Chelsea facing potential UEFA fine

Chelsea are reportedly facing a potential UEFA fine after breaching the governing body’s limits on financial losses.

It is claimed that UEFA is unwilling to accept the sale of the club’s women’s team as a valid source of income.

The Blues recently sold their women’s team to a sister company for approximately £200million, following previous transactions in which they sold hotels to another sister company.

According to The Times, discussions between Chelsea and UEFA are ongoing regarding the punishment for the club, with a fine and a spending plan likely being the most probable outcomes.

Further breaches could result in a ban from European competition, with the final resolution of the matter expected by May, the report states.

Chelsea are currently competing in the UEFA Conference League.

They topped their group stage with a perfect record, winning all their matches, and secured a place in the quarter-finals after defeating FC Copenhagen in the round of 16. The Blues will now face Legia Warszawa in the next stage.

On Monday, Chelsea reported pre-tax profits of £128.4million, partially due to the “repositioning” of their women’s team.

The club cited a “profit on disposal of subsidiaries of £198.7million,” primarily stemming from the sale of the women’s team to BlueCo.

However, UEFA and the Premier League differ in their financial regulations.

UEFA allows a maximum loss of £170million over a three-year period, and the £200million from the sale of the women’s team pushed Chelsea beyond that limit, though it was accounted for in the Premier League’s Profit and Sustainability Rules (PSR).

The Times also mentions that at least three other clubs are believed to have breached UEFA’s financial rules, although their identities have not been disclosed. Despite the issue, Chelsea co-owner Todd Boehly is said to remain unruffled by the situation.