EXCLUSIVE: Massive update on Chelsea points deduction following shocking twist

Football Insider has been informed by sources that Chelsea has successfully avoided a potential breach of profit and sustainability (PSR) for 2022-23 due to the approval of their hotel sales by the Premier League.

The most recent published accounts of Chelsea indicate that they sold two Stamford Bridge hotels to a sister company last year for a total of £76.5 million.

Their losses decreased from a prospective high of £166.4million to £89.9million for the 2022-23 fiscal year.

ESPN reported on September 4 that the Premier League has ratified the hotel sales following a “fair market valuation” under the associated party transaction (APT) regulations.

Football Insider has been informed by sources that Chelsea would have violated the PSR regulations if the Premier League had not authorised the sales. This development has been met with astonishment in numerous circles.

Everton and Nottingham Forest were both docked points last season for their spending breaches, leading to the likelihood of a points deduction. However, the London titans will not be subjected to a similar fate now that they have passed PSR for 2022-23.

Chelsea is anticipated to incur a fine as a result of a prospective breach of the UEFA regulations.
It is anticipated that Chelsea will have been in near proximity to the spending limit again last season, as the Premier League’s PSR regulations stipulate that clubs may incur a maximum loss of £105 million over a rolling three-year period.

In June of this year, the Premier League team sold their women’s team to a sister company in an additional effort to mitigate their substantial losses. The transaction is estimated to be worth more than £150 million.

On August 28, The Times reported that Uefa has confirmed that clubs will not be allowed to register earnings from the sale of assets to subsidiary companies. This implies that Chelsea are likely to have violated the financial regulations of the governing body.

However, Stefan Borson, a finance expert, stated to Football Insider that the west London club likely anticipated violating those regulations and will be willing to pay any resulting sanction.

At its annual general meeting in June, the Premier League proposed to address the vulnerabilities that Chelsea has exploited. However, the motion was unsuccessful due to the fact that only 11 clubs supported it, resulting in a two-vote deficit.

The governing body is said to be contemplating a new attempt to amend the regulations and may request that clubs vote on its new proposal later this month.

On August 9, Football Insider disclosed that the Premier League would be more likely to succeed with a new motion if the modifications are more closely aligned with the current Uefa regulations.

This would result in the regulations being more focused on football-related profits than on profits generated from non-football-related assets, thereby ensuring that at least some of the loopholes are closed.