Chelsea owners resort to drastic measures to ensure club are PSR compliant
Chelsea’s owners have resorted to drastic measures to ensure the club are compliant with the Premier League’s financial rules.
As per the Telegraph, the Blues’ owners have sold both the hotels on the Stamford Bridge site to another company they own, and in turn, generated £75.6million of income that will help them comply with profitability and sustainability rules (PSR).
The club revealed the transaction in accounts published on Saturday which reported a loss of £248.5million over the financial year ending June of last year.
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Chelsea say those losses come down to £90.1million after taxation once the sale of the hotels and other adjustments are taken into consideration.
In the previous financial year, which ended in June 2022 the club reported adjusted losses of £121.4million.
Moreover, the club announced that since a consortium that included Todd Boehly and Behdad Eghbali’s Clearlake Capital acquired the club in 2022 they have spent some £747.8million on transfers.
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Under the Premier League’s PSR regulations clubs’ losses must not exceed £105million over a three-year period.
Moreover, from the 2025-2026 season, clubs will have to comply with new regulations around squad control costs.
Premier League sides will only be allowed to spend no more than 85 per cent of their turnover on transfer fees, player wages and agents’ fees.
As per the Telegraph, it has been confirmed that the income from the sale of the two hotels would be considered PSR compliant.
The two hotels on the Fulham Broadway side of the Stamford Bridge site – the Millennium and the Copthorne – were part of a property portfolio that came as part of the deal to buy the club.
The total cost of the takeover cost the consortium £2.5billion plus an additional £1.75 billion pledged in investment.