelsea is also expected to earn a significant amount of money from participating in the Club World Cup this summer.
UEFA has announced that the winner of the Club World Cup could receive almost £100 million in prize money, and Chelsea could earn up to £68 million just for winning their group stage matches.
