Chelsea’s finances have revealed that they had to sell a hotel for £76.3 million in order to stave off a points deduction.
It has come to light that the Blues had to sell the hotel to BlueCo, the consortium led by Todd Boehly and Clearlake that owns Chelsea, in order to remain compliant with the Premier League’s profit and sustainability rules, The Daily Mail reports. The Premier League allows for clubs to record losses of up to £105m ($134m) a year, but the Blues existing losses are £249m ($310m).
Chelsea’s financial problems will likely force them to sell a large number of players – with a focus on offloading home-grown stars. The Blues will be in a race against time to raise funds and recoup some of their extortionate losses if they are to avoid being hit by a huge points deduction. The Premier League have already cracked down on Everton and Nottingham Forest this season – Chelsea could face a far more severe punishment.
Selling home-grown players counts as ‘pure profit’ on the club’s balance sheet and would go a long way to getting closer in-line to the Premier League’s profit and sustainability rules. This may mean, however, that the Blues may look to sell Lewis Hall, Armando Broja and Conor Gallagher. They could also consider finding a suitor for captain Reece James.
The Blues face an agonizing challenge of fixing their finances and a long wait to find out if they will be sanctioned. Chelsea is currently ninth in the Premier League and unlikely to gain European qualification which would have alleviated some financial pressure.
(Goal)
