Chelsea to face UEFA’s wrath if they qualify for Europe
Chelsea’s dream of returning to Europe next season could be haunted by financial fair play concerns, according to The Times.
Chelsea have climbed to seventh on the Premier League table following successive wins over West Ham United and Tottenham Hotspur.
However, UEFA’s stricter regulations pose a bigger challenge than the Premier League’s Profit and Sustainability Rules (PSR). It can potentially cause problems for the Blues if they qualify for Europe.
UEFA’s new football earnings rule allows clubs a maximum loss of €40 million over two seasons. It is much tighter than the Premier League’s £105 million over three.
Chelsea’s £89.8 million loss last season and lack of Champions League income this season raise red flags.
The club’s hefty spending on agents’ fees (£75.1 million this season alone) and a net transfer spend of over £400 million in the past two windows further complicate the situation.
Some investments are exempt under UEFA’s rules, but Chelsea must make financial manoeuvres to survive.
Chelsea cannot use the amortisation loophole they have popularised as UEFA has closed it.
Over the past two seasons, Chelsea spread transfer fees over the entire contract length. Now, deals like Enzo Fernandez’s £106 million signing can only be spread over five years. This will impact their financial calculations.
Chelsea have a checkered history with UEFA. The Blues agreed to a €10 million settlement in July for undisclosed payments under previous ownership. Those payments are currently being investigated by the Premier League.
Also, the West Londoners narrowly escaped action in 2022 due to Covid allowances.
Despite these concerns, Chelsea chairman Todd Boehly remains optimistic. He claims the club will comply with UEFA and Premier League regulations. The Eldridge chairman highlighted their past compliance record.
However, the stakes are high, and Chelsea cannot afford to be lax. Juventus were excluded from the Europa League this year for financial breaches, reminding offenders of the consequences.
Chelsea must act swiftly and find a way to navigate UEFA’s stricter regulations and secure their place in Europe.
The coming months will be crucial in determining the club’s financial health and eligibility for European glory.