PREMIER LEAGUE
Spending spree may see Chelsea punished by UEFA
UEFA has given a warning to the Blues to balance their accounts as the current state of affairs does not sit well regarding Fair Play.
Chelsea are wading through stormy waters. UEFA have given a warning to the club’s board after trying to include in their accounts the sale of assets such as two hotels and the women’s team, all to Clearlake Capital, the investment group that owns the institution.
Although the Premier League have, as of yet, put any obstacles in the way when it comes to accepting Chelsea’s financial might, the continent’s top organisational body are reluctant to accept the London club’s way of living.
Could Chelsea be kicked out of the Champions League?
According to The Times, “UEFA confirmed that its rules do not allow clubs to record revenue from the sale of assets to sister companies, but stressed that all cases would have to be assessed individually by its independent panel”.
If they are unable to balance their books, Chelsea could face a sanction that would prevent them from playing in European competitions from next season.
While the Premier League is more relaxed in punishing losses in certain financial years, UEFA are keen to stop the spending. The Premier League allow clubs to lose up to a maximum of £105 million ($139 million) over a three-year period, but UEFA are clear that only a maximum of $45 million per season can be deducted from the budget for each financial year.
Chelsea’s losses over this time period exceed the limit, almost tripling it at $108 million. If they are unable to cope with this financial mess, the club could well be excluded from continental competitions, something which would hit them hard in terms of income. The clearest example would be AC Milan, who in 2018 reached an agreement with UEFA to serve a one-year ban from European soccer.
The unprecedented spending by Todd Boehly has caused first team manager Enzo Maresca to, on multiple occasions, comment on the size of his overflowing playing squad, saying that there are “15 to 20 players” who will not form part of his team this season and are training away from the rest of the players. Chelsea are, as a result, looking to offload these names, but high wages and long contracts will no doubt prove to be a stumbling block if indeed negotiations do happen for their outcasts.
The European transfer window deadline is looming large and the lights at Stamford Bridge look set to remain on all night as talks continue. It remains to be seen how they will manage to balance the books that are sitting on a knife-edge.