Chelsea have been hit with a €31million (£26.8m) fine for breaching UEFA’s financial rules, with that figure potentially rising to a record-breaking €91m (£78.5m) if they fail to comply within the next four years amid the threat of further sanctions hanging over them.
European football’s governing body announced on Friday that Chelsea had agreed to a settlement, though worryingly, the Blues may also be banned from registering new players for the Champions League unless they can balance their books in time. This summer they have signed Liam Delap from Ipswich and Joao Pedro from Brighton, and have agreed a deal to bring in Jamie Gittens from Borussia Dortmund, but now appear in a position where they need to sell.
Aston Villa have also been fined €11m (£9.5m) which could rise to €26 million (£22.4m) over the next three years and UEFA said in a statement yesterday: ‘All clubs agreed to reach intermediate annual targets, and to the application of conditional financial and sporting measures should these targets not be met (i.e. stricter restriction on the registration of new players on the list A and exclusion from the next UEFA club competitions for which they will qualify).’
Chelsea agreed to pay an unconditional fine of €20m (£17.3m) for not complying with UEFA’s ‘football earnings rule’. That could increase to €80m (£69m) if they do not comply with targets. The Blues will also fork over a further €11m (£9.5m) fine for breaching the ‘squad cost rule’.
UEFA’s Club Financial Control Body imposed the disciplinary measures against Chelsea.
Villa have also agreed to their own settlement of a €20m (£17.3m) fine, of which €5m (£4.3m) is unconditional, for failing to comply with the ‘football earnings rule’. They too will pay a further €6m (£5.2m) for breaching the ‘squad cost rule’.
Chelsea have been fined €31million (£26.8m) by UEFA, potentially rising to €91m (£78.5m)
The Blues sold their women’s team to a sister company to avoid Premier League PSR breaches – a move allowed domestically but banned under UEFA rules when used to register a profit
Aston Villa have also been fined €20m (£17.3m), of which €5m (£4.3m) is unconditional, for failing to comply with the ‘football earnings rule’
UEFA said: ‘In assessing the clubs’ compliance with the football earnings rule, the CFCB placed particular attention on transactions involving the sale of tangible or intangible assets, the exchange of players (so called “swaps”) and the transfers of players between related parties.
‘Clubs were required to perform adjustments, as profits from such transactions cannot be recognised as relevant income according to the UEFA Club Licensing and Financial Sustainability Regulations: Edition 2024 (“Regulations”).’
UEFA added both Chelsea and Villa were found to have a reported squad cost ratio between 80 and 90 per cent, and reminded them that as from 2025, they will only be allowed to spend 70 per cent of their revenue on player-related costs.
Chelsea said in a statement: ‘The club has worked closely and transparently with UEFA to provide a full and detailed breakdown of its financial reporting, which indicates that the financial performance of the club is on a strong upwards trajectory. Chelsea FC greatly values its relationship with UEFA and considered it important to bring this matter to a swift conclusion by entering into a settlement agreement.’
