Chelsea have reiterated their financial stance despite worrying losses once more(Image: Gaspafotos/MB Media/Getty Images)

Chelsea send firm Premier League FFP response as points deduction warning clear ahead of Everton

Chelsea news as the Blues' owners deliver a point message to suggestions that financial penalties are inevitable in coming years

15 Apr 2024, 03:00 by Tom Coley · football.london

Chelsea continue to state that they are not, contrary to widespread financial forecasting, in danger of falling foul of regulations that could bring heavy fines and possible points deductions as punishments. Despite spending at an unprecedented rate and dropping out of the Premier League's European places, the Todd Boehly-Clearlake Capital ownership consortium are defiant in their stance that the club will not be breaching rules.

Having recorded losses of £90.1million in the 2022/23 period, the Blues are widely expected to push the line in regards to the Premier League's profitability and sustainability rules (PSRs) when the figures are analysed next time round. Although it is not made public how close sides are to overstepping the allowed £105million loss-making mark over a rolling three-year frame, worries for the future have remained as the club prepares to feel the burden of not getting Champions League prize money.

On top of this is the monetary impact of a second giant summer of signings - though this was offset by the sale of over £200million worth of sales. With the club both looking to balance the current activity to meet fallen within the parameters for 2023/24, they also have to look ahead to a more sustainable model.

The consequences of failing to meet the defined figures have been demonstrated clearly in the past six months. Both Everton (twice) and Nottingham Forest have felt the full force of Premier League sanctions with initial points deductions equal to 16 being applied to the clubs before appeal.

Sheffield United have also been charged with financial misdeeds and Leicester City face their own battle with the EFL and/or Premier League next season depending on how their Championship campaign finishes off - it may ultimately not make a difference either. Chelsea have so far avoided punishment but their results and industry projections suggest it won't be as simple moving forward.

Ahead of their clash with still relegation-threatened Everton on Monday night at Stamford Bridge, the club released the breakdown of their accounts. Having publicly stated the losses in March, the full extent of their activity was open for analysis on Friday. Outside of now outdated wage figures that have almost certainly come down in the 12 months since, and the surprise sale of hotel buildings to the club's subsidiary group, BlueCo 22 LImited, there were several pointed statements within.

During the strategic report the owners claim that: "The club continues to balance success on the field together with the financial imperatives of complying with UEFA and Premier League financial regulations." This comes with increased commercial revenue for Chelsea - though how this will look without additional European broadcast funds next year is uncertain - as well as matchday turnover also improving.

The statement continues: "The club has complied with these regulations since their inception in 2012 and expects to do so for the foreseeable future." It also addressed concerns over an ongoing investigation into blackspots in previous financial reports under the Roman Abramovich administration.

"During the prior period, the company self-reported to relevant football authorities certain legal matters concerning historical football transactions," Chelsea's decision-makers add. "The directors acknowledge the ongoing review by the football authorities in relation to these matters."

Most interestingly, the report also seems to open up to the idea that serious punishments of some form could be on the horizon for the alleged wrongdoing under Abramovich. "Depending on the outcome of any review, there could be future liabilities that cannot be quantified as at the date of these financial statements," it adds.

Although the noise around Chelsea continues to be loud, the club have remained strong and defiant in their position. They will be tested on this in the coming months when words must become actions in the transfer market, but it is all the more relevant as they come up against Everton.

The Toffees were the first side to be pulled up on their financial standing in such a way and have been made to pay. They are now the case study that every Premier League side is attempting to avoid a recreation of, Chelsea included.

It is even more pressing for Chelsea that the FA also released figures relating to agent fees in the same week. Unsurprisingly it was the Blues that not only topped this list with over £75million paid out to intermediaries but also that were streets clear of the rest.

Chelsea vs Everton was previously a battle between clubs challenging for the title and European places, now it's one of two wasteful and efficient sides embroiled in unsatisfactory relationships with their ownership. No amount of messaging can or will change that.

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