The Premier League has approved the £76.5 million sale of two hotels by Chelsea to a sister company, helping them meet the division’s profit and sustainability (PSR) rules.
In the club’s accounts for the 2022-23 financial year published in April 2024, it was disclosed that the Blues made a loss of £89.9 million.
However, that sum would have been £166.4 million had they not sold the Millennium and Copthorne hotels adjacent to Stamford Bridge.
Reports indicate that the deal meant the two properties witnessed a change of ownership from Chelsea FC Holdings Ltd to BlueCo 22 Properties Ltd.
The aforementioned companies are subsidiaries of Chelsea’s holding company, BlueCo 22 Ltd.
The Premier League’s Stance On Transaction To Sister Companies
UEFA and the English Football League have prohibited such sales, but the Premier League gives room for them to occur.
This is subject to an evaluation of their “fair market value” under the league’s associated-party transaction regulations.
According to reports from ESPN, this process has now been finalized, and the deals were found to be within an admissible margin relating to estimates of the hotels’ valuation if they had been traded to another bidder.
Based on reports, some Premier League clubs were doubtful about the credibility of the sales.
If there had been complications, Chelsea could have been put under the spotlight with questions surrounding the club’s activities alongside their ability to comply with PSR rules given huge attention.
Under profit and sustainability (PSR) rules, teams are allowed to have a maximum of £105 million in losses over a three-year phase.
Specific costs, including infrastructure spending and investment in women’s football, can be excused.
Can Chelsea Comply With Profit And Sustainability (PSR) Rules?
Reports suggest that Clearlake Capital, the majority owner of Chelsea, are confident of the club abiding with the regulations both in previous campaigns and in the 2024-25 accounting term.
The Premier League voted on the possibility of prohibiting the type of transactions involving sister companies at their Annual General Meeting in June 2024, but sources claimed that just 11 clubs supported the proposal.
Based on Premier League regulations, a minimum of 14 votes or at least a two-thirds vote was needed for the rule to be altered.
Chelsea
Chelsea have had a wishy-washy start to the 2024/25 season, with the Blues securing 1 win in their first 3 league matches.
The Blues lost to Manchester City 2-0 at Stamford Bridge in their opening game of the Premier League campaign, before smashing Wolverhampton Wanderers 6-2 at the Molineux.
Subsequently, Chelsea played out a 1-1 draw with Crystal Palace at Stamford Bridge, with Nicolas Jackson scoring for the Blues and Eberechi Eze netting for the away side.
Meanwhile, in all competitions, Enzo Maresca’s side have picked up 2 wins in 5 matches.
The Blues defeated Swiss side Servette 2-0 at Stamford Bridge in the first leg of the final qualification round for the 2024/25 UEFA Conference League, before surprisingly losing 2-1 in the reverse fixture played in Switzerland.
Despite the massive influx of signings made this summer, Chelsea have flattered to deceive thus far this campaign.
