Chelsea ‘avoided financial rule breach’ by selling their women’s team to themselves – as club post net profit of almost £130m after exploiting PSR loophole

Chelsea have posted a net profit of almost £130million in their latest accounts published on Monday, after selling the women’s team to the west London club’s parent company. 

A statement on the Blues’ website did not specify for how much the women’s team was sold to Blueco, the holding company used in Todd Boehly and Clearlake Capital’s takeover three years ago, but said ‘profit on disposal of subsidiaries’ was £198.7m.

The move, according to The Times, helped Chelsea avoid breaching the Premier League’s Profit and Sustainability Rules last season, with the club continuing to splash out on a glut of new players since Boehly and Clearlake Capital’s arrival in May 2022, spending over £1billion on transfers.

The club transferred ownership of the women’s team to their parent company on June 28, just two days before the deadline to register finances for the 2023-24 season.

The Premier League’s 20 clubs opted not to close a loophole allowing teams to generate income by selling assets to sister companies, with the Blues already registering the sale of two hotels to an affiliate company for £76.5m. 

Despite adhering to the Premier League’s rules, it is claimed Chelsea are likely to be in breach of Uefa’s financial regulations, which do not permit clubs to register income by selling assets to sister companies.

It comes after the west London club sold their women’s team to their parent company Blueco

Todd Boehly (above) and Clearlake Capital took over the Premier League giants in May 2022

Along with player sales of £152.5m, the sale of the women’s team has helped the club record a net profit of £129.6m, compared with a loss of £90.1m in the previous year.

A Companies House filing on July 11 last year stated that as of June 28, Blueco Midco was now ‘a person with significant control’ of Chelsea Football Club Women Ltd, with a separate filing on the same date marking the cessation of Chelsea FC Holdings – the company linked to the men’s team – having significant control on June 28.

The Premier League was understood at the time who have begun an assessment of the sale under its associated party transaction (APT) rules to determine if it was for fair market value.

Sources close to the club described the transfer of ownership last summer as a ‘repositioning’ of the women’s team that would enable that investment to take place.

On Monday, the club said the repositioning ‘will ensure CFCW has dedicated resources, management and commercial leadership solely focused on the growth and success of the women’s team’.

The sale of club-owned assets to a related company is allowed under Premier League rules, but must be for fair market value.

A move to bring in an outright ban on such sales was narrowly voted down at the league’s annual general meeting last June.

The club announced on Monday that revenue fell to £468.5m for the year ending June 30, 2024, due to their absence from the men’s Champions League.

The sale of the women’s team helped the Premier League club record a net profit of £129.6m

Chelsea have splashed out over £1bn on new players since the arrival of Boehly and Clearlake Capital in May 2022. (Pictured: Moises Caicedo signs for £115m from Brighton in 2023)

Enzo Maresca’s side take on Spurs on Thursday as they chase Champions League qualification

Chelsea will be eager to qualify for next season’s Champions League with a top four finish at the end of the season, currently holding a one-point advantage over reigning Premier League champions Manchester City.

Enzo Maresca’s side take on struggling London rivals Tottenham at Stamford Bridge on Thursday night, after losing three of their last five Premier League games ahead of the March international break.