Chelsea facing penalty after ‘breaching UEFA FFP limits with loophole rejected’

**Chelsea facing penalty after ‘breaching UEFA FFP limits with loophole rejected’**

Chelsea could face consequences after reportedly violating UEFA’s financial regulations.

On Saturday morning, reports surfaced claiming Chelsea had “breached UEFA’s financial loss limit.” The Times journalist Martyn Ziegler posted on social media: “Exclusive: Chelsea have breached UEFA financial loss limit & are in talks over a settlement. It comes after UEFA would not allow £200m world record value sale of women’s team to sister company to be treated as income.”

The report also stated that Chelsea is negotiating with UEFA over a settlement, which could include a fine and a ‘spending plan’ for the next three seasons.

The Times added: “That plan could include the threat of harsher penalties, such as exclusion from European competition for a season if they breach the limits again.”

The outcome of these discussions is expected to be announced by UEFA in May.

**Chelsea could face UEFA punishment after ‘loophole’ rejected**

Chelsea’s owners raised nearly £200 million by selling the club’s women’s team to sister company Blueco 22 Midco Ltd. Additionally, Chelsea registered £76.5 million in income from selling two hotels to another sister company in June 2023. This move helped them comply with the Premier League’s Profit and Sustainability Rules.

However, it has been reported that, unlike the Premier League, UEFA’s financial regulations do not permit income from asset sales to sister companies.

Under UEFA’s regulations, clubs are allowed to lose a maximum of £170 million over three years, but Chelsea has reported a total loss of £358 million.

Sources suggest that Chelsea’s owners, Todd Boehly and Clearclarke, are “relaxed about the position and maintaining good relations with UEFA.”

In addition to Chelsea, it has been claimed that at least three other clubs have also violated UEFA’s financial rules.