Chelsea are reportedly in talks with UEFA after falling foul of the governing body's financial regulations.
On Saturday morning, it was claimed that Chelsea have 'breached UEFA's financial loss limit'.
Taking to social media, The Times journalist Martyn Ziegler wrote: "Exclusive: Chelsea have breached UEFA financial loss limit & are in talks over a settlement.
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"It comes after UEFA would not allow £200m world record value sale of women’s team to sister company to be treated as income."
The report went on to claim that Chelsea are in talks with UEFA over a settlement, which could involve them paying a fine and agreeing to a 'spending plan' for the next three campaigns.
The Times stated: "That plan could include the threat of stiffer sanctions such as exclusion from European competition for a season if they breach the limits again."
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The outcome of the talks between the two parties is set to be made public by UEFA in May.
Chelsea could face UEFA punishment after 'loophole' rejected
Chelsea's owners had raised close to £200 million after selling the club's women's team to sister company Blueco 22 Midco Ltd.
In addition the Stamford Bridge club also registered an income of £76.5m after selling two hotels to another sister company in June 2023. The move is said to have helped them to adhere to the Premier League's Profit and Sustainability Rules.
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However, it has been reported that unlike the Premier League, UEFA's financial regulations do not allow asset sales to sister companies to be declared as income.
According to the UEFA regulations, it is allowed that clubs could lose a maximum of £170 million over three years but Chelsea have a total loss of £358 million.
It has been said that Chelsea owners, Todd Boehly and Clearclarke are 'relaxed about the position and maintaining good relations with Uefa'.
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Aside from Chelsea, it has been claimed that at least three other clubs have also fallen foul of the regulations.
SPORTbible has contacted Chelsea Football Club for comment.
Topics: Chelsea, UEFA, Premier League, Football
Marcus Chan