BREAKING: Chelsea currently face risk of European ban as Todd Boehly financial loophole is discarded by UEFA

Chelsea is at risk of being disqualified from European competitions as a result of a recent financial regulation.

After UEFA’s confirmation of its position on income registration, the Blues are now confronted with the challenge of adhering to its financial regulations.

UEFA will not permit clubs to report earnings from the sale of assets to sister companies, as reported by The Times.

This is a lacuna that co-owner Todd Boehly and Clearlake have exploited by selling two of Chelsea’s hotels to a sister company for £76.5 million.

In the interim, the women’s team was transferred to the club’s parent corporation two days prior to the conclusion of the fiscal year in June.

Chelsea has been permitted to declare the transactions as registered income, as the Premier League has yet to address these loopholes.

However, Chelsea may encounter complications in the future as a result of UEFA’s more stringent posture.

The English Football League prohibits this loophole for clubs in the Championship, League One, and League Two.

Chelsea’s participation in the Conference League this season would not be affected by any sanction or settlement for violating UEFA’s financial regulations.

Nevertheless, Chelsea’s failure to adhere to the regulations could lead to their exclusion from European football in the upcoming season.

Financial penalties and other sanctions are among the prospective penalties, in addition to exclusion from UEFA’s competitions.

Nevertheless, UEFA emphasised that its independent council would need to evaluate each case on an individual basis.

The financial regulations of UEFA are already more stringent than those of the Premier League.

The Profit And Sustainability Rules of the Premier League allow clubs to incur a maximum loss of £105 million over a rolling three-year period.

However, the ‘football earnings’ law of UEFA stipulates that clubs are limited to a maximum loss of £34.5 million over the course of two seasons.

Boehly reiterated that Chelsea was in compliance with UEFA regulations in order to prevent any rumours of trouble upon the publication of their most recent accounts in April.

This is despite the fact that the club has spent nearly £1.2 billion on transfers since their arrival in May 2022.

This encompasses yet another substantial summer of transfer activity, during which the significant departures of Conor Gallagher and Ian Maatsen to Atletico Madrid and Aston Villa, respectively, were counterbalanced by the substantial contracts signed by Pedro Neto, Joao Felix, and Kiernan Dewsbury-Hall.