Chelsea faces a fine and possibly European suspension for overspending as UEFA refuses to consider the £200 million sale of women’s team as income.

Chelsea face a European ban after UEFA declined their plea to sell their women’s squad to reduce financial losses.

SITUATION REPORT

The Blues squirmed their way out of violating financial fair play regulations in the Premier League by selling the women’s team for £200 million (€235m/$257m) to a sibling firm, Blueco, capping their losses and ensuring they suffered no punishment despite their huge expenditure under Todd Boehly. However, UEFA does not consider assets sold in this manner and hence declared Chelsea in violation of their rules.

 

As a result, the London club have gone into discussions with the governing body that, according to The Times will likely see them pay a settlement number and agree to a spending plan for the following three years. The possibility of a ban from European tournaments for a season might also be placed over Chelsea’s heads if they do not comply with the terms agreed or transgress limitations again.

According to UEFA, clubs can lose up to €200 million (£170 million) over three years, and without the money recorded from the sale of the women’s team and two hotels, Chelsea has a total three-year loss of £358 million.

WHAT IS NEXT?
The verdict on Chelsea’s punishment will be announced in May. However, the Blues have another issue: UEFA’s new restrictions would reduce the 80% of agreed-upon revenue for player pay, trades, and agency fees. That figure will drop to 70% by next season.