Chelsea Forced to Sell Hotel to Avoid Potential Bans, Meet Premier League’s Financial Rules

Chelsea Forced to Sell Hotel to Avoid Potential Bans, Meet Premier League’s Financial Rules

Martin Moses
updated at April 14, 2024 at 8:54 AM
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  • Chelsea owners have sold hotels to another company they own to meet spending rules
  • The club made staggering losses last year and are looking for corrective measures
  • Everton and Nottingham Forest have been deducted points this season due to PSR rules

Chelsea owners have once again gotten creative in a bid to remain in good standing with the Premier League's financial rules.

Since the Todd Boehly-led consortium took over in 2022, the Blues have spent more than a billion euros on new players. Speculation has always been rife that the Blues could soon be sanctioned for flouting Financial Fair Play rules.

Todd Boehly, Chelsea, Behdad Eghbali, Profit and Sustainability Rules, Premier League
Chelsea co-owners Todd Boehly and Behdad Eghbali on April 18, 2023. Photo by Nick Potts/PA Images.
Source: Getty Images

As Sports Brief previously explained, the new owners first adopted the amortisation policy, which spread a player's transfer fee over a couple of years. For example, Mykhailo Mudryk was brought in for an excess of 80 million euros on an eight-year contract. Mudryk's deal is believed to have been spread across eight years, with Chelsea paying instalments of slightly over 10 million euros each year.

The Premier League has since moved in to put a cap of only five-year contracts(maximum) for new players.

Chelsea owners sell hotels

The Telegraph now reports the club has sold two of its hotels in an attempt to balance its books for this season in Premier League's sustainability rules. The hotels have been sold to - get this - BlueCo, a company owned by the same Chelsea owners, which has elicited sharp reactions online.

The two hotels on Stamford Bridge's site have raised revenue of £ 75.6 million, which is still a far cry from the £248.5m loss Chelsea recorded in the last financial year. But his has been reduced to £90.1m after other adjustments were considered.

Everton and Nottingham Forest have already been charged and docked points this season after they were found guilty of breaching the Profit and Sustainability Rules (PSR).

Clubs with highest agent fees

In a separate report, Sports Brief reported that Chelsea paid close to £75 million in agent fees for two years.

The club was busy at that time, signing midfielders Moises Caicedo and Enzo Fernandez for huge sums of money, among other players.

The figure is £15 million more than Manchester City in second place.

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Martin Moses
Martin Moses is a sports journalist with over five years of experience in media. He graduated from Multimedia University of Kenya (Bachelor of Journalism, 2017-2021)