Chelsea at risk of Champions League ban over financial breaches

Chelsea are at risk of being banned from European football in the future – including the Champions League – after falling foul of UEFA's strict financial rules.

The Blues have endured a rollercoaster season but have given themselves a strong chance of getting into the Champions League for the first time since their last top four Premier League finish in 2022.

Yet Chelsea's heavy spending in recent seasons looks set to get them in trouble with Europe's governing body, who don't accept some of the same accounting practices the club has made use of to avoid potential sanctions from the Premier League.

Selling assets to sister companies is acceptable under Premier League regulations, but not UEFA. So the lucrative sums brought in from those deals must be struck from the financial record used to determine compliance. Without the £275.2m in extra income, Chelsea's losses over the last three years reach £358m, well over the permitted UEFA threshold of £170m.

The Times writes that Chelsea are already in talks with UEFA over a settlement "likely to involve" a fine being paid, as well as agreeing to "sustainability plan" on future spending up to 2028. UEFA are expected to make details of the eventual settlement public next month.

But due to breaking the rules once, it is possible that harsher punishment – which includes being banned from European competition – could be written into any such plan.

Even under the Premier League watch, Chelsea had to reduced the value of the hotels deal by £6m and the same could yet happen in the case of selling off the women's team. There are doubts about whether £200m is an accurate and fair value, given revenues and recent losses.

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