Chelsea are under scrutiny from UEFA after breaching the governing body’s financial regulations for the 2022-23 season, due to inflated income declarations involving internal sales to sister companies.
According to The Sunday Times, UEFA has rejected Chelsea’s inclusion of £200 million in revenue from the sale of their women’s team to BlueCo 22 Midco Ltd—a company also owned by the club’s ownership group—as part of their financial calculations. An additional £76.5 million from the sale of two hotels, including the Millennium Hotel, to another sister company has also been excluded.
With these amounts disallowed, Chelsea’s three-year financial loss stands at £358 million—well above UEFA’s limit of €200 million (around £170 million). While deductions are allowed for youth development, women’s football, and infrastructure investment, the club is still facing a significant shortfall.
A settlement is currently being negotiated with UEFA, likely involving a fine and a financial control plan spanning the next three seasons. If Chelsea breach the limits again, they could face a ban from European competitions. UEFA is expected to announce the settlement details in mid-May.
Unlike the Premier League, UEFA prohibits clubs from counting revenue from related-party transactions toward their profit and sustainability calculations. The Premier League does allow it—at least for now—a loophole that helped Chelsea avoid domestic penalties last season.
Chelsea’s most recent financial statements, published via Companies House, confirmed a paper profit of £198.7 million from the women’s team sale. However, doubts remain over the true market value of the team, whose revenue last season was just £11.5 million, with a loss of £8.4 million. Experts in women’s football finance estimate a more realistic valuation would fall between £50–80 million.
Additionally, the Premier League has yet to approve Chelsea’s £76.5 million valuation of the hotels, forcing the club to reduce the reported income by £6 million. The accounts also include a £17.1 million recharge to the parent company BlueCo 22 Ltd—recorded as “other operating income”—which Chelsea claims is linked to the acquisition of the club and not a regular operational expense.
Sources close to the matter say Chelsea’s owners, Todd Boehly and Clearlake Capital, remain calm and are working cooperatively with UEFA. Several other European clubs are also believed to be in breach of similar financial rules.
Though these asset sales helped Chelsea pass the Premier League’s Profit and Sustainability Rules (PSR), future assessments could be impacted. The Premier League is still reviewing the £200 million women’s team valuation, which could be downgraded.
The most expensive sale of a women’s football team remains the $250 million (£194 million) acquisition of Angel City FC in the US. That club posted revenue of £24 million last year—more than double Chelsea Women’s.
As pressure mounts from both domestic and European regulators, Chelsea may have to dramatically tighten their spending and reassess how they account for intra-group transactions moving forward.
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