Chelsea are in talks with UEFA over a financial settlement after breaching European spending limits, with a fine and potential future ban from European competitions on the table.
Chelsea have breached UEFA’s financial rules for the 2023-24 season after the governing body refused to count £276.5m of income from intra-group sales — including the controversial £200m valuation of the women’s team — towards Financial Fair Play (FFP compliance). As a result, Chelsea are negotiating a financial penalty and a “sustainability plan” that would cap future spending and introduce stricter oversight. A future ban from European competition is a potential sanction if further breaches occur.
UEFA’s rules differ from the Premier League’s — which allowed Chelsea to declare these intra-group sales as profit and thus avoid breaching PSR rules. Without those sales, Chelsea’s losses total £358m over the past three seasons, more than double UEFA’s €200m (£170m) limit. UEFA’s squad cost rule, which caps football-related spending at 80% of income, will tighten to 70% next season — placing further pressure on Chelsea’s finances.
Premier League authorities are still reviewing the women’s team valuation for fair market value and have already reduced the value of Chelsea’s hotel sale by £6m. While Chelsea remain optimistic and cooperative in talks with UEFA, experts question the club’s aggressive valuations, particularly given Chelsea Women’s £11.5m revenue and £8.4m loss last season.
