Chelsea face ‘more severe’ points deduction than Everton and Nottingham Forest over Premier League financial rules
Chelsea only narrowly dodged FFP penalty last season thanks to one massive transfer
A FINANCIAL expert has warned that Chelsea face a “more severe” points deduction than Everton and Nottingham Forest if they are found guilty of breaking Premier League financial rules.
The Blues have spent over £1billion on new signings since Todd Boehly’s arrival in 2022.
But clubs cannot record a loss of more than £105million over a three-year period under the League’s profit and sustainability rules.
Everton and Forest have both fallen foul this season, with each side receiving a points deduction.
Everton have been docked six points by the league following an appeal.
While Forest have been plunged into the relegation zone after a four-point hit.
Chelsea are yet to face any charges, with the club having also sold plenty of players.
More are likely to go this summer, with big earners such as Romelu Lukaku and Kepa Arrizabalaga linked with Saudi Arabia.
However, the Blues could miss out on European qualification for the second season running.
That would see their finances take a huge hit, especially with Boehly hoping to land a world-class striker.
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And financial expert Stefan Borson reckons Chelsea would face a huge points deduction if they are eventually charged and found guilty of breaching Premier League financial rules.
He told : “Possibly more severe (than Forest and Everton).
THE PSR STATE OF PLAY
Where clubs in danger stand...
Nottingham Forest
Deducted four points for breaching spending limit by £34.563m. Appeal is likely with final decision then expected by early May.
Everton
Initial 10 point deduction for 2021-22 breaches reduced to six points on appeal. But the club will have a hearing into its admitted 2022-23 breach next week and faces further points loss
Manchester City
Etihad club emphatically denies the 115 allegations laid against them in February 2023. The lengthy Commission case has been scheduled to start in October or November but a final decision is not expected until March or April 2025.
Chelsea
Blues chiefs flagged up illicit payments made to agents and others during the Roman Abramovich era. Fined £8.6m by Uefa but still to be formally charged by the Prem despite an ongoing investigation.
Leicester
Foxes breached Prem PSR loss limits last season but did not have to report their 2022-23 accounts until this month because of their relegation. That puts the timetable back and means that they will probably face a Prem points deduction next term if they are promoted back to the top flight.
“I think the scale of the losses they’re currently forecasting, to me, appear to be vastly in excess of both Everton and Nottingham Forest.”
Explaining there’s already a black hole in Chelsea’s finances, he continued: “There was an assumption with Mason Mount, because he was announced on Manchester United’s website on July 1 that [his sale] had been put into this current season.
“So the £55million of profit was in this season. It now transpires that Mason Mount appears to have been transacted in 2022/23 and that is how they got through [FFP rules].”
Host Simon Jordan said: “Which means they’ve now got a £55m bigger hole this season.”
Borson continued: “Correct, because we also know from the BlueCo accounts that they are currently, from the post-balance sheet events, that they are something like £48m in profit for this year.
“But of course, this year from an operating perspective, is going to be even worse than last year because they’ve got no Champions League and no Europe at all.”
Reflecting on potential Chelsea exits, he said: “It’s those sort of deals that need to be done. And by the way, they all need to be done by June 30. That, as we know, is articulated within the Forest decision.
“There’s a whole conversation about how hard it is to sell players in the period before June. The Premier League actually suggested that more or less that it was impossible.”
Jordan then noted: “What Stefan is basically saying in the shortest of terms is that is absolutely inconceivable that by December of next year that Chelsea won’t be facing a charge from the Premier League for breaching Financial Fair Play, unless there’s a complete sea change in the rules or a complete re-rowing back from that perspective.
“If you’re looking at Chelsea’s numbers, unless they’re going to sell somewhere in the region of £200m worth of players, so the players you think they’re least likely to sell, then Chelsea are going to be in the situation Nottingham Forest and Everton have been in this time next year.”