Chelsea’s financial disclosures suggest an increased likelihood of a Premier League points deduction, mirroring previous sanctions for other clubs over financial fair play breaches.
According to reporting by football finance experts, corporate filings have suggested that Chelsea are ‘more likely’ to face a sporting sanction, such as a points deduction, following a revelation about a £150 million reserve established during the club’s sale.
The issue stems from 74 charges issued by the Football Association (FA) relating to alleged breaches of rules governing agents and “irregular payments” made during Roman Abramovich’s tenure, primarily between the 2010/11 and 2015/16 seasons.
These undisclosed payments, which reportedly involved transfers for players like Eden Hazard, Willian, and Samuel Eto’o, were not fully declared in official accounts.
The current owners, Todd Boehly and Clearlake Capital, self-reported the incomplete financial information following their 2022 takeover.
While Chelsea’s hierarchy has consistently expressed confidence in receiving only a financial penalty due to their “unprecedented transparency” and cooperation, the recent financial revelation suggests otherwise.
Fordstam Limited, the corporate entity that previously housed the club, revealed in recent accounts that it does not expect to receive £150 million of the sale proceeds.
This amount was withheld as a clause to cover the costs of any potential legal or financial penalties related to pre-acquisition events.
Football finance expert and lawyer Stefan Borson noted the significance of this buffer: “The holdback amount will not just indemnify any financial penalty from a fine. It may also cover claims for consequential losses from any sporting sanctions, such as a loss of a European place or [Premier League] merit payments.”
Another expert, Kieran Maguire, an associate professor in football finance, also suggested that while the club itself would pay any penalty, the owners would be largely protected, concluding that the scale of the withheld money indicates a sporting sanction is now a more probable outcome than previously thought.