Chelsea Accused of Allegedly Selling Training Center to Meet Financial Rules

Chelsea training center

A scandal broke out in England with one of its most important clubs. This is an alleged sale of the Chelsea training ground to the group that owns it. The accusation is that the London entity thus sought to comply with the Profitability and Sustainability Rules (PSR) of the Premier League. The club suffered enormous losses and in order to accommodate its numbers it would have resorted to this ploy.

According to the Daily Mail, the deficit amounts to £249 million ($313 million), almost £100 million ($126 million) more than its closest rival, Leicester, which posted a deficit of £152 million. ($191 million).

Since Chelsea also has the most expensive team, valued at £1.1 billion ($1.386 million), the club has sold a hotel to BlueCo, the consortium led by Todd Boehly and Clearlake, which bought the club in May. 2022, for £76.3 million ($96 million) in a bid to stay within the Premier League’s sustainability and profit rules.

Now, in another attempt to comply with financial rules, he has sold his Cobham training ground to the same investment group he owns, according to former Manchester City financial advisor Stefan Borson, who turned to request made by the club at the beginning of February, days after the transfer window closed.

However, Athletic journalist David Ornstein reported on the Peacock stream on Sunday that Chelsea are “confident” they do not need to make any further sales before the June 30 deadline to stay in line with PSR rules. for the 2023-2024 season. Although The Blues will need to make sales to stay in line with the PSR for the 2024/2025 season, but that limit will be in the middle of next year.

Borson questioned whether the training camp potentially being sold internally was linked. Along with a screenshot of the application query, Borson said: “Is this why Chelsea have told David (Ornstein) that they no longer need to sell before June 30, 2024?”

“Their lawyers applied to register this business in early February (after the transfer window closed). So Chelsea’s 2023/2024 PSR confidence appears to be based on this accounting profit exceeding the expected operating loss of more than £200 million ($252 million),” the financial advisor reported.

Borson then asked whether the deal had been approved by the Premier League and whether “more than £100/150 million ($126 million to $189 million) profits could really be made from the sale of Cobham.”

Borson’s publication where he explained Chelsea’s situation

The headline figures revealed exposed Chelsea facing a battle to comply with Premier League financial rules next month as rival clubs believe they have to sell this summer to avoid a default. June 30 is the deadline that clubs that need to generate cash must overcome.

Chelsea are confident they will play by the rules, although the club’s accounts, published on Companies House for the year ending June 30, 2023, showed a pre-tax loss of 90 million pounds ($113 million).

They spent £747 million ($941 million) on transfers, while their wage bill also soared to £404 million ($509 million), a sum believed to be second only to Manchester City among clubs. of England’s elite, although his salary outlay included bonuses paid for winning the treble of the Premier League, Champions League and FA Cup.

High wages could pose a problem if Chelsea are serious about selling their stars, as it will limit the number of clubs that could take their high-paid players off their backs. He will likely have to prove to the Premier League that he is complying with the PSR, but at least one expert said last month that his accounts were worse than they expected. It later emerged that the club spent more than £75 million ($94.5 million) on agent fees last season, the most of any Premier League team and more than all Championship clubs. League One, League Two and National League added.

2024-05-14 00:36:00
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