Rival clubs are “exasperated” by Chelsea’s controversial loophole that has been used to adhere to the Premier League’s financial rules.
Last week it emerged that Chelsea had eased their financial position by selling two hotels to a sister company for £76.5milliion, in a deal that appears to have helped them avoid a breach of profitability and sustainability rules (PSR).
Chelsea’s accounts show that the club made a loss of £89.9million in the last financial year. That figure would have been £166.4million if the hotels had not been sold to Blueco 22 Properties Ltd, a subsidiary of Chelsea’s holding company.
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The Guardian has claimed that while the Premier League did not block the sale of the Millenium and Copthorne hotels, the Blues’ exploitation of a loophole has not gone down well with its clubs.
The publication has alleged that an executive at one top-flight club was “incredulous” after learning of the deal while another club were left with “raised eyebrows” upon reading the accounts “with interest”.
Another club is said to have expressed a sense of resignation, with a figure there admitting the deal came as “little surprise”.
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Premier League sides are not allowed to have losses of more than £105million over a three-year period.
The league has severely punished PSR breaches this term, with Everton having received their second points deduction of the season last week, and Nottingham Forest having been docked four points last month. Both have appealed their punishments.
Chelsea have spent beyond £1billion since the arrival of Todd Boehly and Clearlake Capital two years ago and to comply with the regulations, it is likely they will need to sell players to raise funds.
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Chelsea’s accounts claim that the hotel sales were yet to be assessed as “fair market value” under the league’s associated-party transaction rules.
Should the £76.5million valuation decrease it could see Chelsea face renewed pressure to comply with the league’s regulations.
Topics: Chelsea, Premier League
Chris Byfield