The Blues published their accounts in April, revealing the sale of the Millennium and Copthorne hotels next to Stamford Bridge for £76.5m in an effort to help them avoid a potential £166.4m loss, reducing it to an allowable £89.9m for the financial year.
The hotels changed ownership from Chelsea FC Holdings Ltd to BlueCo 22 Properties Ltd, two companies under the control of the Todd Boehly and Clearlake Capital ownership.
The sales have since been ratified by the Premier League under what is termed a ‘fair market valuation’ under the league’s associated-party transaction rules.
Whether the £76.5m value has been changed is unclear but Chelsea have maintained their confidence in adhering to PSR rules that permitted clubs to have a maximum of £105m in losses over a three-year period as certain costs for infrastructure, academy and women’s football are allowed to be deducted.
Such transactions are not allowed in Uefa competitions, with Chelsea back in Europe in the Conference League this season, and in the English Football League after they closed the loophole in 2021, but the Premier League opted against following suit.
The Premier League remains open to closing the loophole through a future vote.
An attempt to ban such transactions within the league was most recently attempted by Premier League members in June but only a reported 11 clubs supported the idea, with a minimum of 14 needed required to vote through a change to the regulations.
Senior staff within Chelsea and the controlling Clearlake Capital ownership believe they will be compliant with financial rules for the 2024-25 season.
The club is set to earn significant financial reward for taking part in the Club World Cup next summer.
Author: Mujuni Henry
JUNIITV
Related Posts 📫
