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3w ago

Chelsea Negotiates UEFA Settlement Over Financial Breach

The club exceeded UEFA's financial loss limits after disallowed income from related-party transactions, with a decision expected by mid-May.

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The outcome of Chelsea’s settlement is due to be made public in mid-May

Overview

  • Chelsea breached UEFA's financial loss limits due to disallowed income from the £200m sale of its women's team and £76.5m from hotel sales to related companies.
  • UEFA's stricter financial rules, unlike the Premier League's, prohibit declaring income from related-party transactions, contributing to Chelsea's three-year loss of £358m.
  • The club is in discussions with UEFA over a settlement likely to include financial penalties and a spending plan for the next three seasons.
  • The £200m valuation of Chelsea's women's team has been criticized by financial experts as inflated, given its £11.5m turnover and £8.4m loss last season.
  • Chelsea's owners, Todd Boehly and Clearlake Capital, reportedly remain unconcerned and are maintaining positive relations with UEFA.