Chelsea: Chelsea write their name in the string of clubs receiving punishment for Financial Fair Play breaches. The Premier League club’s new owner Todd Boehly took over last year and noticed the breaches. He reported the breaches that date back to previous owner Roman Abramovich’s reign promptly to UEFA. Following an investigation, UEFA handed the Blues a fine of €10 million or £8.5 million as a settlement. Reportedly, Chelsea paid the fine and settled the matter. The fine adds to the pile of financial loss the Blues are suffering.
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After Manchester United, Juventus, Barcelona, Apoel, Konyaspor, Basaksehir, and more European clubs, Chelsea have also been punished for breaching the FFP rules. Chelsea paid €10 million to settle the breach which happened during their previous owner Roman Abramovich’s time at the club. UEFA recently released a statement regarding the matter saying, “With respect to Chelsea FC (ENG), the CFCB First Chamber concluded that the club breached the UEFA Club Licensing and Financial Fair Play regulations as a result of submitting incomplete financial information.”
It further read, “Following the club’s sale in May 2022, the new ownership identified, and proactively reported to UEFA, instances of potentially incomplete financial reporting under the club’s previous ownership. The reported matters related to historical transactions which took place between 2012 and 2019. Following its assessment, including the applicable statute of limitations, the CFCB First Chamber entered into a settlement agreement with the club which has agreed to pay a financial contribution of €10 million to fully resolve the reported matters.”
It might seem that many clubs have breached the FFP rules in this period. However, there seem to be two underlying reasons. First, the financial loss clubs suffered due to Covid. Second, UEFA updated their FFP rules last year and the Covid-related losses are falling into the transit period of the old rules to the new rules. In Chelsea’s case, the breaches occurred during the time of their previous owner Roman Abramovich. The Russian oligarch left at the beginning of last season after selling the club to Todd Boehly and Co.
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Abramovich had to sell the club during the Russia-Ukraine war as all his possession in the UK including Chelsea was ceased. Eventually, Chelsea’s financial operations stopped which saw them suffer a big loss. Last year, the Blues registered a loss of around €141 million due to ‘extraordinary expenses and loss of revenue’. However, it seemed that during Abramovich’s time, incomplete financial information was submitted to the UEFA. Their new owners, including Todd Boehly, noticed these breaches and promptly reported them to UEFA.
The €10 million fine adds to the amount of financial loss the club is suffering in this period. They ended last season in 12th place after winning only 11 matches out of the season’s 38 games. This means they are not selected for any of the upcoming season’s European tournaments. Hence, they will be missing out on a lot of payments. Additionally, they spent a huge amount on buying players without thinking last season. Even though they have sold a big number from the bloated squad, they still have a long way to go.
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