Chelsea Football Club has acknowledged ongoing discussions with UEFA regarding potential infractions of Financial Fair Play (FFP) regulations. The matter centers around the club’s financial records for the 12-month period ending in June 2024. Despite reporting a pre-tax profit of £128.4 million – their first since the acquisition by Todd Boehly’s Clearlake Capital-led consortium – the club is under scrutiny for certain financial maneuvers.
The profit reported includes a £200 million appraisal of Chelsea’s women’s team, which the club has restructured as a separate entity under a transaction involving its parent company, BlueCo. This repositioning is still pending approval by both UEFA and the Premier League. If endorsed, the figure would set a new benchmark for the valuation of a women’s football team.
On Saturday, Chelsea published their complete financial statements, noting they had entered into conversations with UEFA about factors that could impact their regulatory compliance. The club did not provide further detail but emphasized that mitigating elements were part of the discussion.
UEFA rules restrict financial activity between associated entities, which directly impacts Chelsea’s ability to count the £200 million women’s team deal in their FFP calculations. The same principle applies to the transfer of other club-owned assets to sister companies.
Specifically, last season saw Chelsea sell the Copthorne and Millennium hotels to a related company in a move intended to help satisfy the Premier League’s Profit and Sustainability Rules (PSR). These two properties were originally valued at £76.3 million in Chelsea’s accounts. However, the Premier League later adjusted that estimate downward by £6 million.
UEFA guidelines permit participating clubs to incur losses up to €200 million (approximately £170.1 million) over a three-year cycle. In the 2023/24 campaign, Chelsea’s expenditures on player acquisitions reached £553 million, while they brought in £208 million through player sales.
The discussions with UEFA aim to determine whether the club’s financial strategies fall within permissible boundaries and whether exceptions or justifications can be accepted under existing rules.
