Chelsea have announced a pre-tax profit of £128.4 million for the financial year ending June 2024, marking their first positive results since Todd Boehly’s Clearlake Capital consortium took over the club.
The significant profit was largely attributed to the “repositioning” of Chelsea’s highly successful women’s team as a separate business, following a similar strategy in their previous financial results when the club sold two hotels to a sister company. These moves were designed to ensure compliance with the Premier League’s Profit and Sustainability Rules (PSR).
Chelsea have already been cleared of any PSR breaches, along with all other Premier League clubs, after submitting their accounts by the December 31, 2024, deadline.
UEFA’s Stricter Rules Could Pose Challenges
While the Premier League has no regulations concerning associated party transactions (APTs)—allowing Chelsea to benefit from these financial restructuring moves—UEFA’s Financial Fair Play (FFP) rules take a tougher stance.
Under UEFA’s framework, APT-related profits, such as the sale of Chelsea’s women’s team and hotels (£76.6m), would not count toward financial compliance. This could weaken Chelsea’s financial position over UEFA’s three-year monitoring period, where clubs are only allowed to report a maximum loss of £75m, compared to the £105m threshold permitted by the Premier League.
Any cases under UEFA’s jurisdiction would be assessed by an independent panel, with potential fines or financial settlements—though severe sporting sanctions are unlikely. In 2022, Paris Saint-Germain (PSG) were fined £8.6m for breaching UEFA’s FFP rules.
With Chelsea currently sitting fourth in the Premier League and poised to qualify for one of UEFA’s competitions next season, their finances will come under greater scrutiny.
Past and Future Financial Implications
Chelsea were also fined £8.6m in 2023 over historic FFP breaches during Roman Abramovich’s ownership, which remains under Premier League investigation.
Football finance expert Kieran Maguire weighed in on Chelsea’s financial strategies:
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He acknowledged that Chelsea’s profit level is unprecedented and that there is no clear valuation of a women’s team in such transactions.
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The Premier League had the opportunity to investigate but chose not to, indicating its satisfaction with Chelsea’s compliance.
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He noted Chelsea’s prime London location makes selling real estate assets like hotels a more viable strategy compared to other clubs.
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He pointed out that other club owners have sought to outlaw these financial loopholes, as such transactions are not allowed in the EFL (English Football League).
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He suggested UEFA’s complex rules could still create challenges for Chelsea, as it’s not guaranteed that these profits will be fully recognized under UEFA’s FFP regulations.
Maguire also contrasted Chelsea’s situation with Nottingham Forest and Everton, who both received points deductions for overspending, despite spending far less money than Chelsea.
“The Premier League owners have decided to allow this particular feature, and while it may seem strange, it’s their rules,” he said.
What’s Next for Chelsea?
With UEFA’s stricter regulations looming, Chelsea could face financial penalties if their restructuring strategy does not align with European football’s financial framework. However, as UEFA has historically preferred fines over sporting punishments, Chelsea’s on-field performance is unlikely to be affected.
As the club pushes for Champions League qualification, their financial management will remain under intense scrutiny in both domestic and European football governance.
