Skip to main content

Record fine for Chelsea

Chelsea have been fined £27million by Uefa for breaching its financial rules — with the threat of having to pay a further £51.8million — and also face potential restrictions on transfer spending.   It forms part of a crackdown by Uefa on some of Europe’s top teams.

Aston Villa have also been fined £9.5million by Uefa for breaching rules, Barcelona £13million and Lyon £10.8million. Chelsea’s punishment is the largest fine the European governing body has ever imposed on a club.

The clubs “may not register any new player on its List A to Uefa club competitions unless the List A transfer balance is positive”, Uefa’s Club Financial Control Body (CFCB) announced. That means any spending on new players must be covered by income from the sales of outgoing players — it could mean that new signings cannot be added to those clubs’ A lists unless existing squad members are sold.

Further fines will be imposed if Chelsea and Villa — who will play in the Champions League and Europa League respectively this season — do not meet future financial targets agreed with Uefa. That is up to a further £51.8million in Chelsea’s case and £13million in Villa’s.

Chelsea and Villa have both breached two Uefa rules. One is the football earnings rule, which replaced Financial Fair Play and covers financial losses made by the clubs, and the other is the squad cost rule where clubs cannot spend more than 80 per cent of their revenue on player wages, transfers and agents fees. That will also go down to 70 per cent for the 2025-26 season.

Chelsea were fined an immediate £17.2million for breaching the football earnings rule and £9.5million for breaching the squad cost rule. Villa were fined £4.3million and £5.2million for those breaches respectively.

Unlike the Premier League’s financial rules, Uefa refuses to recognise the sales of assets to sister companies as income. That has meant Chelsea have not been able to claim £200million as income from the sale of Chelsea’s women’s team to the club’s parent company and £70.5million from the sale of two hotels by Chelsea to a sister company.

Comments

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...