Chelsea may face consequences for their extensive spending under owners Todd Boehly and Clearlake Capital, as UEFA tightens its financial regulations. The European football governing body has confirmed that clubs will no longer be allowed to declare income from selling assets to sister companies, a practice Chelsea had used to help offset losses.

Boehly recently sold two of Chelsea’s hotels to a sister company for £76.5 million and transferred ownership of the women’s team to the club’s parent company just before the financial year ended in June. These transactions were permitted by a Premier League loophole, but UEFA has now clarified that such financial maneuvers will not be allowed under its rules. While the Premier League’s Profit and Sustainability Rules permit clubs to lose up to £105 million over three years, UEFA’s stricter ‘football earnings’ regulations allow for a maximum loss of only £34.5 million over two seasons. Non-compliance with these rules could result in penalties, including potential exclusion from European competition. However, any sanctions would not affect Chelsea’s participation in this season’s Europa Conference League and would instead apply in future campaigns. A similar situation occurred in 2019 when AC Milan was banned from European competition for one year due to financial breaches. In their latest financial report released in April, Boehly emphasized Chelsea’s commitment to meeting UEFA and Premier League financial regulations. He stated, “The club continues to balance on-field success with the financial imperatives of complying with UEFA and Premier League rules, and we expect to maintain compliance moving forward.” Despite this, Chelsea has already spent over £1 billion on transfers under Boehly and Clearlake’s ownership. While the club has generated funds by selling players like Conor Gallagher and Ian Maatsen, their spending—on players such as Pedro Neto and Joao Felix—has significantly outpaced their earnings, raising concerns about their ability to adhere to UEFA’s tighter financial guidelines.