Bizarre: Chelsea sell club hotel to subsidiary to avoid points fine

Many were outraged when Chelsea took extreme measures to avoid breaking the profit and sustainability regulations (PSR).
Bizarre: Chelsea sell club hotel to subsidiary to avoid points fine

Because of their financial woes, the Blues will most certainly have to sell a plethora of players; some of whom are considered to be their household names. A massive point penalty is imminent unless the Blues can raise money and recover some of their exorbitant losses quickly.

Everton and Nottingham Forest have already taken a hit this season from the Premier League; Chelsea may get much worse.

One approach to bring the club’s financial figures per the Premier League’s PSR regulations would be to sell home-grown players.

This would be considered ‘pure profit’ on the books. But that might mean the Blues want to unload Conor Gallagher, Armando Broja, and Lewis Hall. They may also think about trying to locate captain Reece James a suitor.

The Blues have the excruciating task of repairing their finances as they wait for word on a possible punishment. In light of this, the club owners sold a hotel directly across from Stamford Bridge to another one of their companies. But their attempt to stay inside the Premier League’s expenditure limits has only caused a stir online.

Hotels sale leads to online criticism

A few months back, Chelsea announced a $112 million deficit for the fiscal year ending in June 2023. All of it fell just an inch within the parameters set forth by the Premier League’s rules.

After that, many started wondering how they managed to do it with record expenditure and whether they would comply with the PSR regulations this year. But this weekend, the club’s books came out. And surprisingly, they showed a previous loss of $310 million for the fiscal year ending in June of last year.

It has been revealed that the partnership that acquired the club in May 2022—led by Todd Boehly and Clearlake Capital—reaped $94 million from the sale of two nearby hotels. The club said that after accounting for hotel sales and other adjustments, these enormous losses were brought down to $112 after taxes.

The Telegraph say that they used two separate valuers to make sure they were getting a fair price, and the transfer was finalized in accordance with Premier League regulations. Blueco 22 Properties Limited, a subsidiary of Blueco 22 Limited, was permitted to lessen their losses via the sale of properties. However, that hasn’t prevented rival supporters from expressing their shock.

Overspending on all fields

Transfers cost Chelsea $930.5 million, while their salary bill skyrocketed to $503 million. Their wage budget included incentives for winning the Premier League, Champions League, and FA Cup. Nonetheless, it is allegedly second to Manchester City’s wage budget among England’s top teams.

If Mauricio Pochettino’s side decide to sell their stars, the high salary they command may make it difficult for other teams to compete for their services. Chelsea will most certainly be required to demonstrate PSR compliance to the Premier League; yet, according to the Daily Mail, their financial statements were worse than anticipated.

These reports surfaced after Chelsea’s reported spending of over $93 million on agency fees during the previous campaign. To put that in perspective, it’s more than all of the teams in lower-tier English football combined and more than any Premier League side.

by Martina Alcheva

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