Chelsea in talks with UEFA over potential breach of financial regulations

The Premier League club has opened talks with Uefa over their financial results for the year ending June 2024. While Chelsea posted a pre-tax profit of 128.4m pounds - their first profit since Todd Boehly's Clearlake Capital consortium took control of the club - some of the figures have raised questions.

Notably, this includes the club's 200m pounds valuation of their women's team, which is being restructured as a separate entity under parent company BlueCo by the end of the season. If approved, this valuation would set a record for a women's football team, but it has not yet been greenlit by either Uefa or the Premier League.

On Saturday, Chelsea released their detailed financial accounts, which included a statement confirming that the club is "in discussions with Uefa regarding mitigating factors affecting their regulatory submissions."

Uefa's FFP rules prohibit the inclusion of transactions involving associated parties, meaning any income generated from the sale of the women's team would not count towards Chelsea's FFP figures. Similarly, money made from the sale of two hotels to a sister company - a move made to meet the Premier League's profit and sustainability rules last season - would also be excluded. In their last set of accounts, Chelsea valued the sales of the Copthorne and Millennium hotels at 76.3m pounds, although the Premier League subsequently adjusted that figure by reducing the valuation by £6m.

Under Uefa's FFP regulations, clubs competing in European competitions are permitted to incur a total loss of 200m euros (170.1m pounds) over a three-year period. Chelsea's spending during the 2023/24 season was substantial, with £553m outlayed on player purchases, though they also generated 208m pounds from player sales.

With these financial complexities now under scrutiny, Chelsea will need to ensure they meet Uefa's stringent requirements while also navigating their ambitious spending and restructuring efforts. 

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