Chelsea is encountering difficulties in adhering to UEFA's financial regulations after the European governing body clarified that clubs are prohibited from recording income generated from the sale of assets to affiliated companies.
The Premier League has not yet addressed the loopholes that
permitted Chelsea to account for the sale of two hotels to an affiliated
company for £76.5 million, as well as the transfer of the women's team to the
club's parent organization.
UEFA reiterated that its regulations do not permit clubs to recognize income from asset sales to sister companies, emphasizing that each case will be evaluated individually by its independent panel.
Additionally,
such transactions are also prohibited by the English Football League for clubs
competing in the Championship, League One, and League Two.
Chelsea did not participate in European competitions last season, having ended the 2022-23 Premier League season in 12th place.
In contrast, after securing a sixth-place finish last season, they are now competing in the UEFA Europa Conference League.
The draw for the league phase of the Conference League is scheduled for Friday.
Chelsea has previously encountered issues with UEFA's Financial Fair Play (FFP) regulations. In July of last year, they were fined £8.6 million by UEFA as part of a settlement for violating FFP rules by 'submitting incomplete financial information' from 2012 to 2019.
The new ownership under Boehly reported these violations after their acquisition of the club.