Premier League clubs are fuming after Chelsea seemingly sidestepped Profitability and Sustainability Rules (PSR) through a controversial property deal, the Guardian reports.
The club’s accounts revealed a £76.5 million sale of two hotels to a sister company, significantly improving their financial standing.
Chelsea’s annual loss was reported as £89.9m for 2022/23. Without the hotel deal, their losses would have ballooned to a staggering £166.4m.
Further scrutiny has exposed an additional £30.6m in ‘other operating income’, with questions surrounding a £17.1m ‘litigation cost’ charge and a mysterious £12.5m settlement fee.
According to Chelsea’s accounts, signed off in December 2023, six months after the deal took place, the sales haven’t been assessed for ‘fair market value’ under the league’s Associated Party Transaction (APT) rules.
This means the valuation could change, which could impact Chelsea’s financial statements and potentially put them back in hot water.
Neither Chelsea nor the Premier League have commented on the completion of this fair market value assessment.
This isn’t the first time Chelsea’s ownership has come under fire for financial manoeuvring.
Their well-documented £1 billion spending spree saw players signed on lengthy contracts of up to eight years to spread amortisation cost and avoid financial penalties.
While the Premier League subsequently shut down that loophole, Chelsea’s latest move suggests the club are persistent in their bid to continue pushing the boundaries of PSR compliance.
Despite their relentless spending spree, the Blues remain confident that they will continue to comply with the regulations, but their summer plans may be affected by their financial indiscretions.
Chelsea may be forced to raise funds through player sales before launching another assault on the transfer market, with several homegrown talents already on the chopping block.
Conor Gallagher, Ian Maatsen, Trevoh Chalobah, and Armando Broja have all been put up for sale as the club plots another major restructuring this summer.
