The Scale of Chelsea's Challenge
Sources confirm Chelsea faced losses exceeding £200 million over the last two financial years, with projections suggesting a further deficit close to £100 million for 2023-24. Under Premier League Profitability and Sustainability Rules, clubs cannot exceed £105 million in losses over a rolling three-year period. On paper, the Blues were miles over the limit.
Understanding is that Chelsea's position was so precarious that traditional player sales alone could not bridge the gap. By the end of the 2024 January transfer window, the club remained well short of compliance even after generating substantial player trading profit.
The Hotel Sale Loophole
Exclusive: The Premier League approved Chelsea's sale of two hotels and parking garages near Stamford Bridge for approximately £76 million in July 2024. The buyers? BlueCo 22 Properties Limited – the same ownership group that controls Chelsea.
This internal transaction allowed Chelsea to recognise the profit as revenue, offsetting their operating losses. The Premier League accepted this despite the obvious conflict: the properties essentially changed corporate entities but remained under the same umbrella. UEFA and the EFL have banned such related-party transactions for years, but the Premier League maintained this blind spot.
Women's Team Valuation
Chelsea also sold their women's team for a reported £200 million, generating additional funds to balance the books. Combined with the hotel sale and player trading profits of £152.5 million in 2023-24, the Blues cobbled together enough accounting adjustments to stay compliant.
The £6 Million Adjustment
Understanding is that the Premier League reduced the hotel sale profit by £6 million to account for broker fees that would have been payable in an open market transaction. Chelsea then chose to recognise this adjustment as a loss in the 2024-25 accounts rather than adjusting their 2022-23 figures – a move that protected their tenuous PSR position for the earlier year.
The Loophole Survives
At the Premier League's annual meeting near Harrogate in June 2025, a proposal to ban internal asset sales was raised but never reached a vote. Clubs needed 14 of 20 votes to pass; they didn't get enough support. Some felt it was like closing the stable door after the horse had bolted.
The Premier League confirmed in February 2025 that PSR will remain the governing regulation for financial spend in 2025-26. Chelsea's creative accounting has survived scrutiny – for now.
