Following the Premier League’s approval of Chelsea’s hotel sales, insiders have told Football Insider that the team has averted a potential profit and sustainability (PSR) infringement for 2022-2023. According to Chelsea’s most recent financial reports, they received £76.5 million for the sale of two Stamford Bridge hotels to a sister business last year.
In other words, for the fiscal year 2022-2023, their losses dropped from a possible high of £166.4 million to £89.9 million. After conducting a “fair market valuation” in accordance with the associated party transaction (APT) criteria, ESPN announced on September 4th that the Premier League had finally approved the hotel sales. There are many who tell Football Insider that, in a development that many have found surprising, Chelsea would not have passed the PSR requirements if the Premier League had not authorized the sales.
Chelsea likely to be hit with fine after potential UEFA breach
Chelsea most certainly broke the financial regulations put forth by the governing body, according to a report published in The Times on August 28th. UEFA declared that teams will not be allowed to register gains from selling assets to sibling firms. However, financial analyst Stefan Borson told Football Insider that the West London team probably always planned to break such regulations and will pay the fine that is imposed.
According to a report published in The Times on August 28, UEFA has stated that teams will not be allowed to record profits from asset sales to sibling firms. This suggests Chelsea may have violated the financial regulations put forth by the regulatory body. However, financial analyst Stefan Borson told Football Insider that the West London team probably always anticipated breaching such regulations and will be responsible for paying any fines incurred.
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