Chelsea face difficulties as their finances revealed they had to sell their hotels for £76.3 million to fend off points deduction.
According to Daily Mail, the Blues had to sell the hotel to BlueCo, the consortium led by Todd Boehly and Clearlake that owns Chelsea, to remain compliant with the Premier League’s profit and sustainability rules.
Officials at the club claim that this transaction was conducted according to Premier League regulations and was approved by the league before its completion.
Recall that the Premier League allows for clubs to record losses of up to £105m ($134m) a year, but the Blues existing losses are £249m ($310m).
The officials also stated that independent valuers were employed to determine a fair price for the sale.
However, despite these disclosures, fans of rival clubs were shocked to see that Chelsea’s losses have been reduced through the sale of property to a subsidiary of the club’s ownership.
Following the numbers revealed, it is clear that Chelsea may struggle to meet the Premier League’s Profit and Sustainability (PSR) regulations this summer, as rival clubs believe the London club have to sell players to avoid a breach.
Meanwhile, Chelsea remain confident in their compliance, despite a reported pre-tax loss of £90.1m in their accounts published on Companies House for the year ending June 30, 2023.
The Blues invested £747m in player transfers, and their wage bill rose to £404m, reportedly ranking second only to Manchester City among top English clubs.
However, City’s high salaries included bonuses for winning the Premier League, Champions League, and FA Cup treble last season.
As it stands, Chelsea’s financial problems will likely force them to sell a huge number of players – with a focus on offloading home-grown stars.
The Blues will be in a race against time to raise funds and recoup some of their extortionate losses if they are to avoid being hit by a huge points deduction as the deadline for clubs needing to generate funds is June 30.
The Premier League has taken action against Everton and Nottingham Forest this season, and Chelsea could potentially face even harsher consequences.
To comply with the league’s profit and sustainability rules, selling home-grown players would be considered as ‘pure profit’ on the club’s financial records.
This could prompt Chelsea to consider selling players such as Lewis Hall, Armando Broja, Conor Gallagher, and potentially even their captain Reece James to meet these requirements.
If Chelsea decide to sell their top players, their hefty salaries could make it difficult to find clubs willing to match their wages, posing another problem.
What’s next for Chelsea?
Chelsea are grappling with the daunting task of stabilizing their finances amidst uncertainty over potential sanctions.
The Blues currently sit in ninth place in the Premier League, making it unlikely for them to secure European qualification and ease their financial burden.
In the midst of their financial struggles, they must now concentrate on a pivotal Premier League showdown against Everton. The game is scheduled to be held at Stamford Bridge on Monday, April 15th, with kickoff time set at 8:00 pm.
