Todd’s tactics may be over
Chelsea may face exclusion from European competition due to UEFA cracking down on a loopholes previously exploited by Chelsea.
This comes with Chelsea currently fighting for a place in the group stage of the Europa Conference League with a second leg play-off against Swiss side Servette to come.
The Blues won 2-0 at Stamford Bridge and will be looking for more of the same away at the Stade de Genève to confirm their qualification.
However, the club could face a ban in the future for their money-managing tactics that American owner Todd Boehly has introduced to the club.
This comes in the form of selling assets from sister to companies to help balance the club books.
This have proven extremely important to Chelsea who have spent over £1bn since their new owner arrived.
The practice has seen sister companies of Chelsea sell assets such as hotels with the funds then transferred to the club.
Through this method Chelsea were able to raise £76.5m with the the sale of two hotels.
Now UEFA are looking to crack down on this exploitative tactic by banning the loophole which could mean clubs that violate the system could find themselves banned from Europe.
Other consequences could include warnings or a fine, it is reported.
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Chelsea can sleep happy this season as any punishment is expected to be dealt next season.
This rule on financial management is not new, however, it is only just being investigated now by UEFA while such transactions are banned by the English Football League.
As reported by The Times, UEFA confirmed that its rules did not allow for clubs to register income from selling assets to sister companies.
Now, the Blues will have to find other ways to offset their enormous expenditure which, if they fail to do so, could land them in hot water with UEFA’s Financial Fair Play and the Premier League’s profit and sustainability regulations.
All this comes while watching their backs for potential sanctions next year further contributing to the current untidy proceedings at Stamford Bridge.
